In Azerbaijan, banks are one of the main pillars of the country's economy, and they must develop strategies that support development based on environmental, social, and governance (ESG) standards for sustainable banking, said Vusal Gasimli, the Executive Director of the Center for Analysis of Economic Reforms and Communication (CAERC), Report informs.
Gasimli made this statement at the 8th International Banking Forum held in Baku.
He noted that banks can contribute to society's future by promoting green financing and sustainable projects. "The Green Taxonomy approved by the Central Bank of Azerbaijan can be considered a timely and important step in terms of realizing strategic goals for sustainable development and green transition in the financial sector," Gasimli stated.
This document defines the types and sub-types of green activities across economic sectors and their technical classification criteria, covering 10 sectors, the director noted.
Gasimli added that, at the international level, green taxonomies are considered one of the essential tools for making the financial system more sustainable and directing financial resources towards green activities in the economy.