CAN ESG PRINCIPLES CONFLICT WITH CENTRAL BANK POLICIES?

Today, the implementation of ESG principles has become a topic of great importance, discussed in expert forums, political events, national economic policy debates, the media, and elsewhere. International institutions, non-governmental organizations, legislators, the media, and others are exerting significant pressure for the implementation of these principles. Generally speaking, Central banks are among the leading institutions in the implementation of ESG principles.. They adhere to them not only to maintain financial stability but also to manage reputational risk and set a good example. However, what is often overlooked is that the implementation of these principles carries numerous challenges and even risks for central banks. There can be a conflict between policy objectives and ESG objectives. Therefore, the question arises as to how central banks can reconcile these two objectives or how to find a trade-off. Very few studies address this issue. Therefore, the focus of this paper is on a balanced consideration of the need to implement these principles in central banks, the challenges their implementation brings, as well as the risks and potential conflicts with the core mission of central banks.