Vasily Vysokov, Chairman of the Board of Directors of Center-invest Bank, Professor, Doctor of Economics, made a presentation «Sovereign ESG Banking» at the international scientific and practical forum «Financial Education in the Era of Global Change: challenges and opportunities», organised by the Russian Academy of National Economy and Public Administration under the President of the Russian Federation.
Center-invest Bank has been executing the sustainable (creative and responsible) banking model for 30 years and has achieved significant progress in the implementation of ESG principles.
«We have built a ESG banking digital model, published the world’s first ESG balance sheet, maintain ESG reporting with regard to loan portfolios, developed the ESG methodology for the banks, universities, and IT companies of Russia. We got to the bottom of the Russian ESG banking sovereign interests. ESG without IT is impossible! IT without ESG is senseless! But the main outcome of the ESG digitalisation is ability to test ESG-hype using algorithms and convert messages, calls and slogans into algorithms, procedures and programmes,» specifies prof. Vysokov.
ESG banking expands the range of risks and planning horizon, and helps in finding creative solutions and recognising new alternatives, new opportunities, new tools for new adaptation to new challenges.
Center-invest Bank has developed terms of reference for the digitalisation of the main subsystems coordination: «Taxonomy», «Structure and Functions», «Strategy», «ESG Risk Management», «ESG Reporting». The bank contributes to the UNEPFI PRB responsible banking model, implements practical actions to influence on the environmental, social, and managerial levels.
The experience gained allowed to build sovereign ESG banking that is comprehensive (with all the levels and aspects of management covered), organic (not raising rates during a crisis and developing personnel and customers apart from speculative banking policies), digital, real-life, innovative, adaptive (ready for the new challenges), financially stable. Global competitiveness is the highest form of sovereignty. Participation of a regional bank in global problem solving allows to use own competitive advantages: create ESG supply chains (for SMEs), implement taxonomy of innovation, and provide reporting in different taxonomies.