The European Bank for Reconstruction and Development (EBRD) and the Agency of the Republic of Kazakhstan for the Regulation and Development of Financial Markets (ARDFM) have joined forces to promote environmental, social and governance (ESG) standards and good corporate climate governance (CCG) among financial institutions in Kazakhstan. They will develop and implement guidelines and regulations to support Kazakhstan’s transition to a low-carbon and climate-resilient economy.
A memorandum of understanding signed by the two parties will establish a framework of cooperation to support financial institutions in adopting a strategic approach to addressing ESG and climate-related risks, as well as to enhance CCG. The partnership will also build capacity for the observance of best ESG and CCG practices by financial institutions in Kazakhstan.
«The introduction of these requirements by financial regulators will help financial institutions strengthen their climate risk management,» said EBRD Vice President Alain Pilloux. «Our cooperation with the Agency will help build up capacity to improve ESG and climate risk management, promote transparency and disclosure, and improve access within the sector to emerging global best practice. This engagement demonstrates our continued support for the economy of Kazakhstan and our commitment to driving forward the green economy.»
The EBRD has committed to aligning all of its investments with the goals of the Paris Agreement on limiting climate change by the end of this year. It has also vowed to make the majority of its investments green by 2025. The EBRD is a leading institutional investor in Kazakhstan.
To date, the Bank has invested more than US$ 10.3 billion in 295 projects across the country. The ARDFM has been operating since January 2020, acting as an independent financial regulator to strengthen the transparency and resilience of the Kazakhstan’s financial system.