The increasing importance of sustainability and climate disclosure, and its implications for Mongolia was the focus of a workshop co-hosted today by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Mongolian Sustainable Finance Association (MSFA).
Mongolia faces unique physical and transition climate risks that directly impact its financial sector. Adopting robust disclosure and reporting standards can enable banks to identify and manage climate-related risks more effectively. Appropriate risk management can safeguard against potential financial losses and contribute to Mongolia's broader climate resilience efforts, aligned with the nation's commitment to the Paris Agreement.
ESCAP has been supporting the government of Mongolia since 2023, through a collaboration with the Bank of Mongolia and contributions from the NDC Partnership, to green Mongolia’s banking system. During the workshop, details of upcoming guidelines on disclosing climate-related risks for Mongolian banks, jointly developed by MSFA and ESCAP at the request of the Bank of Mongolia, were also shared. The guidance is designed to equip Mongolian financial institutions and policymakers to better identify, manage and report climate change-related risks and sets out best practices and recommendations for Mongolia’s financial sector to align its disclosure reporting with international standards.
National and international partners including the Financial Regulatory Commission, Trade and Development Bank of Mongolia, the Green Climate Fund, UNDP, the Canadian Trade and Investment Facility (CTIF), and the Global Reporting Initiative also supported the workshop.
