The National Bank of Georgia in cooperation with IFC held a Sustainable Finance Conference
On October 31st, the
National Bank of Georgia (NBG) in cooperation with the International Finance Corporation
(IFC), a member of the World Bank Group, and the IFC-supported Sustainable Banking Network (SBN) hosted a Sustainable
Finance Conference in Tbilisi. The conference brought together IFC experts,
representatives from SBN member countries and regional central banks, senior
representatives from the relevant ministries, Presidents/CEOs and senior
leadership of financial institutions, international organizations and other
stakeholders.
The conference began with an
opening speech from the Governor of the NBG. Mr. Koba Gvenetadze emphasized the
importance of transparency and disclosure and the integration of environmental,
social and governance (ESG) considerations into decision making to ensure financial
stability and long-term sustainability. "In order to encourage the
development of sustainable finance, regulators and central banks should take
intellectual leadership in developing standards and promoting consistent ESG
reporting. The NBG has been actively working in that direction since joining
the SBN in 2017", - stated the Governor in his speech.
The conference was the second event that the NBG hosted in cooperation with IFC on sustainable finance. Since the first workshop in September 2018, the NBG has made significant progress towards the development of a sustainable finance framework in Georgia. A key achievement was the launch in April 2019 of the NBG's Roadmap for Sustainable Finance in Georgia. The Roadmap summarizes all possible actions that the NBG intends to implement regarding sustainable finance development in the near future. The roadmap has been created in close cooperation with SBN/IFC. The ultimate goal of this roadmap is to provide a credible, predictable and stable regulatory framework and prepare the market for transitioning to sustainable finance. Additionally, the NBG, with the support of IFC, integrated ESG considerations into the Corporate Governance (CG) Code for Commercial Banks. These considerations are now being incorporated in the CG Code for Capital Markets participants as well.
Mary Porter Peschka,
Director ESG Sustainability Advice & Solutions at IFC, said: "Georgia has
made tangible progress in advancing sustainable finance in recent years. Since
it joined SBN in 2017, NBG has demonstrated strong commitment to develop the
country's sustainable finance regime, leveraging peer-learning opportunities
that come from being a SBN member. We look forward to continuing supporting NBG
to implement the Roadmap, setting an example for other countries in the
region".
During the conference, participants discussed challenges regarding sustainable finance, the role of national policy documents like roadmaps in facilitating sustainable finance development, the importance of transparency on ESG issues, and the rationale behind disclosure requirements. Participants emphasized the role of financial supervision, current regulatory experience and initiatives.