3.3. ESG: Soft VS Hard – Where are the Limits of Regulation?

Wednesday, May 19
16:15 - 17:15

Channel 3
BROADCAST
Live Stream

Track: 3. ESG. Investments
Discussion session

The ESG agenda has become a factor that seriously affects the operations of companies in both Russia and abroad. The financial market in this sense is no exception, on the contrary, financial sector companies (banks, insurance companies, non-state pension funds) need to take ESG risks into account in their activities (ESG components should be included in stress tests and taken into account when developing companies' strategies).

At the same time, the Bank of Russia, as the financial market regulator and the financial stability regulator, has the equally important task of accounting for ESG risks in the financial sector as a whole.

Regulation and standards are important components of ESG that form the basis not only for information disclosure, but also for risk analysis (assessment) and strategic planning.

The forthcoming discussion will cover a range of issues related to implementation of ESG principles in national jurisdictions, including sufficiency and uniformity of international solutions in this area. As well as the best mechanisms for such implementation: legislation, regulators' recommendations, financial market SRO standards, practices and business customs. The role of taxonomy in unifying the regulatory process. The possibility of different regulatory approaches: incentives for compliant or penalties for non-compliant.

Topics for discussion:

Correlation of ESG principles and legal regulation

Sources of law in the field of ESG (state, SRO, international community)

Do we need any changes in Russian law to reflect the new realities? The role of taxonomy. Insight of financial market regulator

Approaches to regulation of financial organizations: Stimulate compliance or punish those who ignore it?

Moderator

Elena Borisenko

Deputy Chairman of the Board of Management, Gazprombank JSC

Speakers

Vladimir Chistyukhin

Deputy Governor, Bank of Russia

Margarita Pirovska

Director of Policy, Principles for Responsible Investment

Aleksey Timofeev

President, National Association of Stock Market Participants


* The Programme may be subject to change