The National Bank of Georgia approved the Sustainable Finance Taxonomy and the Regulation on Loan Classification and Reporting according to the Sustainable Finance Taxonomy. The Sustainable Finance Taxonomy is a classification system that assigns a green, social and sustainable status to economic activities that satisfy specific technical criteria. Green taxonomy supports environmental objectives and the development of a green economy. While the social taxonomy is focused on achieving social goals.

 

The Regulation on Loan Classification and Reporting according to the Sustainable Finance Taxonomy establishes a common definition for green, social and sustainable loans. According to the Regulation, the commercial banks shall comply with the Taxonomy criteria when classifying the loans as green, social and sustainable. In addition, the regulation imposes reporting requirements on banks according to the taxonomy.

 

The Sustainable Finance Taxonomy was developed with the active involvement of local and international experts and stakeholders. Financial institutions were also actively involved in this process. Taxonomy categories and corresponding technical criteria are aligned with the best international practice. The taxonomy also takes into account the characteristics of the Georgian economy. All this contributes to the usability of the taxonomy and guarantees its credibility locally and internationally.

 

Sustainable Finance Taxonomy and the corresponding Regulation are available on the official web-site of the National Bank of Georgia – Sustainable Finance Taxonomy.