CBCG Supports the Path towards Greener, More Sustainable and Resistant Economy

24/04/2024

On the first day of the ESG Adria Summit held for the second time in Tivat from 24 to 26 April 2024, the CBCG Governor, Ms Irena Radović, addressed the participants with a video message.

In her address, the Governor said that the challenges posed by climate change, social inequality, and governance shortfalls demand the immediate and urgent need to embed sustainability principles in all decision-making and policy-creating processes.

"At the Central Bank of Montenegro, we are aware of these challenges and are fully committed to addressing them head-on through enhancing our policies, improving regulatory framework", said the Governor and added that one of the CBCG's imperative is supporting banks and financial institutions to integrate ESG into their risk management frameworks and investment strategies.

In that context, developing green financial products is pivotal in our journey towards a greener economy. "By fostering innovation and supporting the creation of financial instruments that back environmentally friendly projects, we aim to unlock new opportunities for sustainable development and green entrepreneurship", said the Governor.

The Governor's advisor for ESG and innovation, Ms Biljana Gligorić, also attended a panel that discussed opportunities and challenges in ESG reporting. ESG reporting is the process of creating and publishing reports by companies on their impact on the environment and social structure and how they manage the organisation.

Adviser Gligorić pointed out that ESG reports are "an important instrument for transforming the financial and economic sector into a more responsible stakeholder that understands the climate change challenges, is aware of its consequences and its responsibility, and is ready to take on a more significant role in this great global struggle."

Recognising the importance of the ESG summit and affirming and supporting a faster and more efficient transition towards a greener, more sustainable and more resilient economy, the CBCG provided institutional and financial support to realise this important regional meeting.

ESG (Environmental, Social, and Governance) represents a set of standards aligning businesses with the concepts of sustainable development in the areas of the environment, social responsibility, and corporate governance.