ESG: A Fancy Trend or a Growth Opportunity?

In the realities of war, when the world around us is full of challenges and unpredictability, the following questions arise: How can businesses preserve their stability in the face of change? How to build risk resilience and secure a high level of brand trust?

In our company, we have come to the conclusion that solving these problems is facilitated by implementation of the principles: Environmental, Social, Governance (ESG). Why?

Society is becoming more sensitive to social issues and global brands are choosing strategies that consider every aspect of their operations: environment, social and corporate governance. Among them are: Microsoft Corporation, Unilever, Tesla Inc, Procter & Gamble, and others.

Companies that widely implement ESG principles become leaders not only in terms of responsible business, but also in terms of financial success, having a higher cost of capital and easier access to investment.

At first glance, implementation of ESG (Environmental, Social, Governance) principles may seem a minor task for Ukrainian businesses focused on survival. Ukraine, after all, is facing challenges that are difficult to foresee. Yet, it is essential not only to withstand this pressure. I strongly believe that the path to stability and recovery of our society lies through the integration of environmental, social and transparent corporate strategies. Should the financial sector prove to be a partner in addressing these challenges, we will accelerate the country's recovery.

The ESG principles are exactly what facilitates this and at the same time helps to bring the relationship between business and society to a new level. But how can we adapt the global trend to the Ukrainian context, given our country's unique nature and current needs?

Environment, Ecology

Climate change and other environmental issues are prompting companies to consider the impact of their operations on the environment. But outlining the boundaries of modern business and its relationship with the environment is not an easy task. What makes a company "environmentally friendly"? Nature conservation? Recycling? And what if a company like ours doesn't harm the environment but works in a different direction, providing financial assistance to those who need it?

Before the war, we strongly supported environmental programmes, and now we contribute to the rehabilitation and clean-up of the devastated areas – our company joined the humanitarian demining programme. In doing this, we can reduce the environmental risks associated with the existence of unmined sites.

We take our business operations beyond stereotypical perceptions and prove that environmental responsibility is a broader concept. It means understanding and caring for all aspects of our environment.

Social Matters

We promote financial inclusion by providing access to financial services to those who are unable to benefit from loans from the traditional banking system and need urgent funding. And our social responsibility starts with the way we build our own processes within the company.

Throughout our operations, we adhere to the principle of equality and labour safety. This includes providing full and productive employment and decent work – equally for men and women, young people and the disabled – with equal pay for work of the same value. There are also equal opportunities for leadership at every level in our firm.

Maniveo supports the ideology of healthy lifestyle, mental health, etc. The in-house work system is set up in such a way that employees can relax right in the office in case of overload. Every employee can discuss any problem that causes them psychological discomfort with their People Manager.

We build our responsibility to society by implementing socially oriented initiatives and projects. Even before the war, we began to actively implement educational programmes for citizens aimed at developing their financial skills and increasing their own capabilities. An educational project for small and medium-sized businesses and a programme for the Kyiv-Mohyla Academy, in particular. The latter included not only an educational course but also investing in the cultivation of creative and talented youth.

We started providing assistance to the military even before the enemy's full-scale invasion. Maniveo has been cooperating with Operational Command North since 2018. The company donated office appliances, plotters for printing maps, telecoms hardware to ensure quality communication, etc.

Since 2020, Moneyveo has been financially supporting Revived Soldiers Ukraine, a charity aimed at providing medical care and rehabilitation services to our soldiers in the US and Ukraine.

In 2022, the company scaled up its existing charity projects and social initiatives, focusing on supporting the servicemen, the socially vulnerable and sick children.

To date, Moneyveo has donated over UAH 16 million to the Armed Forces of Ukraine. The company has also sent 50 FPV drones to the battlefront, purchased several vehicles for the army, and sends various equipment to the soldiers on a monthly basis. Based on the list of needs from combat medics, the Moneyveo team forms regular parcels with medicines for the frontline.

We also take care of socially vulnerable categories of citizens. Apart from the long-term support of the orphanage, we cooperate with several charitable foundations: Soniakh ('Sunflower'), U4UA, and Dzherelo ('Stream') Training And Rehabilitation Centre.

Alongside regular projects, Moneyveo also responds to other urgent needs of society by supporting civilians affected by the war. The company, for example, helped to rebuild a residential building and equip a school bomb shelter in Irpin, and supplied computers with monitors, laptops, and TV sets at the request of officials of the Irpin City Court that had been destroyed during the city's occupation.  

We supported the Teplo ('Warmth') social project, the volunteer organisation Dopomoga.Razom ('Help Together'), the Borodianka Centre for Social and Psychological Rehabilitation of the Ministry of Veterans Affairs of Ukraine, a school in Nove Zalissia and many others.

We are constantly working on and carrying out initiatives aimed at improving the quality of life of Ukrainian society and are committed to doing so in the future.

Corporate Governance

ESG expedites the implementation of effective corporate governance, especially in times of uncertainty, where transparency, ethical standards and stakeholder engagement become fundamental management principles.

Maniveo ensures fair and transparent lending practices because we believe that financial stability is also a form of environmental responsibility. We have affordable lending terms that are easily understandable for our clients. We prepare annual audits of our financial statements, which are confirmed by independent international auditors.

Key Takeaways

Now, as the world pays more attention to the environmental, social and governance dimensions of doing business, it is clear that companies with high ESG performance get a competitive advantage. According to the global trend, players who adhere to these principles demonstrate greater stability and better financial results. Thus, by integrating ESG principles, you get:

• Attracting attention and investment. This is an important aspect for businesses seeking to remain competitive.
• Reduced risks and more efficient management of internal processes. This is becoming the key to sustainability in a changing business environment.
• Compliance with international standards and regulatory mechanisms encourages companies to report in a balanced manner. This helps to standardise and measure the effectiveness of ESG initiatives.
• Assistance in identifying, measuring, and assessing the risks of operations during a crisis, as well as impact, management, and accountability to investors.
• Customer loyalty. Consumers are increasingly attentive to the ethical aspects of brands and products. This, in turn, leads to an increase in demand for goods and services from companies that actively show their social and environmental impact.

Based on our company’s case, I can confirm that complying with ESG standards means having greater opportunities for market growth, business stabilisation, etc under equal conditions. Based on the results of 2023, I can say that we have restored our pre-war performance by almost 70% after the complete shutdown of our business at the beginning of the full-scale invasion. We have the highest rating of all non-banking organisations on Google Maps, a rating of 4.8 in the App Store and 4.9 in the Play Market. Our NPS is even better than that of many banks. The CSI level is 89.4%.

What would I recommend, given our experience in implementing ESG in the company?

• Assess the risks and benefits.
• Involve employees, partners, and other stakeholders. It is important to ensure an open dialogue and the possibility of involving all stakeholders.
• Develop a specific action plan. At the company, we have focused on a phased implementation, accounting for all available resources and factors that affect it.
• All decisions should be made with an eye to the fact that ESG is not only an ethical choice, but also a strategically sound move for the sustainable development of your company, an investment in the future of your business.

In conclusion, I would like to note that not only can the introduction of global trends, including ESG principles, facilitate the adaptation and development of your company, but also strengthen the position of Ukrainian business as a responsible player in the global economic space.