ESG Cluster Hub

By project AccelerateGDT

Published on 02 July 2024

Ukraine

About this good practice

The ESG Cluster Hub addresses a critical gap in the ESG data ecosystem: the lack of availability, integrity, and reliability of data for ESG risk assessment and asset management. SMEs, EIPs and clusters struggle to disclose ESG data to meet the increasing demands of investors and regulatory bodies. Without reliable ESG data, SMEs face significant barriers to accessing green finance and integrating into the low-carbon global economy. This challenge is particularly acute in post-war economies, such as Ukraine, where rebuilding efforts require sustainable and resilient solutions.
The ESG Cluster Hub simplifies how clusters, EIPs and SMEs manage their ESG and carbon footprint data through the launch of the ESG Data Space. A key component of this ESG Cluster Hub is ESG.Electrodo, a blockchain-powered platform to digitize, streamline, and ensure the integrity of ESG data processing, verification, and reporting across industrial value chains. The platform enables SMEs and clusters to set and monitor ESG impact targets, facilitating transparent and accountable sustainable development.
Stakeholders who developed and supported ESG Cluster Hub are 482.solutions, Ukrainian Cluster Alliance, NOSC-UA DIH. By improving ESG data management, the ESG Cluster Hub attracts responsible investors, facilitates access to green finance, and prepares SMEs for regulatory compliance, thus boosting their market value and resilience.

Expert opinion

In light of the Corporate Sustainability Reporting Directive ESG impact measurement and management has become increasingly important for European industries as well as the SMEs across the value and supply chains. The new regulation also brings about a need for clearer ESG reporting and transparency in transactions across the value chain. European national and local authorities are in need of efficient tools to assist their SMEs in this new regulatory space. The ESG Cluster Hub from Ukraine presents an innovative solution to the challenge of inadequate ESG data, empowering SMEs, and clusters to meet investor and regulatory requirements by streamlining ESG and carbon footprint management through the ESG Data Space and the blockchain-powered ESG.Electrodo platform. Furthermore, the ESG Cluster Hub exemplifies the effective use of data and technology for sustainable development, offering a scalable model for international ESG initiatives that contributes to key SDGs, including climate action, responsible production, and affordable clean energy.

Mart Veliste

Works at Interreg Europe Policy Learning Platform

Resources needed

€600,000 has been invested in implementing the ESG Cluster Hub project. This included R&D, methodology preparation, specialist training, creation of an ESG Data Space, development of a digital platform, and pilot project implementation. An added value of over €3 million was created.

Evidence of success

● Deployed the first European ESG Data Space, aligning with the European data strategy and Gaia-X initiative for ESG data-enabled value chains.
● Created the ESG.Electrodo platform for end-to-end ESG data processing and reporting, compliant with CSRD regulations.
● Implemented a cross-border pilot in the Agri-Food sector, showcasing ESG data lifecycle management between organizations from Spain and Ukraine.

Potential for learning or transfer

The ESG Cluster Hub's approach to managing ESG data and carbon footprint offers significant learning and transfer potential.
● Pan-European approach: aligning with the European data strategy, Gaia-X, CBAM, and CSRD regulations ensures compliance and market readiness, a replicable strategy for other regions.
● Scalability: the recursive cluster model and ESG Data Space are scalable and can be tailored to various sectors and contexts.
● Transfering: the cross-border pilot in the Agri-Food sector between Spain and Ukraine serves as a blueprint for international ESG initiatives.
● Contribution to SDGs: The practice demonstrated how Data Space and blockchain technologies enable the creation of a regional economic platform, making a direct contribution to SDGs 13, 12, and 7, while also promoting the sustainability of the Food Supply Chain (SDG 3).
The transfer may be hampered by the need for regulatory frameworks, good stakeholder collaboration, and digital infrastructure.