Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan signals move to mandatory ESG reporting and IFRS S1 and S2 aligned disclosure guidance

The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an interview with its Chair, Madina Abylkassymova, and the head of the International Finance Corporation in Kazakhstan setting out the regulator’s ESG agenda for the financial sector. The discussion points to a planned shift from largely voluntary adoption toward mandatory ESG reporting and environmental and social risk management requirements in coming years. The interview notes that many Kazakh financial institutions are already preparing ESG reports and implementing environmental and social risk management systems on a voluntary basis. It also references the Agency’s guidance on ESG information disclosure and on managing environmental and social risks as a basis for a gradual transition to mandatory disclosure, alongside 2023–2024 capacity-building work with IFC including training events with international experts and consultancies covering ESG reporting and disclosure standards, climate and ESG risk management, and climate stress testing. Looking ahead, the Agency plans to continue developing a comprehensive sustainable finance strategy, update its guidance on sustainability and climate-related disclosures to align with International Financial Reporting Standards (IFRS) S1 and S2, and develop a carbon accounting methodology.