“Nature, Society, Governance”
ESG (environmental, social, governance) can be interpreted as “nature, society, governance.” It is a set of rules and approaches to doing business that promote sustainable development.
E – Environment – a mindful approach to the environment.
S – Social – social responsibility. This includes engagement with society as a whole—customers and employees. Compliance with labor standards, high-quality service, and safety. It also encompasses charitable initiatives.
G – Governance – responsible corporate governance. This includes transparency in the company’s operations, the protection of customer data, the payment of official salaries, and the fight against corruption.
The signatories noted that implementing these principles will bring the Moldovan private sector closer to EU standards. Today, this is a prerequisite for companies wishing to sell their products abroad and integrate into European value chains.
No Immediate Legal Obligations
The joint declaration on promoting ESG in the business environment does not impose any immediate legal obligations but represents a strategic commitment to certain values.
The Moldovan banking sector already assesses credit risks based on sustainability indicators. Therefore, the implementation of ESG principles is becoming a prerequisite for local businesses seeking cheaper loans and effective risk management.
The initiative is supported by the United Nations Development Programme (UNDP) in Moldova, the Ministry of Economic Development and Digitalization, and the Economic Council under the Prime Minister, with financial support from the European Union, Sweden, and the United Kingdom.
