Regulatory Alerts2023-09-28 | 129432Guidance on the Application of ESG Risk Radar and ESG Questionnaire Tools for Assessing Climate and Other ESG Risks
The National Bank of the Kyrgyz Republic issued this guidance to standardize the use of the ESG Risk Radar and ESG Questionnaire tools for identifying and assessing climate and other ESG risks in credit activities. Financial credit organizations are required to utilize these instruments for portfolio-level and borrower-level risk evaluations, employing a top-down scoring methodology that integrates physical, transition, and other ESG factors. The document establishes detailed methodological principles, including data deficiency handling, sub-score calculations, and the aggregation of results into heat maps to inform risk management and pricing procedures.
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