ESG Reporting During Wartime: Who Needs It and Why?
In times of full-scale war, the issue of business responsibility becomes especially prominent.
Preparing ESG reporting is not only about complying with investor or regulatory requirements. It is also about reputation, partner trust, and your position as a socially responsible market player.
NBU Strategic Policy
In 2021, the National Bank of Ukraine, together with the IFC, approved a sustainable finance policy.
The objective was defined as promoting green financial products and establishing requirements for green bonds.
The Law dated July 1, 2021 recognized green bonds as a separate type of securities.
Strategy Update in 2023
In the third quarter of 2023, the NBU plans to develop an updated policy with clear timelines and scope of work regarding ESG and sustainable finance.
Updating the regulatory landscape in response to new challenges.
Response to War and European Integration
In 2022, the policy was reconsidered due to the war and the focus on the survival of the financial system.
Ukraine’s EU candidate status created new ESG-related obligations.
Green bonds are considered as a tool for post-war recovery of cities.
Business Practices During Wartime
Ukrainian companies are intuitively adhering to ESG principles.
ESG approaches help businesses survive in conditions of turbulence.
Harmonization with the EU
The EU adopted two key directives:
- On corporate sustainability reporting.
- On verification of companies’ ESG activities.
Introduced:
- An expanded list of companies required to report;
- A requirement for ESG report audits (initially limited, then reasonable assurance);
- 12 ESG standards comprising over 1,000 disclosure indicators.
More details: https://surli.cc/zdijcf