The issue of sustainable finance and ESG (Environmental, Social and Corporate Governance) is not just a hot topic in the financial markets, it is a real must-have for companies around the world. Therefore, the NSSMC has long been concerned with sustainable finance and is actively working to implement ESG principles in the regulation of capital markets.
In 2020, the NSSMC officially joined the SBFN (Sustainable Banking and Finance Network). Cooperation with the SBFN is one of the areas of the regulator’s work, which is part of the regulator’s work with the IFC (International Finance Corporation).
The NSSMC helps Ukrainian companies to implement the best global ESG practices in their internal policies by creating new financial instruments and developing recommendations for market participants. Thanks to the NSSMC, the legislative and regulatory framework for green bonds has been created, a new instrument that will be useful for both domestic and foreign investors.
In 2021, the NSSMC systematised global achievements in the field of green bonds and approved the Recommendations on the implementation or financing of environmental projects through the issuance of green bonds. The document was prepared taking into account the regulatory framework and guidelines of the leading capital market participants – the European Commission, the International Capital Markets Association (ICMA), the International Finance Corporation (IFC) and the World Bank.
In the same year, the NSSMC approved the Annex on Corporate Governance and Sustainable Development (ESG) to the Corporate Governance Code. It will describe in detail the best practices for implementing ESG in the company’s internal policies and reflecting them in working documents, the impact on the supervisory board, etc. These initiatives are advisory in nature, just like the Corporate Governance Code.
The presentations on green bonds are available here:
- NSSMC presentation – NSSMC RECOMMENDATIONS ON GREEN BONDS
- NSSMC presentation – RECOMMENDATIONS OF THE NSSMC ON THE SELECTION OF PROJECTS FOR GREEN BONDS
- IFC presentation – INTERNATIONAL EXPERIENCE IN GREEN BOND MARKET DEVELOPMENT