Thursday, March 7 2024 12:49

ArmInfo. Araratbank intends to develop and implement an ESG strategy that includes environmental,  social and corporate governance as three central factors in assessing the sustainability and impact of the company on the environment, society and the internal governance structure of the Bank, Raisa  Babayan, Environmental and Social Risks Officer, stated at a panel discussion on the topic "Leadership in business beyond legal requirements", within the framework of the annual conference ROBUST ARMENIA-2024.

This will also make it possible to fulfill the obligations of Armenia  and each of our citizens regarding the reduction of greenhouse gas  emissions undertaken by us within the framework of the Paris  Agreement, she said. 

In this regard, the ecologist recalled that Araratbank has been  working for 12 years on the implementation of various components of  the ESG strategy, having improved its internal policies and  procedures in this direction over the years. Answering a question  from an ArmInfo correspondent, Babayan noted that there are certain  legislative gaps and inconsistent decisions in the environmental  sector. In particular, she noted that we are talking, among other  things, about climate risk management. In this regard, the expert  stated that, first of all, it is necessary to introduce a system for  collecting and analyzing data, which will make it possible to keep  track of the volume of greenhouse gas emissions from the Bank's  clients.

Zaruhi Melkonyan, Head of the International Operations Department,  Araratbank, recalled that the Bank was one of the first financial  institutions in Armenia to enter into a loan agreement with the GGF  (Green for Growth Fund) investment fund, thus becoming one of the  pioneers of green finance in Armenia. "Our agreement was aimed at  investing in energy efficiency projects. A related and significant  element of the agreement was a program of technical assistance to the  Bank from the fund, which made it possible to introduce green lending  tools and train specialists in the field of green lending. The  retraining program for our specialists lasted two years, which as a  result allowed us to lend to borrowers using new technologies," she  said. 

In addition, as part of the training programs of the European Bank  for Reconstruction and Development, more than 40 Araratbank employees  completed a distance learning program on the topic "Environmental and  Social Issues in Trade" and received the appropriate certificates.  Noting that cooperation continues, the head of the Department of  International Operations emphasized that this process will ensure  transparency, stability and openness to improvement of the Bank. "And  we will be more attractive to international structures that are ready  for green financing," she concluded.

Vahan Gharibyan, Deputy Head of Corporate Lending, Araratbank,  recalled that Araratbank is the only member of the UN Global Compact  in the financial sector, has obligations regarding sustainable  development related to ESG principles, and cooperates with various  funds in the field of green finance. In this regard, Gharibyan noted  that several months ago Araratbank attracted funds from GGF, most of  which have already been placed. "We purchased about 100 electric  vehicles, which are now used as a taxi service.  Thus, we are trying  to make our contribution in terms of reducing emissions into the  environment," he emphasized.

It should be noted that within the framework of the ROBUST  ARMENIA-2024 conference, of which Araratbank is a partner, panel  discussions took place on the topics: "Business leadership beyond  legal requirements", "Sustainable development in an unstable  environment". The key speaker of the conference was the founder and  director of Do Something! Jon Dee. In his speech, he paid special  attention to the possibilities of ensuring the energy security of  Armenia, taking into account existing geopolitical and security  risks.