site.btaData Gaps, Weak Environmental, Social and Governance Indicators Persist in Bulgarian Companies

According to a report by the Green Finance and Energy Centre, 75% of public companies in Bulgaria have integrated sustainability into their business models, 90% have established internal control systems, and 23% report sustainability-related risks. The report, highlighting data on environmental, social, and governance (ESG) aspects of Bulgarian companies’ activities in 2023, was presented on Tuesday by Deputy Dean for Sustainable Development Marina Stefanova at Sofia University's Faculty of Economics.

According to the findings, 68% of companies recognize climate change, 16% report greenhouse gas emissions, and 13% disclose the use of renewable energy. Nearly half (49%) have set specific environmental goals. All companies have adopted the Bulgarian Code for Corporate Governance, but only 5% have implemented anti-corruption measures.

Out of 96 energy companies, 43% are large enterprises. A total of 74% operate in the production and distribution of energy and gas, with 54% meeting reporting requirements. “There are literal data gaps here,” said Stefanova, adding that sustainability indicators remain weak in nearly all areas. Only 40% of energy companies have integrated sustainability into their business models, the data show. 

Prof. Daniela Bobeva from the Bulgarian Academy of Sciences (BAS) presented the section on the banking sector. Banks were divided into two groups – the five largest banks and all others.

Among the largest banks, 100% meet regulatory requirements, 90% disclose information on environmental management, 84% on corporate governance, and 75% on social responsibility. In the second group, 49% report environmental management practices. Bobeva noted the heavy administrative burden for banks and said that, while they are managing well, this burden should be reduced at the European level.

Prof. Spartak Keremidchiev from the BAS said that in state-owned enterprises, the average level of compliance with non-financial disclosure requirements is 57%, 81% meet the formal requirements, while 61% comply substantively. He pointed out significant sectoral differences – compliance levels vary from 12% to 88%. The best disclosures are related to human resources, and some enterprises voluntarily adopt environmental standards.

The Executive Director of the Bulgarian Stock Exchange, Manyu Moravenov, announced that a conference organized by the Financial Supervision Commission will be held on June 11, focusing on corporate governance and sustainability. The Green Centre’s report will again be presented during the event.