Launch of a climate governance platform for business leaders in Ukraine, Georgia and Armenia

  • EBRD supports the creation of a new chapter in the Climate Governance Initiative partnership

  • The Kyiv School of Economics will host the latest chapter of the Chapter Zero global network

  • The aim is to promote the understanding and adoption of effective climate governance

Directors and managers of financial and non-financial companies of Ukraine, Georgia and Armenia can now join a new chapter in a global network promoting the understanding and adoption of effective climate governance.

Hosted by Kyiv School of Economics (KSE), Chapter Zero Ukraine & Caucasus is the latest to be launched under the aegis of the Climate Governance Initiative (CGI), which works in collaboration with the World Economic Forum (WEF) and is supported by the EBRD.

CGI’s global network of more than 20 country and regional chapters promotes the adoption of the Principles for Effective Climate Governance published by the WEF. Founded in 2019, CGI aims to equip its members with the skills and knowledge to make the fight against climate change a priority for boards of directors.

The new chapter will help business leaders from Ukraine and the Caucasus region to share knowledge and exchange experiences on climate-related risks, governance and disclosure frameworks and how they can shape the strategy and business investment as companies strategically move towards a net zero economy.

Ukrainian, Georgian and Armenian companies that are able to demonstrate that they follow sustainable business practices already attract foreign investment more easily. Chapter Zero Ukraine & Caucasus will focus on disseminating this practical knowledge and expertise on climate governance in order to connect businesses in these countries more closely to international markets and capital.

Karina Litvack, Chair of the Climate Governance Initiative, said: “Dealing with the climate challenge in times of war in Ukraine and regional turbulence in Armenia and Georgia may seem like a difficult task, but the alternative is worse. Obtaining this right now is essential both for the success of Ukraine’s reconstruction and for the development of a competitive and resilient economy in Armenia and Georgia.

She added, “Chapter Zero Ukraine & Caucasus is a vital resource for directors to gain the skills they need to put climate transition at the heart of board strategy, culture and routine decision-making. administration. By joining, they will have access to an instant community of like-minded directors, as well as experts in the key areas of strategy, risk management, audit, compensation and reporting. We are delighted to welcome our new colleagues and to work together to build a stable and prosperous Ukraine, Armenia and Georgia.

“As an educational institution, KSE strives to provide its clients with the latest knowledge and skills. The fight against climate change is essential for the development of the global economy and we believe that there is no time to lose in integrating it into corporate governance processes. We are delighted to lead this initiative and support Ukrainian and regional businesses, especially in the context of Russia’s war against Ukraine,” said Natalia Shapoval, Director of the KSE Institute.

The EBRD supports the creation of this new chapter within the framework of a partnership with CGI improve the understanding of boards of directors of how climate risks could affect their activities in the main regions of interest for the Bank. The EBRD and CGI partnered in April this year to promote corporate climate governance, including training non-executive directors on climate-related risks and their implications for business to build the capacity of boards to moving towards a net zero economy.

“The EBRD, its partners and clients need to address climate change at the organizational level to achieve systemic impacts; directors and officers can play an important role,” said Matteo Patrone, Managing Director, Eastern Europe and Caucasus at the EBRD.

He added: “The EBRD already provides essential tools and advisory support to its clients to improve climate governance, climate risk management and disclosures. We believe Chapter Zero Ukraine & Caucasus will encourage informed debate among business leaders across the region on how to drive long-term decarbonization and ensure businesses remain resilient to future economic changes.

In addition to leading to better governance, bringing greater and deeper engagement with clients at the project level, the EBRD’s partnership with CGI aims to improve the implementation of the transition approach to a green economy. (GET) of the EBRD, through which the multilateral development bank aims to make at least half of its investments green by 2025. The EBRD is also implementing plans to fully align with the objectives of the Paris Agreement on climate change by the end of 2022.

Helen D. Jessen