The role of ESG evaluation in business development

The May 2024 session of the PRINCEPS Executive Club focused on the evolving role of Environmental, Social, and Governance (ESG) evaluation in the development and strategic growth of small and medium-sized enterprises (SMEs). Club formed part of the Institute’s ongoing efforts to develop a comprehensive ESG assessment methodology enriched with risk intelligence tools. The meeting brought together compliance professionals, sustainability experts, and business leaders to reflect on how meaningful ESG evaluation can strengthen business strategy and mitigate long-term risks.

Keynote speeches were delivered by Lucie Andreisová, Assistant Professor of International Business Law at the Prague University of Economics and Business and former CE Head of Compliance and Ethics at Tesco, and Samuel Štric, ESG Specialist at J&T Finance Group. Both speakers drew on their extensive professional experience to provide practical insights into the challenges and opportunities surrounding ESG implementation, particularly in the context of regulatory obligations and business ethics.

Discussion

Lucie Andreisová emphasised the role of corporate compliance in translating ESG goals into accountable governance systems. Samuel Štric highlighted recent developments in sustainability legislation and explained how SMEs can adapt their internal processes to comply with evolving frameworks such as CSRD and ESRS. Their contributions were complemented by a discussion moderated by Nevena Peeva-Todorova, focusing on how businesses can integrate ESG not only to meet obligations but to create long-term value and resilience.

The panel and audience discussion underlined the need for tailored ESG methodologies that reflect the complexity of smaller organisations while maintaining rigour in evaluation. Participants agreed that one-size-fits-all approaches fail to capture the unique risks and opportunities facing SMEs. Instead, they called for scalable frameworks that can inform both compliance and strategy, enabling companies to link sustainability indicators directly to business practices.