National Bank Sets Path for ESG Principles Implementation
The National Bank of Kyrgyzstan has taken a significant step towards promoting sustainable finance and implementing ESG (Environmental, Social, Governance) principles in the banking sector. The approval of a roadmap for the development of sustainable finance signifies a commitment to creating a more environmentally friendly and socially responsible banking system.
The roadmap, approved by the Supervisory Committee of the National Bank on December 20, 2024, outlines strategic directions and specific activities to be carried out in the medium term (2024-2026). Its main objectives include creating a favorable ecosystem for sustainable finance, improving the regulatory framework, introducing new tools to stimulate market mechanisms, assessing and managing climate risks, and raising awareness and capacity among all stakeholders.
This initiative is aimed at fostering a green economy, aligning with the UN Sustainable Development Goals, and enhancing the competitiveness of Kyrgyzstan’s banking sector. The roadmap emphasizes the importance of sustainable financing for economic growth and achieving the goals outlined in the Paris Agreement and the UN Agenda 2030.
Particular emphasis is placed on developing the market for green financial instruments, such as green bonds and loans, and increasing awareness of ESG principles among the population and businesses. Educational programs for banking sector professionals and information campaigns for the general public are also included in the document.
Collaboration with commercial banks, microfinance organizations, and international partners will be crucial in implementing the roadmap and integrating ESG principles into Kyrgyzstan’s financial system. The roadmap envisions three stages of implementation, with a focus on forming a working group, developing a market for green financial instruments, and enhancing transparency in ESG risk management.
Overall, the implementation of this roadmap is expected to enhance the sustainability of the financial sector in Kyrgyzstan and attract investment for long-term economic growth. ESG principles aim to promote the sustainable development of companies by balancing financial profit, social responsibility, and environmental preservation. This holistic approach to doing business aligns with the global trend towards responsible and sustainable practices.
