How UN Global Compact Helps Uzbek Businesses Become More Responsible
The United Nations Global Compact (UNGC) is an initiative aimed at fostering corporate social responsibility worldwide. Kursiv Uzbekistan spoke to its national representative, Shokhrukh Pulatov, about how the project is being implemented in Uzbekistan.
What United Nations Global Compact does
The Global Compact is recognised globally as the largest initiative encouraging businesses to achieve sustainable development goals. In 2000, then UN Secretary-General Kofi Annan called on the private sector to take part in implementing social responsibility programmes. Around 40 major companies responded positively, becoming the initiative’s first participants.
At the same time, ten universal principles of the Global Compact were formulated. These principles focus on human rights protection, labour relations, environmental sustainability, and anti-corruption efforts.
The initiative supports the private sector in adopting practices to achieve the 17 Sustainable Development Goals (SDGs). UN member states have committed to reaching these goals by 2030. However, progress is now under threat. Improving the situation requires coordinated efforts not only from governments and international organisations but also from the private sector.
UN Global Compact in Uzbekistan
The United Nations Global Compact (UNGC) supports companies in adopting practices and policies aligned with its ten universal principles. These principles must be integrated into the daily operations of businesses to contribute to the achievement of the Sustainable Development Goals (SDGs).
The initiative also provides a platform for dialogue, training and collaboration among businesses, government institutions and civil society.
The UNGC began its expansion into Uzbekistan and Kazakhstan in 2022. Over the past two years, the programme has recruited its first partners, developed tools for them and conducted training seminars.
Currently, the initiative includes more than 70 companies from Kazakhstan and around 25 from Uzbekistan. The disparity reflects differences in the scale of the two economies. Kazakhstan’s private sector is larger, more developed and more actively engaged with international organisations, many of which prioritise adherence to ESG principles. In Uzbekistan, this process is still in its early stages.
Participation in the UNGC is voluntary and the organisation does not issue ESG certification. However, companies involved in the programme enhance their preparedness for ESG-related audits through training provided on the UNGC platform. This helps simplify the process of obtaining such certifications.
What events UNGC organises for businesses in Uzbekistan and Kazakhstan
The UN Global Compact (UNGC) organises business accelerators as part of its initiatives. These are free six-month online and offline sessions for UNGC participants in Central Asia. The sessions result in the development of action plans for business transformation, with participants required to report regularly on the implementation of their roadmaps.
The first accelerator programme organised for companies in Uzbekistan and Kazakhstan was SDG Ambition, focused on the Sustainable Development Goals (SDGs). Around 90 employees from 50 organisations took part in the programme.
In addition, the UNGC helps Central Asian companies gain access to international conferences and seminars. This provides opportunities to present themselves on the global stage and build professional networks.
What challenges businesses in Uzbekistan and Kazakhstan face in embracing sustainability agenda
The primary challenge is the lack of ESG specialists. There is little targeted training for such roles, and in Uzbekistan, a specialised university for ESG education has only recently been established.
As a result, organisations aim to minimise costs by assigning ESG responsibilities to existing employees, often without providing additional compensation.
Businesses need to understand two important points. First, integrating ESG principles can lead to increased profits in the long term. Second, a formal ESG degree is not mandatory to become a skilled professional in this area. The UNGC offers access to its Academy platform, where ESG courses are available to all employees of member companies.
How can government help businesses implement ESG principles
There are several potential measures that can be taken, including regulation, financial incentives, education, and support for innovation.
One practical example in Uzbekistan is the development of national ESG standards and the requirement for companies to report on non-financial indicators.
The impact of such reporting would be even more significant if the requirement extends beyond just state organisations.
Another possible step is to incorporate ESG criteria in public tenders. Companies that adopt sustainable development principles could earn more points in government procurement processes and corporate auctions.
However, the use of these tools should align with the specifics of the region, as not all measures are equally effective everywhere.
