Category: News
UNDP’s Financial Centres for Sustainability (FC4S) Network launches Gender Finance Charter to advance gender equality in sustainable finance.
Dublin, 26 September 2023 – United Nations Development Programme's (UNDP) Financial Centres for Sustainability (FC4S) Network announced the launch of a ground-breaking Gender Finance Charter in its Annual General Meeting today. To date, 21 financial centres have pledged their support and pledged to take concrete actions throughout 2024 for advancing gender equality in the realm of sustainable finance.
Marcos Neto, Director UNDP Sustainable Finance Hub said:
“On our journey towards sustainable finance and a more equitable world, the Gender Finance Charter serves as a foundational instrument, deepening UNDP’s Financial Centres for Sustainability (FC4S) Network work on the path to sustainable and more equitable finance. It not only encapsulates our core values but is also a powerful tool for transformation towards gender-responsive sustainable finance.”
The Gender Finance Charter defines ten fundamental principles which offer a pragmatic and actionable framework, encouraging member financial centres to implement a minimum of two principles through tailored action plans or initiatives within the next year. These principles encourage to lead by example, fostering gender equality and diversity within their organizations and become champions of financial education as a potent means to empower women.
Moreover, these principles inspire financial centres to champion women’s leadership and representation across their ecosystems and prioritize transparency in gender performance, provide guidance for the establishment of gender-related targets and advocate for the development and adoption of gender-responsive financial products and practices. Simultaneously, they are resolute in their commitment to enhancing women’s access to finance, focusing on women-owned and women-led businesses.
Minister Jennifer Carroll MacNeill TD, Minister of State at the Department of Finance of Ireland said:
“This Gender Finance Charter is of global significance in financial services and I am delighted that it is being launched here in Dublin. It has the potential to significantly advance gender equality, not just in financial services, but more broadly across the globe.
“I want to congratulate the representatives from over 40 financial centres around the world for demonstrating true leadership in being here to sign up and commit to the Charter. On behalf of the Government of Ireland, I want to commend FC4S for spearheading this initiative.”
In conjunction with the Gender Finance Charter, the UNDP’s FC4S Gender Working Group is working in partnership with UN Women on a co-branded Gender Finance Booklet. The Gender Finance Booklet will be a comprehensive resource that equips all FC4S members with the necessary tools and guidance for effective implementation of the Gender Finance Charter’s principles.
Kali Taylor, Community Manager of Sustainable Finance Geneva and Gender Working Group Chair said:
"Gender has been a priority of the Geneva financial centre since 2021, so we are thrilled to join this broader movement of financial centres committing to this important topic. We see this as an excellent opportunity to learn from our peers, collaborate, and push for gender equality in Geneva and globally."
Among the list of endorsers of the Gender Charter are Abu Dhabi Global Market, Astana International Financial Centre, Barcelona Centre Financer Europeu, Capital Markets Malaysia, Casablanca Finance City Authority, Consejo Mexicano de Finanzas Sostenibles, ESGeneration Italy, FC4S Lagos, Finance Montréal, Hong Kong Green Finance Association, International Sustainable Finance Centre of Excellence, Laboratório de Inovação Financeira, Liechtenstein Bankers Association, Luxembourg Sustainable Finance Initiative, Mongolian Sustainable Finance Association, Nairobi International Financial Centre, Kigali International Financial Centre, Stockholm Green FinTech, Sustainable Finance Geneva, Green and Sustainable Finance Cluster Germany and We Are Guernsey.
The UNDP’s FC4S Secretariat will conduct a comprehensive survey by the end of 2024 to assess the progress and collective impact achieved by endorsing financial centres. Additionally, it will provide ongoing support to its members in implementing the selected principles of the Charter through capacity-building activities based on the 10 principles outlined in the Charter.
ENDS
About UNDP SFH:
The UNDP Sustainable Finance Hub brings together UNDP’s financial expertise to harness public and private capital for the Sustainable Development Goals (SDGs)- supporting governments, investors and businesses in reaching climate, social impact and sustainability targets. Its work drives systemic change towards a sustainable financial architecture that benefits people and the planet. Find out more about its integrated services that ensure all finance is sustainable, at sdgfinance.undp.org or follow @UNDP_SDGFinance
About UNDP FC4S Network:
The UNDP’s Financial Centres for Sustainability (FC4S) Network is a global network of 40 financial centres, working together to achieve the objectives set by the 2030 Agenda and the Paris Agreement. FC4S is hosted by UNDP’s Sustainable Finance Hub.
