Kazakhstan surpasses all CIS and Central Asian countries in the ESG index ranking
Kazakhstan, with an index score of 36.3, was ranked 52nd out of 183 countries in the ESG (Environmental, Social, and Governance) rating, which assesses risks associated with the environment, human rights, health, and safety, reports a Kazinform News Agency correspondent.
According to energyprom.kz, countries are rated on a scale from 0 to 100, where 0 corresponds to the lowest risk and 100 to the highest. Therefore, Kazakhstan’s risks can be assessed as below average.
This performance surpasses that of all other countries in the Commonwealth of Independent States (CIS) and Central Asia. For instance, Kyrgyzstan ranked 54th (index 37.11), Moldova 55th (37.19), Armenia 57th (37.52). Uzbekistan and Belarus ranked significantly lower (86th and 88th), not to mention Azerbaijan, Russia, and Tajikistan, which are in 102nd, 106th, and 114th places, respectively.
The ESG index covers 183 countries and territories and includes three sub-indices (environment, human rights, health, and safety), based on 65 variables to measure exposure to ESG risks.
For Kazakhstan, the positive impact of large sustainable development institutions in the ESG sphere plays an important role. For example, according to Bloomberg Intelligence forecasts, global ESG assets will reach $40 trillion by 2030, or 25% of projected global assets under management (AUM). Additionally, investor appetite remains strong, with over 85% of asset managers planning to increase ESG AUM.
Another key point is that the principles of sustainable development in ESG align with the United Nations Sustainable Development Goals (SDGs). However, global forecasts in this area are more pessimistic than in ESG development. According to the Sustainable Development Report, global progress in achieving the SDGs has stalled since 2020. This progress was too slow even before the COVID-19 pandemic and other crises erupted. At the current pace, none of the 17 SDGs adopted by the global community in 2015 will be achieved by 2030. Most goals (84%) show limited progress, stagnation, or even regression. Therefore, a new checkpoint has been set for 2050, and the SDGs themselves will be adjusted.
In the 2023 SDG index, Kazakhstan ranks just 66th out of 167 countries. This is a significantly weaker position compared to the country's ESG development, making the role of companies and development institutions dedicated to achieving the SDGs crucial in this area.
