UNDP, Arnika to develop first digital ESG, carbon footprint traceability mechanisms
UNDP Ukraine and LLC Arnika Organic will pilot digital solutions to track agricultural companies' impact on the environment, help boost their access to international green financing opportunities
The United Nations Development Programme (UNDP) in Ukraine, as part of the UNDP project "Supporting Green Recovery in Ukraine", has signed a Memorandum of Understanding (MoU) with agroindustrial company Arnika Organic to develop a solution and accompanying software to enhance corporate climate risk management and future access to "green" financing.
According to the MoU the parties will cooperate to develop the necessary Environmental, Social and Governance (ESG) methodology, focusing on organic agriculture. With a selected methodology, a company specific ESG approach will be implemented at Arnika Organic LLC. An IT solution for ESG risk management will be developed, integrating carbon emission data along with other non-financial disclosures. The MoU also entails external independent verification of the ESG approach by leading industry experts.
These steps will in turn enable the development of recommendations for an ESG rating for the Ukrainian agricultural/organic sector and will contribute to improving access to international "green" financing opportunities.
Commenting on the MoU, UNDP Resident Representative in Ukraine Dafina Gercheva said her agency was taking a multi-pronged approach to tackling the issue of climate change.
"We cooperate with public and private stakeholders, seeking ways to provide efficient stimulus and helping with tools for transition to a greener economy and environmentally friendly practices," Gercheva said.
"I'm glad to see that thanks to the efforts of UNDP and our partners, we will pioneer the development of a unique solution, which will enable the better evaluation and management of climate-related risks, and will pave the way to strengthening Ukraine's positions in climate action and achieving the 2030 SDG Agenda."
Andriy Pylypchenko, CEO, Founder at Arnika, said that in times of dramatic climate shifts humans should undertake the responsibility of changing the situation for the better.
"We're in organic production because it celebrates our natural heritage. I believe we need to cooperate with nature and existing ecosystems," Pylypchenko said.
"We do that because we feel responsible for the future of our planet, and its (future) generations. By our example, we'd like to share environmentally friendly practices, in the hope of involving more companies in the ethical and sustainable way of doing business. Cooperation with UNDP on the ESG and Carbon Traceability projects is one more step towards nature, and to resolving the climate problem. We're happy that together with such a strong and well-qualified partner as UNDP we are part of, and a guiding force in, these positive changes."