ESG factors in financial institutions’ corporate governance
The Bank of Russia recommends that financial institutions’ management bodies should assess the impact of ESG factors on a company, as well as set sustainable development goals and targets.
The regulator suggests taking into account social development and environmental protection issues when organising corporate governance, including in strategic planning and in the risk management system. This will help a company improve its performance and increase its long-term value.
To consider these issues properly, it is necessary to analyse recent data on ESG‑related risks and opportunities and carry out efficient communication with internal and external experts.
Financial institutions are advised to use the principles and approaches that were addressed to public joint-stock companies’ boards of directors.