An information session on the recently adopted national standard on environmental, social and corporate governance (ESG) was held at the “House of SMEs in Baku”, organized by the Agency for the Development of Small and Medium Enterprises.
Oku.Az informs that the Small and Medium Enterprises Development Agency (KOBIA) published information in this regard.
The general director of the Azerbaijan Institute of Standardization (AZSTANDART), which is under the State Antimonopoly Service and Control of the Consumer Market, Ilham Bayramov, and the first vice-president of the board of directors of KOBIA, Natig Hasanov, briefed media representatives in detail on the Content of the national standard on ESG and its benefits for business. It was noted that the national standard on ESG was developed on the initiative of KOBIA based on the recommendations of the International Organization for Standardization (ISO) and was recently accepted by the Azerbaijan Standardization Institute. The state standard “AZS IWA 48:2024 “Framework for the application of environmental, social and corporate governance (ESG) principles” is considered one of the first practices adopted in the corresponding field. The new state standard supports sustainable development in the modern business environment by applying ESG principles in companies and organizations and provides a framework to promote social responsibility.
The purpose of the standard, developed based on international experience, is to help companies and organizations formulate and implement ESG strategies. The implementation of this standard will support sustainable development in the public and private sectors, in addition to increasing customer satisfaction, reducing risks and increasing social responsibility. Application of the standard is voluntary.
Compliance with ESG principles by companies allows for the optimization of business processes, the reduction of production costs, the improvement of competitiveness, the increase in export potential and, especially, the attraction of foreign investments. Investors prefer to apply ESG principles when making investment decisions. In this sense, the standard will guide companies on how ESG principles can be applied in their business processes and show them what steps to take.
The briefing also provided information on the work carried out in the direction of applying ESG principles in Azerbaijan. It was reported that in order to promote ESG in our country, join efforts of the public and private sectors in this matter, and formulate and implement a conceptual vision, in the year 2022, within the framework of “Corporate management, investments and social responsibility corporate”. ” Working Group of the Commission on Business Environment and International Ratings. A subgroup on ESG has been created. The subgroup is headed by KOBIA. The subgroup includes representatives of about 30 institutions and organizations representing the public, private and state sectors. In the last period, in order to ensure systematic activity in the ESG field, a Strategic Review document for the medium term was prepared in our country and roadmaps were approved to stimulate and promote the application of ESG principles Within the framework of these roadmaps, the current situation of the ESG field in the country was analyzed, a survey was carried out and international experience was studied. In addition, the regulatory legal frameworks, existing and recently applied standards and rules were reviewed. related to individual elements of ESG. It was underlined that the new state standard adopted on the eve of declaring 2024 “Year of Solidarity with the Green World” in Azerbaijan and holding such a prestigious event as COP29 in our country will give an important boost to expanding the application. of ESG principles in our country.
At the end, questions from media representatives were answered.
