Sberbank of Russia

09/17/2021 | Press release | Distributed by Public on 09/17/2021 02:48

Sber and VEB.RF to join hands in ESG risk analysis

Sber and Russia's national economic development institution VEB.RF have signed a memorandum of cooperation at the 18th International Banking Forum 'Banks of Russia - XXI Century'. Covering the two companies' interaction in ESG (Environmental, Social and Governance) risk analysis, the document was signed by Senior Vice President of Sberbank Dzhangir Dzhangirov and First Deputy Chairman of VEB.RF Alexey Miroshnichenko.

Sber has committed itself to sharing ESG transformation standards with VEB.RF, which will be used to work with VEB.RF's current and potential customers. The bank is also set to provide VEB.RF with access to two digital platforms that Sber is currently creating - one with ESG ratings of Russian companies and the other for carbon footprint evaluation. Furthermore, the memorandum outlines other cooperation tracks, such as ESG stress testing of the VEB.RF loan portfolio, an independent environmental review of its deals, and training of its employees in ESG risk analysis.

Dzhangir Dzhangirov, Senior Vice President of Sberbank:

'Sustainable development is not just a fashion statement, it is an urgent necessity. Sber is already equipped with a large ESG-scoring knowledge base and continues to build its experience in this area. In the framework of this memorandum, we will be exchanging current information with the largest development institution in Russia and providing VEB.RF with access to our digital ESG platforms. We will also be assisting in ESG risk evaluation processes for VEB.RF clients.'

Alexey Miroshnichenko, First Deputy Chairman of VEB.RF:

'As the national methodologist in the field of financial instruments for sustainable development, VEB.RF strives to apply cutting-edge approaches to its own work. It is particularly satisfying that many of these approaches first appeared on the Russian market. Sber's ESG disclosure standards, ESG factor-based borrower assessment system, and analytical carbon footprint assessment model will help make our lending more transparent and efficient and will contribute to the creation of a full-fledged ESG financing market in Russia. The regulators and the government would like the banking community to be more self-sufficient when it comes to the development of its own regulatory mechanisms. This is a prime example of how a quality product has the potential to become an industry standard.'