From the ground up: The impact of ESG criteria on Cyprus's business ecosystem

Cyprus is embarking on a significant shift in its business evaluation processes, with the Artemis Credit Bureau announcing a new initiative to assess companies based on Environmental, Social, and Governance (ESG) criteria starting March 2024. This move, in collaboration with the Association of Cyprus Banks and international Credit Bureau CRIF S.p.A., introduces a comprehensive framework for evaluating companies' adherence to sustainable practices, marking a pivotal moment for the Cypriot business landscape.

The decision to implement ESG criteria reflects a growing global trend towards sustainability and corporate responsibility. It underscores the importance for companies of all sizes, sectors, and activities to integrate sustainable practices into their operations. The Artemis Credit Bureau's approach involves a specialized questionnaire that will be available on the 'Synesgy' platform, a digital tool designed to facilitate the assessment process for companies across Cyprus.

This platform is not just a local initiative but part of a global alliance aimed at transitioning towards sustainability. The Synesgy platform supports companies by providing a detailed assessment of their ESG performance, including their entire supply chain. This assessment is crucial for the banking sector as well, offering a 'sustainable financing' tool that aligns with credit risk management policies and supervisory requirements.

The introduction of ESG criteria in Cyprus represents a significant opportunity for businesses to align with international standards and improve their sustainability practices. The Synesgy platform, already available in 76 countries and in 27 languages, has sent out 620,000 invitations to companies worldwide, emphasizing the widespread adoption and importance of ESG assessment.

For companies in Cyprus, this initiative offers several benefits. Businesses can receive an ESG certificate valid for 12 months, demonstrating their commitment to sustainability. Moreover, the platform provides companies with an ESG score, an action plan with prioritized suggestions for improving ESG performance, and a comprehensive report for transparency and reporting purposes.

The move towards ESG criteria is not only about compliance but also about recognizing the value of integrating sustainable practices into business strategies for long-term benefit. This transition period offers companies a chance to invest in new technologies and manage non-financial data more effectively, preparing them for future regulatory requirements.

As businesses in Cyprus navigate this new landscape, the role of communications agencies specializing in ESG, like Purpose Communications, becomes increasingly important. These agencies offer expertise in helping businesses communicate their ESG strategy and progress, ensuring that stakeholders are informed and engaged. Purpose Communications, with its focus on ESG communications, can assist businesses in effectively articulating their sustainability journey, aligning with best practices, and enhancing their market position through improved ESG performance.

The implementation of ESG criteria in Cyprus is a transformative development for the business community, emphasizing the critical role of sustainability in today's corporate world. As companies adapt to these new standards, the support and expertise of specialized ESG communications agencies will be invaluable in navigating this transition successfully.

Are you ready to elevate your business's sustainability journey? Purpose Communications is here to guide you through the complexities of ESG strategy implementation and communication. With our expertise in ESG communications, we can help your business articulate its sustainability narrative, engage with stakeholders effectively, and achieve its ESG goals. Contact us today to learn how we can support your business in navigating this new era of sustainability and responsibility. 

Let's work together to create a more sustainable, equitable, and prosperous future.