ESG Compliance and Competitiveness

On February 14, 2025, Kathmandu University School of Management (KUSOM), in collaboration with the National Business Initiative (NBI), organized a high-level awareness program on ESG (Environmental, Social, and Governance) Compliance and Competitiveness. The event aimed to highlight the growing importance of ESG principles in enhancing business sustainability, fostering trade competitiveness, and aligning Nepalese businesses with global standards.

The program featured a keynote presentation by Mr. Sandeep Shrestha, Founder of Sustainability Solutions, who provided in-depth insights on ESG compliance, strategic integration, and value creation. He advocated for increased adoption and integration of ESG system by enterprises. He further highlighted tailored advisory services and capacity building programs to support businesses in adopting sustainable practices. Sustainability Solutions focuses on developing sustainable business models, integrating ESG-driven strategies, enhancing eco-efficient production and logistics, establishing responsible supply chains, and ensuring transparent sustainability reporting. Additionally, Mr. Shrestha shared about Future of Sustainability initiative to provide mentorship programs for youths, Sustainability Forum – a collaborative platform for knowledge-sharing, and hands-on training sessions to assist enterprises in implementing effective ESG frameworks.

During his presentation, Mr. Shrestha emphasized the necessity of ESG compliance in securing long-term business resilience, attracting international investments, and positioning Nepalese enterprises for global trade opportunities. He further illustrated best practices, real-world case studies, and sector-specific ESG strategies, underscoring that ESG adoption should be regarded as an investment rather than an expense.

The event also featured an expert panel discussion on “Navigating the ESG Landscape,” with distinguished speakers from Nepal’s business and trade sectors including Mr. Padma Jyoti – Chairman, Padma Jyoti Group & Founder President, NBI; Mr. Shankar Prasad Pandey – President, Federation of Export Entrepreneurs Nepal; Ms. Shanta Banskota Koirala – Director, Kanchanjangha Tea Estate and Research Center; and Mr. Krishna Shah – Executive Director, Formation Carpet.

The discussion provided valuable insights into the current trends in ESG practices and regulations, challenges faced by Nepalese businesses, the level of preparedness within different industries, and best practices for ESG integration. A key takeaway from the discussion was the urgent need for greater ESG adoption in Nepal’s business landscape. Despite the increasing global emphasis on sustainability, many large corporations in Nepal have yet to integrate ESG principles, and nearly 90% of SMEs remain unfamiliar with ESG practices. To address this gap, businesses must prioritize awareness and education, government support through policy incentives and regulatory frameworks, technical guidance on ESG compliance, and the development of sector-specific ESG strategies for industries such as manufacturing, agriculture, retail, and hospitality. Additionally, implementing ESG practices in a cost-effective manner can help businesses enhance efficiency, reduce operational expenses, and increase access to global markets.

The event concluded with a call to action, urging business leaders, policymakers, and entrepreneurs to actively incorporate ESG principles into their operations. By embracing ESG, Nepalese businesses can enhance their global competitiveness, attract investors, and contribute to long-term economic and environmental sustainability. The discussions emphasized that ESG is not an option but a necessity for businesses aiming to thrive in an evolving global economy.