Climate risks to be integrated into banking framework in Azerbaijan

It is planned to integrate climate risks into banking framework in Azerbaijan, Zakir Nuriyev, President of the Azerbaijan Banks Association (ABA) Public Union, said at an event titled "Global Financial System: Expanding Financing for Climate Action" held on the sidelines of COP29 in Baku, Report informs.

"We will incorporate climate-related risks and opportunities into our risk management frameworks, lending decisions, and strategic planning. We commit that banking activities will help long-term stability while contributing to both national and global environmental goals," Nuriyev noted.

Moreover, according to the ABA head, green and sustainable banking will be promoted: "In this regard, we will increase support for green projects and sustainable financial initiatives that contribute to a low-carbon sustainable economy in Azerbaijan. This includes developing and offering banking products such as green loans, sustainability-linked loans, as well as clean investment opportunities to promote environmentally responsible business practices."