Welcome to PwC Azerbaijan's latest insights on Environmental, Social, and Governance (ESG) practices among Azerbaijani businesses. Our recent survey highlights a notable surge in ESG adoption, driven by regulatory advancements and strategic preparations for hosting COP29.
Azerbaijani companies are increasingly integrating ESG principles into their strategies, with over 70% anticipating significant impacts on operations and economic strategies. This progression underscores a growing awareness of ESG concepts, bolstered by governmental initiatives and national sustainability agendas.
Key findings reveal that stakeholder engagement plays a pivotal role, with regulators, employees, customers, and partners actively influencing ESG integration. While 27% of companies have initiated ESG activities in the past 1-3 years, formal ESG strategies are still developing, indicating a steady uptake aligned with evolving regulatory frameworks.
Energy consumption and climate change emerge as primary environmental concerns, reflecting global ESG priorities. Challenges such as expertise gaps, budget constraints, and regulatory complexities underscore the need for robust support in regulatory compliance, knowledge development, and financial resources.
Despite these challenges, Azerbaijani businesses are forging ahead, recognizing the strategic imperative to align with global ESG standards. Our survey underscores a transformative journey towards sustainable business practices, emphasizing the crucial role of strategic planning, stakeholder engagement, and capacity building.
