EBRD and Kazakhstan’s financial regulator promote ESG standards

The European Bank for Reconstruction and Development (EBRD) and the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Markets (ADRFD) joined efforts to promote standards of environmental, social and corporate governance (Environmental, Social, and Corporate Governance, ESG) and Corporate Climate Governance (CCG) among Kazakhstan’s financial institutions.

They will develop and implement guidelines and rules to support Kazakhstan’s transition to a low-carbon and climate-resilient economy. The memorandum of understanding signed by the two parties will provide a framework for cooperation to support financial institutions in adopting a strategic approach to addressing ESG and climate risks, as well as to improve CCG.

«Introduction of these requirements by financial regulators will help financial institutions to strengthen climate risk management,» said EBRD Vice President Alan Piu. -Our cooperation with the Agency will contribute to capacity building to improve ESG and climate risk management, increase transparency and disclosure, and improve the sector’s access to emerging global best practices. This cooperation demonstrates our constant support for the economy of Kazakhstan and our commitment to promoting the «green» economy».

The EBRD has committed to aligning all its investments with the Paris Agreement’s climate change targets by the end of this year. The bank pledged to make most of its investments «green» by 2025.

The EBRD is a leading institutional investor in Kazakhstan. To date, the EBRD has invested more than $10.3 billion in 295 projects in Kazakhstan.