Learn more at fc4s.org or follow @FC4Snetwork
The FC4S members include:
Abidjan – Ministry of Economy and Finance, Abu Dhabi - Abu Dhabi Global Market,
Astana - Astana International Financial Centre, Barcelona - Barcelona Centre Financer Europeu for Sustainability, Beijing - Institute of Finance and Sustainability, Busan - Busan Finance Centre, Cairo - Financial Regulatory Authority, Casablanca - Casablanca Finance City,
Dublin - International Sustainable Finance Centre of Excellence, Edinburgh - Global Ethical Finance Initiative, Frankfurt - Green and Sustainable Finance Cluster Germany, Geneva - Sustainable Finance Geneva, Glasgow - Global Ethical Finance Initiative, Guernsey - Guernsey Green Finance, Gujarat - International Financial Services Centres Authority,
Hong Kong - Hong Kong Green Finance Association, Jersey - Jersey Finance,
Kuala Lumpur - Capital Markets Malaysia, Lagos - The Financial Centre for Sustainability, Liechtenstein - Liechtenstein Bankers Association, Lisbon - Grupo de Reflexão para o Financiamento Sustentável, London - City of London Corporation, Luxembourg - The Luxembourg Sustainable Finance Initiative, Madrid - The Spanish Centre for Responsible and Sustainable Finance, Mexico - Mexican Council of Sustainable Finance, Milan - ESGeneration Italy, Mongolia - The Mongolian Sustainable Finance Association, Montréal - Finance Montréal,
Nairobi - Nairobi International Finance Centre Authority, New York - U.S. Alliance for Sustainable Finance, Paris - Institut De La Finance Durable, Rio de Janeiro - The Laboratory of Financial Innovation, Rwanda - Kigali International Financial Centre, Seoul - Seoul Metropolitan Government, Shanghai - Lujiazui Financial City Green Finance Development Center, Shenzhen - Shenzhen Green Finance Committee, Stockholm - Stockholm Green Digital Finance, Stuttgart - Stuttgart Financial, Tokyo - FinCity.Tokyo, Zurich - Swiss Sustainable Finance
Press Contact:
Ayesha Babar
Strategic Coordination and Communications Specialist, UNDP Sustainable Finance Hub
Cónán Ó Broin
Drury Communications (Dublin)
+353 86 1089857 / conan.obroin@drury.ie
AGM of UNDP’s Financial Centres for Sustainability (FC4S) Network launches its Gender Finance Charter to mainstream gender considerations within sustainable finance during its Annual General Meeting.
Members of FC4S sign a milestone Gender Charter to advance gender equality in sustainable finance.
Dublin, 26 September 2023: 35 global international financial centres participated in the Annual General Meeting (AGM) of United Nations Development Programme’s (UNDP) Financial Centres for Sustainability Network (FC4S) in Dublin today.
In his welcome remarks, Haoliang Xu, Under-Secretary-General and Associate Administrator of UNDP while addressing FC4S members said: “FC4S gathers leading financial centres with a strong network in both private and public financial institutions. It embodies the spirit of collaboration and partnership, not only within its members, but also with the broader financial sector. FC4S’s ability to crowd-in knowledge and resources of private financial institutions is pivotal in achieving our shared sustainable finance objectives.”
Opening the AGM, Lamia Merzouki, Chief Operating Officer of Casablanca Finance City Authority and Chair of FC4S said: “I am delighted to participate in the FC4S AGM in Dublin and would like to warmly thank the Irish government for hosting us. We are at the halfway point to the 2030 Agenda and the SDGs are still facing significant challenges with only 15% of the SDGs on track. In this context, it is essential to highlight the role of financial centres in leading a positive transformation towards a more inclusive and sustainable finance.”
A Gender Finance Charter, based on ten fundamental principles, was launched during the AGM as well. These principles guide the financial centres to integrate gender considerations into their interactions with stakeholders and become champions of financial education as a potent means to empower women. Moreover, these principles inspire financial centres to champion women’s leadership and representation across their ecosystems and prioritize transparency in gender performance, provide guidance for the establishment of gender-related targets and advocate for the development and adoption of gender-responsive financial products and practices. Simultaneously, they are resolute in their commitment to enhancing women’s access to finance, focusing on women-owned and women-led businesses.
Marcos Neto, Director UNDP Sustainable Finance Hub said: “On our journey towards sustainable finance and a more equitable world, the Gender Finance Charter serves as a foundational instrument, deepening UNDP’s Financial Centres for Sustainability (FC4S) Network work on the path to sustainable and more equitable finance. It not only encapsulates our core values but is also a powerful tool for transformation towards gender-responsive sustainable finance.”
Minister Jennifer Carroll MacNeill TD, Minister of State at the Department of Finance of Ireland said: “This Gender Finance Charter is of global significance in financial services, and I am delighted that it is being launched here in Dublin. It has the potential to significantly advance gender equality, not just in financial services, but more broadly across the globe. I want to congratulate the representatives from financial centres around the world for demonstrating true leadership in being here to sign up and commit to the Charter. On behalf of the Government of Ireland, I want to commend FC4S for spearheading this initiative.”
