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 - 31.08.2026

Azerbaijan faces the challenge of making its financial sector, which is heavily dependent on oil and gas, more sustainable. Increasing climate risks such as droughts and soil degradation pose a long-term threat to economic stability. At the same time, there is a lack of ESG data, standards and institutional capacity to assess environmental and social risks.

The overall objective of the project is to promote and support sustainable change in Azerbaijan's financial sector. The specific objective of the project is to support the Central Bank of the Republic of Azerbaijan (CBAR) in developing ESG guidelines to improve the financial sector's ability to effectively assess and manage climate- and ESG-related risks.

Task
Development of sector-specific ESG assessment tables Conducting analyses and validating results in workshops with the Central Bank and local experts Development of ESG guidelines Support for the Central Bank in conducting an awareness campaign to promote the new ESG guidelines in the financial sector Introduction of the ESG Risk Radar as a standard tool for managing ESG risks in financial institutions.