The South Caucasus region faces a number of shared challenges in the realm of Environmental, Social, and Corporate Governance (ESG), said Boris Janjalia, the International Finance Corporation's (IFC) regional expert on ESG, Report informs.
Janjalia shared his insights during a conference held in Baku, titled "For the Sustainable Development of Azerbaijan: Presentation of the Unified Platform and National Standard on Environmental, Social and Corporate Governance (ESG)."
"These challenges primarily stem from the perception of ESG as an additional burden and requirement," Janjalia noted. "However, ESG also represents new opportunities for growth and development."
The IFC official emphasized the significance of small and medium-sized enterprises (SMEs) in the region's economy, stating, "SMEs make substantial contributions to the national economies of the South Caucasus countries. Therefore, it is crucial to focus efforts on supporting their transition to ESG practices."
Janjalia cautioned against the implementation of strict regulatory requirements, as they could be detrimental to businesses. Instead, he advocated for a gradual, step-by-step approach for SMEs, beginning with voluntary measures and progressively moving towards more stringent requirements as companies become prepared.