21 FC4S members have endorsed the Charter till now and have committed to take concrete actions throughout 2024 to mainstream gender considerations within sustainable finance. In conjunction with the Charter, the FC4S Gender Working Group (GWG) is also working on a Gender Finance Booklet, a comprehensive resource that equips all FC4S members with the necessary tools and guidance for effective implementation of the Charter's principles.
Kali Taylor, Community Manager of Sustainable Finance Geneva and Gender Working Group Chair said: "Gender has been a priority of the Geneva financial centre since 2021, so we are thrilled to join this broader movement of financial centres committing to this important topic. We see this as an excellent opportunity to learn from our peers, collaborate, and push for gender equality in Geneva and globally."
Members of the FC4S were briefed on the development of the SDG Investment Pipeline Building program which has kickstarted in Africa with a pilot focus on Kenya, Nigeria and Rwanda. The SDG Pipeline building program has seen success through a series of multistakeholder engagements between the UNDP country offices, financial centres, and investment intermediaries in identifying and vetting a regional pipeline of SDG Investment ready projects for capital deployment. Key highlights from the program featured a presentation of the developed SDG Pipeline of projects in Nigeria, which has been developed through a successful partnership and collaboration between FC4S Lagos, UNDP Nigeria, UNCDF and the investment intermediary- Impact Investment Exchange.
Members during the AGM were also updated regarding the FC4S Assessment Programme (AP). The AP, a pioneering initiative, serves as a comprehensive evaluation of sustainable finance practices across key international financial centres. The programme surveys both private and public financial sector actions and their contributions to the UN Sustainable Development Goals, offering valuable insights into the state of green and sustainable finance worldwide. A forthcoming global report, which will aggregate data from the AP 2023 edition, will provide a valuable resource for informed decision-making and accelerating the transformation towards a more sustainable financial landscape.
Stephen Nolan, Managing Director UNDP FC4S while closing the AGM said: "Celebrating the coming together of 35 international financial centres in Dublin, UNDP’s FC4S Annual General Meeting is about making a real impact on sustainable finance and gender equality. We're delighted about the Gender Finance Charter launch, the SDG Investment Pipeline Builder and our Assessment program. These show how committed we are to reshaping finance for a better, fairer world. Together, we're not just talking about change; we're working hard to create a financial world that's more sustainable and inclusive."
About UNDP:
As the United Nations lead agency on international development, UNDP works in 170 countries and territories to eradicate poverty and reduce inequality. UNDP helps countries to develop policies, leadership skills, partnering abilities, institutional capabilities, and to build resilience to achieve the Sustainable Development Goals. UNDP’s work is concentrated in three focus areas; sustainable development, democratic governance and peace building, and climate and disaster resilience.
Learn more at undp.org or follow @UNDP
About UNDP SFH:
The UNDP Sustainable Finance Hub brings together UNDP’s financial expertise to harness public and private capital for the Sustainable Development Goals (SDGs)- supporting governments, investors and businesses in reaching climate, social impact and sustainability targets. Its work drives systemic change towards a sustainable financial architecture that benefits people and the planet.
Find out more about its integrated services that ensure all finance is sustainable, at sdgfinance.undp.org or follow @UNDP_SDGFinance
About UNDP FC4S Network:
The UNDP’s Financial Centres for Sustainability (FC4S) Network is a global network of 40 financial centres, working together to achieve the objectives set by the 2030 Agenda and the Paris Agreement. FC4S is hosted by UNDP’s Sustainable Finance Hub.
