On November 8, 2024, the American Chamber of Commerce in Bulgaria (AmCham) and the German Bulgarian Chamber of Industry and Commerce (GBCIC) organized a milestone conference, titled “ESG in Practice: Governance for Sustainable Growth”. The event welcomed over 130 attendees at the Hilton Sofia, as well as some of the leading voices across industries discussing how to navigate the rapidly evolving landscape of corporate sustainability. The event welcomed insights from experts and executives deeply involved in environmental, social, and governance (ESG) practices. The conference was supported by Aurubis Bulgaria, EY denkstatt, and ING Bank Bulgaria. EY denkstatt was the content partner too. SeeNews as media partner.
The conference opened with remarks from Ivan Mihaylov, CEO of AmCham Bulgaria, and Sonja Miekley, General Manager of GBCIC, thus making another of series joint initiatives on topics such as rule of law, eurozone and Schengen accession of Bulgaria, and now pointing out the critical role of ESG practices in driving Bulgaria’s sustainable business future.
Fireside Chat – What Makes Companies Truly Sustainable?
In the first session, titled “Fireside Chat: What Makes Companies Truly Sustainable?”, key insights were shared by two different but still similar leaders of organizations that help businesses to effectively embed ESG within business strategies to foster resilience, competitiveness, and regulatory compliance. Willibald Kaltenbrunner, Partner, EY denkstatt, Europe West and Teodor Radonov, Head of European Investment Bank Group Office, Bulgaria engaged in a profound conversation on how that agenda is achievable. Their discussion was moderated by Ivan Paspaldzhiev, Senior Manager, EY denkstatt who framed the conversation around the challenges companies face in adapting to the complex regulatory environment. He underscored the need for clear, business-relevant strategies to translate ESG requirements into achievable goals, particularly as Bulgarian businesses navigate EU and OECD regulations.
Willibald Kaltenbrunner emphasized that true sustainability goes beyond surface-level initiatives, arguing that it should be embedded within core business processes. He advocated for a mindset shift where sustainability is no longer a separate department but integrated throughout the organization’s culture. Kaltenbrunner highlighted the importance of balancing ESG compliance with innovation to ensure companies stay competitive while aligning with regulatory standards.
Teodor Radonov presented the European Investment Bank’s (EIB) role as a financial enabler for sustainable projects across Bulgaria. He detailed the bank’s efforts to support small and medium enterprises through various instruments, including loans and guarantees, that ease the path toward sustainable growth. Radonov highlighted the EIB’s commitment to advancing Bulgaria’s green transition by providing accessible funding and practical tools to simplify ESG compliance for businesses. The discussion underscored the essential role of embedding sustainability within corporate frameworks, not only to follow simply the regulations but to drive long-term value. It highlighted the critical need for financing solutions and accessible financial tools that help companies, particularly SMEs, implement meaningful and sustainable changes. The takeaway: ESG is not an optional initiative but a strategic pathway for businesses to future-proof themselves in a competitive, sustainability-driven market.
Panel 1: Transformation – How Have We Changed in Two Years, and Where is the Business Case?
The conference entered in its thorough agenda with this panel focused on the transformative journey companies have taken towards sustainability, especially within the energy and heavy industries. It welcomed five panelists Miriam Robbe, Sustainability Lead, Corporate Sector Coverage, ING EMEA, Jesus Caballero Pinto, CEO, SOF Connect, Todor Nikolov, Energy Transition Projects Director, Solvay Sodi, Ivan Tzankov, Managing Director, AES Bulgaria and Konstantin Stamenov, Chairman, BFIEC who shared first-hand experiences on aligning business operations with ESG goals, discussing both the progress and challenges in making their sectors more sustainable. The conversation was moderated by Boyan Rashev, Partner, EY denkstatt
Miriam Robbe shared insights from ING’s approach to fostering sustainability among its clients. She discussed the use of sustainability-linked loans as a tool for incentivizing clients to meet key ESG benchmarks, particularly in renewable energy investments. Robbe emphasized the bank’s role in supporting the business case for sustainability through innovative financing models that encourage long-term resilience.
