Country
Azerbaijan

Local Project Partner
Central Bank of Azerbaijan, 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 physical 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 risk radars and assessment tables based on NACE codes, conducting analyses and validating the results in workshops with the central bank and local experts, developing ESG-RR guidelines, supporting the central bank in conducting an awareness campaign to promote the new ESG guidelines in the financial sector.

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 improve the financial sector's ability to effectively assess and manage climate and ESG-related risks.