Sustainability in CEE

Putting a sustainable future at the forefront

The pandemic has exposed the fragility of our societies. Sustainability and green policies will be essential to rebuilding a resilient society. As governments rethink their strategies and policies during the response and recovery period of COVID-19, they need to do so in a way that ensures a sustainable path for current and future generations. 

Initiatives such as the new European Green Deal, recovery packages with a strong sustainability component, and a shift toward impact investing and purpose-led development can strengthen the Global Agenda 2030. The Sustainable Development Goals (SDGs), the Green Agenda and building resilient societies should be at the centre of the stabilisation and recovery efforts in Central and Eastern Europe (CEE). 

It is essential that sustainability is treated as a cross-cutting theme and included in all strategies, policies and actions in order to guide greener, inclusive and responsible recovery and transformation. With Environmental, Social and Governance (ESG) considerations as a North Star, governments can not just spur economic and job growth, but also ensure that our region is better prepared for future crises.

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Sustainability in CEE

Core considerations for sustainable growth

Climate change and the Paris Agreement

Climate Change is a serious threat and the costs of not tackling these challenges accordingly will increase over time. Over the last two decades, we have witnessed 18 of the warmest years on record, an increase in the frequency and intensity of extreme weather events, biodiversity losses, increasing waves of climate migrants, and severe increments on man-made and natural disasters globally.

Mitigating and adapting to climate change will not just improve air quality, and help to ensure long-term global access to food, clean and affordable energy and water. It will also ensure resilient societies and communities, leading to an overall positive impact on citizens’ livelihoods in the long term.  

The Paris Agreement on Climate Change sets a common cause and concrete framework to  combat, mitigate, and adapt to climate change and its effects. The central aim is to strengthen the global response to the threats of climate change, and ensure transparency and accountability from countries regarding CO2 emissions. The main objectives are to keep the rise of global temperature during this century well below 2 degrees Celsius, above pre-industrial levels, and to  limit the temperature increase even further to 1.5 degrees Celsius. 

And initiatives, like the annual COP26 talks in Glasgow, can act as a facilitator to bring major parties together and further accelerate action aligned to the goals of the Paris Agreement and the UN Framework Convention on Climate Change. To reach such ambitious goals, collaborative approaches, appropriate financial flows, new technology frameworks and an enhanced capacity building framework must be put in place. Public sector actors need to accelerate their mitigation, adaptation and finance efforts to tackle the climate crisis and meet the Paris Agreement objectives.

The EU Green Deal

The European Green Deal is the region’s strategy for bringing about a more sustainable EU economy. 

It provides a growth and development strategy that addresses the rising threats of climate change and environmental degradation, and aims to be climate neutral by 2050. According to the European Commission, the deal hopes to transform the EU into an economy where: 

  • There are net zero emissions of greenhouse gases by 2050 

  • Economic growth is decoupled from resource use 

  • No person and no place is left behind. 

The Commission proposed a number of measures – including new taxonomies, regulations and legal frameworks, and financial packages which will support EU Member States in the green transition, and this will have a spill-over effect for non-EU states in the region, too. The green transition is based on clean technologies and innovative solutions as a driving force for a competitive European economy. Measures are put in place to make sure that such disruptive changes will allow all European regions to grow and to ensure the transition towards sustainable paths. 

The measures touch a wide range of sectors and topics, including: 

  • biodiversity - measures to protect our fragile ecosystem

  • from Farm to Fork - ways to ensure more sustainable food systems

  • sustainable agriculture - sustainability in EU agriculture and rural areas thanks to the common agricultural policy (CAP)

  • sustainable industry - ways to ensure more sustainable, more environmentally-respectful production cycles

  • building and renovating - the need for a cleaner construction sector, among many others.

Sustainable Development Goals (SDGs)

Altogether 17 SDGs are at the heart of the United Nations’ (UN) 2030 Agenda for Sustainable Development. They address the most important global challenges and provide a blueprint to achieve a better and more sustainable future for citizens. Partnerships are an essential mechanism for making progress and achieving prosperity across all sectors and stakeholders. 

With less than ten years left to achieve the Global Goals, and with the regression in SDG targets due to the COVID-19 outbreak, stakeholders are under pressure to rethink how to respond, adapt and contribute to ensure the fulfilment of their commitments toward a sustainable path. Reaching a world where equity, prosperity, opportunities, partnerships, synergies and sustainability are at the center requires national governments to play a central role. In turn civil societies, the private sector and international organizations will need to play co-driver roles. 

Due to the complexity and interconnectivity of development challenges, solutions should be multi-sectoral and include multiple stakeholders. SDG needs to receive inputs from all essential stakeholders to lead to concrete and effective policies and solutions. Once collaboration is secured institutions will need to revise strategic level plans, plan funding and financing and operationalise SDG strategies into projects.

Resilience

Direct and indirect effects of the outbreak are giving rise to unprecedented social and economic challenges around the world. Business continuity, supply chain disruptions, changes in demands and commodity prices, combined with high levels of uncertainty and volatility of the financial markets, are just a few of the externalities impacting economies, lives and livelihoods. 

Governments and public sector institutions are at the centre of the coordination, establishment and implementation of efforts to recover better. The solutions reaped should help ensure the sustainable rebuild of societies that are more resilient to future challenges.

