Friday, September 23 2022 13:34

ArmInfo.Board members and executives of financial and non- financial corporations from Ukraine, Georgia and Armenia can from today join a new chapter of a global network  promoting the understanding and adoption of effective climate  governance. This was reported by the press service of the European  Bank for Reconstruction and Development.

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

It is noted that CGI's global network of more than 20 national and  regional chapters promotes the adoption of the Principles for  Effective Climate Governance published by the WEF. Established in  2019, CGI aims to equip its members with skills and knowledge to make  addressing climate change a boardroom priority.  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  corporate strategy and investment as businesses move strategically  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 spreading this practical knowledge and  expertise on climate governance to connect businesses in these  countries more strongly to international markets and capital.

Karina Litvack, Chairman of the Climate Governance Initiative, said:  "Confronting the climate challenge at a time of war in Ukraine and  regional turbulence in Armenia and Georgia might seem a tall order -  but the alternative is worse. Getting this right now is critical both  to the success of Ukraine's reconstruction, and to the development of  a competitive and resilient economy in Armenia and Georgia."

She added: "Chapter Zero Ukraine & Caucasus is a vital resource to  enable directors to acquire the competencies they need to place the  climate transition at the heart of board strategy, culture and  routine decision-making.  By joining, they will access an instant  fellowship of like-minded directors, as well as experts in key areas  of strategy, risk management, audit, remuneration 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 our clients  with the most up-to-date knowledge and skills. Addressing climate  change is critical for the development of the global economy and we  believe there is no time to waste in integrating it into corporate  governance processes. We are pleased to lead this initiative and  support Ukrainian and regional companies, especially in the context  of Russia's war on Ukraine," said Natalia Shapoval, Head of KSE  Institute.

The EBRD supports the establishment of this new chapter as part of a  partnership with CGI to enhance boards' understanding of how climate  risks could affect their business in key regions of focus for the  Bank. The EBRD and CGI partnered up in April this year to promote  climate governance of companies, including training non-executive  directors on climate-related risks and their implications for  business to boost boards' capacity to move towards a net-zero  economy.

"The EBRD, its partners and clients need to address climate change at  the organisational level to achieve systemic impacts; board directors  and executives can play a significant role," said Matteo Patrone,  Managing Director, Eastern Europe and the Caucasus at the EBRD.

He added: "The EBRD is already providing critical tools and advisory  support to its clients to enhance climate governance, climate-risk  management and disclosures. We believe that Chapter Zero Ukraine &  Caucasus will encourage informed debate among business leaders in the  region on how to drive long-term decarbonisation and ensure  businesses remain resilient when facing future economic change."

As well as leading to better governance, bringing more and deeper  project-level engagement with clients, the EBRD's partnership with  CGI aims to enhance the delivery of the EBRD's Green Economy  Transition (GET) approach, through which the multilateral development  bank aims to make at least half its investments green by 2025.  The  EBRD is also implementing plans to align fully with the goals of the  Paris Agreement on climate change by the end of 2022.