Golomt Bank has taken a significant step towards achieving its ambitious sustainability goals with the launch of its inaugural Sustainability Financing Framework. This comprehensive guideline outlines the bank’s approach to classifying financial products and transactions as “sustainable”, incorporating rigorous environmental and social criteria.
Under the framework, Golomt Bank will finance projects with environmental and social benefits in eligible categories such as renewable energy, energy efficiency, and pollution control, along with social projects like affordable housing, access to essential services, and food security.
Golomt Bank is certain that the framework will play a crucial role in achieving its ambitious sustainability goals to grow its sustainable financing and ESG investment portfolio up to 5% and 10% of the total portfolio by 2025 and 2030 respectively. The Bank has already launched a number of innovative sustainable finance offerings, such as green & sustainable business finance offering in line with the Mongolian Green Taxonomy classification, such as green building, green auto finance offerings, and an offering in Water Supply and Sanitation. The framework will allow Golomt Bank to accelerate these efforts by enabling the bank to tap on international capital markets for future sustainable finance issuances.
The framework’s credibility is reaffirmed by a second-party opinion from S&P Global Ratings, a renowned rating agency, confirming its alignment with international market practices, and Golomt Bank’s existing sustainability criteria. The framework incorporates the latest market standards informed by leading associations like International Capital Market Association (ICMA), Loan Market Association (LMA), Asia Pacific Loan Market Association, and Loan Syndications and Trading Association. MUFG Bank supported Golomt Bank in the development of the framework.
The framework illustrates Golomt Bank’s strong commitment to achieving its own sustainable aspirations and driving the country’s Nationally Determined Contributors (NDCs) and SDGs. Golomt Bank is looking forward to the outcome of this framework, which accelerates efforts to become a more sustainable institution and access additional opportunities to support its sustainable lending portfolio.
For further details, access the Second Party Opinion (SPO) by clicking HERE.
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