Experienced companies are already implementing ESG principles in their strategies – M. Oliinyk

21/ 11/ 2024

Governments and non-governmental institutions of the most developed countries adopt stimulating and regulatory norms, which are regulating ESG (environmental social governance) requirements. Therefore, companies determined to grow and scale include these principles in their strategies. Maksym Oliynyk, ESG manager at OTP BANK JSC, wrote about this in a column for Interfax-Ukraine. He noted that starting in 2025, more than 50,000 European companies will have to report on ESG indicators for 2024, in accordance with the European Unions CSRD (Corporate Sustainability Reporting Directive). The author of the column clarified that the directive also applies to companies in countries outside the European Union. The main criteria for them are as follows: businesses whose shares are listed on stock exchanges in EU countries, have a parent company in an EU country or have a significant share of business in EU countries. It was unofficially estimated that the directive will affect about 10,000 companies outside the European Union, including Ukraine, - emphasized M. Oliinyk. He added that the relevant reports would have to undergo a separate non-financial audit. In particular, this year an audit of non-financial data presented annually in the Integrated Report will be conducted at the OTP Group level. OTP BANK as part of the Group also will be subject to audit and therefore transparent reporting on ESG issues will become mandatory for the company. “In 2023, 93% of Russell 1000 companies and 98.6% of S&P 500 companies published a sustainability report disclosing their non-financial performance. Quite high percentages indicate that with the development and improvement of companies success, ESG increasingly becomes a part of the corporate strategy and plays an important role in business planning and operational activities, – highlighted M. Oliinyk. Moreover, peoples commitment to companies with a strong ESG agenda is growing every year, he wrote. In support of this opinion, the author cites the results of an IBM study conducted in 2023. According to it, approximately two-thirds of consumers believe that environmental protection (68%) and social responsibility (65%) are very or extremely important to them. You can read the full text of Maksym Oliynyks column by following the link.

He noted that starting in 2025, more than 50,000 European companies will have to report on ESG indicators for 2024, in accordance with the European Union’s CSRD (Corporate Sustainability Reporting Directive). The author of the column clarified that the directive also applies to companies in countries outside the European Union. “The main criteria for them are as follows: businesses whose shares are listed on stock exchanges in EU countries, have a parent company in an EU country or have a significant share of business in EU countries. It was unofficially estimated that the directive will affect about 10,000 companies outside the European Union, including Ukraine,” – emphasized M. Oliinyk.

He added that the relevant reports would have to undergo a separate non-financial audit. In particular, this year an audit of non-financial data presented annually in the Integrated Report will be conducted at the OTP Group level. OTP BANK as part of the Group also will be subject to audit and therefore transparent reporting on ESG issues will become mandatory for the company.

“In 2023, 93% of Russell 1000 companies and 98.6% of S&P 500 companies published a sustainability report disclosing their non-financial performance. Quite high percentages indicate that with the development and improvement of companies’ success, ESG increasingly becomes a part of the corporate strategy and plays an important role in business planning and operational activities,” – highlighted M. Oliinyk.

Moreover, people’s commitment to companies with a strong ESG agenda is growing every year, he wrote. In support of this opinion, the author cites the results of an IBM study conducted in 2023. According to it, approximately two-thirds of consumers believe that environmental protection (68%) and social responsibility (65%) are “very” or “extremely” important to them.

You can read the full text of Maksym Oliynyk’s column by following the link.