Business Development Fund Will Continue Supporting Banks and Businesses in Transitioning to ESG Requirements under the “5-7-9%” Program

The Business Development Fund (BDF) took part in a panel discussion at the Ukrainian Chamber of Commerce and Industry dedicated to the integration of Environmental, Social and Governance (ESG) standards into the state program “Affordable Loans 5-7-9%”.

BDF representatives emphasized that the Fund will continue supporting partner banks and businesses as they transition to the new requirements, helping them align with international sustainable finance standards.

ESG as Part of EU Integration and an Investor Requirement

Participants highlighted that the implementation of ESG standards is becoming an integral element of Ukraine’s EU-integration agenda. International financial institutions increasingly set environmental and social criteria as prerequisites for accessing investment.

Environmental and Social Risk Assessment — Mandatory for All Borrowers

Under the updated rules, every entrepreneur receiving a loan within the “5-7-9%” program must undergo an Environmental and Social Risk Management (ESRM) assessment. This assessment covers compliance with environmental legislation, labour conditions, safety, community impact, and other aspects of responsible business conduct.

BDF — the First Institution to Systematically Implement ESG Requirements

Tetiana Tsymbal, Head of the Environmental and Social Risk Management Unit at BDF, noted that the Fund was the first institution in Ukraine to introduce mandatory environmental and social assessments for partner banks. Within the “5-7-9%” program, financial institutions have already been applying ESRM for agribusiness borrowers for a year, and these requirements will extend to other sectors by the end of the year.

Bank Sector Preparedness

During the discussion, participants also addressed the readiness of financial institutions to adopt the new lending approaches. BDF representatives reaffirmed that the Fund will continue supporting banks and enterprises, facilitating the adoption of ESG as a new standard for business development in Ukraine.