Ukrainian Business Supports ESG Implementation: What Companies Need to Know About CSRD Now
In the context of strengthening global requirements for business transparency and sustainability, Ukrainian companies are actively adapting to the new reality. This was discussed during the online event hosted by the Green Transition Office: "Practices for Preparing Sustainability Reporting in Accordance with the Requirements of the Corporate Sustainability Reporting Directive (CSRD)." The event brought together leading experts and representatives of Ukrainian business. Participants discussed challenges and shared practical experience related to European Sustainability Reporting Standards (ESRS), which will become mandatory for many companies in the near future.
Andrii Kitura, Development Director of DiXi Group and Head of the Green Transition Office at the Ministry of Economy of Ukraine, opening the event, emphasized the strategic importance of adapting Ukrainian business to new European standards.
"The implementation of CSRD and ESRS is not merely a formal requirement, but a strategic opportunity for Ukrainian companies to integrate into global markets, enhance their attractiveness to investors, and contribute to sustainable economic development," stated Andrii Kitura.
Following the general overview of the importance of the Corporate Sustainability Reporting Directive (CSRD) for Ukrainian business, Oleksiy Yatsiuk, ESG expert at the Green Transition Office of the Ministry of Economy of Ukraine, delved into initial impressions and practical aspects of implementation. He shared key observations regarding current trends in ESG reporting.
"Basing a sustainability strategy solely on EU requirements is ineffective. It must be grounded in the company's values and objectives," the speaker emphasized. The expert also noted that reports are becoming structured and formal, approaching the level of financial reports, and there is observable maturity and seriousness in approaches to ESG information disclosure.
According to Oleksiy, the material ESG topics for all companies remain climate, human resources, and business ethics. "Ukrainian business supports ESG but awaits clear rules and instructions," added Oleksiy Yatsiuk, emphasizing the importance of using European companies' practices as "living adaptation" to CSRD/ESRS and beginning ESG data collection before official obligations take effect.
It is worth noting that the presentation also referenced the results of comprehensive research titled "ESG Reporting: Analysis of Information Disclosure Practices."
(Details of the research and Oleksiy Yatsiuk's presentation are available by clicking on the photo.)
Andriy Hrys, Head of Social and Environmental Risk Management at Ukrgasbank and Chairman of the ESG Committee of the Independent Association of Banks of Ukraine, also provided an in-depth analysis of CSRD and ESRS requirements, sharing the financial sector's experience. He emphasized that double materiality assessment (DMA) is a key aspect for banks.
"Double materiality assessment is the key to effective ESG reporting that considers not only business impact on the environment and society, but also financial risks and opportunities," the speaker emphasized, highlighting the opportunities and challenges of implementing DMA in the banking sector.
Liudmyla Tsyganok, President of the Association of Environmental Professionals (PAEW), shared experience and conclusions regarding current practices of European companies and next steps for Ukrainian business, calling for immediate action.
"The first CSRD reports we analyzed at ESG Liga PAEW revealed a paradox: companies readily discuss risks but remain silent about opportunities. 95% report on threats, only 16% on sustainable development potential. We see reporting being used as a compliance tool rather than transformation. This is not a failure, but a signal: companies are only learning to view sustainable development not as a burden, but as the economy of a new generation. For Ukrainian business, this is an opportunity not to copy mistakes, but to go further—to immediately build connections between ESG and financial sustainability, between analytics and action. We consider it necessary to jointly develop a 'Ukrainian adapted ESG standard' that accounts for the realities of war and leaves room for humanity, progress, and trust," emphasized Liudmyla Tsyganok. The expert also recommended using existing standards (GRI, TCFD, SASB) as a foundation for gradual transition to ESRS.
Understanding how to implement these standards in practice is crucial, and this was precisely what Yulia Kuvitanova, Director of Environmental Sustainability at SoftServe, discussed, sharing the experience of international technology companies in preparing sustainability reporting. Kuvitanova emphasized the importance of preliminary company preparation, integration of management practices, building internal processes, as well as engaging and training personnel.
"To effectively implement an ESG strategy in a large company, it is necessary to begin with in-depth analysis of internal processes, data collection and analysis, as well as verification of their compliance with standards. ESRS standards can be an excellent tool for starting work on ESG strategy. Furthermore, it is important to engage and train a wide range of personnel and various departments in ESG practices—from senior management to specialists responsible for data collection. Based on our experience, it is advisable to start with a key manager who will be the driving force of these changes, and then engage financial, legal, HR departments, and operational units. Role distribution should be clear, where each direction is responsible for its data block, and external consultants can be engaged for strategic mentoring and process auditing," noted Yulia Kuvitanova.
Concluding the series of presentations with practical cases, Pavlo Popov, Head of Sustainable Development, Investor Relations and Government Affairs at Astarta, presented the experience of preparing non-financial reporting in a major agro-industrial holding. He described in detail the stages of preparing reporting according to CSRD requirements, including establishing a separate sustainable development department, engaging key internal company departments, developing internal procedures for comprehensive verification and models for assessing impacts, risks, and opportunities (IRO), stakeholder engagement, and preparation for non-financial reporting audits.
"Non-financial reporting is not only about compliance with European legislation. It is about transparency, trust, and the company's reputation in relationships with our partners," emphasized Pavlo Popov.
You can watch the recording of the event in Ukrainian by clicking on the link below.
This project is supported by the Ministry of Foreign Affairs of the Kingdom of the Netherlands and implemented within the framework of the Private Sector Development Programme of the Netherlands Enterprise Agency (RVO.nl).
The Green Transition Office is an independent advisory body under the Ministry of Economy of Ukraine that helps to implement reforms in the field of green transition, energy and climate policy of Ukraine. The Green Transition Office operates with the financial support of the UK International Development and is implemented by Dixi Group.
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