Jesus Caballero Pinto – the fresh winner of Manager of the Year Award by the Manager Magazine (Bulgaria) – provided an update on Sofia Airport’s sustainability initiatives, sharing achievements in reducing CO2 emissions, diesel, and water consumption since the start of its concession period. He highlighted the airport’s commitment to becoming carbon-neutral by 2036 and discussed the technical and financial challenges of meeting sustainability targets while managing increased passenger traffic.
Todor Nikolov presented Solvay Sodi’s efforts to transition its operations towards sustainable practices, especially within heavy industry sectors such as chemical production. He noted the difficulties in accessing government support and emphasized the need for a stable regulatory framework to facilitate long-term investments in clean technology.
Ivan Tzankov explained AES Bulgaria’s innovations in the energy sector, including initiatives to store renewable energy for better grid stability. He stressed the importance of responsible energy transition strategies that balance environmental goals with the need for energy security and affordability for Bulgaria’s national grid.
Konstantin Stamenov spoke on behalf of the Bulgarian Federation of Industrial Energy Consumers (BFIEC), emphasizing the unique challenges facing energy-intensive industries. He called for policies that support sustainable energy use while maintaining the competitiveness of Bulgaria’s industrial base.
The panel illuminated the critical role of strategic transformations in achieving sustainability, especially within sectors traditionally reliant on high energy consumption. The speakers collectively underscored the business case for ESG, emphasizing that sustainable practices are essential for long-term resilience, regulatory compliance, and competitiveness. The discussion concluded with a call for supportive policies and financing structures that can enable Bulgarian companies to pursue ambitious environmental goals while sustaining growth.
Panel 2: ESG on the Ground – The Market Reality
The second panel provided a pragmatic look at how companies are implementing ESG practices in Bulgaria’s evolving market environment. Panelists included Dobrin Dalov, CFO, Kaolin, Petar Nikolov, Field Services Sales Director for Bulgaria, Albania, N. Macedonia, and Kosovo, Schneider Electric, Kremena Georgieva, Head of Corporate Communication and CSR, Kaufland Bulgaria, Radoslava Radeva, Country Sales Manager, ABB Bulgaria, Refie Sadulova, Expert in Ecology, Environment, and ESG, Arexim Engineering, shared their organizations’ real-world approaches to ESG, including compliance with legal requirements, supply chain sustainability, environmental impact, and addressing global ESG standards. The conversation was moderate by Denislav Borisov, Brand, Marketing & Communications, EY Bulgaria, North Macedonia, Albania & Kosovo
Dobrin Dalov emphasized Kaolin’s enduring commitment to sustainability, noting that the company began integrating ESG principles into its operations well before formal policies became common. While Kaolin has yet to set up a fully comprehensive ESG action plan, it currently generates a good-part of its own energy from photovoltaic plant, a practice aligned with its 100-year history in Bulgaria. Dalov also addressed regulatory challenges impacting businesses in both Bulgaria and Germany, urging policymakers to minimize bureaucratic obstacles and provide sufficient time for companies to adapt to new standards.
Petar Nikolov from Schneider Electric discussed the role of advanced technology in achieving sustainability goals. He shared insights into Schneider Electric’s geothermal system at its Bulgarian facility, which significantly reduces energy consumption by eliminating the need for gas. Nikolov highlighted that Schneider Electric’s global and local ESG strategies focus on internal improvements and collaborations with clients to achieve lasting impact.
Kremena Georgieva from Kaufland Bulgaria emphasized that data collection is a significant challenge due to the complex network of partners and suppliers. She called for extended adaptation periods from state institutions to help businesses comply with new regulations. Georgieva also discussed Kaufland’s commitment to sustainability within its supply chain, notably the restoration of Central Supermarket in Sofia as a key community initiative.
