Tbilisi, Georgia, April 12, 2019—IFC,
a member of the World Bank Group, has joined forces with the National Bank
of Georgia to launch the Sustainable Finance Roadmap, a guide to helping
the financial sector improve the management of environmental, social, and
governance risks and direct more capital to sectors and projects that have
environmental and social benefits.
IFC, together with the Sustainable Banking
Network (SBN), for which IFC serves as secretariat and technical advisor,
helped the National Bank of Georgia design the new roadmap, which outlines
the future actions the bank will undertake to support sustainable finance
development in Georgia. The roadmap aims to provide a credible, predictable,
and stable regulatory framework to prepare the market for transitioning
to sustainable finance.
“Sustainable finance is very important in
contributing to sustainable development. A successful transformation to
sustainable finance requires coherent, consistent actions by both the public
and private sectors simultaneously,” said Koba Gvenetadze, Governor of
the National Bank of Georgia. “The new roadmap puts together policy actions
that we have been implementing since 2017 to promote transparency and the
integration of environmental, social, and governance issues into investment
decision-making and risk management processes.”
The Sustainable Finance Roadmap references
international best practices and leverages experiences from 36 SBN member-countries
from emerging markets. The new policies are also expected to help commercial
banks and public companies attract investment, thanks to a growing movement
among investors worldwide to support socially and environmentally responsible
development projects. Supporting these efforts is part of IFC’s broader
work to help boost private sector development in Georgia.
Jan van Bilsen, IFC Regional Manager for
the South Caucasus, said: “Sustainability is critical to business success.
Adhering to sustainable finance principles will help banks and the capital
market attract more responsible investors and will also provide new opportunities
to increase finance flows, such as the issuance of green bonds.”
Georgia became an IFC member and shareholder
in 1995. Since then, IFC has provided around $1.88 billion in long-term
financing, of which nearly $980 million was mobilized from partners, in
60 projects in financial services, agribusiness, manufacturing, and infrastructure.
In addition, IFC has supported more than $394 million in trade through
its trade finance program, and implemented a number of advisory projects
focused on developing the private sector.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,
The Sustainable Banking Network (SBN) is
a knowledge and capacity-building platform of financial sector regulators,
banking associations, and environmental regulators from emerging markets
committed to developing sustainable finance frameworks based on national
priorities and international good practices. IFC acts as the secretariat
of the network, playing the role of facilitator and technical adviser to
SBN. For more information on the Sustainable Banking Network, visit www.ifc.org/sbn.