The Corporate Governance Professional Association (CGPA) continues to educate professional community members about the latest trends in implementing Environmental, Social, and Governance (ESG) standards in Ukraine and abroad.

On January 30, 2023, CGPA, in cooperation with the Ukrainian Corporate Governance Institute, held a webinar on “ESG: WHY IS IT IMPORTANT?”.

The guest speakers at the event were Yulia Kholodkova, an IFC ESG Expert and IFC ECA ESG Program Coordinator in Ukraine and Bosnia and Herzegovina, and Alla Papaika, the Director of the Securities Registration Department of the National Securities and Stock Market Commission. Oleksandr Okuniev, Chairman of the CGPA Management Board, moderated the discussion.

In the modern context, sustainable development in the business environment entails achieving economic growth that satisfies the current generation’s needs while safeguarding the ability of future generations to meet their own needs. In the business realm, this concept promotes balanced company development, and social and environmental responsibility and is implemented through ESG strategies.

Global investors are increasingly focusing on environmental and social responsibility, as well as the management culture of companies and projects they consider for investment. Consequently, a company’s adherence to ESG principles and its disclosure of ESG indicators have become crucial factors in determining its investment appeal and the future value of investments, directly influencing financial decision-making by investors.

During her speech, Ms. Kholodkova highlighted the need for Ukrainian businesses to prepare for the imminent integration of ESG principles and standards into mandatory legislation, which all market participants will be required to comply with. Many countries have already taken this path due to the impact of climate change, the adverse effects of economic development on the environment, and the increasing social instability worldwide. As a result, ESG standards and the significance of sustainable development have become integral to business practices across all sectors of the global economy. Companies, along with their shareholders and boards of directors, should be the driving force behind the necessary changes and adaptation to new circumstances.

Ms. Papaika, on the other hand, focused on the efforts of the NSSMC to implement ESG principles and standards in the operations and reporting of Ukrainian companies. She emphasized that the discussion now extends beyond corporate governance alone and encompasses ESG as a broader aspect of strategies and standards, encompassing corporate governance closely intertwined with environmental and social norms.

The webinar was held as part of a series of webinars that includes the Corporate Governance Specialist Information Package*.

*The Corporate Governance Information Support Package is an annual online service that lets you stay up-to-date on corporate governance developments and spend little time searching for information. You can visit  our website  for more information about the service and subscription terms.