Sustainable development is the process of balancing and responsibly managing the economic, social and environmental aspects of a business. It entails creating value for stakeholders, customers, employees and society while minimizing negative impacts on natural resources and the climate.  

In today's dynamic and competitive market, businesses must implement the goals and values of sustainable development. This is both a moral obligation and a strategic advantage that allows businesses to gain a competitive edge over their rivals. The implementation of sustainable practices allows businesses to enhance efficiency, innovation, reputation and sustainability, thereby gaining a competitive advantage in the market.
 

Why is ESG reporting and strategizing important? 

1In light of the approaching year 2025, it is crucial for Ukrainian companies with subsidiaries or parent companies in the EU to develop and implement ESG (Environmental, Social and Governance) practices in line with the requirements of the CSRD (Corporate Sustainability Reporting Directive). This directive significantly strengthens the sustainability disclosure requirements for European companies and those operating in the European market. The main reasons why companies should focus on ESG reporting and strategizing in the context of the CSRD are as follows:

1. Mandatory sustainability reports: Starting from 2025, companies subject to the CSRD will be required to provide detailed information on their environmental, social and governance practices. Reporting must comply with standards that ensure transparency and comparability of information, in particular, within the framework of EFRAG (European Financial Reporting Advisory Group) standards, which aim to unify reporting for investors and other stakeholders.
2. Growing pressure from investors and regulators: CSRD requires companies to better understand and manage their ESG performance, allowing investors to make more informed decisions and contributing to a sustainable capital market. Investors are seeking transparency regarding sustainability issues and prefer companies with high ESG performance, which may affect access to capital.
3. Reducing risks and increasing sustainability: ESG-oriented companies are better prepared for future regulatory changes, environmental challenges and societal pressures, which helps to mitigate risks associated with climate change, social instability and poor governance. The CSRD encourages companies to comprehensively assess ESG risks and opportunities, which contributes to their resilience and long-term stability.
4. Reputational benefits and attracting clients: Sustainability issues are becoming increasingly important to consumers and partners, and CSRD helps companies strengthen their reputation as responsible and sustainable businesses. Transparent reporting helps to build trust and attract new customers who appreciate an ethical approach to business.

What services do BDO specialists in Ukraine offer for the approval of your company’s sustainable development course? 

• Assessing the current state of a company's compliance with ESG principles and providing recommendations for improvement — we help companies reduce risks, enhance reputation, attract investment and optimize processes in line with international standards and regulatory requirements. This contributes to sustainable development, unlocks opportunities for innovation, attracts talent and strengthens partnerships, increasing the overall competitiveness and sustainability of the business in the long term.
• Developing long-term strategies for integrating ESG into all aspects of business — we help companies build sustainable business models that address environmental, social and governance aspects at all levels. This increases competitiveness, reduces risks, meets the expectations of investors and regulators, contributing to the growth of reputation and attractiveness for partners and employees, and ensures successful development for the future.
• Identifying and analyzing ESG risks that a company may face and developing plans to minimize them — we help companies identify potential environmental, social and governance threats that may affect their operations and help them develop plans to minimize them. This helps to reduce the likelihood of financial and reputational loss, increase business sustainability and ensure its compliance with international standards, which is particularly important for long-term success and sustainable development.
• Developing and implementing programs to support local municipalities, charity events and educational initiatives — we help companies strengthen their social impact, enhance their reputation and contribute to the sustainable development of society. In doing so, businesses cultivate strong ties with municipalities, increase customer and employee loyalty and demonstrate a responsible attitude towards society, which contributes to the company’s positive image and long-term stability.
• Consultations and trainings on creating an inclusive work environment and supporting diversity — we help companies develop a culture of respect, openness and equality that attracts talented professionals from diverse social and cultural groups. This increases productivity, employee satisfaction, and creates a positive image of the company as a socially responsible employer, which is crucial for the long-term success and stability of the business.  

Benefits of partnership with BDO in Ukraine 

By selecting BDO in Ukraine as your sustainability partner, you receive the following benefits: 

• Access to a global network of specialists and resources with in-depth knowledge of national standards and comprehensive experience.
• Customized and flexible solutions tailored to your specific needs and goals.
• High-quality and reliable services provided with professionalism and integrity.
• Valuable and innovative approaches based on the latest trends and the best practices.
• Long-term and trusting relationships based on mutual respect and cooperation. 

If you are interested in learning more about our sustainability service or would like to embark on a journey to a more sustainable and successful business, please contact us. We will be glad to answer any questions you may have, provide additional information, and arrange a meeting with our experts. Don't miss this opportunity to take your business to the next level with BDO in Ukraine.