Bank of Russia recommends ESG disclosures
As support for greater and more consistent environmental, social and governance (ESG) disclosure gathers strength worldwide, the latest voice to join the chorus comes from Russia. The Russian central bank has issued detailed recommendations advising public companies to disclose information on their ESG impact and strategy, ideally as part of their annual report.
“The Bank of Russia aims to help companies consider the risks that arise during the transition to sustainable development goals,” it says, adding that the recommendations will help companies to structure their ESG reporting in a way that enables investors to judge their long-term financial stability, with the intention of raising their investment attractiveness. “An assessment of ESG risks is necessary, since over time they can be transformed with a high degree of probability into financial risks.”
The Bank’s approach is based on two existing international frameworks: those of the Task Force on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI). “It is important that the information is relevant, useful, consistent, and comparable with the performance indicators of other joint-stock companies.”
