The National Bank of Ukraine and the United Nations Development Programme (UNDP) in Ukraine today signed a memorandum of understanding (MoU) to cooperate in developing sustainable financing standards and implementing ESG (Environmental, Social and Governance) approaches in the financial sector, as well as conducting joint activities leading to more sustainable, inclusive, and green economic development to make financial system of Ukraine more resilient to environmental, social and governance risks.
Commenting on the MoU, UNDP Resident Representative in Ukraine Dafina Gercheva said her agency was glad to support Ukraine’s efforts to elaborate the necessary frameworks to facilitate sustainable financing in the country.
“Building a green economy and green finance have become key areas of UNDP support to Ukraine’s government,” Gercheva said.
“I’m pleased to see that thanks to this strategic partnership, comprehensive regulatory and institutional frameworks will be developed to facilitate sustainable financing in Ukraine. UNDP stands ready to further strengthen the capacity of the National Bank of Ukraine for implementing Sustainable Finance Development Policy 2025, contributing to strengthening the country’s economy for the benefit of the people of Ukraine.”
“The NBU is working hard to promote sustainable finance in line with the global concept of sustainable development and Ukraine’s pursuit of European integration,” said NBU Governor Kyrylo Shevchenko in his opening speech.
NBU specialists have already been receiving qualified advice from UNDP on how to develop ESG risks disclosure requirements for nonbank financial institutions, Kyrylo Shevchenko said.
“The online meetings to review international standards and best practices in this area have been productive and useful,” said the NBU Governor.
According to the MoU, the parties will cooperate to organize corporate governance related to the implementation of ESG principles, develop standards for disclosing ESG indicators, elaborate standards for sustainable financing, and improve environmental and social risk management for financial institutions and nonbank financial institutions.
The cooperation between UNDP and NBU will contribute to the implementation of the 2030 Agenda in Ukraine, increase the effectiveness and participation of the financial sector in the sustainable development of Ukraine via nonregulatory mechanisms, and facilitate an enhanced dialogue between the public and private financial sectors in SDG financing for the better alignment of policies, strategies, and investment flows.