Learn more at fc4s.org or follow @FC4Snetwork
The FC4S members include:
Abidjan – Ministry of Economy and Finance, Abu Dhabi - Abu Dhabi Global Market,
Astana - Astana International Financial Centre, Barcelona - Barcelona Centre Financer Europeu for Sustainability, Beijing - Institute of Finance and Sustainability, Busan - Busan Finance Centre, Cairo - Financial Regulatory Authority, Casablanca - Casablanca Finance City Authority,
Dublin - International Sustainable Finance Centre of Excellence, Edinburgh - Global Ethical Finance Initiative, Frankfurt - Green and Sustainable Finance Cluster Germany, Geneva - Sustainable Finance Geneva, Glasgow - Global Ethical Finance Initiative, Guernsey - Guernsey Green Finance, Gujarat - International Financial Services Centres Authority,
Hong Kong - Hong Kong Green Finance Association, Jersey - Jersey Finance,
Kuala Lumpur - Capital Markets Malaysia, Lagos - The Financial Centre for Sustainability, Liechtenstein - Liechtenstein Bankers Association, Lisbon - Grupo de Reflexão para o Financiamento Sustentável, London - City of London Corporation, Luxembourg - The Luxembourg Sustainable Finance Initiative, Madrid - The Spanish Centre for Responsible and Sustainable Finance, Mexico - Mexican Council of Sustainable Finance, Milan - ESGeneration Italy, Mongolia - The Mongolian Sustainable Finance Association, Montréal - Finance Montréal,
Nairobi - Nairobi International Finance Centre Authority, New York - U.S. Alliance for Sustainable Finance, Paris - Institut De La Finance Durable, Rio de Janeiro - The Laboratory of Financial Innovation, Rwanda - Kigali International Financial Centre, Seoul - Seoul Metropolitan Government, Shanghai - Lujiazui Financial City Green Finance Development Center, Shenzhen - Shenzhen Green Finance Committee, Stockholm - Stockholm Green Digital Finance, Stuttgart - Stuttgart Financial, Tokyo - FinCity.Tokyo, Zurich - Swiss Sustainable Finance
Press Contact:
Ayesha Babar
Strategic Coordination and Communications Specialist, UNDP Sustainable Finance Hub
Ireland announces €2.5 million support, at COP27, for United Nations Development Programme (UNDP) climate finance activities
Sharm El-Sheikh, November 16, 2022: While attending the United Nations climate talks – COP27 – Irish Minister for the Environment, Climate and Communications, Eamon Ryan announced funding support of €2.5 million to United Nations Development Programme (UNDP) climate finance activities.
A special report commissioned for COP27 found that by 2025, $1 trillion in investment per year will be needed to cut greenhouse gases and increase climate action in developing and emerging economies. This rises to $2.4 trillion per year by 2030.
As part of its new Strategic Plan (2022-2025), UNDP is scaling its financing work with the aim of promoting over $1 trillion investment of public expenditure and private capital in the Sustainable Development Goals (SDGs). The Plan recognizes that strong partnerships – with governments and the private sector – are central to achieving this. Key to this are financial centres, with the UNDP Financial Centres for Sustainability (FC4S) network primed to play a leading role.
A network of 39 members across Asia, Africa, the Americas, the Gulf and Europe, with Irish support FC4S is now scaling up its activities. Forming part of this programme of work, Irish support will be utilised to establish the UNDP FC4S SDG Pipeline Builder programme. The aim of the Pipeline Builder is to provide investors with opportunities to support emerging market and developing economies with country-level SDG aligned investable projects. Initial activities have been planned in Kenya and Nigeria, in partnership with UNDP FC4S members Nairobi International Financial Centre and FC4S Lagos.
This initiative supports existing UNDP activities, in particular the SDG Investor Maps, a market intelligence tool that identifies investment opportunity areas for private investment aligned with national development plans. To date, through UNDP’s support, 15 countries in Africa have now developed their SDG Investor Maps.
Minister Eamon Ryan, Irish Department of the Environment, Climate and Communications, said: ““The scale of the challenge we face with climate change is beyond compare. We have to work hard and fast, together, if we have any chance of addressing them. There is no opt out. There is no easy route, starting with how we finance our ambitions. Delivering on our collective climate goals will require mobilising even greater levels of sustainable financing. Through our support of the UNDP FC4S initiative we are maximising the potential for achieving the SDGs by ensuring that emerging markets and the developing economies efforts are being supported. As an established financial centre, Ireland is building a strong track record in sustainable finance and we look forward to working with our UN partners to accelerate international efforts in this space.”
“As people across the globe witness the effects of an intensifying climate emergency in 2022, UNDP is working with our partners to unlock $1 trillion in sustainable finance that is pivotal to tackle climate change, protect our natural world and drive progress across all 17 Sustainable Development Goals,” says UNDP Administrator, Achim Steiner. “Financial Centres, defined by their cutting-edge expertise in mobilising sustainable finance will be a fulcrum to achieve this moonshot, which seems a huge figure on face value yet represents just 0.24% of total global wealth.”
Stephen Nolan, Managing Director, UNDP FC4S network noted: “A UNDP Sustainable Finance Hub flagship initiative, today FC4S members collectively represent US$84 trillion equity market capitalisation, with members based in Africa, Asia, the Americas, the Gulf and Europe. Minister Ryan’s support will allow FC4S turbocharge its support to our members, particularly those in emerging market and developing economies, with a particular emphasis on mobilising greater amounts of capital required to meet the Paris Agreement and SDGs.”
ENDS
Further media information:
Ayesha Babar, UNDP
Email: Ayesha.babar@undp.org
Notes for editors:
COP27
The 27th Conference of the Parties to the United Nations Framework Convention on Climate Change – COP27 – is bringing together heads of state, ministers, and negotiators, along with climate activists, mayors, civil society representatives and CEOs in November 2022 in Sharm El-Sheikh, Egypt, for the largest annual gathering on climate action. COP27 will build on the outcomes of COP26 to deliver action on an array of issues critical to tackling the climate emergency and deliver on the objectives of the Paris Climate Agreement – from urgently reducing greenhouse gas emissions, building resilience, and adapting to the inevitable impacts of climate change, to delivering on the commitments to finance climate action in developing countries. As the focus at this year’s conference moves to adaptation to climate change, the role of private finance in building societal resilience to physical climate change impacts is key.
