The framework of environmental, social, and governance (ESG) standards aims to be the basis of the operational system of businesses and investments with the goal of influencing the long-term value of the business for the market, society, and the environment. While corporate social responsibility and sustainable development objectives are well-known models, ESG criteria are a step further that helps businesses be accountable to themselves, market stakeholders, and the public.
Comprehensive ESG standards have been embraced by international organizations and regional and international financial institutions that support reporting systems to achieve desired goals. Meanwhile, major businesses in the local market are adapting their development strategies by incorporating material ESG issues.
Regulatory challenges, financial and technical support for businesses, clarity of reporting systems, cost-benefit analysis, were discussed during a Morning Work session with Premium Category members at AmCham. The American Chamber of Commerce, through its experts and supported by the experiences of potential members, can play an important role in promoting this culture within business circles by using its awareness-raising and informative campaigns.
While Europe and America bring successful models where companies conduct their activities and report based on a set of rules, in Albania, this culture is in its early stages. This work culture needs more attention and regulatory frameworks so that business investment to bring an impact is efficient and not just formal financial reporting.