The National Bank of Georgia (NBG) has unveiled its latest step in promoting sustainable finance with the publication of the ESG Guidelines. Recognizing the critical role of addressing ESG and climate-related risks in ensuring financial stability and sustainability, ESG Risk Management stands as one of the fundamental pillars within NBG’s Sustainable Finance Framework outlined in the Roadmap for Sustainable Finance in Georgia. In light of this background, the NBG published the ESG Guidelines through a Double Materiality Perspective. Developed in collaboration with international experts and local financial institutions, these guidelines aim to assist financial entities in incorporating ESG factors and enhancing their risk management strategies. The NBG's ESG Guidelines will serve as a practical tool for financial institutions seeking to navigate the evolving landscape of sustainable finance, ensuring alignment with global best practices.

Corresponding amendments have been made to the Corporate Governance (CG) Code for Commercial Banks. Proper governance of ESG issues is particularly important for the successful and effective development of sustainable finance. With this aim, the ESG considerations and related requirements were first incorporated in the CG Code for Commercial Banks in 2018. The purpose of the ESG Guidelines is to assist commercial banks in fulfilling these requirements and to provide guidance consistent with the best international standards. Thus, the current amendment was made to refer to the ESG Guidelines for guidance when integrating ESG considerations into policies, practices and risk management. This way, the NBG sought to ensure the relevance, usefulness, consistency and comparability of ESG integration and risk management standards and tools among commercial banks in alignment with global ESG standards. Furthermore, these guidelines will serve as a reference for the NBG, enabling the evaluation of existing ESG risk management frameworks within commercial banks and facilitating ongoing monitoring of their progress toward ESG integration and risk management.