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2024-10-04 04:30:22
The transition to sustainable development requires an innovative approach and the integration of ESG criteria (environmental, social and corporate governance) into the strategies and business models of banking institutions.
As Day.Az reports with reference to Trend, the Chairman of the Central Bank of Azerbaijan said this Taleh Kazymov during a round table on the topic “Creating conditions for private financing“at the university ADA within”Climate Action Weeks” in Baku.
“The financial industry plays a key role in supporting sustainable development, and today we are here to discuss how private finance can contribute to this process. The issue of sustainable finance is relevant both nationally and globally. We are at an important stage: on the one hand “We have an obligation to support economic growth, and on the other hand, our responsibility is to protect the environment. This creates additional challenges for the financial sector and the Central Bank, as it is necessary to take into account climate risks and ensure financial stability,” he said.
He noted that in 2023, the Central Bank of Azerbaijan approved a new system for regulating the financial sector, one of the key elements of which was the introduction of a “green” financial taxonomy.
“We have developed this mechanism to bring the activities of financial institutions into line with international standards. This year we introduced new requirements for banks aimed at managing climate risks and integrating the principles of sustainable development into their corporate governance and financial strategies. The Central Bank of Azerbaijan is actively working on supporting innovation in the financial sector, creating conditions for the successful transition of the economy to sustainable development models not only in Azerbaijan, but also at the international level,” Kazymov added.