The EDB shares its plans for enhanced carbon accounting practices and disclosure on GIP’s working group seminar
Almaty, 19 December 2024. Conrad Albrecht, Managing director of Directorate of Sustainability announced that the Eurasian Development Bank (EDB) starts reporting in compliance with ISSB standards S1, S2 and disclose its current advancing work regarding climate physical risks of investment portfolio, as well as to report on climate transition/technological risks, raising-up its bar even more in 2025. This announcement was made at the Green investment principles (GIP) working group seminar “Carbon Accounting and Reporting on Financed Emissions” on December 12th in Beijing.
Together with experts from HSBC Bank, Development Bank of Kazakhstan, Bank of Huzhou, PCAF and other participants he shared EDB experience at advancing sustainability reporting in the member states of the Bank. “EDB currently pairs-up and even exceeds the adoption and execution of best international practices for responsible finance of its operations and among its clients” mentioned Mr. Albrecht.
In his speech, he emphasized the Bank’s preparation of its first Sustainability Report for the activities of 2023, which required internal mobilization of resources and partnerships across the Bank to support drafting its very first report. The report is planned to be officially published in the end of 2024, which will represent an important milestone on the Bank’s sustainability maturity journey, also facilitating access of focused-ESG information to a diversified base of stakeholders, to be published annually. Specifically, on GHG emissions calculations, these were conducted in accordance with PCAF standards (Partnership for Carbon Accounting Financials, considered the leading global GHG accounting and reporting Standard for Financial Institutions and which is also the main methodological reference for MDBs inclusive. These standards support the assessment, measurement and disclosure of carbon footprint associated with their investments portfolios, loans and other financial transactions, including Project Finance as an asset class, EDB’s primary financial vehicle.
It is noteworthy that Bank is raising the ESG maturity curve and awareness of its clients -- the private sector in the Eurasian region -- in relation to sustainable development effects of Bank’s portfolio and its reporting- a new Environmental and Social Framework which introduces various tools for ESG analysis of projects and borrowers (preliminary assessment, ESG profiling, exclusion list, safeguards and monitoring).
In addition, Mr. Albrecht highlighted key challenges that smaller and non-listed financial institutions and real economy companies, particularly in emerging and frontier markets faces in getting their hands to sustainability reporting and its alignment with stringent international frameworks, lack of data availability, reliability and accuracy, non-strict requirements for reporting, limited financial resources and technical expertise and knowledge gaps, even lack of strong or lack C-level buy-in.
Conrad Albrecht called MDBs to continue advancing better practices for sustainable reporting, promoting universal standards and regulations, obtaining incentives and support mechanisms, enhancing capacity building and investing in applied data solutions, building local expertise and providing technical and financial support to their clients.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 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, industry and mechanical engineering, as well as water and energy. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB Media Centre:
+7 (727) 244 40 44, ext. 6148 and 3730