Cypriot businesses are making significant strides in adopting Environmental, Social and Governance (ESG) practices, thanks to the Interbank ESG project launched two years ago. More than 1,200 companies have successfully completed their assessments through the Synesgy platform, demonstrating a growing commitment to sustainability.
According to a recent announcement by Artemis Credit Bureau, which oversees the project in collaboration with ICAP CRIF, a total of 2,319 businesses have been invited to engage with the platform. The completion of assessments by 1,213 firms indicates a positive participation rate, especially as the Cypriot market is still evolving in terms of sustainability.
The project has highlighted a shift in perspective among businesses, viewing sustainability not merely as a regulatory obligation but as a crucial element linked to resilience, competitiveness, and new opportunities. This is particularly evident among small and medium-sized enterprises (SMEs), which constitute 90 per cent of the businesses that have been certified through the assessment process. Notably, SMEs are not directly mandated by European directives to disclose sustainability data, yet their involvement underscores their recognition of ESG criteria as vital for long-term growth.
Artemis reported that the average score for participants was ‘C’, aligning with international results from the Synesgy platform. This score reflects the gradual advancement of the Cypriot market in sustainability practices. The assessments indicated positive developments across all three ESG pillars.
Esg: Environmental Management Takes Centre Stage
In the environmental category, businesses are increasingly focusing on effective environmental management, improving energy efficiency, and carefully monitoring their environmental impact. This shift signifies a growing awareness of the importance of sustainable practices in their operational strategies.
Social Responsibility and Workforce Wellbeing
Improvements within the social pillar have been notable, particularly in human resources practices. Firms are enhancing their health and safety protocols, providing staff training, ensuring equal opportunities, and embracing social responsibility initiatives.
Strengthening Corporate Governance
The corporate governance pillar has also shown encouraging results, with many Cypriot businesses actively working to bolster transparency, accountability, and risk management procedures. This trend indicates a recognition of the significance of robust governance structures in fostering sustainable growth.
Artemis concluded that the results affirm the ongoing progress of the Cypriot market across all three ESG pillars. As businesses continue to invest in practices that enhance their transparency and competitiveness, the prospects for long-term sustainability in Cyprus appear increasingly promising.
