17-05-2024
V. Česnulevičiūtė – Markevičienė: “Sustainability benefits businesses already now and will bring even greater benefits in the future”
At the sustainability conference “Momentum”, Vice-Minister of Finance Vaida Česnulevičiūtė – Markevičienė emphasises that when companies reorganise their business model and implement sustainable solutions, their successful business opportunities in the short term, and especially in the long term, are greatly increased.
According to her, the payback period for green investments is usually quite long, so companies are rather sluggish in investing their own funds. However, the joint direction of Europe and Lithuania – to switch to a climate-neutral economy as soon as possible – determines that green investment will become a priority issue in the future for the development of companies with a focus on successful business in the long term.
“In the context of a sustainable economy and green finance, such companies will benefit from easier access to finance, greater investments, higher purchase volume, and it will be easier for them to attract and retain employees. Sustainability issues are also closely linked to ethical imperative – many companies incorporate sustainability-related issues into their vision, strategy or values,” the Vice-Minister says.
These changes are increasingly driven by both consumers and corporate employees, who prefer to work in companies that follow sustainable business principles.
In addition, the Ministry of Finance, which formulates state policy in the field of corporate sustainability, has drafted laws obliging large companies to prepare and publish information on sustainability issues on an annual basis. These draft laws were approved by the Government at the end of April.
Financial statements of companies, which have had the greatest importance so far, will share importance with information on sustainability issues (environmental, social and corporate governance issues). The companies providing these statements will not only be able to access financing on more favourable terms, but will be seen as more attractive employers, have a better reputation, higher business value and will likely better manage risks.
The Ministry of Finance estimates that about 250 large Lithuanian companies will be required to provide information on sustainability issues. The amendments are expected to enter into force on 1 July this year.
The Green Deal and sustainable finance already have an undeniable impact on Lithuania’s financial market. More and more Lithuanian companies have started to incorporate sustainability aspects into their business models and strategies, and investors’ interest in companies that demonstrate a responsible approach to the environment, social aspects and governance is increasing.
Investment funds, exchange-traded funds (ETFs) and pension funds are increasingly focusing on sustainability and this criterion will become even more important in the future.