The Central-Asian Institute for Environmental Research (CAIER) hosted a traditional roundtable discussion exploring sustainable development principles within the financial market.
The event titled “Developing a Sustainable Development Agenda in the Financial Sector. Management of Social and Environmental Risks” was organised through the joint efforts of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the International Finance Corporation (IFC).
The meeting gathered senior executives from the leading banks in Kazakhstan, IFC representatives, UN delegates, members of the Association of Microfinance Organizations, officials from the Damu Entrepreneurship Development Fund, and Otbasy Bank delegates.
In her opening speech, ecologist Aselle Tasmagambetova, the founder of CAIER, highlighted that the Central-Asian Institute for Environmental Research has been actively promoting the implementation of sustainable development and ESG principles through extensive educational initiatives for several years. The institute holds an independent status and possesses significant expertise in environmental consulting and ESG.
She underscored the favourable market trends, noting that financial institutions tasked with constructing infrastructure for the transition to a low-carbon economy have recognized the significance of integrating environmental and social risks into financial processes. Notably, over 40% of credit institutions in Kazakhstan have formulated and implemented internal strategies to attain carbon neutrality, resulting in a 15% year-on-year increase in green finance volumes. The regulatory framework established by the agency and the active involvement of the private sector and international partners has contributed to these advancements facilitation. However, much remains to be accomplished, as climate change continues to present one of the foremost challenges of our times.
Aselle Tasmagambetova also referred to the forecasts indicating that global climate change could elevate the occurrence of banking crises by up to 300% by 2030.
Madina Abilqasymova, the chair of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market, emphasized the importance of the ESG agenda for the financial sector. Since 2020, 27 ESG bonds have been registered on the capital market (KASE and AIX) with a total value exceeding 643.5 billion tenge.
The global regulation and supervision of financial institutions concerning ESG risks is actively evolving, leading to new standards and approaches emerging. At this point, the Agency has identified three primary areas for integrating ESG principles into the financial market. These include disclosure of information on ESG risks and improvement of competencies in sustainable financing, development of internal ESG risk management systems, and the introduction of ESG risks into the supervisory system, she said.
In turn, IFC executives presented some recommendations to attract international investors.
Adalyat Abdumanapova, Team Lead of the ESG Advisory Program in Central Asia and Turkey, explained the importance of adhering to environmental standards to attract more investment. She also discussed how to determine whether companies are genuinely following ESG principles or engaging in greenwashing.
“ESG has become a new paradigm for investors,” she said, “IFC imposes stringent prerequisites, obligatory for our investments, encompassing environmental, social, and corporate governance risks. We conduct rigorous diagnostics. Should a client decline to address these risks adequately, we abstain from pursuing the project. These risks entail substantial implications for reputation and investment, for us and numerous other investors.”
Victoria Mironova, Environmental and Social Consultant, IFC, spoke on practical steps for implementing environmental and social risk management (ESRM).
Anastasia Ovsyannikova, Vice President and Member of the Management Board of CenterCredit Bank, and Arnur Ibrayev, Chief Sustainability Officer, presented the successful ESG transformation outcomes of the bank.
The experts have confirmed that the Bank’s development strategy until 2030 incorporates ESG goals in the socio-economic, environmental, and management domains.
The Central-Asian Institute for Environmental Research extends its gratitude to all participants of the round table “Developing a Sustainable Development Agenda in the Financial Sector. Management of Social and Environmental Risks,” and encourages companies to strive for environmental and financial stability in line with the principles of sustainable development.
It is important to note that in 2023, CAIER, in partnership with KPMG, successfully organised an informal meeting of financial market participants titled “ESG Regulation of Financial Markets in Kazakhstan.” The event gathered top managers of Kazakhstan’s leading banks, IFC (International Finance Corporation) executives, UN representatives, the Association of Microfinance Organizations, and the Damu Entrepreneurship Development Fund. The guest speaker was Madina Abilqasymova, the chair of the Agency of the Republic of Kazakhstan for the Regulation and Development of the Financial Market (ARDF).
