Climate change is becoming one of the defining factors of the strategic transformation of the financial sector in the Central Asian region and in the Republic of Kazakhstan. Rising temperatures and the increasing frequency of extreme weather events create significant risks both for macroeconomic stability and for the sustainability of individual business models. The Republic of Kazakhstan, as part of the global climate space, is already facing a number of challenges: an increase in the frequency of droughts and floods, fluctuations in water resources, as well as the growing impact of climate factors on urban and housing infrastructure.

Under these conditions, Otbasy Bank, acting as a key institution in the field of housing financing, realizes the importance of timely adaptation to climate change. Simultaneously, pressure is increasing from investors, international partners, and clients who expect transparency, responsibility, and the ability to integrate climate aspects into the development strategy from financial institutions and national regulators.

Since 2024, the Bank has implemented a comprehensive approach to integrating the climate agenda into strategic and operational processes. In 2024, systematic work was conducted on the development and implementation of an internal methodology for assessing climate risks, including:

-          a procedure was developed and implemented for conducting climate stress testing and scenario analysis of the impact of climate factors on the mortgage portfolio of the Bank;

-          a classification of physical and transition risks was formed, taking into account the regional specifics of the country and the portfolio structure.

The implemented initiatives are based on international approaches, including the recommendations of the Bank for International Settlements (BIS), the European Central Bank, the sustainable reporting standards GRI and SASB, as well as the requirements of IFRS S2 – the global standard for climate risk disclosure.

The vector of the Bank's ESG transformation corresponds to the strategic priorities of the Republic of Kazakhstan aimed at achieving carbon neutrality by 2060.

For the Bank, the climate agenda goes beyond regulatory compliance and is viewed as a key component of long-term sustainability, competitiveness, and social responsibility. Climate risk management is becoming an integral part of the Bank's mission — to ensure sustainable access of the population to quality housing, taking into account the climate challenges faced by the regions of Kazakhstan in which the Bank conducts its activities.