UNDP Financial Centres for Sustainability (FC4S)
Established end-2018, the Financial Centres for Sustainability (FC4S) Network is a network of 39 financial centres working together to achieve the objectives set by the 2030 Agenda and the Paris Agreement. FC4S was born out of Italy’s G7 Presidency in 2017. Financial centres are of primary importance to the structure, function, and dynamics of the global economy, north and south where interlocking financial activities such as banking, capital markets, and insurance are concentrated. Through regulatory, coordination and investment channels, financial centres can fundamentally shape the incentives of individual companies to integrate aspects of sustainable development into regular business. The global scale of the collective’s vision is best represented by the regional variety of members across Asia, Africa, the Americas, the Gulf and Europe, who all believe in driving convergence, exchanging experiences, and acting on shared priorities to accelerate the expansion of green and sustainable finance.
****
Photo: UNDP COP27 pavilion: Eamon Ryan, Irish Minister of the Environment, Climate and Communications; and Ricardo Lara, Insurance Commissioner, State of California and UNDP SIF member.
‘The PACTA Tool’ Webinar – 2nd & 3rd November
We are delighted to to invite you to the webinar 'The PACTA Tool', which will take place on Wednesday 2 November at 16:00 PM CET and Thursday 3 November at 10:00 AM CET, organised by the UNDP Financial Centres for Sustainability Network (FC4S), in association with the Rocky Mountain Institute.
The workshop links to the science-based tools webinars, an FC4S series to present instruments that help address the challenges financial institutions face in reporting, measuring, and disclosing sustainable finance strategies.
In this session, you will learn about the PACTA Tool. Now under the stewardship of RMI, with backing from UN Principles for Responsible Investment, PACTA enables users to measure the alignment of financial portfolios with climate scenarios as well as to analyze specific companies. PACTA has been used by over 1,500 financial institutions worldwide, as well as by supervisors and central banks to assess their regulated entities (e.g. European Insurance and Occupational Pensions Authority (EIOPA), California Department of Insurance, Bank of England, and more). On average, more than 600 portfolios are tested every month using PACTA.
This webinar will be held in English, last one hour, and include a Q&A session to facilitate direct communication with the subject matter expert.
Speakers2 November:
- Maarten Vleeschhouwer - Head of PACTA
- George Harris - PACTA for Banks Lead
3 November:
- Nayra Herrera - PACTA For Investor Lead
- Nicholas Dodd - Senior Analyst
Please kindly register in the links below:
Register via Zoom - 2nd NOVEMBER 2022
UNDP’s network of leading international financial centres holds their General Annual Meeting in Casablanca to mainstream sustainable finance
Casablanca, 20 October 2022: Over 20 leading financial centres from Africa, Asia, the Americas, the Gulf and Europe representing UNDP’s Financial Centres for Sustainability (FC4S) Network, participated in its 2022 Annual General Meeting in Casablanca today. The meeting was held for the first time after the pandemic. The FC4S members also took part in the Casablanca Finance City Authority (CFCA) inaugural Casablanca Sustainable Finance Dialogue (CSFD).
With the sustainable finance agenda surging, the AGM was a key meeting for UNDP FC4S, not least in the context of November’s international climate talks – COP 27, taking place in Egypt next month. In the context of a rapidly evolving international regulatory environment, the meeting was centered on developing FC4S’s 2023 – 2025 strategic plan.
Areas of discussion focused on building on FC4S’s critical role in supporting member financial centres accelerate the mainstreaming of the sustainable finance agenda, and the continued growth of the network as members collectively work to take a quantum leap to support the transition towards net zero activities. In doing so, the FC4S members also support national efforts at limiting climate change and biodiversity loss.
Lamia Merzouki, Deputy General Manager CFCA and FC4S Co-Chair says, “In 2017, Casablanca Finance City Authority played host to the meeting that led to the establishment of the UN Financial Centres for Sustainability (FC4S) Network. Now, five years on, today FC4S members collectively represent US$84 trillion equity market capitalisation, with members based in Africa, Asia, the Americas, the Gulf and Europe. And with the inaugural Casablanca Sustainable Finance Dialogue offering an ideal opportunity for delegates to familiarise themselves with the sustainability challenges facing African economies as well as the solutions that are currently in train, as FC4S Co-Chair I am delighted to welcome fellow FC4S members to Casablanca. I look forward to a engaging few days with colleagues and friends as a precursor to COP27.”
