Country
Azerbaijan

Local Project Partner
Central Bank of Azerbaijan (CBAR), Azerbaijan Banking Association

German Project Partner
Finance in Motion GmbH

Donor
Partner-financed

Duration
15.08.2025 - 31.10.2026

In Azerbaijan, there is a pressing need to integrate ESG principles more closely into economic and financial decision-making processes. At present, there is a widespread lack of uniform standards, reliable data and institutional structures for the systematic assessment of ESG risks. This complicates both risk management and the development of consistent sustainability approaches in the business and financial sectors.

The project’s overarching objective is to provide targeted support for the sustainable transformation of the financial sector in Azerbaijan. The focus is on assisting the Central Bank of the Republic of Azerbaijan in developing ESG guidelines. This is intended to strengthen institutional capacity to identify, assess and manage ESG and climate risks within the financial system.

Task
As part of the project, sector-specific ESG assessment matrices are being developed, analysed and validated in workshops in collaboration with the central bank. ESG guidelines are then derived and further refined on this basis. The assessment matrices developed will also form the basis of an ESG risk radar, which will be used in future as a standardised tool for managing ESG risks in financial institutions. In addition, the project is supporting the central bank in implementing an awareness-raising campaign to embed the new ESG requirements within the financial sector.