BAKU, Azerbaijan, October 5. The Central Bank
of Azerbaijan (CBA) hosted a meeting with representatives of the
German international cooperation organization “Sparkassenstiftung,”
during which the “ESG Risk Radar” tool was presented and its
methodological framework and practical applications were
discussed.
This was announced in a statement published by the Central Bank
of Azerbaijan.
During the meeting, the parties exchanged views on the work
completed, the results achieved, and the next stages of the “ESI
Risk Radar” (Environmental, Social, and Governance Risk Radar)
project.
The presentation was jointly organized by the Central Bank and
the Azerbaijan Banking Association, with the support of
“Sparkassenstiftung.”
The event featured a presentation on the key findings,
methodological approaches, and potential applications of the “ESG
Risk Radar” tool, which was developed to provide a more systematic
assessment of environmental, social, and governance (ESG) risks in
the financial sector.
In the course of the presentation, participants were also
introduced to methodological documents and tools developed as part
of the project, as well as the results of a needs assessment for
the banking sector.
In addition, participants exchanged views on the practical
application of the “ESG Risk Radar” tool, its further development,
and its integration into banks’ risk management processes.
The primary objective of the “ESG Risk Radar” tool is to
facilitate the assessment of ESG risks at the sector and client
levels, as well as to identify and manage these risks in banks’
loan portfolios.
The central bank will continue its initiatives aimed at
effectively managing ESG risks in the financial sector and
promoting sustainable finance.
