German Sparkassenstiftung to help Oschadbank implement modern ESG standards in its work with entrepreneurs

Assistance in the implementation of internationally recognized ESG sustainability standards (focused on environmental, social and governance aspects) is the subject of an agreement recently signed by the German Sparkassenstiftung für internationale Kooperation with Oschadbank.

The project is primarily aimed at integrating ESG standards into the activities of micro, small and medium-sized business (MSME) service units. As part of the cooperation, Sparkassenstiftung consultants will analyze existing ESG standards in financial institutions of developed countries and provide advisory support in applying these standards in Oschadbank's business processes in entrepreneurial banking.

"Implementation of ESG standards in the work of financial institutions is a must for those entities that plan to actively cooperate with international partners and investors. Moreover, compliance with these standards makes it possible to raise funding on more attractive terms. At the same time, the implementation of ESG standards requires significant expertise. Our colleagues from Sparkassenstiftung have more than enough of this experience, and we are grateful that they will help bring Oschad closer to full integration into the global financial community," noted Natalia Butkova-Vitvitska, Member of the Management Board of Oschad responsible for MSMEs.

The term ESG (environmental, social, governance) refers to policies in each of these areas for the sake of sustainable development. Investors and financial institutions take these criteria into account when making investment and lending decisions.

Environmental principles determine how much a company cares about the environment.

Social principles show how a company treats its employees, suppliers, customers, partners, and consumers. To meet the standards, businesses must work on the quality of working conditions, monitor gender balance, and invest in social projects.

Governance principles relate to the quality of management: transparency of reporting, salaries of management, a healthy team atmosphere, relations with shareholders, and anti-corruption measures.