The event titled “Developing a Sustainable Development Agenda in the Financial Sector. Management of Social and Environmental Risks” was organised through the joint efforts of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the International Finance Corporation (IFC).
The meeting gathered senior executives from the leading banks in Kazakhstan, IFC representatives, UN delegates, members of the Association of Microfinance Organizations, officials from the Damu Entrepreneurship Development Fund, and Otbasy Bank delegates.
In her opening speech, ecologist Aselle Tasmagambetova, the founder of CAIER, highlighted that the Central-Asian Institute for Environmental Research has been actively promoting the implementation of sustainable development and ESG principles through extensive educational initiatives for several years. The institute holds an independent status and possesses significant expertise in environmental consulting and ESG.
She underscored the favourable market trends, noting that financial institutions tasked with constructing infrastructure for the transition to a low-carbon economy have recognized the significance of integrating environmental and social risks into financial processes. Notably, over 40% of credit institutions in Kazakhstan have formulated and implemented internal strategies to attain carbon neutrality, resulting in a 15% year-on-year increase in green finance volumes. The regulatory framework established by the agency and the active involvement of the private sector and international partners has contributed to these advancements facilitation. However, much remains to be accomplished, as climate change continues to present one of the foremost challenges of our times.
Aselle Tasmagambetova also referred to the forecasts indicating that global climate change could elevate the occurrence of banking crises by up to 300% by 2030.
Madina Abilqasymova, the chair of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market, emphasized the importance of the ESG agenda for the financial sector. Since 2020, 27 ESG bonds have been registered on the capital market (KASE and AIX) with a total value exceeding 643.5 billion tenge.
The global regulation and supervision of financial institutions concerning ESG risks is actively evolving, leading to new standards and approaches emerging. At this point, the Agency has identified three primary areas for integrating ESG principles into the financial market. These include disclosure of information on ESG risks and improvement of competencies in sustainable financing, development of internal ESG risk management systems, and the introduction of ESG risks into the supervisory system, she said.
In turn, IFC executives presented some recommendations to attract international investors.
Adalyat Abdumanapova, Team Lead of the ESG Advisory Program in Central Asia and Turkey, explained the importance of adhering to environmental standards to attract more investment. She also discussed how to determine whether companies are genuinely following ESG principles or engaging in greenwashing.
“ESG has become a new paradigm for investors,” she said, “IFC imposes stringent prerequisites, obligatory for our investments, encompassing environmental, social, and corporate governance risks. We conduct rigorous diagnostics. Should a client decline to address these risks adequately, we abstain from pursuing the project. These risks entail substantial implications for reputation and investment, for us and numerous other investors.”
Victoria Mironova, Environmental and Social Consultant, IFC, spoke on practical steps for implementing environmental and social risk management (ESRM).
Anastasia Ovsyannikova, Vice President and Member of the Management Board of CenterCredit Bank, and Arnur Ibrayev, Chief Sustainability Officer, presented the successful ESG transformation outcomes of the bank.
The experts have confirmed that the Bank’s development strategy until 2030 incorporates ESG goals in the socio-economic, environmental, and management domains.
The Central-Asian Institute for Environmental Research extends its gratitude to all participants of the round table “Developing a Sustainable Development Agenda in the Financial Sector. Management of Social and Environmental Risks,” and encourages companies to strive for environmental and financial stability in line with the principles of sustainable development.
It is important to note that in 2023, CAIER, in partnership with KPMG, successfully organised an informal meeting of financial market participants titled “ESG Regulation of Financial Markets in Kazakhstan.” The event gathered top managers of Kazakhstan’s leading banks, IFC (International Finance Corporation) executives, UN representatives, the Association of Microfinance Organizations, and the Damu Entrepreneurship Development Fund. The guest speaker was Madina Abilqasymova, the chair of the Agency of the Republic of Kazakhstan for the Regulation and Development of the Financial Market (ARDF).