One of the main challenges and opportunities facing companies in the natural resources and energy sector is sustainable development.
The article analyses the experience of global companies and practices from Ukraine to provide insights on how companies in the natural resources and energy sectors can effectively implement ESG.
Our colleagues at BDO in Australia conducted a study “Turning point: Sustainability trends in natural resources and energy” which identified important sustainability trends in the natural resources and energy sectors that affect global markets and are relevant to Ukrainian companies in these industries. For Ukrainian companies, this study provides a framework for implementing sustainable development principles, enhancing their reputation and strengthening their competitive position in the global market.
Key sustainability trends for the 2025 financial year:
1. From definition to ESG integration
Organisations are opening up new opportunities and tools in the field of sustainable development for effective ESG management. This enables companies to comply with standards and to integrate sustainable development principles into all aspects of their operations.
2. Balance between expectations and realities
Companies are under pressure from a variety of stakeholders who put forward various demands. This poses a significant challenge in achieving sustainable development goals, given the substantial costs and complexity associated with implementing ESG initiatives.
3. Real-time data transform sustainable development decision-making.
Investing in real-time data collection and analysis systems enables more strategic decision-making, facilitating the path to sustainable development and helping companies improve operational efficiency while reducing their environmental impact.
4. Technology and innovation are key drivers of commercial value
Investment in technology and product innovation is driving the modernisation of production processes, particularly in the mining industry, delivering significant sustainability outcomes.
5. Development of a team for sustainable future
Existing development and training strategies are not providing adequate preparation for sustainable development in the mining and energy sectors. In order to achieve this, investment in training and the development of skilled personnel is required.
6. Sustainable development as a competitive advantage
Businesses use sustainable development for several reasons. These include risk reduction and compliance with standards. However, the primary motivation is often to gain financial and operational benefits by increasing the efficiency and sustainability of companies.In what way is this relevant to Ukraine?
Ukrainian companies are uniquely positioned to adapt these global trends to their specific conditions. The creation of a regulatory framework for sustainable development reporting (ESRS) by the state will enable companies not only to comply with EU requirements, but also to improve their reputation in the international market and attract investment.
Developing and implementing strategies for sustainable development is an essential component of the course towards European integration. This process involves harmonising Ukrainian legislation with European standards. Implementing these principles will help improve corporate transparency, efficiency and competitiveness of Ukrainian companies, which is critical for stable business development in the context of global economic integration.
When implementing sustainable development strategies in their work processes, companies gain significant advantages:
- Improving ESG indicators has been shown to reduce operational risks and increase efficiency
- The most significant financial impact is observed when ESG initiatives are integrated into the company’s core business strategy
- The most significant financial impact is achieved through a comprehensive approach to ESG that covers all material aspects for a particular industry.
Real-life examples of ESG tools in Ukraine
A growing number of companies in Ukraine are implementing ESG strategies, recognising their importance for sustainable development and integration into global markets. Please find below some examples:
1) JSC Ukrnafta
PJSC Ukrnafta is committed to implementing ESG best practices, with a focus on environmental protection, social responsibility and corporate governance. The company integrates ESG practices into its activities, focusing on effective resource management, minimising negative environmental impact and strengthening social responsibility. By following this approach, it aligns with European standards of non-financial reporting, promoting transparency and ensuring compliance with contemporary sustainability requirements.
2) PrJSC UKRHYDROENERGO
PJSC Ukrhydroenergo is committed to environmental initiatives that preserve natural hydroecosystems and focus on sustainable development. The company has developed and approved an Environmental Policy that defines strategic directions for activities in environmental protection. These include the introduction of energy- and resource-efficient technologies, the prevention of environmental pollution, and the responsible use of water resources. These measures contribute not only to the fulfilment of sustainable development requirements but also increase the company’s competitiveness in the international market.
How does BDO in Ukraine help to implement sustainable development?
For Ukrainian companies, it is important to implement transparent ESG processes, prepare reports in accordance with ESRS standards, and conduct in-depth assessments of risks and opportunities in the field of sustainable development. BDO in Ukraine provides comprehensive support in this process. Our experts:
- Assess the company’s status in terms of ESG compliance
- Develop long-term strategies for integrating ESG into all aspects of the business
- Identify and analyse ESG risks that the company may face and develop a plan to minimise them
- Advise and conduct training on creating an inclusive work environment and supporting diversity.
We tailor solutions to meet the specific needs of each client, irrespective of the size of their business or the sector in which they operate. Our experts will help you to prioritise, avoid bureaucracy and transform sustainability into a competitive advantage. We work in partnership with you to ensure your transition to responsible business practices is informed, effective and consistent.
The BDO approach is all about practicality, transparency and long-term value for business. Should you wish to continue the dialogue, please use the contact form below.
