The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Mongolian Sustainable Finance Association (MSFA) today signed a Memorandum of Agreement to collaborate on advancing financial sector climate risk disclosure reporting in Mongolia. Under this partnership, ESCAP and MSFA will issue a report, along with capacity-building activities, setting out best practices and recommendations for Mongolia’s financial sector to align its disclosure reporting with international standards.
High-quality information and reporting are essential for making informed decisions and efficiently pricing financial risks. Critical to the stability and effective management of the overall financial system, an increasing focus of central banks globally is to establish clear strategies to measure the impacts of climate change and put in place effective procedures to identify and manage climate risks.
ESCAP has been supporting the government of Mongolia since 2023 in an effort to green Mongolia’s banking system. In partnership with the Bank of Mongolia and with financing support from the NDC Partnerships, the partners aim to create an ecosystem that is fit for purpose to address financial sector risks related to climate change. Ensuring financial stability, hinges upon climate and nature-related disclosures and data from individual financial institutions. The collaboration with the Bank of Mongolia and MSFA will provide guidance to policymakers in the development of recommendations and guidelines to help improve market transparency, as well as to better identify and manage climate change-related risks to Mongolia’s financial system.