The AIFC Green Finance Centre announced new trends in ESG financing
The Chief Executive Officer of the AIFC Green Finance Centre, Aidar Kazybayev, took part in the Round Table on ESG, Sustainable Development and Social Entrepreneurship, organised by the Regional Association of Employers “Moscow Confederation of Industrialists and Entrepreneurs (employers)” and made a presentation at the session on “ESG – new business standards”.
Aidar Kazybayev noted that nowadays business is actively developing environmental, social and corporate areas taking into account ESG standards. The pandemic has accelerated the adoption of ESG practices around the world, as human health and the environment are a big part of our recovery.
Kazybayev introduced the AIFC Green Finance Centre – the only company in the CIS that has been working in this direction since 2016 to the Round Table participants. The Centre was the first in the CIS since the signing of the Paris Agreement to develop a taxonomy on green finance standards (ICMA).
Over the past year alone, with the assistance of the Centre, Kazakhstan financial institutions have issued a total of seven green and social bonds, as well as a green loan. Social bonds are aimed at the construction of medical rehabilitation centres.
Currently, the Centre advises organisations and companies from Russia, Belarus, Armenia and Uzbekistan on the implementation of instruments of green and social financing.
Kazybayev informed that at present the ESG agenda is increasingly discussing issues of creating an “ESG officer” position in companies. On this issue, A. Kazybayev expressed the opinion that in the conditions of creating a culture of ESG practice, it is advisable to assign the so-called “functions of an ESG officer” to corporate secretaries, who are in every bank and company. It is up to the corporate secretary to screen solutions through the ESG lens, thereby helping companies become ESG oriented.
Reference:
The Astana International Financial Centre was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program.
The Centre’s development strategy until 2025 was approved by the Management council of the AIFC during the council’s meeting on July 2, 2020.
In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe.
The mission of the AIFC is in assisting the sustainable and long-term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region”.
The AIFC Green Finance Centre is an AIFC Organisation created to enable the development of green finance in Kazakhstan and Central Asia. The main goal is to bring investments to sustainable economy through trending financial instruments, such as green and social bonds.
In addition to that, the AIFC Green Finance Centre, being a regional think-tank, provides strategic and business consulting in green finance and sustainable development to Governments, quasi-state organisations and entrepreneurs. The Centre provides initial assistance to potential issuers, investors and market players on preparations for the issuance of green bonds on the AIFC Exchange (Astana International Exchange).
