Integrating strong Environmental, Social, and Governance (ESG) principles into daily operations is crucial for businesses today. USAID, through its Energy Security Project (ESP), has assisted the Gas Transmission System Operator of Ukraine (GTSOU) in developing and implementing its ESG Strategy.
This initiative involved a thorough analysis of GTSOU’s current operations, benchmarking them against global best practices to ensure the company can tackle ongoing challenges effectively. The ESG strategy is not just a regulatory compliance tool but a key driver of sustainable growth, stakeholder trust, and long-term resilience.
Andriy Zinchenko, Project Management Specialist of the Office of Critical Infrastructure of USAID Ukraine said, “By integrating ESG principles, GTSOU can better navigate regulatory and market changes, ensuring our operations remain sustainable and resilient. Demonstrating a commitment to ESG fosters stronger relationships with stakeholders, including employees, communities, and investors, enhancing GTSOU’s reputation and social license to operate. A robust ESG strategy positions GTSOU as leaders in responsible business practices, attracting investment and ensuring compliance with international standards and best practices.”
According to Justin Goonesinghe, USAID ESP Gas Sector Lead, as Ukraine navigates its path to the EU, the ESG strategy will be extremely beneficial for GTSOU. He noted that the strategy will establish GTSOU as a leader in sustainable business practices among large Ukrainian state-owned entities, drive operational efficiency, and emphasize accountability and transparency. With modern investors prioritising ESG principles, GTSOU will continue to benefit from its commitment.
GTSOU General Director Dmytro Lyppa said that the Operator’s ESG activities have already yielded the first positive results. “At a recent meeting with potential business partners, we announced that we are implementing ESG principles in our daily activities and heard approval. We are proud to have become one of the first state-owned companies in the sector to develop and implement an ESG strategy per international best practices and to be an innovator in the sustainable transformation and post-war ecological recovery of Ukraine,” he said.
The USAID ESP ESG consultants presented a benchmarking analysis of GTSOU’s activities across 16 parameters, comparing them with industry leaders. They also reviewed government regulations, offered recommendations for decarbonisation, conducted climate vulnerability assessments, and developed a governance and management plan. These efforts are expected to enhance GTSOU’s position, providing benefits such as increased investment access, sustainability in future business models, innovation, security, and advantages for Ukrainian consumers.
The ESG standards embedded in GTSOU’s strategy will ensure compliance with EU requirements and best practices for sustainable development, aiding Ukraine’s full integration into the European gas market.