Our team partnered with a Ukrainian bank to integrate sustainability practices into their operations

Our client faced the challenge of integrating Environmental, Social and Governance (ESG) principles into its operations. This was driven by growing awareness of sustainability and responsible business practices inside the institution, as well as the expectations of its European investor, which has ambitious sustainable development plans.

The key problem was a lack of internal expertise and a structured approach for implementing an ESG strategy aligned with international standards and best practices. This lack of integration could lead to increased risks, missed business opportunities, and a failure to meet stakeholder expectations.

To address this, the bank initiated a project to implement an ESG strategy across the organisation, as well as to enhance competence in ESG risk management. PwC Ukraine was engaged to provide guidance to the bank's executives and key employees, and assist them in implementing sustainability practices.

Our team, comprised of sustainable finance experts, started with an assessment of the current state of ESG practices in the bank against market best practices, stakeholders' expectations, and existing international financial institution (IFI) standards. At the next stage, our team worked with the bank to form strategic sustainability objectives and developed recommendations to implement those into practice.

Upon completion of the project, the team designed and delivered a series of training sessions for the bank’s key managers and employees to support the implementation of our recommendations. The second stage was collaborating with our client in the practical implementation of ESG standards into the bank’s everyday operations.

The tasks carried out included:

• Explaining ESG business opportunities and methods for managing sustainability risks.

• Presenting the findings of a tailored study on key ESG themes for our client.

• Proposing a roadmap for integrating sustainability principles into operations and activities and developing strategic objectives and an action plan to achieve them.

• Developing ESG training modules and delivering special training for business and credit analysis departments on incorporating environmental and social risks into credit decisions. 

The main challenge of this project was the need to integrate global sustainability standards and best practices with the specific context of the Ukrainian financial sector. Our team provided clear and actionable guidance, emphasising the understanding of each department.  

This equipped employees with the tools to integrate the bank’s own ESG strategy. Crucially, our client’s employees have a clear understanding of practical concepts and tools for implementing ESG principles and practices into everyday work.

This project directly addressed our client’s ambition to integrate ESG practices into its operations. We worked with the bank's personnel to give them a foundational understanding of ESG, enabling them to develop and implement a coherent sustainability strategy. Our involvement also allowed our client to incorporate risks into their credit decision process.

The long-term impact of this project has the potential to be substantial for both the bank and the Ukrainian financial sector. By integrating ESG factors into its strategy and operations, our client can enhance its reputation, attract socially responsible investors, improve its risk management practices, and develop innovative financial products aligned with sustainability goals. Crucially, this work aligns the bank with the sustainability expectations of its European investors.