VEB.RF Unites BRICS Financial Institutions to Implement Responsible Investment Principles

State Development Corporation VEB.RF has become a leading BRICS development institution in applying the responsible financing principles. As part of the presidency in the BRICS Interbank Cooperation Mechanism (BRICS ICM), this effort has reached the finish line, VEB.RF Deputy Chairperson and Member of the Management Board Natalya Timakova said during OECD’s online conference on 23 July 2020.

This year, VEB.RF chairs the BRICS ICM, and, according to Natalya Timakova, it is going to bring updated responsible investment guidelines to the organisation, among other things. “We have developed the Responsible Financing Guidelines in close cooperation with the OECD, and these are currently being approved by other BRICS development institutions. By the end of the year, we plan to develop clear criteria for the concept of ‘responsible’ and implement the Guidelines in our work. Moreover, VEB.RF plans to continue this effort beyond its presidency, which expires this year, and to promote the Guidelines both in Russia and abroad,” Natalya Timakova added.

Elena Gushchina stressed that VEB.RF has been and remains a leader in cooperation with the OECD. “OECD’s agenda remains a priority not only for us, but also for Prime Minister Mikhail Mishustin. Regardless of whether Russia is a member of the organisation or not, collaboration between experts will allow us to enrich our activities with the best international practices,” she said.

VEB.RF’s Chief Economist Andrei Klepach outlined in detail the priorities of Russia's BRICS presidency and said that the VEB.RF’s effort on implementing the responsible financing guidelines is closely linked to the application of the concept of sustainable development in general. “Our efforts in this area are closely correlated with the work of the Bank of Russia. We plan to become a leader in sustainable development and responsible business conduct, extending these principles to the entire economy,” he said. Andrei Klepach presented VEB.RF’s progress in creating a national green finance system. Earlier this month, VEB.RF adopted the Russian Green Finance Guidelines and the Russian National Taxonomy for Green Projects.

The seminar brought together VEB.RF’s officers and representatives of all BRICS national development institutions: the Brazilian Development Bank (BNDES), the China Development Bank (CDB), the Development Bank of Southern Africa (DBSA) and EXIM Bank of India. They presented their approaches to responsible business conduct and shared their experiences in implementing sustainable development standards.

The seminar was also attended by experts from the OECD and the International Finance Corporation, who spoke about the existing international standards for responsible financing and the impact of the BRICS Principles on their further development. OECD’s Head of Sector Projects in the Responsible Business Conduct Unit Tyler Gillard stated that the OECD welcomes the development of responsible financing standards in BRICS and the leading role of Russia, represented by VEB.RF in this field, and noted the need for the entire international community to work together on this issue.

Private sector stakeholders, including Wells Fargo, Deutsche Bank and ING, also welcomed the development of responsible financing standards in BRICS, emphasising the importance of such work for international investors.

The participants agreed to continue cooperation on developing responsible financing standards, adopting BRICS Responsible Financing Guidelines in 2020, and developing detailed recommendations for BRICS development institutions on implementing the Guidelines.

The meeting was moderated by Antonina Levashenko, Head of the Russia-OECD Centre RANEPA, and Tyler Gillard, OECD’s Head of Sector Projects in the Responsible Business Conduct Unit.

Note: the BRICS Interbank Cooperation Mechanism (BRICS ICM) was established in 2010 to develop and strengthen economic and investment cooperation between the BRICS countries. The main areas of activity are the development of comprehensive long-term interbank cooperation between partners in order to strengthen trade and economic relations of the BRICS member countries, the support of the implementation of socially significant and regional projects, and the development of procedures for providing financial and banking services for investment projects that contribute to the economic development of the BRICS countries.