Regarding the expert discussion on the topic "ESG-regulator in the financial sector" with representatives of EUROBAK

On December 4, an expert discussion was held in Almaty with representatives of the European Business Association of Kazakhstan on the development of ESG regulation in the financial sector.

The participants noted the strengthening of trends related to environmental, social and corporate responsibility. These trends have become a key factor in determining investment strategies, decisions and practices in the global financial market.

As Maria Khadzhieva, Deputy Chairman of the Agency, noted, today there is considerable experience in implementing ESG principles in the practice of regulating financial markets. The main documents in the field of sustainable development have been developed, which professional associations in the field of ESG have worked on: all the necessary legal environment for "green" financing has been formed, a new Environmental Code has been adopted, a "Green" taxonomy of projects has been introduced, work is underway to introduce a "Social" taxonomy.

At the same time, work was carried out to improve the infrastructure of the stock market for the development of sustainable financing instruments. As a result, as of November 1, 2023, about 16 bond issues with a volume of 208 billion tenge were registered on the ESG site of KASE. The number of companies disclosing ESG information has reached 79 out of 155 possible.

Within the framework of the cooperation agreement on the implementation of ESG standards in financial market regulation with the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), clear plans have been defined for the implementation of key standards in the field of non-financial information disclosure according to ESG criteria, as well as ESG risk assessment and management. In April of this year, the Agency approved recommendations on disclosure of information by ESG financial organizations, which will become mandatory from 2024.

Due to the creation of legal conditions in Kazakhstan and the measures taken to implement the ESG principles, there has been a positive trend in the volume of sustainable financing. Since 2021, the volume of "green" loans has increased from 62.1 billion tenge to 220.1 billion tenge.

Further measures to implement ESG principles in financial organizations will be aimed at developing policies and strategies of financial organizations, as well as standards, metrics, reporting and monitoring systems. At the same time, financial organizations need to increase the expert potential of employees.

 

The Agency's External Communications Division

+7 (727) 237 1089, press@finreg.kz