The Republic of Moldova is taking the first steps to incorporate the requirements and standards for reporting environmental, social and governance (ESG) indicators into companies' business strategies and to ensure sustainable economic development in line with the current trends of transition towards a circular economy. Representatives of the business community, public sector, development partners, academia, and civil society, as well as local and foreign experts and investors met today, 23 January, in Chișinău to discuss the ESG standards, trends and regulations and the practical possibilities for their implementation in Moldova.

During the conference, participants shared their views on the role of policymakers in strengthening ESG practices and encouraging the adoption of the EU acquis, shared expertise on regulatory and market trends and analysed the readiness of the financial sector for sustainable transformation.

Moldova's status as a candidate country for accession to the European Union underlines once again the need to implement the ESG principles, which offer important benefits for the business community, investors and other stakeholders. By adopting resource management procedures that prioritise sustainability, organisations can gain a competitive advantage in the marketplace and meet new sustainability challenges.

According to experts, ESG implementation in Moldova will be two-dimensional. On the one hand, it will be carried out by businesses, which will benefit from the advantages and opportunities offered by ESG, such as business sustainability and resilience, financial performance and image enhancement, increased transparency, and accountability, etc. And on the other hand, ESG will be implemented by introducing the necessary regulations in the legislation, i.e. harmonisation with EU standards. The conference participants also pointed out that the legislation of the Republic of Moldova already covers certain general aspects that are related to ESG standards and that this could be a good starting point for the application of these indicators. Also, some Moldovan companies that are part of transnational corporations are already implementing ESG reporting to their parent companies.

Alexandru Cosovan, Associate Director, Senior Banker at the EBRD, said at the opening of the conference: “Effective corporate ESG integration is vital for risk management, as countries move towards net zero economies. It is also essential for unlocking new business opportunities, adjusting to changing customer behaviour and being an attractive employer.”

Dima Al-Khatib, UNDP Resident Representative to the Republic of Moldova, said: “With the Republic of Moldova keenness to adopt the ESG principles, UNDP remains committed to advancing the country’s private sector development and engagement, including by promoting sustainable business practices and offering the needed support focusing on the private sector’s contribution to the advancement of the climate agenda, local community development, workforce welfare and human rights, but also on business ethics and anti-corruption.”

The first edition of the international conference dedicated to the implementation of the new global ESG trend in the Republic of Moldova was organised by the American Chamber of Commerce in Moldova (AmCham), in partnership with PwC Moldova, with the support of EBRD, EU and UNDP.

More details about the event can be found at: http://esgconferencemoldova.com/