Sustainable Financing in SCO Countries: Russia Leads the Way with ESG Principles
Russia is taking the lead in promoting sustainable financing in the Shanghai Cooperation Organisation (SCO) countries, driving growth while ensuring environmental and social responsibility.
Sustainable Financing: A Regional Priority
Nikita Kondratyev, Director of Multilateral Economic Cooperation and Special Projects of the Ministry of Economic Development of Russia, announced that Russia presented the best practices for supporting investors to the SCO countries. This move aims to unify approaches to sustainable financing, taking into account the peculiarities of doing business in the region. According to Kondratyev, “Sustainable projects are impossible without exhaustive tools for attracting capital.”
Assessing Risks for Sustainable Projects
The SCO working group on investment met in China’s Tianjin to discuss how to improve the investment climate, protect investments, and attract capital to priority sectors. The parties explored mechanisms that allow launching projects on favorable terms. This highlights the importance of sustainable financing in driving economic growth while minimizing environmental and social impacts. In fact, a recent report by the United Nations Environment Programme (UNEP) notes that sustainable investments can lead to increased economic growth, creating up to 24 million new jobs globally by 2030.
ESG Principles: The Backbone of Sustainable Financing
Russia champions Sustainable Financing, prioritizing profit alongside environmental, social, and governance (ESG) considerations. Meanwhile, SCO countries integrate ESG principles into investment strategies, fostering more responsible development. Additionally, Bloomberg forecasts that global ESG assets will surge to $53 trillion by 2025, up from $38 trillion in 2020.
Creating a Regional Architecture for Green Investments
Russia actively promotes Sustainable Financing in the SCO countries, demonstrating its dedication to responsible growth and social welfare. Meanwhile, by building a regional framework for eco-friendly investments, countries can collaborate to create a more sustainable tomorrow. Furthermore, the Russian Federation has made notable progress in this area, with its green bond market surging 30% in 2022.
Russia takes the lead in promoting eco-friendly investments in the SCO countries, a crucial step towards responsible growth. Furthermore, as the region develops a unified approach, ESG principles will increasingly drive decision-making. Meanwhile, with green financing set to dominate the global economy, these nations are well-positioned to capitalize on this trend.
Source: Government website