BAKU, Azerbaijan, Nov. 24
Trend:
The Kazakh state structures should continue to work with the private companies to stimulate the development of sustainable financing, the Astana International Financial Center (AIFC) told Trend on Nov. 24.
It is very important for financial institutions to have an Environmental and Social Risk Management System (ESMS) to reveal and manage such risks, AIFC said.
"This helps to improve overall risk management, reveal new environmental business opportunities and add value to customers and investees, thus helping to gain a competitive advantage," said the center.
“The Kazakh banking sector still has a long way to go as far as introducing 'green practice' into its internal processes," the AIFC said. “Second-tier banks should encourage joining such principles as the Principles for Responsible Banking (UNEP FI) and the Green Investment Principles (GIP) to validate environmental commitments and improve practice.”
“Taking into account the dependence of Kazakhstan's economy on carbon-intensive and resource-intensive sectors, there is great potential for promising efficiency-based transition instruments such as Sustainability Linked Bonds, the volumes of which are growing worldwide,” the AIFC representative added.