EBRD CCG Facility: Support to the Central Bank of Armenia with Development of Guidelines on Climate Corporate Governance, Climate Risk Management and Other Considerations Related to Climate-Related Disclosure and Reporting

Narrative description of Project:

On behalf of Deloitte Luxembourg, CLA as subcontractor supports EBRD in implementing the project with key objective to support the Central Bank of Armenia (CBA) with the development of capacity building programs, tools, policies and regulatory instruments aimed at encouraging and regulating the financial sector to address and manage financial risks related to climate change and ESG risks in Armenia. Furthermore, the project will help develop and implement best practices by adopting climate change-related and environmental risk management and moving consistently toward internationally recognized standards and best practice.  

Description of actual services provided by your staff within the assignment:

• Analysis of the current best practice by the financial sector regulators in the developed and emerging markets in the area of climate-related disclosure and climate risk management; coordination with other stakeholders in Armenia to ensure complementarity of the analysis and recommendations.  

• Survey of the local financial institutions and other relevant stakeholders to identify the key information that may be required, relevant and material for investment decision making, for supervision and reporting purposes (including, for example, against the country’s NDC) to ensure good quality of the incoming data.  

• Recommendations to the CBA on the type of data to be reported, its use and benefits for the CBA and the financial institutions, governance and the related processes. Recommendations on organization of the respective database, its interaction with other systems of the CBA and other stakeholders.  

• Development of draft disclosure guidance, tools and templates to assist the Regulator and the financial sector participants to identify, assess, monitor and report climate related risks and improve climate-related governance, strategy and disclosure in line with the TCFD recommendations, international best practice and the EBRD guidance. A list of tools and templates will be suggested by the Consultant upon consultations with the Regulator and the EBRD. The final list will be agreed with the EBRD and the Regulator.

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