Kazakhstan is ahead of EAEU and Central Asian countries by a noticeable margin in global ranking on sustainable development

Фото: El.kz 01.06.2023 14:17 551

In 2015, the United Nations adopted the Sustainable Development Goals, as well as approved a plan to achieve them by 2030. These goals are aimed at developing business and meeting social needs without harming the environment. In this regard, the principles of ESG - environmental, social and corporate governance - have emerged. These principles include the management of companies taking into account environmental, social and governance issues, El.kz reports with reference to Finprom.

Kazakhstan also pays considerable attention to ESG principles. Companies in the heavy industry and extractive sector have become pioneers in the systematic implementation of ESG principles in the Kazakh market due to their direct impact on the environment and investor expectations. The country's financial institutions, being an integral part of the business system, are also actively implementing ESG principles in their business models to better manage risks and achieve strategic advantages.

The financial sector plays a key role in the implementation of ESG principles, as it provides financing for the green economy and should stimulate the transformation of companies taking into account the principles of sustainable development.

Therefore, the implementation of ESG principles in financial institutions and the development of the green financing market are included in the priority agenda of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market. The Agency has developed a Roadmap for the implementation of ESG principles in the regulation of the financial market of Kazakhstan.

In today's banking context, responsible financing is becoming an increasingly relevant topic. Kazakhstan's leading banks have already begun to incorporate the principles of environmental, social and governance responsibility into their strategies. However, Kazakhstan is just beginning this path. Disclosure is one of the key components of ESG sustainability.

At the beginning of this year, Jusan Bank received a pilot ESG assessment from the rating agency S&P Global Corporate Sustainability Assessment. This is one of the first universally recognized international ESG assessments assigned to banks in Kazakhstan. Thus, the banking sector of the Republic of Kazakhstan, gradually, but nevertheless, is actively involved in the global agenda in the field of sustainable development.

ESG is no longer just a fashion trend and is becoming a factor that can radically change the strategies and views of many companies in Kazakhstan, including both the financial and non-financial sectors.

Thanks to the introduction of ESG principles by the largest companies in Kazakhstan in their business model, the country has achieved impressive results in the international arena. According to the 2022 international ESG ranking, Kazakhstan ranked 53rd among 183 countries, receiving a score of 38.68.

In addition, Kazakhstan has become a leader in the region among the countries of the Eurasian Economic Union and Central Asia. In this context, other countries are significantly inferior to Kazakhstan: Armenia took 65th place, Kyrgyzstan – 67th, Belarus – 79th, Russia – 92nd, Turkmenistan – 94th, Uzbekistan – 100th, Tajikistan – 115th place.

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