Marcos Neto, Director UNDP Sustainable Finance Hub, said on the occasion that “The world now desperately needs an economic governance architecture which is deliberately designed to support governments, development agencies, civil society and the private sector to make decisions that prioritize investment in the Sustainable Development Goals and the Paris Agreement. As a UNDP Sustainable Finance Hub flagship initiative and in advance of the upcoming climate talks – COP27, taking place in Africa I am delighted to see FC4S members meet in Casablanca this week.”
Stephen Nolan, Managing Director UNDP FC4S while inaugurating the AGM said that “The moment is right for leading financial centres to take a quantum leap to transition in this direction; in doing so, serve the needs of the real economy and support efforts at limiting climate change and biodiversity loss. As one such financial Centre, Casablanca is leading from the front as it seeks to turbocharge sustainable finance activities that support the achievement of the Sustainable Development Goals
Mongolia launches guidelines on corporate ESG and Sustainability reporting
Mongolia launches guidelines on corporate ESG and Sustainability reporting
ULAANBAATAR, Mongolia, August 2022 – Mongolia released today a set of guidelines to help listed companies, prospective issuers, and other interested companies disclose their sustainability practices.
The Sustainability Reporting Guidance for Mongolian Companies provides an overview of global sustainability reporting frameworks and trends, followed by an eight-step outline of how listed companies and other issuers can build the capacity to report on sustainability. Also included in the document are lists of indicators that companies can select from to fulfill their sustainability disclosure requirements.
Sustainability reporting is an organization’s practice of reporting publicly on its significant economic, environmental, and/or social impacts, in accordance with globally accepted standards. Such disclosures enable organizations to measure, understand and communicate their environmental, social, and governance (ESG) goals as well as a company’s progress toward them.
“By introducing this ESG disclosure and sustainability reporting guidance in line with international standards, we hope to harness good ESG management and disclosure market practice and help issuers and other financial institutions in creating long-term value that benefits the Mongolian financial market as a whole. We also believe that the public, investors, and stakeholders will benefit from improved transparency and disclosure practices” says Mr. Bayarsaikhan Dembereldash, Chairman of the Financial Regulatory Commission (FRC).
Efforts to integrate sustainability in financial analysis and investment globally are often hindered by a lack of quality ESG reporting data. This is also the case in Mongolia where, according to the analysis of a recent study, only 13% of companies listed on the stock exchange publicly disclosed their environmental indicators.
A recent survey of 42 companies listed on the Mongolian Stock Exchange (MSE) revealed that current reporting practices on sustainability issues is limited, with more information being disclosed on governance-related indicators compared to environmental and social ones (such as greenhouse gas emissions reduction and climate risks) due to lack of the technical knowledge and skills. The survey, however, noted that companies were willing to engage on sustainability reporting and believe the relevant information can be collected and disclosed if given the right guidance and capacity-building support.
The guidance suggests a set of key ESG indicators that companies should consider reporting on, and provides practical resources that companies can explore when preparing their sustainability reports. MSE-listed companies are expected to submit their first sustainability reports in 2023.
Listed issuers are strongly encouraged to refer to the guide in the implementation of sustainability practices, as well as annual reporting. Organizations that are not listed on the stock exchange can also use this document as a guide to assess their sustainability reporting practices and identify and address any gaps.
The Sustainability Reporting Guidance for Mongolian Companies was developed through a partnership between the FRC, MSE, MSFA, International Finance Corporation (IFC), UNDP-hosted Financial Centres for Sustainability Network (FC4S), United Nations Environment Programme (UNEP), United Nations Development Programme (UNDP) and United Nations (UN) Resident Mission in Mongolia, with support from the Global Environment Facility (GEF) and UN Joint SDG Fund.
Mr. Altai Khangai, the CEO of Mongolian stock exchange says “Adoption of ESG reporting standards in the capital market is a critical step in aligning business activities and private financing with the SDGs. The Mongolian Stock Exchange fully recognizes the role of the capital markets in mobilizing required financing for accelerating sustainable development and will continue working on creating an enabling market environment for ESG investment”.
“The goal of business and investors has shifted towards creating long-term stakeholder value and sustained growth,” says Orkhon Onon, Chairman of the Mongolian Sustainable Finance Association (MSFA). “This guidance will be key to aligning Mongolia’s financial system with sustainable development.”
“We know from our global and regional experience that investors are increasingly interested in the sustainability agenda. They are actively looking to see how companies are tackling issues such as climate change, gender diversity, or biodiversity and supply chain risks, all factors which impact a company’s bottom line. Regulators too are driving the agenda, as we’ve seen in Mongolia, as they recognize increased disclosure of environmental and social impacts is key to supporting the creation of sustainable capital markets, especially in today’s challenging environment,” said Kate Lazarus, IFC Senior ESG Advisory Lead for Asia Pacific. IFC has contributed to the adoption of 145 codes, laws, and regulations, 40 scorecards on corporate governance and sustainability, and 11 ESG reporting guidelines worldwide.
