Prague Stock Exchange Adopts ESG Reporting Guidelines for Czech Companies with EBRD’s Technical Assistance

Prague Stock Exchange Adopts ESG Reporting Guidelines for Czech Companies with EBRD’s Technical Assistance

(IN BRIEF) The Prague Stock Exchange has launched its first environmental, social and governance (ESG) reporting guidelines for Czech companies with the technical assistance of the European Bank for Reconstruction and Development (EBRD) and support from the TaiwanBusiness-EBRD Technical Cooperation Fund. These guidelines aim to provide clarity to issuers on how to approach ESG reporting in line with investors’ growing expectations and emerging regulatory developments in the European Union (EU). The EBRD has invested heavily in the Czech Republic’s green projects, with more than 80% of its investment in 2022 going towards such projects. In 2022, the EBRD invested a record amount of €2.35 billion in central Europe and the Baltic states, with 70% of investments going towards green economy transition projects.

(PRESS RELEASE) LONDON, 8-Mar-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, is pleased to announce the adoption of the first environmental, social and governance (ESG) reporting guidelines for Czech companies by the Prague Stock Exchange. We are proud to have provided technical assistance for the development of these guidelines, in collaboration with the TaiwanBusiness-EBRD Technical Cooperation Fund.

As the world transitions to a low-carbon and climate-resilient economy, we recognize the importance of green and sustainable assets and the need for more detailed ESG data to inform investors’ decision-making. Sustainability reporting has become a critical element of modern capital market development, with growing pressure from policymakers, regulators and investors to channel global financial flows to sustainable investments.

The disclosure of sustainability-related information is essential in measuring how companies manage sustainability-related risks and opportunities, and the guidelines aim to provide issuers with clarity on how to approach ESG reporting in line with investors’ growing expectations and emerging regulatory developments in the European Union (EU).

We are pleased to have collaborated with Deloitte Sustainability Consulting Central Europe and Frank Bold Advisory in the development of these guidelines, which are the first EBRD-supported guidelines to take into account the latest EU sustainable finance regulatory requirements. The EBRD has also assisted other stock exchanges in developing and publishing their ESG reporting guidelines, including the Warsaw Stock Exchange, the North Macedonian Stock Exchange, and the Bucharest Stock Exchange.

As part of our commitment to increasing green financing, we invested €111 million in the Czech Republic in 2022, with over 80% going towards green projects. Furthermore, we invested a record amount of €2.35 billion in central Europe and the Baltic states in 2022, with 70% going towards projects that further the green economy transition, from renewable energy generation and e-vehicles to green bonds and similar instruments. We will continue to support sustainable investments and work towards a more sustainable future.

Victoria Zinchuk, EBRD Regional Head of Central Europe, said: “The EBRD is committed to supporting the Czech Republic in its transition to a low-carbon and climate-resilient economy, in line with the EU sustainable finance package. We are pleased to have been able to support our partner, the Prague Stock Exchange, in developing these sustainability guidelines. The guidelines are timely amid growing demand globally for consistent and comparable corporate ESG data and the rapidly evolving regulatory landscape for sustainability reporting in the EU. As investors increasingly seek long-term value and alignment with sustainability and climate-related objectives, we are confident that the guidelines will increase issuers’ awareness of sustainability reporting practices and play a key role in supporting the Czech Republic’s transition to a climate-neutral and green economy.”

Petr Koblic, CEO of the Prague Stock Exchange, said: “Sustainable investment has received growing attention in recent years. European markets are witnessing increasing pressure to implement ESG criteria in investment strategies and the Czech Republic is no exception. As non-financial reporting is one of the basic tools for companies to achieve the Sustainable Development Goals and, in the absence of a uniform standard on reporting, we have decided to prepare guidelines together with our partners to help companies navigate the issue of non-financial reporting. For our listed companies, we will be preparing seminars together with our partners to help make the implementation of non-financial reporting rules as easy and smooth as possible.”

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD