ESG principles crucial for business entities, says KOBİA head

The principles of Environmental, Social, and Corporate Governance (ESG) play a significant role in various aspects of business, according to Orkhan Mammadov, Chairman of the Board of the Small and Medium Business Development Agency (KOBİA).

Report informs that speaking at a conference in Baku focused on labor relations, occupational safety, and human resources as key areas of ESG, Mammadov emphasized the importance of adhering to these principles.

"Compliance with ESG principles contributes to increasing the competitiveness and export potential of enterprises, as well as attracting investments," Mammadov stated. "The social component of ESG encompasses labor relations and personnel management, and companies that adhere to the principles of sustainability and social responsibility are more attractive to employees, which helps retain staff, increase productivity, and attract talent."

Mammadov added that KOBİA is actively engaged in promoting ESG principles.

"Two years ago, a subgroup on ESG standards was created under the leadership of KOBİA within the Commission on Business Environment and International Ratings. The subgroup includes more than 25 representatives from state, private, and public organizations. Previously, initiatives in this area were individual in nature, but the creation of the subgroup allowed for a systematic approach and united the efforts of all stakeholders. Within the subgroup, a strategic vision and Roadmaps for 2023-2024 have been developed over the past two years.