“The Government of Mongolia is taking important initiatives to revive the local economy and transform it in-line with sustainable development principles. As a main driver to thrive economies, businesses and private sector entities must commit to sustainable corporate practices, including improving its transparency and alignment with the Sustainable Development Goals. Therefore, the UN in Mongolia strongly encourages the Government of Mongolia to demonstrate its leadership in implementing the Integrated National Financing Framework and strategy with its reporting mechanism to catalyze transformative change and accelerate implementation of the SDGs for inclusive and sustainable development for all, which is envisaged in Mongolia’s Vision 2050,” said Mr. Tapan Mishra, UN Resident Coordinator in Mongolia.
UNDP Mongolia’s Resident Representative Ms. Elaine Conkievich emphasized the importance of the Sustainability Reporting Guidance and stated, “The adoption of ESG and sustainability reporting standards provides the private sector with the possibility to unlock a variety of opportunities and access potential investment opportunities while integrating sustainability factors into their business decisions and thus contributing towards achieving the SDGs.”
“Sustainability reporting offers a solution to the financial community’s growing demand for transparency and accountability. Targeting both listed and non-listed companies, this Guidance offers a practical reference, including frameworks and indicators, to assess their sustainability reporting practices, identify and address any gaps, and plan for continuous improvement. It highlights the relevance of true commitments through assigning roles and keeping these accountable at the firm level. In this way, its application will enable transparently informing external stakeholders and investors on ways in which a company is creating value over time and whether it is making a positive contribution to society” says Ms.Florencia Baldi, Head of FC4S & SIF Knowledge Hub.
“This guidance will help Mongolia’s capital market players adequately price sustainability risks and allocate capital accordingly,” says Camille Andre, Manager of the Green Finance Platform. “The Financial Stability Council’s endorsement reflects its commitment to transparency and market discipline.”
The Green Finance Platform will support Mongolia’s efforts to build dialogue and engagement around sustainability disclosure guidelines as part of the GEF-funded Aligning Finance Policies project. In addition, the project will support Mongolia’s efforts to advance the Mongolia Sustainable Finance Roadmap, which was approved by the Financial Stability Council (Ministry of Finance of Mongolia, Central Bank of Mongolia, Financial Regulatory Commission, Deposit Insurance Commission) at Mongolia’s first Green Finance Regional Forum in March 2022.
United Nations Development Programme hosted Financial Centres for Sustainability (FC4S) announces launch of Americas Hub
In partnership with regional members, the UNDP hosted Financial Centres for Sustainability (FC4S) network has today announced the creation of a FC4S Americas Hub.
Focused on supporting regional member financial centres further develop and grow their sustainable finance activities in line with the 2030 Agenda and Paris Agreement, the hub consists of three financial centres – Montréal, Mexico City and Rio de Janeiro.
Today’s announcement coincides with the launch of a new Centre of Excellence for Finance for Tomorrow, a hub created by the regulator in partnership with Brazil’s Comissão de Valores Mobiliários (CVM), and Rio de Janeiro City’s Administration.
FC4S Co-Chair and Deputy General Manager Casablanca Finance City Authority, Lamia Merzouki said: “Today’s launch is an important milestone for FC4S and our Americas members. It demonstrates that we have reached a critical mass of collective activity that requires a dedicated regional Hub. The Hub will support members by increasing access to the tools, frameworks, and insights underpinning talent development, product innovation and policy engagement all required to progress the sustainable finance agenda further and help achieve shared regional climate goals.”
Jose Alexandre Vasco, Director, Investor Protection and Assistance Office Director at CVM and coordinator of the Financial Innovation Laboratory, Brazil said: “We are very pleased to participate in today’s launch of the FC4S Americas Hub, which took place in Rio de Janeiro. An important achievement, its creation enhances the perspective of a regional approach. The Laboratory looks forward to working with the Hub in promoting an ecosystem favourable to innovation and strengthening sustainable finance here in Brazil.”
Commenting, Alba Aguilar, CEO, Green Finance Advisory Council, Mexico said: “I am excited about today’s launch of FC4S’s Americas Hub. At the regional level, it can only serve to enhance regional collaboration at the financial centre level on important sustainable finance topics, not least mobilising increasing amounts of private sector capital in support of the regional climate action agenda. CCFV looks forward to supporting the Hub and working with our colleagues in Brazil and Canada.”
