Sustainable Development
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their needs.
In the broader sense, sustainable development means achieving such a combination of investment and consumption, technological innovations and institutional transformation that ensures public well-being not only today, but also in the future.
The global trend towards decarbonisation, the development of environmental production standards, and higher corporate social responsibility are shaping the understanding that those market participants who fail to take these factors into account will create elevated risks for the financial sector.
There is a growing global recognition of climate and environmental risks and of the need to enhance sustainable development tools and infrastructure. The Paris Agreement laid the ideological and legal frameworks for a new global redistribution of capital flows towards markets that meet contemporary needs. Russia ratified this climate agreement in 2019.
The trends set out in the UN Sustainable Development Goals are consistent with the Russian Federation’s national development goals aimed at ensuring sustainable economic and social development and improving citizens’ living standards. National projects encompass a wide range of issues, including those related to environment, climate change, biodiversity, public welfare, etc.
Therefore, sustainable development is not only a matter of reputation or social responsibility, but also a prerequisite for building a resilient, competitive, and technologically independent economy. For Russia, the priority objective is to adapt the sustainable development agenda and international approaches to the national context, taking into account national circumstances, goals and priorities.
The Bank of Russia’s objectives are as follows:
- To develop the necessary sustainable finance infrastructure and instruments, such as bonds and loans, to ensure the implementation of environmental, social, and other projects of public importance. In addition, the Bank of Russia defines corporate governance principles for financial institutions and non-financial organisations as well as approaches to sustainability disclosures that they employ when preparing their reports.
- To help the market adapt to the new challenges and conditions. Ignoring sustainable development goals in operations may entail heightened risks for an organisation, which is why it is important to create systems to identify, assess, and monitor such risks.
- To ensure the integration of sustainable development principles into the Bank of Russia’s operations.
For the Bank of Russia as a financial regulator, sustainable development means an opportunity to facilitate the redistribution of financial flows towards projects that are in line with Russia’s national priorities as well as ensuring financial stability of the Russian Federation.
Working Group on Sustainable Development Financing
At the end of 2020, the Bank of Russia established the Working Group on Sustainable Development Financing, which sets the strategic agenda in this area and controls its implementation. In 2025, the Working Group’s structure was optimised. Currently, the group comprises three thematic expert subgroups that include representatives of federal executive authorities, development institutions, financial market participants, self-regulatory organisations, and the scientific community.
More details on the Bank of Russia’s sustainable development efforts are available in the presentation ‘The Bank of Russia’s sustainable development efforts’.