The Board of the National Bank of Ukraine after the end of the public discussion solidified White Paper on Environmental, Social and Governance (ESG) Risk Management in the Financial Sector.
This document is another step towards the harmonization of Ukrainian financial regulation with the norms of the European Union, in particular within the framework of the European Green Deal and relevant standards regarding the collection, analysis and disclosure of information on ESG risks and their management.
The document, developed in accordance with the concept of updating the Sustainable Financing Development Policy, outlines the vision of the future ESG risk management system in the financial sphere. In particular, the current state and prerequisites for the implementation of such approaches, the level of risks, the current state of regulation and the role of the National Bank are outlined. The directions for the further development of the regulatory field have also been defined, in particular the requirements for financial products, corporate governance, risk management system and information transparency.
The introduction of the ESG risk management system will take place in stages. In 2025-2026, the main requirements will apply to banks, and from 2026 to 2030 – to other financial institutions important for sustainable development with increased sensitivity to ESG risks.
In April 2025, the NBU published a draft White Paper for discussion with stakeholders, including financial institutions, specialized associations, international partners and government bodies. In the final version of the document, numerous clarifications were made based on the received proposals, especially in the area of corporate governance and interaction with counterparties. Also, the regulator received many requests regarding the future specific requirements for the construction of ESG-management systems, which will be worked out separately.
The approved White Paper will become the basis for the further development of regulatory documents and NBU recommendations aimed at maintaining financial stability, sustainable development and minimizing the impact of ESG risks on the financial system and economy of Ukraine in general.
