A Brief Summary

The Ukraine invasion by Putin's Russia presents several challenges for the business communities. Environmental, social and governance (ESG) virtues in the region are dampened by the ongoing war between Russia and Ukraine.

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After the conclusion of COP26 in Glasgow, ESG has been in the limelight with corporates, directors, investors often discussing the topic. But, since the invasion of Ukraine by Russia, some chief executives have been silent on the matter and do not dare to take actions that would be consistent with their ESG policies.

Delta Air Lines is one of the first movers condemning the war by announcing it would suspend its code-share with Russian Airlines, Aeroflot. BP announced it is deserting a 20 per cent stake in Russian state oil company Rosneft. The sovereign wealth fund in Norway is likely to divest its Russian holding. Many US restaurants and liquor shops announced they would not sell Russian Liquor in their outlets.

Upholding and protecting freedom and democracy is part of ESG. The business community must understand the declining ESG responsibilities in Ukraine and act immediately to bring back normalcy, or else the entire business chain will collapse in the country.

The crisis in Ukraine is similar to the late-20th-century anti-apartheid movement, in which businesses from every sector come together to counter the racism of the white nationalist South African Regime.

The Business community has a significant role to play at the moment. If it upholds ESG values such as law, good governance and human rights, then it must act at the earliest. It is high time we had put all that talk into action.