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 oil- and gas-heavy economy 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.

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 Supporting 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 for managing ESG risks in financial institutions.

Task
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 the ESG Risk Radar and ESG Guidelines to enhance the financial sector's ability to effectively assess and manage climate and ESG-related risks.