Radoslava Radeva from ABB Bulgaria outlined ABB’s efforts to reduce its carbon footprint, targeting an 80% reduction in emissions by 2030 and carbon neutrality by 2050. She announced ABB’s upcoming agreement with a photovoltaic park to supply renewable energy to its plants, underscoring ABB’s commitment to energy-efficient solutions for Bulgaria’s green transition.
Refie Sadulova from Arexim Engineering highlighted the team-driven nature of ESG at Arexim. She emphasized that ESG requires collaboration across departments and stressed the importance of making structured ESG information accessible to clients for improved outcomes.
The panel provided a realistic perspective on the implementation of ESG practices in Bulgaria, revealing that legal regulations are the primary driver behind companies’ adoption of ESG. A study presented at the conference showed that 44% of businesses cite regulatory requirements as the main reason for implementing ESG, followed by customer expectations and company traditions. The panel also concluded that data collection remains one of the biggest challenges, essential for tracking ESG impact and compliance effectively. With varied levels of ESG integration, panelists called for supportive policies that balance environmental and economic goals.
Panel 3: Financing the Sustainable Transition
The final panel focused on the critical role financial institutions play in supporting businesses as they transition toward sustainable practices. The panel explored how financial institutions are advancing sustainable financing and guiding companies in adopting ESG principles. It engaged Manuela Naessl, Head for Bulgaria, European Bank for Reconstruction and Development (EBRD) and Stefan Ivanov, Strategic, Credit & Integrated Risks Manager, UniCredit Bulbank Bulgaria into a conversation moderated by Federico Lazzari, Head of Glavbolgarstroy Holding Representative Office in Brussels and Secretary General of Build Europe. The moderator framed the discussion around the growing responsibility of financial institutions, which are increasingly expected to assess and advise on ESG standards. He highlighted that banks now play an active role in shaping the ESG landscape by providing financing and guidance, enabling companies to navigate sustainability and compliance requirements effectively.
Manuela Naessl from EBRD highlighted the bank’s role as both a financial backer and a consulting entity for companies pursuing ESG. Naessl explained that the EBRD works closely with businesses, helping them manage risks and plan for sustainable growth. She shared examples, such as the bank’s collaboration with an international steel company on a thorough sustainability assessment and emphasized the EBRD’s commitment to supporting renewable energy projects. However, she noted that the EBRD faces challenges in meeting ambitious green goals, as certain transitions may not be fully financeable within their guidelines.
Stefan Ivanov from UniCredit Bulbank discussed the EU’s growing regulatory pressure on banks to adopt sustainable practices. He explained that while UniCredit’s assets and clients have not changed substantially, the emphasis on sustainability continues to strengthen. Ivanov discussed the importance of supply chain awareness and future decision-making based on ESG considerations. He noted that the bank is committed to supporting companies that meet high environmental standards and is dedicated to helping them achieve zero emissions in the coming years.
The panel underlined that sustainable financing is a crucial driver for Bulgaria’s ESG adoption. Financial institutions not only provide the necessary funds but also act as advisors, helping businesses meet ESG criteria. The speakers agreed that sustainable financing is essential for long-term stability and that balancing profitability with responsible lending practices is key. The session concluded with a shared sentiment: that financial institutions play a pivotal role in facilitating Bulgaria’s transition to a sustainable economy by offering both funding and expertise in navigating an increasingly complex ESG landscape.
Conclusion of the ESG Conference
The organizers thanked the guests, the speakers, and the sponsors for making this first – hopefully of series – conference. “We admire your commitment to driving Bulgaria’s sustainability agenda forward. Our chambers and our bilateral business community can serve as the platform for collaboration and knowledge-sharing, as well as addressing the issues of the practical implementation of the ESG policies and help legislators to listen more to the needs of the businesses. The path to a more sustainable future requires collective action and a shared commitment from both the private and public sectors,” – the organizers said.