Mongolia Launches Climate-Related Financial Disclosure Guidelines to Strengthen Sustainable Finance

Under the 'Readiness Support for Greening the Central bank' project, funded by the NDC Partnership, the Bank of Mongolia, in partnership with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Mongolian Sustainable Finance Association (MSFA), successfully launched the Climate-Related Financial Disclosure Guidelines for Mongolian Financial Institutions today at the Bank of Mongolia.

The guidelines mark a significant step in Mongolia’s journey toward integrating climate risk into its financial system reporting and aligniment with the International Financial Reporting Standards (IFRS)’s S1 and S2 standards. The guidelines have been tailored to the local context and are intended to support financial institutions in assessing, disclosing, and improving transparency on climate-related risks and opportunities.

Speaking at the launch event, the Governor of the Bank of Mongolia, Mr. Lkhagvasuren Byadran, stated: “The increasing frequency and severity of physical climate risks such as drought, dzud, and floods are posing growing threats to agriculture, infrastructure, and the overall stability of our economy and financial sector. By establishing a framework for evaluating and disclosing these risks, we aim to strengthen climate transparency and lay the foundation for attracting responsible investment.”
The event brought together representatives from regulatory bodies, commercial banks, and international development organizations. Attendees engaged in detailed discussions on the structure and implementation phases of the guidelines, as well as the accompanying reporting template. Speaking at the event, Mr. Jaap van Hierden, United Nations Resident Coordinator for Mongolia, stated: “With these guidelines, Mongolia takes a decisive step forward — not just in responding to climate change, but in shaping the financial systems that will drive its transition to a greener, more resilient economy.” 

Chair of the MSFA Board and CEO of Khan Bank, Ms. Munkhtuya Rentsenbat, added:

“This guideline is a crucial tool for financial institutions to better assess climate-related risks, prevent greenwashing, enhance transparency, and build investor confidence—especially among international stakeholders.”
During the event, in-depth presentations were delivered on the key principles of the guidelines and the reporting template, followed by a interactive discussion with participants. 

The guidelines will be implemented on a voluntary basis, following a “learning-by-doing” approach, which enables institutions to improve data quality and reporting capacity over time.

By enhancing financial transparency and empowering institutions to better manage climate risks, the guidelines are expected to unlock new opportunities for green investment and promote the development of climate-resilient project pipelines across Mongolia.