Kosovo should consider transitioning into sustainable economy in favor of ESG

Prishtina, February 16, 2022 – The American Chamber of Commerce in Kosovo held a roundtable discussion on sustainable financing, which refers to the process of taking environmental, social and governance (ESG) considerations into account when making funding decisions.

The CEO of Raiffeisen Bank, Anita Kovacic said that this transition is a joint responsibility of all financial institutions. It is important to be aware of the impact this topic has, mainly because of why it is good for the people, for the planet and for the profit. Kovacic said that sustainability brings progress for our future generations, which can help us in the economic development, since it helps businesses last for a longer period of time.

Kovacic said that educating clients, the public and raising awareness are more than necessary, stressing that “Our clients understand that once they are sustainable, they will have higher possibilities to repay or renegotiate any deal. Whether it is five months or five years from now, they might get an exit strategy for certain businesses, which is why once you build a solid foundation, you can always build on.”

Member of the Managing Board of ProCredit Bank Visar Paçarada believes that sustainability is the key to developing the country’s economy. Paçarada said that financial sustainability means how financial institutions incorporate ESGs in their companies and the key decisions they make for their investment activities.

Paçarada said that the main goal is the development of the economy in a sustainable way, since the development of the economy should not happen at the cost of environmental and social degradation, therefore, sustainability is the key to solving this.