Workshop on "Enhancing Environmental, Social and Governance (ESG) supervision in the banking sector within the framework of risk-based supervision" organized

Within the framework of the “Readiness Support for Greening the Central Bank” project jointly implemented by the Bank of Mongolia and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), UNESCAP conducted an assessment of the implementation and reporting framework of the “Methodology for Assessing and Managing ESG Risks in the Banking Sector,” which was approved under Decree A-31 by the Governor of the Bank of Mongolia in 2023. Based on the assessment, a “Discussion Paper on Environmental, Social, and Governance (ESG) in Mongolia” was developed.

The Discussion Paper notes that Mongolia has initiated the development of its ESG regulatory infrastructure. However, it recommends further actions to align with international standards, including: strengthening the legal and regulatory framework; introducing risk-based supervision; enhancing quantitative risk assessment methodologies and capacities; developing an integrated ESG data infrastructure; and introducing a unified digital platform for data collection and reporting.

The workshop to present the ESG Discussion Paper were held on May 7, 2025, for staff of the Bank of Mongolia, including the Supervision Department, the Banking Policy and Structure Department, the Licensing Division, and other relevant units.
During the workshop, theoretical and practical insights were shared on international ESG and climate risk standards, risk-based supervision methodologies, and Mongolia’s ESG disclosure system and ongoing policy measures. The session also involved collecting feedback from participants and facilitating active discussion.

Participants emphasized that in today’s context of increasing climate risks, establishing a robust ESG framework not only addresses these challenges but also creates new pathways and opportunities to diversify the economy and enhance sustainability.