SBFN Member Since:
2017
Member Organisations
National Bank of Georgia
Progress Against Pillars and Sub Pillars
This graphic can also be found within this country’s 2019 Country Progress Report.
Framework Documents
| Country | Policies/ Principles/ Guidelines | Year | Issuer |
|---|---|---|---|
| Georgia | 2020 | National Bank of Georgia | |
| Georgia | 2021 | National Bank of Georgia | |
| Georgia | Regulation on Disclosure Requirements for Commercial Banks within Pillar 3 (Georgian) | 2021 | National Bank of Georgia |
| Georgia | 2019 | Government of Georgia | |
| Georgia | 2018 | Government of Georgia | |
| Georgia | 2021 | National Bank of Georgia |
Strategic Development - Alignment with global E&S standards and best market practices
S1.1 – Does the framework make reference to international E&S targets (SDGs, Paris Agreement, Global Compact)?
Yes
(1) – Global Development in Sustainable Finance – p.3
– To achieve a better and more sustainable future for all, in 2015 countries from around the world agreed to adopt UN Agenda for Sustainable Development and the Paris Agreement on Climate Change. The UN 2030 Agenda has at its core 17 Sustainable Development Goals (SDGs).Georgia is a part of both initiatives.
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
S1.2 – Does the framework make reference to established international E&S risk management standards (IFC PSs, EPs)?
Yes
(1) – ESG Risk Management – p.10
There has been growing global convergence of ESG risk management standards among public and private financial institutions in the past decade, including IFC’s Performance Standards and the Equator Principles which reference them
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
S1.3 – Does the framework make reference to established international sustainability reporting standards (GRI, SASB)?
Yes
(1) – Transparency and market Discipline – p.11
Those principles are being created based on different international standards on sustainability disclosure, such as: Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), UN Principles for Responsible Investment (PRI) Reporting Framework 2018, Global Reporting Initiative (GRI), etc
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
S1.4 – Does the framework make reference to established international climate finance reporting standards (TCFD)?
Yes
(1) – Transparency and market Discipline – p.11
Those principles are being created based on different international standards on sustainability disclosure, such as: Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), UN Principles for Responsible Investment (PRI) Reporting Framework 2018, Global Reporting Initiative (GRI), etc
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
S1.5 – Does the framework ask to make E&S policies, practices and results externally verified (assurance, independent review)?
No
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Strategic Development - Multi-stakeholder collaboration
S2.1 – Does the framework involve interagency collaboration between financial supervisors/regulators, industry association, and FIs?
Yes
S2.2 – Does this collaboration also include other public agencies (e.g., environmental agencies, ministries)?
Yes
(1) – Sustainable Finance in Georgia
– The workshop brought together IFC experts, the representatives from the SBN member countries and regional central banks, senior representatives from the Ministry of Economy and Sustainable Development of Georgia, the Ministry of Finance of Georgia, the Ministry of Environment Protection and Agriculture of Georgia, Presidents/CEOs and senior leadership of financial institutions, and other stakeholders
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
S2.3 – Does this collaboration also include representatives of civil society (e.g., NGOs, associations, media)?
No
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Strategic Development - Alignment to NDCs and with National or Regional Climate Change Targets
S3.1 – Is the framework aligned with national NDCs or other national and regional policies on climate?
Yes
(1) – Global Development in Sustainable Finance – p.3(1) – Objectives of the roadmap – p.8(1) – Sustainable Finance in Georgia
– Georgia submitted its Nationally Determined Contribution (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC) under the Paris Agreement requirement.- These international commitments are well fitted into the national policies and are also consistent with Georgia’s Social-Economic Development Strategy “Georgia 2020″.- Sustainable finance is the precondition for sustainable development; therefore, the roadmap is created in a consistent manner with the other actions planned by the government in that regard. – It is based on the best international practice and is consistent with the EU Commission Action Plan
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
S3.2 – Has the SBN member identified the main climate risks (transition/physical) for their local financial sector?
No
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ESG Integration - Governance of E&S
Role of Governing Bodies on E & S
E1.1 – Does the country policy require one of the FI’s governing bodies (e.g., Board of Directors, Executive Committee, Supervisory Board, etc.) to approve an E&S strategy?
Yes
(2) – CG code for banks – Art 17. Risk Management – 13) p.19
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Corporate Governance Code for Commercial Banks (NBG, 2018)
E1.2 – Does the policy require management to report on E&S strategy implementation to the governing bodies?
No
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E1.3 – Does the policy require FI operational bodies to report to the governing bodies (or specific Board committee) on implementation of the E&S strategy?
No
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Organization
E1.4 – Does the framework ask FIs to define E&S roles and responsibilities?
No
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E1.5 – Does the framework highlight the E&S roles of front office staff and second lines of defense (e.g. risk officers and/or compliance officers)?
No
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E1.6 – Does the framework ask FIs to define E&S competencies for each role?
No
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E&S Risk Management
E&S Policy
E2.1 – Does the framework ask FIs to formalize an E&S or ESG policy?
Yes
(1) – ESG Risk Management
The NBG has already started working on integration of ESG factors in corporate governance (CG) codes for capital market and commercial banks. The CG code for capital market indicates that ESG considerations must be the part of the entity’s strategy, while ESG risks should be incorporated in its risk management system
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
E2.2 – Does the framework encourage FIs to go beyond E&S requirements of local laws and regulations?
No
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E2.3 – Does the framework ask FIs to set E&S objectives and targets?
