The Green Centre, a think tank specializing in sustainable finance and energy, unveiled its inaugural report on Bulgarian companies’ sustainability reporting at Sofia University on May 27. The comprehensive study, conducted by the Green Centre alongside the Bulgarian Stock Exchange and several consultants, analyzed 214 companies across various sectors including banking, state-owned enterprises, publicly listed companies, and energy firms.
Assoc. Prof. Dr Manyu Moravenov, Chair of the Green Centre and Executive Director of the Bulgarian Stock Exchange, emphasized the report’s significance: “The Green Centre, in its role as a policy think tank in the areas of sustainable finance and energy, fulfils its mission to lead the public debate on sustainability topics. The report is the most comprehensive analysis to date of the landscape, bringing together expert capacity from leading Bulgarian academic institutions to present how Bulgarian companies disclose ESG information about their activities.”
The report highlighted several key findings:
In the banking sector, banks were divided into two groups: Group One consisting of the five largest banks showed full compliance with regulatory requirements and high scores in environmental management (90%), corporate governance (83.3%), and social responsibility (75%). In contrast, smaller banks in Group Two scored lower across these indicators. Notably, climate risk disclosure was significantly higher among Group One banks at 80%, compared to 20% for smaller institutions.
State-owned enterprises demonstrated an average compliance rate of 57% with non-financial requirements. The energy sector excelled with a compliance rate of 79%. However, there was a notable discrepancy between formal compliance (81%) and substantive compliance (61%), indicating room for improvement in disclosure quality.
Among public companies studied, while 90% reported having internal control systems in place, only a small fraction had sustainable risk policies or systems for managing such risks. Environmental reporting was prevalent but lacked depth; only 16% reported emissions comprehensively.
Energy companies displayed varying levels of engagement with sustainability topics. Although all identified relevant sustainability issues for their business operations, only a minority integrated these into their business models or provided detailed reports on emissions and renewable energy use.
Overall, while some sectors showed strong adherence to ESG principles and reporting standards, others revealed gaps that suggest opportunities for improvement in transparency and accountability within Bulgaria’s corporate landscape.