Speaking about the launch, Jacques Deforges, CEO Finance Montréal noted: “As we look to further accelerate the mainstreaming of the sustainable finance agenda at the financial centre level the sharing of best practice, exchanging experiences, and finally acting together on shared priorities is key. Finance Montréal is a proud member of FC4S and looks forward to working with our colleagues in the region to support the activities of the FC4S Americas Hub.”
An international collective of 39 financial centres working together to achieve the objectives set by the 2030 Agenda and the Paris Agreement, today’s launch of the FC4S Americas Hub builds on similar FC4S Hubs in Africa, Asia, and Europe.
For further information, please contact Delfina Monteverdi, FC4S Americas Coordinator, at delfina.monteverdi@undp.org or at www.fc4s.org
Notes for editors:
About FC4S
UNDP hosted Financial Centres for Sustainability (FC4S) network is a collective of 39 financial centres working together to achieve the objectives set by the 2030 Agenda and the Paris Agreement. Through national and regional initiatives, the FC4S Secretariat works with members to achieve this objective by providing the tools and insights to measure progress, engage local institutions and inform policy, including research on emerging issues, guidance on best practices, and strategic advice and support services.
Visit www.fc4s.org
About the LAB
The Financial Innovation Laboratory (LAB) is a forum for multisectoral interaction, created by the Brazilian Development Association (ABDE), the Inter-American Development Bank (IDB) and the Securities and Exchange Commission (CVM), which, in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, brings together government and society representatives to promote sustainable finance in the country.
Visit https://labinnovacionfinanciera.com/
About CCFV
The Green Finance Advisory Council (CCFV) is a representative body of the Mexican financial sector that works to promote the financing of projects and investment assets that generate positive environmental impacts. CCFV represents over 300 members and was created in response to the growing need in Mexico to develop a sustainable financial market with an authentic long-term vision.
Visit https://www.ccfv.mx/inicio
About Finance Montreal
Founded in 2010, Finance Montréal, the financial cluster in Quebec, is at the heart of the development and promotion of the Quebec financial services industry and its international positioning as a growing, competitive, attractive and innovative world-class financial center. The organization also focuses on fintech and innovation, sustainable finance and talent development. Hub of the financial community, Finance Montréal mobilizes its forces around these poles, much like the community it built around its Montréal FinTech Station.
Visit www.finance-montreal.com
“Science-Based Tools for Financial Institutions” Webinar Series
Given the urgent need to take effective climate action and the role of science in the transition to sustainability, UNDP-FC4S developed a series of webinars to present available instruments that help address the challenges financial institutions face in developing their strategies and aligning their portfolios. This sequence of workshops aims to familiarize financial professionals with available tools and methodologies that help report, measure, and disclose sustainable finance strategies.
In FC4S, we firmly believe that financial professionals must constantly be trained and informed of the avant-garde tools to work towards the Paris Agreement; and zero-carbon transition.
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Recording: Principles for Climate Aligned Finance / May 5, 2022
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Recording: Data for ESG Finance / May 26, 2022
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Recording UNEP-FI / July 7th, 2022
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Recording TPI Tool / September 14th, 2022
We thank the speakers and the public who has participated live. If you could not attend the previous workshops, we hope to see you in our next session.
Future dates:
Transatlantic sustainable finance partnership hailed as key to promoting “common roadmap” between Canada and France.
A new international partnership has been hailed as a key development of the sustainable financial industry in both Canada and France.
The ‘Quebec-France Corridor in Sustainable Finance’ was officially launched at last week’s Sustainable Finance Summit and is a joint venture between Finance Montréal and Finance for Tomorrow, Paris.
The partnership aims to strengthen cooperation between Quebec and French players in sustainable finance by pooling expertise and best practice in order to create new opportunities for companies and investors on both sides of the Atlantic.
Speaking at last week’s Sustainable Finance Summit, General Manager of Finance Montréal, Jacques Deforges said, “The establishment of the Sustainable Finance Quebec-France Corridor is a mutual recognition of Quebec and French expertise in sustainable finance. This initiative will allow us to pool our knowledge on crucial issues in sustainable finance to position Montreal and Quebec among the major financial centers at the international forefront of sustainable finance.”
The role of UNFC4S in helping to facilitate the new Sustainable Finance Corridor was also highlighted with President of Finance for Tomorrow, Thierry Déau saying that the partnership, “reflects the ambition that we have had since 2018 with the FC4S (Network of international financial centers around sustainability issues) to bring together players from international markets and share best practices to make sustainable finance mainstream finance.”
The Quebec-France Corridor, which establishes Finance Montréal and Finance for Tomorrow as key players in terms of sustainable finance for the two regions, will allow the development of a common roadmap in order to make sustainable finance a key element in the development and influence of the financial industry.
The partnership lays the foundations for a continuous and ambitious dialogue between financial players and companies in the two financial centres and has been met with great enthusiasm by members of the finance industry on both sides of the Atlantic.
