IFC Outlines Key Challenges In ESG Issues In South Caucasus


(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 6. The South Caucasus will have to shift the perception of the ESG approach, the regional ESG expert of the International Finance Corporation (IFC) Boris Janjalia said at the conference“For sustainable development of Azerbaijan: presentation of the Unified platform and National Standard on Environmental, Social, and Corporate Governance (ESG)”, Trend reports.

“There are several common challenges in the South Caucasus. First and foremost is perception: in the region, ESG is often perceived as an additional burden and requirement, which limits its implementation. However, ESG is also about new opportunities.

The second important challenge is small and medium-sized enterprises (SMEs), which play a key role in the region's economy. SMEs make a significant contribution to national economies, so it is important to focus efforts specifically on supporting them in the transition to ESG. The introduction of strict regulatory requirements here can be detrimental to business, so SMEs need a gradual, phased approach. It should start with voluntary measures, gradually moving to more stringent requirements as companies are ready.

''This process needs a careful approach and close cooperation with business and industry. Financial institutions play a key role here, as they work with clients and understand their needs and problems,” Janjalia noted.

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Trend News Agency

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