The mining and metallurgical group "Metinvest" has joined in the development of Ukraine's Green Strategy at the International Sustainable Development Forum 2023 in Kyiv and The Hague, Netherlands.
According to the company's press release, the forum gathered over 700 participants, including leading experts in sustainable development, representatives of the Ukrainian government, the business sector of Ukraine and the EU, non-governmental organizations, UN programs, as well as diplomats and journalists.
Over the course of two days, participants discussed topics related to Ukraine's transition to a "green" economy, financing the country's post-war reconstruction, and conditions for sustainable development in Ukrainian cities.
The outcome of this collaborative effort is the formulation of the fundamental principles of Ukraine's Green Strategy for the next 20 years. The strategy will be based on sustainability principles, taking into account the requirements of European and Euro-Atlantic integration, international partnerships, and the current challenges. It includes a set of initiatives, a clear roadmap, and a practical action plan to be presented to the Ukrainian government.
Vitaliy Kovalenko, the Director of the Department of Sustainable Development and Environmental Management at "Metinvest," explained that mere compliance with ESG (Environmental, Social, and Governance) standards by businesses doesn't guarantee a transition to a "green" economy. This is because such compliance only meets the expectations of financial institutions. To achieve long-term success, companies should align with the constantly changing values of their customers. Ultimately, the principles of sustainable development become decisive and add competitive advantages to the company.
At the same time, adherence to these principles entails significant costs. To address this, consumer awareness and the willingness of consumers to pay conditional premiums for sustainable development are necessary, as it happens in Western societies. Government support through motivational, regulatory, and fiscal instruments should also be considered. These macroeconomic issues should be the focus of government attention, as mentioned by Kovalenko, according to the press release.
It's noted in the press release that the National Bank of Ukraine believes that Ukraine's recovery should already be based on ESG standards, as this will significantly save resources in the future.
The banking sector serves as an intermediary in the distribution of financial resources and pays special attention to compliance with non-financial standards when approving business projects. The world is ready to provide funds to companies that are mentally prepared to adhere to environmental, social, and governance principles, which, in turn, opens up many opportunities, according to Kateryna Rozhkova, the First Deputy Governor of the National Bank of Ukraine.
Meanwhile, the Ministry of Economy of Ukraine emphasized that the plan for Ukraine's "green" transition, which it is developing, cannot be implemented without the consolidation of efforts with the civil sector and businesses.
Compliance with sustainable development principles will contribute to faster economic recovery in Ukraine in the post-war period, believes Oleksiy Sobolev, the Deputy Minister of Economy.
In The Hague, forum participants discussed the impact of the global "green" agenda and the formation of a recovery plan for Ukraine in line with the principles of the circular economy.
Dimitri Gvindadze, the Head of the Climate Strategy and Regional Development Division at the European Bank for Reconstruction and Development, noted that the recovery of Ukraine is one of the bank's top priorities as the country's largest investor. In his opinion, the "green" transition in Ukraine needs to be implemented at all levels, from production to taxation.
