On November 21, 2013, the leadership of all Mongolian banks gathered at the Mongolian Bankers Association (MBA) headquarters to sign the Joint Statement on Promoting Socially and Environmentally Responsible Sustainable Finance in Mongolia. This commitment aims to introduce principles of sustainable finance into Mongolia’s banking and financial systems and reflects the banks’ unified goal of fostering responsible financial practices.
Significance of the Statement
The signing ceremony was attended by J. Batbold, State Secretary of the Ministry of Environment and Green Development; D. Boldbaatar, Director of the Monetary Policy and Research Department of the Bank of Mongolia; executives from MBA member banks; representatives from international organizations; and members of the program's implementation working group.
The statement emphasized the following:
- As representatives of financial institutions integral to Mongolia’s economic development, the banks collectively endorsed incorporating sustainable finance principles into the banking system through policies prioritizing environmental and social responsibility.
- Mongolia is at a critical juncture in its development, with opportunities for rapid economic growth accompanied by challenges such as air, water, and soil pollution; climate change; resource depletion; environmental degradation; overpopulation in urban areas; and poverty. The statement underscored the importance of aligning economic growth with environmental protection, preserving Mongolia’s unique nomadic heritage, and promoting the well-being of its citizens.
- Banks committed to finding solutions to these challenges and fostering a safe, green environment for work and living through sustainable financial products and services. They pledged to lead Mongolia’s development toward sustainable finance.
Key Principles of the Joint Statement
The statement outlined the following commitments:
- Environmentally and socially responsible decision-making:
Prioritize sustainability and social responsibility in financial decisions. - Incorporating balance and impact:
Develop and follow principles that consider financial stability and environmental equilibrium in every decision. - Raising awareness and fostering understanding:
Inform stakeholders—employees, customers, and partner organizations—about the significance of these initiatives and promote sustainable outcomes. - Transparent and accountable communication:
Engage all stakeholders responsibly and openly to ensure collective success in sustainable finance development.
Implementation of the Program
Under this initiative, commercial banks will assess the economic benefits and risks of each project they finance while identifying, managing, and mitigating potential environmental and social impacts. By integrating these measures into their operations, banks will actively contribute to sustainable economic growth and responsible development in Mongolia.
This Joint Statement marks a significant milestone in fostering sustainable finance, paving the way for Mongolia's financial institutions to lead the charge in responsible banking practices and environmental stewardship.