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.
