The role of sustainability in the corporate world has become one of the most significant trends of recent years, as companies around the world are expected to provide greater disclosure and greater responsibility in the areas of environmental, social and governance (ESG or Environmental Social Governance) issues. Primarily, the motivation for companies in this matter is driven by increasing regulatory requirements, as well as the desire of investors and financiers to invest more and more precisely in those companies that think and act in the direction of sustainability. It is not for nothing that, according to Morningstar data, ESG funds attracted 51.1 billion US dollars of new investor money in 2020, which is a historic record and more than double the figures of the previous year. But companies themselves are also becoming increasingly motivated to introduce sustainability principles into their daily operations, as evidenced by the findings of company executives, including those within the scope of our research.

Companies operating in emerging market economies such as Latvia are no exception. Several studies have recently pointed to growing ESG awareness among companies and financiers in the Baltic states and the Central and Eastern European region as a whole.