In the coming years, banks in Azerbaijan will be required to provide reports on their resilience to climate change, according to Kanan Mammadov, a leading economist at the Sustainable Finance Department of the Central Bank of Azerbaijan (CBA), told a training session on green finance held in Guba Report informs.
According to Mamadov, the integration of ESG (Environmental, Social, and Governance) risks with climate change is on the agenda. "Stress tests of risk management are conducted, and risk factors are assessed. The main issue here is ensuring transparency and market discipline," Mammadov explained.
Mammadov noted that several banks have already begun reporting on sustainability, and starting from the coming years, other banks will also be required to provide reports on their resilience to climate change.