Central Asia today is a region where sustainable development and the ESG agenda are not merely fashionable trends, but long-term strategic priorities established at the highest level. The countries of the region are actively implementing international non-financial reporting standards, thereby demonstrating to international markets that their territories are attractive for international investment and contracts.
What is happening in the market:
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Non-financial reporting is mandatory for banks that raise international financing from development institutions and funds. This is the principal driver encouraging the adoption of non-financial reporting.
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Many Central Asian companies aim to list on stock exchanges where non-financial reporting is mandatory.
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Non-financial reporting signifies a strong reputation in Central Asian markets.
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In Central Asia, non-financial reporting is evolving from the widely used GRI framework toward ISSB standards. The latter emphasize ROI and risks.
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ESG ratings (for example, Sustainable Fitch) continue to have a significant impact on credit ratings.
At HPBS, as consultants to clients from Central Asia, we see how rapidly demand for ESG professionals is growing. The region is not merely catching up with global trends—it is creating its own models that combine local characteristics with investor requirements.
ESG developments by country
Although Central Asia began moving in this direction relatively recently, all five countries—Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan—have designated sustainable development as a strategic priority and committed to achieving the 17 UN Sustainable Development Goals by 2030.
Kazakhstan. The Concept for Transition to a Green Economy has been implemented since 2013; the Environmental Code was updated in 2021, and the Corporate Governance Code and Social Governance Code were adopted. The targets are carbon neutrality by 2060 and a 30% share of renewable energy in the energy mix by 2030. Companies listed on the KASE exchange are required to disclose ESG information. The National Green Taxonomy was adopted in 2021, and in 2023 the regulator (ARRFR) approved an ESG Roadmap requiring financial institutions to disclose ESG data in their annual reports beginning in 2024. These steps are directly connected with the Strategy for Achieving Carbon Neutrality by 2060, signed by President Tokayev. Kazakhstan also became the first CIS country to issue sustainable development Eurobonds in 2024, which requires strict compliance with international reporting standards.
In Uzbekistan, the National Green Taxonomy was approved in 2023, and a second issue of sovereign SDG bonds totaling $640 million took place in May 2024. These initiatives are supported by President Mirziyoyev’s decree “On the Transition to a Green Economy through 2030”, which places particular emphasis on the transparency of ESG disclosures. Uzbekistan is actively developing renewable energy and aims to achieve a 40% renewable-energy share by 2030. The Strategy for the Transition to a Green Economy (2019–2030) and the “New Uzbekistan” Program (2022–2026) have been adopted. A system of green certificates and emissions monitoring is being developed. The banking sector is actively implementing ESG principles and offering green loans, particularly for renewable energy.
Kyrgyzstan is keeping pace: in 2023, the National Bank introduced ESG Risk Recommendations, requiring banks to conduct stress testing and disclose data. The first issue of gender bonds in 2022 also sent a signal to businesses that non-financial reporting is now critical for access to financing. Kyrgyzstan focuses on water-resource management and hydropower. A new Water Code was adopted in late 2024. A sustainable business program through 2026 is also being implemented. ESG policy is at an early stage.
Even Tajikistan, where the market is only emerging, issued its first corporate green bonds in 2024 with IFC support. The country emphasizes sustainable agriculture and natural-resource management, particularly in mountainous areas. Its Green Economy Strategy through 2027 includes 11 priorities (energy efficiency, ecotourism, waste, and others). The country depends on international support, but has already reached an intermediate level of ESG implementation.
Turkmenistan has intensified its dialogue with the Green Climate Fund. The country is modernizing its oil and gas industry and developing renewable energy. Measures have been adopted to reduce its carbon footprint, but the country remains at the beginning of its ESG journey and needs to develop its legislative framework.
Thus, Kazakhstan and Uzbekistan are the leaders in the pace and scale of ESG transformation. The other countries are at different stages of development, adapting ESG to their resources and national objectives.
What unites these countries? Close alignment with global standards:
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Joining the NGFS (Network for Greening the Financial System) and SBFN (Sustainable Banking and Finance Network).
NGFS is an international network of central banks and supervisors whose purpose is to develop a sustainable financial system and combat climate risks. Joining the NGFS means supporting the global climate agenda; committing to account for climate and environmental risks in regulation and supervision; participating in the exchange of experience, methodologies, and analytics; and gaining the ability to use NGFS recommendations on climate stress tests, ESG disclosures, and other matters.
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Implementing the GIP (Green Investment Principles).
GIP is an international initiative created by China together with a number of global partners, including the City of London, UNDP, and financial institutions, for the purpose of:
Introducing sustainable and green approaches into investments connected with infrastructure projects under the Belt and Road Initiative (BRI).
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Using the methodologies of the TCFD (Task Force on Climate-related Financial Disclosures) and ISSB (International Sustainability Standards Board)
TCFD is a task force created at the initiative of the Financial Stability Board (FSB). Its purpose is to develop recommendations for disclosing climate risks that may affect businesses (the TCFD was disbanded on 12.10.2023, but its recommendations are still used for corporate climate-risk disclosures).
ISSB is an international board established under the auspices of the IFRS Foundation—the same organization that develops accounting standards—to develop unified sustainability reporting standards. The ISSB standards (“General Requirements for Disclosure of Sustainability-related Financial Information” (S1) and “Climate-related Disclosures” (S2)) are intended to provide unified global approaches to disclosing high-quality, comparable non-financial information, with an emphasis on presenting it to investors.
As experts advising clients from Central Asia, we see how rapidly demand for ESG professionals is growing. Central Asia is not merely catching up with global trends—it is creating its own models that combine local characteristics with investor requirements.
HPBS prepares ESG reports for companies in various industries across the markets of Central Asia and Mongolia. Sign up for a free consultation with us at info@hpbs.uz, and we will help you understand the reporting requirements.
Anna Zavaleeva, Andrey Sidorenko