On August 9, the Ministry of Economy of Ukraine and the Danish Institute for Human Rights (DIHR) signed a Memorandum of Understanding, laying the foundation for enhanced cooperation in the field of human rights protection and responsible business conduct in Ukraine.
The signing of the Memorandum took place with the participation of Deputy Minister of Economy of Ukraine Volodymyr Kuzyo and DIHR Executive Director Louise Holck. The primary focus of the Memorandum is the enhancement of corporate sustainability and sustainable financing.
“Responsible business conduct, including adherence to international human rights standards, labor rights, and inclusivity, is one of the essential and key factors for the sustainable economic recovery of the country. Compliance with standards of responsibility and acquiring competence in preparing ESG reports will expand Ukrainian businesses' access to financing, particularly from international financial organizations, reduce the cost of financing, and make Ukrainian businesses more competitive in the European funding market,” said Volodymyr Kuzyo.
According to the Memorandum, the parties agreed to cooperate in several key areas. One of them is the assessment of human rights risks in Ukraine, focused on international financial institutions that invest or are considering investing in Ukraine.
Another objective of the Memorandum is to promote multilateral dialogue between the government, the Ukrainian private sector, and Development Finance Institutions (DFIs) to identify potential challenges and opportunities for implementing the UN Guiding Principles and the OECD Guidelines. Special attention will be given to raising awareness among Ukrainian companies regarding new legal and policy changes in the context of European integration, particularly concerning corporate sustainability and sustainable financing.
As part of the implementation of the Memorandum, a series of events are scheduled for September to familiarize stakeholders with the EU sustainable finance system and human rights. These events will present the EU Action Plan on Sustainable Finance and related regulatory frameworks, including the Taxonomy Regulation, the Regulation on Sustainability-Related Disclosures, and the Corporate Sustainability Reporting Directive. This will enable Ukrainian banks and insurance companies to more effectively implement business support tools and ensure access to capital.