In today’s landscape, Ukrainian businesses are increasingly required to implement ESG reporting, especially in the context of European integration processes.
The choice between the international GRI (Global Reporting Initiative) standard and the new European Union requirements — ESRS (European Sustainability Reporting Standards) — is becoming more relevant than ever. This topic was the focus of a live broadcast on Ukrainian Radio with Anastasiia Skok, Head of ESG at BDO in Ukraine. She provided practical guidance on implementing non-financial reporting and addressed the critical issues raised in the article “Which to use in Ukraine: ESRS or GRI?”.
The conversation was initiated by the presenter, Tetiana Malysheva, who observed that the subject of non-financial reporting, though seemingly specific, is garnering increasing attention from the Ukrainian business community. Anastasiia Skok explained that the complex terminology hides a practical need to show the company’s impact on society, the environment and its own management processes. “In today’s business world, responsibility extends beyond mere profit, encompassing values, reputation, transparency, and a readiness to embrace change,” she stated.
The broadcast and the publication covered the most pressing issues regarding the choice between GRI and ESRS — let’s look at the main ones.
GRI is the best start for Ukrainian companies
For Ukrainian businesses that are in the early stages of integrating sustainable development approaches into their operations, the GRI (Global Reporting Initiative) international standard is the most logical and convenient choice. It is a voluntary, flexible and adaptive standard that allows for the gradual integration of sustainable development into the business model. GRI is already utilised by hundreds of companies around the world, and is recognised in more than 100 countries.The discussion then shifted to the choice between GRI and ESRS standards. Anastasiia asserts that GRI is a flexible international standard that is optimal for those entering the field. Its unique structure enables companies to understand how to work with non-financial data at the initial stage. Instead, ESRS is a mandatory standard approved by the EU, which requires a much deeper business transformation, the creation of internal data collection systems and audit readiness. Anastasiia recommended that Ukrainian companies initiate their journey with GRI as a preparatory stage, with a subsequent transition to ESRS if they aspire to engage with the EU.
However, companies often encounter challenges such as a shortage of specialists, a suboptimal ESG data collection system, and limited management awareness at the outset. These issues can be addressed with the assistance of professional services. In Ukraine, the GRI is frequently selected as the initial phase in the development of non-financial reporting and the establishment of an ESG strategy.
ESRS as the next level of regulatory requirements
In contrast to GRI, ESRS (European Sustainability Reporting Standards) is a mandatory standard introduced by the European Union for large businesses. A clear implementation schedule has already been set out: large enterprises will be the first to report, followed by medium-sized businesses focused on EU markets.When asked why now the right time was to implement such approaches, regardless of the size of the business, Anastasiia stated that the transition to transparency is no longer a trend but a necessity, and that Ukrainian companies cannot stand aside.
“Businesses should act consciously, formulate sustainable development policies, communicate with society, and participate in the reconstruction,” the expert said.
The presenter then posed the following question of how companies should organise the process of preparing for ESG reporting, especially if they have limited resources.
“Where should you start?” asked Tetiana Malysheva.
“The first step should be to create an ESG profile of the company: assess what information you already have, what you collect in an unstructured way, and what you don’t collect at all,” Anastasiia replied.
She added that larger companies often set up separate departments, while smaller ones can manage with a single specialist or consultant.
“Initially, more straightforward systems such as Excel, coupled with regular communication with departments, will be sufficient.”
Which standard to choose?
According to experts, companies should initiate their non-financial reporting with GRI, in order to lay the foundation for ESRS, should their business fall under the criteria for mandatory reporting in the EU. A phased transition is recommended in order to reduce workload, avoid critical errors and ensure compliance with future legal requirements.
The time to act is now
Even in the absence of a reporting obligation, the implementation of ESG approaches is becoming a prerequisite for Ukrainian companies to remain competitive. The most sensible approach would be a hybrid strategy: it is recommended that the company start with GRI to lay the foundation for sustainable development and gradually prepare for the implementation of ESRS when the business is ready.Tetiana inquired as to the potential repercussions for entities that deliberately avoid change, fail to report, and cause harm to the environment.
Anastasiia noted: “Such companies will gradually lose markets, investors and public trust.”
The host concluded the conversation by noting that, as a consumer, she also focuses on business transparency and its social mission.
Anastasiia expressed support for this view, further elaborating: “This is the ideal competitive market. People choose companies that offer added value, not only in terms of goods, but also in terms of values.”
Please follow the link to access the full interview with the expert of BDO in Ukraine.
The team of BDO in Ukraine has extensive experience in implementing both standards and is ready to serve as your company’s trusted partner on its journey towards sustainable development. We offer comprehensive support at all stages of the ESG transformation process:
- Initial analysis of the ESG profile and risks
- Setting up the system for collecting non-financial information
- Development of an ESG strategy and roadmap
- Preparation of reporting in accordance with European standards
- Establishing an ESG team, conducting trainings for employees
- Responding to legislative changes, market requirements, regulatory expectations and ongoing support throughout the year.
Please, contact us for professional advice.
