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NBG launches Environmental, Social and Governance (ESG) disclosure and reporting principles

By Nika Gamtsemlidze
Wednesday, February 19
As a part of the Sustainable Finance Framework development, the National Bank of Georgia (NBG) continues to implement actions planned within the scope of the Sustainable Finance Roadmap.

Increasing transparency on environmental, social and governance (ESG) issues and improving market discipline are important prerequisites for the development of sustainable finance and represent one of the key pillars of the Roadmap.

With that purpose, the NBG in close collaboration with the Organization for Economic Co-operation and Development (OECD) has created the ESG Reporting and Disclosure Principles with the corresponding template. Financial institutions within the scope of the Sustainable Finance Working group were largely involved in the process.

The ESG Reporting and Disclosure Principles and the related template have been created based on various international standards, such as EU Guidelines for Non-financial Reporting; Sustainability Accounting Standards Board (SASB); Task Force on Climate-related Financial Disclosures (TCFD), UN Principles for Responsible Investment (PRI) Reporting Framework, Global Reporting Initiative (GRI), etc.

The Principles are mainly designed for commercial banks. However, the NBG also encourages other financial institutions to use them. Corporate Governance Code for commercial banks sets the requirements for ESG reporting and disclosure.

The purpose of the ESG Principles is to assist commercial banks in fulfilling this requirement and to provide guidance consistent with the best international standards. The corresponding template ensures the consistent and comparable disclosure of ESG information by financial institutions.

Templates filled by financial institutions will be published annually on the NBG's website to facilitate access to ESG-related information for investors and other stakeholders.

In addition, the information disclosed will be used to monitor and evaluate sustainable finance performance of financial institutions and therefore, will serve as one of the progress measurement tools for sustainable finance development.

The National Bank of Georgia (NBG) is the central bank of Georgia. Its status is defined by the Constitution of Georgia. The main objective of the National Bank is to ensure price stability.

Georgia's first central bank was established in 1919. In its current form, the National Bank of Georgia has existed since 1991.

The National Bank exercises supervision over the financial sector for the purposes of facilitating financial stability and transparency of the financial system, as well as for protecting the rights of the sector’s consumers and investors.