The world has acknowledged the importance of incorporating environmental, social and governance issues into decision making process by financial system as a significant contributor to sustainable development. The National Bank of Georgia supports strengthening the role of the financial sector in sustainable development of the country and for this purpose develops a framework for green, social and sustainable finance. This framework implies consideration of social and environmental issues by financial sector and capital market participants and managing risks associated with them, which is important for financial stability and sustainable development of the economy.
"Sustainable finance", according to the EU Commission, is about two urgent imperatives: (1) improving the contribution of finance to sustainable and inclusive growth by funding society's long-term needs; and (2) strengthening financial stability by incorporating environmental, social and governance (ESG) factors into investment decision-making.
The National Bank of Georgia has been working on the development of the Sustainable Finance Framework since joining Sustainable Banking Network (SBN) in 2017. All the planned and implemented actions under this framework are described in the Roadmap for Sustainable Finance in Georgia.