Regulatory Alerts2023-09-28 | 116359Recommendations on the Identification, Monitoring and Disclosure of Financial Risks Related to Sustainable Financing Factors (ESG Risks)
The National Bank of the Kyrgyz Republic issued these Recommendations to establish a recommendatory framework for commercial banks, state development banks, and non-bank financial organizations to identify, measure, manage, control, and disclose environmental, social, and governance (ESG) risks. The document mandates the integration of ESG factors into business strategies, internal governance structures, and risk management systems through defined KPIs, strategic limits, and quantified exposure assessments. It further requires banks to implement robust internal oversight, dedicated reporting mechanisms, and clear allocation of responsibilities to ensure prudent management of physical, transition, and greenwashing risks aligned with national and international sustainability objectives.