CBA to introduce new green risk management requirements for banks

The Central Bank of Azerbaijan will include elements related to environmental, social and governance (ESG) risks in credit risk management rules and corporate standards, reads the Central Bank's report on sustainable finance, Report informs.

According to the document, banks will be required to take into account environmental and social criteria when issuing loans. The ESG Risk Radar project will also be implemented for the early detection and monitoring of relevant risks.

"It is envisaged to develop a roadmap for assessing climate and transition risks, which will increase the resilience of the financial sector and ensure its long-term stability," the document says.