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by Natalie Jaresko - The writer is the former Ukrainian finance minister
The unprovoked and savage invasion of peaceful and democratic Ukraine by Vladimir Putin’s military highlights a new challenge for the business community. Given that they have vociferously professed the virtues of environmental, social and governance factors (ESG), will they walk the walk when it comes to the serial social and governance violations that this invasion represents?
Since the COP26 climate summit in November, ESG has been one of the main topics discussed in corporate boards, management meetings and investors’ pitches. However, since the Russian invasion of Ukraine started, not all chief executives have had the courage to take actions which would be consistent with their ESG policies.
Delta Air Lines was one of the first movers when it announced that it would suspend its code-share with Russian airlines, Aeroflot. BP has announced it is exiting its 20 per cent stake in Russian state oil company Rosneft. Norway’s sovereign wealth fund decided to freeze its investments in Russia and intends to fully divest its Russia holding. FedEx and UPS have suspended shipments to Russia. Several US restaurant chains and stores have announced that they will no longer sell Russian liquor. Carnegie Hall in New York City announced the cancellation of pro-Putin musicians’ performances.
All these courageous initiatives should be praised. But many in the corporate world remain silent. Will McDonald’s keep on operating in Russia? Will Coca-Cola, Mondelez, Unilever and Nestlé continue selling their products there? To put it bluntly, will companies enact courageous ESG policies only when it does not hurt their bottom line? ...
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