Three letters that change everything
ESG is an acronym for three key areas: Environmental, Social and Governance. They are all elements of sustainable development, which is becoming increasingly integrated into the strategic thinking of the world’s leading companies.
ESG is not merely a reporting exercise. It is the language of the future of business. Research indicates that companies which integrate ESG principles into their core business practices experience higher levels of investor confidence, enhanced access to affordable financing, stronger customer loyalty and a more robust position in times of crisis.
From a scientific perspective, ESG is regarded as an integrated approach to evaluating non-financial risks and opportunities that may impact long-term business performance. ESG factors are used to extend traditional analysis, particularly in the area of investment, to include externalities, ethical criteria, as well as reputational and regulatory risks. ESG is therefore part of the responsible investing paradigm, which is based on the principles of transparency, accountability and sustainability. This approach is recognised by the International Organisation for Standardisation (ISO), the United Nations (through the Principles for Responsible Investment, PRI) and other international institutions.
ESG for Ukrainian business: an opportunity or a challenge?
At BDO in Ukraine, we collaborate with businesses that are seeking solutions on a daily basis:
- How to get started?
- Is this relevant in wartime?
- Do our international partners understand us?
The answer is clear: ESG is an opportunity.
Ukraine has already embarked on a course of European integration, and the requirements for environmental friendliness, transparency and respect for human rights are becoming a condition for playing in the international market. The EU has already implemented the CSRD (Corporate Sustainability Reporting Directive), which will gradually apply to Ukrainian companies, especially those that engage in exports or are part of the global supply chains.
What is evident in global practice?
BDO Global has noted in its analytical reports that the companies implementing ESG strategies tend to achieve better long-term results. Such businesses:
- Anticipate risks and better respond to change (from climate change to regulatory changes)
- Attract talent. Employees want to collaborate with a responsible employer
- Are more stable to invest. Investors are increasingly using ESG ratings as an indicator of corporate sustainability
How to get started?
For companies that are just beginning to familiarise themselves with the topic, it is important to understand that implementing ESG is not a one-time decision. It is a path. And we are ready to walk it with you.
At BDO in Ukraine, we offer support at all stages:
- Development of an ESG strategy in a comprehensive manner, considering the company and market specifics
- Identification of material issues and risks affecting the business
- ESG reporting in accordance with international standards (GRI, SASB, TCFD, CSRD)
- Maturity assessment of ESG practices and creation of a roadmap for their development
- Team trainings and preparation for the integration of digital data management solutions.
What is important to consider today?
Flexibility and resilience are key to ESG implementation. In the current business environment, the ability to adapt to change while maintaining a focus on long-term goals is essential for success. This means investing in ESG data management systems, analytics and process automation.
It is also important to learn to speak the ESG language so that your partners, investors and customers around the world can clearly see your progress.
And lastly
ESG is not about paperwork. It's about who you are as a company, the values you stand for, how you treat the world, people and yourself. For some, this is a new topic. For us, it is a daily practice. We believe that Ukrainian business is flexible, responsible and capable of being part of the global movement towards a sustainable future.
BDO in Ukraine — by your side on the path to sustainable development.
