Major investors pose serious ESG requirements for Bulgaria

Large foreign companies that are considering making an investment in Bulgaria, have innovative productions and use renewable energy sources have posed requirements that all the energy they use be green. If Bulgaria cannot provide this, then these investments cannot be implemented. The customers and shareholders of these companies make these demands because all the major large international enterprises already profess an ESG philosophy in their way of doing business.

This information was shared by Mila Nenova, the executive director of InvestBulgaria, during the international conference "ESG and global goals. Practical guidelines for companies", organized by Confindustria Bulgaria.

There is a critical mass of companies that embrace the ESG philosophy. For major investors, ESG is part of their requirements for the countries they invest in," she explained.

"Fortunately, in Bulgaria, we are quite ahead when it comes to green energy. There are many places where this is already being implemented," added Nenova.

She emphasized the need to develop this energy infrastructure and to have a state strategy to create these conditions. In her opinion, "there is interest in Bulgaria to this topic" as a result of various events, such as COVID and wars, which have shifted the layers and that fact

gives us many opportunities to attract foreign investment”.

Nenova also pointed out that when a large foreign investor comes to Bulgaria with a plan to inject some 75-100 million euros into the economy, he seeks new customers and suppliers and this process "contributes a lot to the transition".

We want such high-tech enterprises with good practices to come to Bulgaria to help develop our country," Nenova pointed out.

The event also placed the focus on the legislative side of ESG reporting in Bulgaria thanks to the amendments introduced to the country’s Accounting Act. It is expected that they will be adopted by the beginning of July (by the parliament), which means that about 780 Bulgarian companies will have to submit special ESG reports. Adelina Mitkova, senior manager at Deloitte Bulgaria provided more details and pointed out that there will be set standards, although for some companies there may be an exception when presenting an ESG report – for example, if its parent company has prepared a comprehensive report.

The purpose of the regulation is not to burden the companies. On the contrary, it aims to make it possible to receive certain information from these enterprises without creating a difficulty for them. Quite a positive change, in fact", said Mitkova.

The chairman of Confindustria Bulgaria, Roberto Santorelli, drew attention to the fact that green initiatives should not be done just because they are required by law; they should be done with the environment, the business and its employees in mind.

The ESG concept is no longer an option, but rather an imperative for companies that want to succeed," Santorelli pointed out.

Translated by Tzvetozar Vincent Iolov