Central Bank publishes report on results of Sustainable Finance Survey

03-10-2023

3 October 2023, Baku: The Central Bank conducted the Sustainable Finance Survey among financial institutions, including banks, insurance companies and investment companies as part of the implementation of its Sustainable Finance Roadmap.  

The purpose of the survey was to measure financial institutions' knowledge of sustainable finance and ESG (Environmental, Social and Governance) principles, to learn about measures taken or planned in this direction, and to gather initial indicative information.

According to the results of the survey, financial institutions expect that the impact of ESG risks will be low in the short term, while in the long term these impacts will gradually shift to medium and high risk zone. At the same time, the survey results show that financial institutions have begun to assess the impact of ESG risks on their operations, as well as to implement projects in line with the principles of sustainable finance. Such projects may include crediting the installation of solar panels and the purchase of hybrid cars, and generally incorporating ESG principles into the credit decision-making process.

The main expectations of financial institutions regarding the transition to sustainable finance and the application of ESG principles were related to continuing awareness raising and communication, preparing a legal-normative and regulatory framework, establishing accountability and applying a favorable regulatory framework.

It should be noted that the Sustainable Finance Survey will be conducted regularly.

The survey results report