Ulaanbaatar – 17 August 2022: As part of the concerted effort to increase and mobilize resources from the private sector for Mongolia’s progress towards achieving the SDGs, development partners, including UNDP, partnered with Mongolia’s financial sector authorities and released “The ESG and Sustainability Reporting Guidance for Mongolian Companies” for listed companies, prospective issuers, and other interested companies.
The Guidance provides an overview of global sustainability reporting frameworks and trends, followed by an eight-step outline of how listed companies and other issuers can build the capacity to report on sustainability. Also included in the document are lists of indicators that companies can select from to fulfill their sustainability disclosure requirements.
“By introducing this ESG disclosure and sustainability reporting guidance in line with international standards, we hope to harness good ESG management and disclosure market practice and help issuers and other financial institutions in creating long-term value that benefits Mongolian financial market as a whole. We also believe that the public, investors, and stakeholders will benefit from improved transparency and disclosure practices” says Mr. Bayarsaikhan Dembereldash, Chair of the Financial Regulatory Commission (FRC).
The Guidance also outlines how ESG reporting could benefit the companies; especially, in terms of meeting international investors’ demands and accessing a more diverse range of longer terms financing while complying with the regulators’ requirements and further strengthening their brand reputation internally and externally.
“The Government of Mongolia is taking important initiatives to revive the local economy and transform it in-line with sustainable development principles. As a main driver to thrive economies, businesses and private sector entities must commit to sustainable corporate practices, including improving its transparency and alignment with the Sustainable Development Goals. Therefore, the UN in Mongolia strongly encourages the Government of Mongolia to demonstrate its leadership in implementing the Integrated National Financing Framework and strategy with its reporting mechanism to catalyze transformative change and accelerate implementation of the SDGs for inclusive and sustainable development for all, which is envisaged in Mongolia’s Vision 2050,” said Mr. Tapan Mishra, UN Resident Coordinator in Mongolia.
Efforts to integrate sustainability in financial analysis and investments globally are often hindered by a lack of quality ESG reporting data. This is also the case in Mongolia where, according to the analysis of a recent study carried out by the Mongolian Sustainable Finance Association (MSFA), only 13% of companies listed on the stock exchange publicly disclose their environmental indicators.
UNDP Mongolia’s Resident Representative Ms. Elaine Conkievich emphasized the importance of the Sustainability Reporting Guidance and stated, “The adoption of ESG and sustainability reporting standards provides the private sector with the possibility to unlock a variety of opportunities and access potential investment opportunities while integrating sustainability factors into their business decisions and thus contributing towards achieving the SDGs.”
“The Sustainability Reporting Guidance for Mongolian Companies” was developed through a partnership between the FRC, MSE, MSFA, International Finance Corporation, UNDP-hosted Financial Centres for Sustainability Network, United Nations Environment Programme, United Nations Development Programme and United Nations Resident Coordinators’ Office in Mongolia, with support from the Global Environment Facility and UN Joint SDG Fund.
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. Learn more at mn.undp.org or follow at @UNDPMongolia.
For further inquiries:
Delgernaran Tumurtogoo | National Project Coordinator | UN Joint Programme on “Rolling Out an Integrated Approach to the SDG financing in Mongolia” | UNDP Mongolia | delgernaran.tumurtogoo [at] undp.org (delgernaran[dot]tumurtogoo[at]undp[dot]org)