The national standard on environmental, social, and governance (ESG) enables local companies to take a systematic approach, including reporting on key performance indicators (KPIs), Ilham Bayramov, Director General of Azerbaijan Standardization Institute (AZSTANDART) under the Ministry of Economy, Report informs.
According to Bayramov, this standard provides a framework and rules for supporting sustainable development in the modern business environment and promoting socially responsible activities by implementing ESG principles in enterprises and organizations:
"The adoption of ESG supports the assessment of environmental and social impacts on the organization, as well as the organization's impacts on the environment and society, including supporting the implementation of the United Nations Sustainable Development Goals, provides guidance, clarifies requirements, and ensures measurement and reporting of related outcomes," the director general noted.
According to him, the approaches aligned with ISO and other international ESG standards reflected in the state standard allow local companies to ensure international compatibility of their operations, enable systematic approach to ESG management, and report on key performance indicators: "The implementation of the new state standard will not only support sustainable development in public and private sectors but will also make a significant contribution to the country's activities related to UN Sustainable Development Goals while having a positive impact on increasing customer satisfaction, reducing risks, and enhancing social responsibility."