A workshop in Astana discusses ESG risk integration and sustainable development
Astana, 25 October 2023. A workshop on ESG Risk Integration and Sustainability Disclosure in Banks took place in Astana today.
The event was co-hosted by the AIFC Green Finance Centre, Green Investment Principles (GIP) Central Asia and the Eurasian Development Bank (EDB), bringing together key stakeholders from the banking sector to discuss environmental, social and governance (ESG) aspects. Given the global significance and the profound impact of climate risks, the workshop placed particular emphasis on the importance of combating climate change and decarbonising the economy.
Conrad Albrecht, EDB Managing Director and Head of the Directorate of Sustainability, moderated a session on accounting for financed emissions. He underscored the pivotal role of sustainability for banks and their essential contribution to the transformation towards a low-carbon economy.
“In terms of sustainability, our bank entered an entirely new phase starting in the second half of 2022. It was then that we accelerated the adoption of leading ESG principles, standards and concepts and began to apply sustainability risk and opportunity management to all aspects of our operations. The ESG transformation will allow us to become a leader in sustainable finance within the EAEU+ region, a driving force and reliable partner for companies and banks, to continuously elevate our standards and, ultimately, expedite a smooth transition towards a sustainable, low-carbon economy and society as a whole,” stated Conrad Albrecht.
In light of the global climate crisis marked by rising temperatures and more frequent adverse weather events, there is a growing focus on reshaping the global financial system to address climate risks and achieve net-zero emissions by 2050. This transformation necessitates comprehensive change across all sectors, and companies, banks, insurers and investors must actively adapt their business models and develop realistic plans to realise these goals.
“Financial institutions should know the carbon intensity of their portfolios to identify and manage risks, recognise mitigation opportunities, embrace green trends, and disclose their contribution and progress,” emphasised Conrad Albrecht.
The session centred on methodologies and approaches to calculating greenhouse gas emissions, featuring an exchange of insights among regional banks on practical steps they are taking to account for emissions tied to their financing. The participants also discussed the Partnership for Carbon Accounting Finance (PCAF) global industry standard, its methodological concepts and fundamental ideas.
The speakers included Marco Tormen, Managing Consultant at Guidehouse responsible for PCAF activities in Europe, the Nordic and German-speaking countries and the reinsurance industry; Gareth Hewett, Group Head of International ESG at China’s Ping An Group; and Tatiana Miroshnichenko, Senior Manager & ESG Advisory at EY.
The EDB’s operations are guided by the United Nations Sustainable Development Goals and ESG principles. Preventing environmental damage, minimising greenhouse gas emissions, responsible use of natural resources and adopting the best available technologies are prerequisites for projects eligible for consideration by the EDB.
Since 2017, the Bank has provided over US $540 million in financing for renewable energy projects with a total installed capacity of 500 MW. The EDB Sustainability Committee oversees the implementation of strategic objectives related to sustainable development and climate change. To achieve the goals of the EDB 2022–2026 Strategy, the Bank has established the Directorate of Sustainability, responsible for regulating and implementing processes in this area.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 17 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
Eurasian Development Bank
Aigerim Akhanova
+7 (727) 244 40 44, ext. 6147
+77013283898