No
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E2.4 -Does the framework ask FIs to publicly disclose their E&S policy and its governance?
Yes
The Law of Georgia on Accounting, Reporting and Auditing.(2) – CG code for banks – Art 20. Information disclosure and transparency – p.25
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Corporate Governance Code for Commercial Banks (NBG, 2018)
Risk Assessment
E2.5 – Does the framework require FIs to carry out appropriate E&S due diligence at transaction level?
No
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E2.6 – Does the framework require FIs to carry out appropriate E&S due diligence at client level?
No
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E2.7 – Does the framework encourage FIs to categorize projects/clients according to their level of E&S risk?
No
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E2.8 – For high-risk transactions, does the framework encourage site visits to be organized?
No
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E2.9 – In case of negative E&S impacts, does the framework invite FIs to engage with clients to implement mitigation measures?
No
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E&S Covenants
E2.10 – Does the framework ask FIs to incorporate E&S covenants and investment conditions into legal agreements with clients?
No
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Project Supervision & Portfolio Review
E2.11 – Does the framework ask FIs to develop processes to manage E&S risks during supervision?
No
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E2.12 – Does the framework encourage a periodic review of E&S risks at aggregate portfolio level?
No
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Training
E2.13 – Does the framework ask FIs to develop and maintain E&S capacity through regular training?
No
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E2.14 – Does the framework highlight the training of (i) front office staff, (ii) second lines of defense (risk officers and/or compliance officers), and (iii) E&S experts?
No
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External Communication Mechanism
E2.15 – Does the policy require FIs to establish and maintain an inquiry/complaints/grievance mechanism in relation to E&S or ESG practices?
No
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E & S Reporting
E2.16 – Does the policy require FIs to report regularly on E&S or ESG performance, including publicly, to investors or to regulators?
Yes
(1) Transparency and Marker Discipline – p.10 & 11
Corporate governance codes for commercial banks and capital market set the requirements for ESG reporting and disclosure. The latter is one of the most important tools for driving markets towards more environment-friendly behavior
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
E2.17 – Does the policy make E&S or ESG reporting and disclosure more consistent across financial institutions through principles, guidelines, or templates?
No
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E & S Integration - Enforcement
E3.1 – Is the implementation of the framework regularly verified or is information regularly collected from FIs?
No
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E3.2 – Is there any financial and/or non-financial incentive for establishing ESRM systems?
No
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E3.3 – Are there sanctions/penalties/warnings in case of noncompliance with the framework?
No
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Climate and Green Finance - Products and Services
Defining sustainable assets and financial products
C1.1 – Does the framework provide definitions and examples of green assets?
No
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C1.2 – Does the framework provide a comprehensive taxonomy of green assets?
No
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C1.3 – Does the framework provide definitions, examples, or a taxonomy of social and/or sustainable assets?
No
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C1.4 – Besides debt products (loans, bonds), does the framework provide definitions and examples of different types of sustainable finance products/services (e.g., saving accounts, means of payment, insurance, private equity, etc.)?
No
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Green Finance Product Guidelines
C1.5 – Does the framework provide guidelines for green loan/green credit or other green financial assets (excluding green bonds)?
No
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C1.6 – Does the framework provide guidelines for issuance of green bonds?
No
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C1.7 – Does the framework refer to existing standards (e.g., ICMA’s Green Bond Principles or CBI’s Climate Bonds Standard)?
Yes
(1) – Increasing Awareness and Capacity Building – p.9
With the purpose of increasing awareness about the sustainable finance, ICMA principles have been translated in Georgian language. It is now available on the ICMA website, which also signals international investors about the sustainable finance development on Georgian market. ICMA principles are updated on annual basis and the NBG in cooperation with the private sector has provided the translation of updated documents and will continue to do so
Roadmap for Sustainable Finance in Georgia (NBG, 2019)
C1.8 – Does the framework recommend external party verification (e.g., second party opinion, assurance, certification)?
No
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Climate and Green Finance - Climate and Green Investment Reporting
Tracking and Disclosure of Climate & Green Finance
C2.1 – Does the framework ask FIs to report on climate/green finance flows (quantitatively or qualitatively)?
No
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C2.2 – Does the framework ask FIs to report on climate risk exposure at portfolio level?
No
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C2.3 – Does the framework encourage FIs to report publicly on their green finance activities (i.e. not only to the regulator)?
No
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Climate and Green Finance - Measurement
Calculation of Environmental Benefits
C3.1 – Does the framework ask FIs to calculate the environmental benefits of their investments? (e.g., CO2 emission reduction, water saving, etc.)
No
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C3.2 – Does the framework provide a taxonomy of potential environmental impacts?
No
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C3.3 – Does the framework provide methodologies, tools, and/or templates to measure and report these impacts?
No
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Climate Risk Exposure Assessment
C3.4 – Does the framework ask FIs to monitor climate risk exposure at portfolio level?
No
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C3.5 – Does the framework refer to specific climate risk exposure methodologies (e.g., climate scenario analysis, climate risk stress testing, calculation of carbon risk exposure, tracking of energy efficiency for real estate portfolio)?
No
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C3.6 – Does the framework encourage FIs to take mitigating steps on these risks?
No
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Climate and Green Finance - Incentives
Financial and Non-Financial Incentives
C4.1 – Does the framework provide any type of incentives for green financial products and services?
No
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C4.2 – More specifically, does the framework introduce financial incentives on green products and services?
No
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