Sustainability and Corporate Social Responsibility: The Key to Resilience in a Changing World
– Vladyslav Antypov, Owner and CEO of the Environmental Consulting Company Center of Environment and New Technologies Development (CERN)
Being a responsible and eco-friendly business is profitable. Modern European entrepreneurship, which Ukraine is now integrating into despite numerous external and internal challenges, is far removed from overwork and smokestack industries. Significant steps have already been taken towards a “green energy transition,” even in the face of “Drill, baby, drill!”
ESG rules
Large Ukrainian businesses are increasingly focusing on sustainability and climate change, refining their production processes to be more environmentally friendly.
Companies document their achievements in sustainability reports, which have become crucial tools for dialogue with society, the state, investors, and partners. To foster more open and productive discussions, businesses are shifting from Corporate Social Responsibility (CSR) reports, which primarily emphasized ethical business principles and community initiatives, to ESG (Environmental, Social Responsibility, and Governance) reports.
These reports provide a more comprehensive picture of how companies integrate sustainable development principles into their environmental impact, employee relations, and risk management. To align with global best practices, nearly all major Ukrainian businesses, including Metinvest, Kernel, DTEK, Interpipe, and others, have adopted ESG frameworks.
This shift is not just about words. It involves conscious investment of financial and intellectual resources into data collection, analysis, and audit to secure significant future competitive advantages.
Reports and Actions
It is no secret that the previously established rules of international trade are collapsing. Protectionism and defensive tariffs are on the rise. Consequently, modern Ukrainian businesses must develop clear competitive advantages to access the most profitable developed markets.
To succeed, companies must communicate with consumers in a language they understand and demonstrate genuine commitment to shared values. In European countries, ecology, climate change, and CSR are not just buzzwords but essential elements of life, business, and governance. Instead of engaging in trade restrictions and tariff battles, Ukrainian companies must offer eco-friendly products manufactured transparently and responsibly.
What led me to these conclusions? As the CEO of Ukraine’s largest environmental consulting company, I review numerous corporate reports on social responsibility, climate, and ecology. Recently, I came across a report that stood out not only for its content quality and ambitious goals but also for its depth of understanding of sustainability. I am referring to the Ferrexpo Responsible Business Report 2023.
This document outlines a clear action plan: a 50% reduction in CO2 emissions by 2030, Net Zero status by 2050, and a 50% reduction in Scope 3 emissions by 2030. Notably, even many global industry leaders do not analyze Scope 3 emissions.
Overall, Ferrexpo plans to invest $3.3 billion in decarbonization by 2050, leveraging green financing and participating in European climate programs.
Following stabilization in Ukraine, the company intends to transition entirely to renewable energy, green hydrogen, and biofuels to reduce its carbon footprint. It also aims to achieve 97% water reuse in production processes. Even during the full-scale Russian invasion, Ferrexpo has maintained stable operations for 8,000 employees and provided support to approximately 25,000 local community members. For the third consecutive year, the company has recorded zero fatalities in its technologically complex operations. Additionally, since the onset of the war, Ferrexpo has allocated $25 million for humanitarian needs, funding over 100 projects through the Ferrexpo Humanitarian Fund.
Ferrexpo is also actively implementing veteran support programs, which have been recognized with awards. In fact, last year, Ferrexpo ranked among the top three companies most supportive of employees’ families, according to Forbes Ukraine.
Transparency as a Competitive Advantage
Why do Ferrexpo and other Ukrainian industrial giants invest financial and intellectual resources into such comprehensive ESG reports? The reason is simple: systematic companies recognize that these documents are critical tools in the global competition for export markets. For publicly traded companies, social responsibility is a “must-have.”
Ukrainian businesses, which have limited access to capital, cannot compete with the vast financial resources of European and American firms or undercut prices like Asian manufacturers. However, they can do something others are often reluctant to—be environmentally responsible, transparent, and socially accountable.
Sustainability is not just a trend; it is a necessity. Businesses that adopt eco-friendly practices today will gain a competitive edge tomorrow. Ukrainian companies are gradually transforming their approach to environmental and social responsibility. The benefits are clear—for businesses, society, and the planet alike.