In order to build resilient societies, stakeholders need to consider lessons learned from the pandemic.  To rethink, reconfigure and reconstruct in a better way, governments and public sector stakeholders must be coordinators, enablers and planners for integrative long-lasting response and recovery.  Resilient public sector policies should integrate a multi-sectoral and multi-actor approach that includes the vision and aims of the civil societies, private sector and international organizations. Complex challenges require comprehensive solutions that have vision and are implemented collaboratively. 

How we can help

Sustainability cannot be managed as a silo, and governments cannot focus only on mitigating the negative impacts on societies and the planet. Climate and sustainability considerations actually need to be reflected in comprehensive strategies and policies. These policies should enhance the management across public sector actors and collaboration with key stakeholders from the private, international and non-profit sectors.  

We help our clients transform to become greener and more sustainable by:

We help our clients transform to become greener and more sustainable by:

  • raising awareness and setting coordination mechanisms

  • embedding sustainability and resilience into their long term strategies and transformation   plans and designing comprehensive strategies for development 

  • prioritizing and aligning strategies, policies, international commitments and financial constraints

  • identifying and assessing international best practices

  • designing action plans for sustainable transformation and transition,

  • supporting decarbonisation strategies that boost economic and social development. 

  • setting up monitoring mechanisms to help analysis and reporting of sustainability efforts to national and international stakeholders.

While advising our clients we are putting the environment and the long-term wellbeing of citizens at the forefront. Making sure no one gets left behind lies at the heart of 2030 Agenda and is a PwC priority.

 

Central and Eastern Europe (CEE) countries and territories have achieved great social, economic and environmental progress in the past few decades. However, there remains a number of key challenges to the continued sustainable development of CEE economies.

Those challenges include access to modern infrastructure, supporting the competitiveness of national business and enhancing citizens' living standards. Additionally, significant investments in low-carbon, resource-efficient energy solutions and sustainable transportation are some of the elements needed for the transformation to low-emission, climate-resilient pathways. Those investments can be a source of sustainable economic growth, creating jobs and providing competitive advantage.

With new investments required to support climate transition initiatives and also investment programmes being deployed as a stimulus for COVID-19 response and recovery, there is an opportunity to build back better and greener. It is clear that sustainability and resilience should be at the core of the investment decisions, embedding environmental, social and governance (ESG) considerations along with economic considerations. In fact, investing in sustainable infrastructure represents a way to do business while doing good for societies, the environment and the future.

We help our clients by:

  • conducting gap analysis and identification of investment priorities

  • setting up policy frameworks for much needed sustainable infrastructure development, including public-private partnerships frameworks

  • building capacity for sustainable project preparation and assessment

  • reviewing / preparing feasible project pipelines, assessing capital needs resulting from industry policies

  • embedding digital technologies for planning, delivery and reporting of resilient and sustainable capital projects

  • supporting planning, preparation and implementation of sustainable and resilient infrastructure projects.

Reallocating existing government resources, securing additional funding and financing can unlock economic opportunities and contribute to the achievement of the green agenda objectives, and more broadly to the attainment of the SDGs and Global Agenda.

We support our clients in:

  • planning and identifying sources for funding and financing of sustainable strategies, programmes and projects 

  • conducting gap analyses and designing financial instruments to address them 

  • implementing changes in taxation system and budgetary planning

  • improving access to finance and attracting private capital to support SDG implementation

  • creating an enabling environment for green financing

  • promoting impact investing and sustainable finance.

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Net_zero_update

Our commitment: Net Zero by 2030

Climate change is one of the most pressing problems facing our world today. It affects everyone - from food security, or families worrying about their children’s futures, to pension funds deciding where to invest. So, it is in the interests of everyone that we see systemic change that averts climate catastrophe and unlocks the potential of green growth.

At PwC, we believe the business community has a key role to play in making that happen. And we’re determined to play our part. That’s why we’re making a worldwide science-based commitment to reach net zero greenhouse gas emissions by 2030. 

Like the fall of the Berlin Wall, the COVID-19 pandemic has caused seismic shifts throughout this region and the world. We conclude our analysis of the biggest issues facing the public sector, but now we need to understand what a post-pandemic future will hold for governments. It is clear that to deal with the challenges of tomorrow the public sector will need to further improve and grow. How can they do this? It comes in the form of Environmental Social Governance. 

 

Our commitment to Net Zero transformation

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Contact us

Agnieszka Gajewska

Agnieszka Gajewska

Global Government & Public Services Leader | CEE ESG Leader, PwC Central and Eastern Europe

Tel: +48 517 140 537

Malina Jankowska

Malina Jankowska

Director, Public Sector, PwC Poland

Tel: +48 519 508 126

Anna Kowalewska

Anna Kowalewska

ESG Senior Manager, PwC Central and Eastern Europe

Tel: +48 519 507 377

Jeffery McMillan

Jeffery McMillan

CEE Director of Brand and Communications, PwC Central and Eastern Europe

Tel: +48 519 506 633

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Fields marked with * are mandatory

By submitting this form I agree to receive commercial information, in particular newsletters from CEE PwC Member Firms as joint controllers (I consent to electronic communication from entities from the list of joint controllers). You have the right to withdraw this consent at any time. By submitting your data through this form, you confirm that you have read and accept the privacy policy.
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