Papuna Lezhava, Vice Governor of the National Bank of Georgia, discussed sustainable finance with the Network for Greening and Financial Systems. The network of central banks and supervisors brings together central banks for the common goal of "greening" the financial system. The organization promotes sharing of experiences and best practices among members, while fostering the development of environmental and climate change risk management in the financial sector.

 

The NGFS has launched a series of interviews with representatives of member countries to discuss topical matters. Papuna Lezhava spoke at length about the steps taken by the National Bank of Georgia towards sustainable finance. Vice Governor noted that a sustainable financial system is important for financial stability, which involves the management of social and environmental risks and, at the same time, is one of the important factors contributing to sustainable development.

 

As noted by the NBG Vice Governor, the National Bank of Georgia devotes considerable effort to developing a sustainable finance framework. In 2019, the NBG launched the Roadmap for Sustainable Finance in Georgia as the main policy document that summarizes all the steps the National Bank is taking towards sustainable finance, including climate change. Most of the actions described in the Action Plan are currently being implemented. The NBG incorporated ESG considerations into the Corporate Governance Codes for Commercial Banks and Capital Market Participants. The NBG developed ESG Reporting and Disclosure Principles with a corresponding template. In 2021 we began publishing the annual Sustainable Finance Report. The NBG has been developing the Sustainable Finance Taxonomy and the analysis of vulnerabilities to climate risks in the financial sector. The National Bank's Sustainable Finance Agenda is in line with other national strategies and initiatives.

 

“First and foremost, it is important to note that, when it comes to addressing global problems like climate change that cannot be tackled by a single country, there is a need for global coordination. Regardless of recent advancements in policies and regulations to address climate-related issues by central banks and financial regulators, this topic is still relatively new and the need for common approaches and standards is evident. Therefore, a centralized platform that will take leadership and bring together various players is essential, and the NGFS has taken this role successfully. The guidelines and management strategies described in various publications are invaluable for central banks and supervisors. At the National Bank, we have closely followed the NGFS guidelines and recommendations and benefit from other members’ experiences,” Papuna Lezhava noted.

 

Read the full interview in English.