The world is changing, and business is evolving along with it. Expectations for companies are becoming stricter: consumers, partners, and investors now assess not only the quality of products but also environmental responsibility, social standards, and governance transparency. Adherence to ESG principles (environmental, social, and governance) is becoming essential for long-term success.
As the leading pharmaceutical company in Ukraine, Farmak strives not only to meet these expectations but also to drive positive change. The company has recently completed a comprehensive ESG analysis, conducted from June 2024 to February 2025. The study, carried out by KPMG in Ukraine — a member of the global Big Four network — evaluated Farmak’s current sustainability practices, assessed their alignment with European ESRS* standards, and outlined a clear roadmap for integrating ESG principles over the coming years.
Today, European markets already operate under the new standards. Starting in 2028, Ukrainian companies with a significant presence in the EU or those attracting international investments will be required to report in accordance with the CSRD (Corporate Sustainability Reporting Directive). Ukraine is also progressing steadily in this direction: in October 2024, the government approved the Strategy for Implementing Sustainability Reporting, defining key tasks to align Ukrainian businesses with European norms. The Ministry of Finance is currently working on establishing an interagency working group to implement ESG reporting and to develop an operational plan for executing the national strategy.
For Farmak, the integration of ESG principles presents an opportunity to rethink approaches and lay the groundwork for future growth. The company has already identified key focus areas, priority topics, and potential initiatives for implementation. Among the immediate steps are updating company policies, strengthening the risk management system, launching renewable energy projects, enforcing a zero-tolerance policy towards corruption, enhancing workplace safety, developing inclusive programs, and introducing a supplier code of conduct.
The ESG analysis highlighted the importance of a comprehensive approach: sustainability encompasses not only internal processes but also responsibility throughout the entire supply chain. For instance, it is not enough for the company to declare its commitment to human rights; it must also ensure that its suppliers across different countries uphold the same standards.
Farmak is currently working on developing a full-fledged ESG strategy that will serve as the foundation for future changes. The first stage of the roadmap involves adapting to international standards, developing internal policies, and implementing a system to monitor ESG performance indicators. In the coming years, Farmak will systematically roll out these initiatives, embedding ESG principles not merely as a regulatory requirement but as an integral part of its DNA.
*The European Sustainability Reporting Standards (ESRS) are a set of regulations developed to ensure transparency and comparability of sustainability information among companies in the European Union. They cover environmental, social, and governance aspects of business operations, including climate change, biodiversity, and human rights issues.
