Within the framework of cooperation between the Association of Banks of Russia and the Association for the Development of Financial Literacy, Chairman of the Board of Directors of Center-Invest Bank, Head of the ESG-Banking Project Group of the Association of Russian Banks, Professor, Doctor of Economics Vasily Vysokov presented the results of the ESG business model implementation at Center-invest Bank.
Center-invest Bank is successfully implementing the ESG banking business model and is actively involved in promoting this concept in Russia. Based on the experience of the bank Vasily Vysokov showed that ESG banking exists in Russia and it has a positive effect on financial stability, environmental protection, social and management processes and reporting to stakeholders.
At the webinar, the expert presented the complex approach of Center-invest Bank, which ensures the harmonization of ESG taxonomy, ESG-organization, ESG-planning, ESG-risk management and ESG-reporting. For the first time in the world prof. Vysokov presented the bank's balance sheet in terms of the Sustainable Development Goals and national projects. Based on the analysis of the data, the bank's liabilities, consisting of the equity capital of the attracted ESG resources, and the directions for using ESG assets were assessed.
The modern economy is an economy of transformation. Like other market participants, banks are constantly looking for a "way out of the crisis." ESG - banking is a business model based on the principles of Environmental, Social and Management Responsibility. It summarizes the concepts of financial impact, green, responsible, social, sustainable, ethical banking that have emerged as an alternative to speculative banking to achieve socially significant goals, including the implementation of the Sustainable Development Goals and national goals.
“Center-invest Bank's investments in SDGs and national projects amounted to more than a quarter trillion rubles. and each depositor knows how much money out of 100 rubles of his deposit in the bank is directed towards achieving the Sustainable Development Goals (to eliminate poverty, hunger, urban development, reduce inequality, economic growth, infrastructure development) and national projects (construction of housing and urban environment, small entrepreneurship, growth of labor productivity, solution of demographic problems, international cooperation) ”, - says Professor Vasily Vysokov.
In addition to traditional loan products, Center-invest Bank successfully implements inclusive programs that influence the replication of best practices and innovations in the field of youth, women, social entrepreneurship, apartment building renovation, and business transformation.
For responsible investors, Center-invest Bank issued RUB 550 million green bonds, which are traded on the Moscow Exchange, and introduced a green deposit to the deposit line, which allows customers to receive market returns and meet the global Sustainable Development Goals.
Center-invest Bank adheres to the ESG principles of sustainable development in all areas, including ensuring its operational activities. The bank's own energy consumption for 25% consists of renewable sources due to solar panels located at the head office and the purchase of green certificates from company «Solar Systems». Since 2005, Center-invest has invested over 19 billion rubles in 23,000 energy-efficient projects of clients in the regions of its presence, thereby annually contributing to the preservation of the planet's ecology. This work has reduced CO2 emissions into the atmosphere by 224.7 thousand tons per year, which is equivalent to planting 10 million trees.
ESG banking is focused not on momentary, but on long-term profit in the real sector of the economy, based on the development of business of clients and regions of presence, self-regulation in risk management and staff development, compliance with legislation and best international practice.
With the full version of the speech of Professor Vysokov in the framework of the Green Environment project can be found at https://youtu.be/jXU7IPYzLNs