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.
