MOSCOW, July 19. /TASS/. The indicator of the portfolio of green and adaptation loans and loans with ESG covenants may grow by dozens of percent in coming years on account of rolling out systems for recording different types of sustainable development financial instruments, the research of the ESG portfolio of the Russian banking sector prepared by ACRA agency analysts says, which is available with TASS.
"The bulk of the ESG portfolio of banks as of the end of 2023 was accounted for loans linked to performance of various conditions related to sustainable development - 53% of the total ESG portfolio amount. They are followed by green and adaptation loans (46% and 1% respectively). The agency believes that the volume of the portfolio of green and adaptation loans along with loans with ESG covenants may grow by dozens of percent, but more owing to perfecting and implementing systems for accounting of various types of financial instruments of sustainable development with banks, rather than on account of new disbursements," the research indicates.
According to the conservative estimate of ACRA based on results of a banks poll in April - June 2024, the ESG portfolio of the Russian banking sector totaled 4.4 trillion rubles ($49 bln) as of the end of 2023.