In a transitioning economy under immense pressure, is sustainability a luxury or a necessity? This urgent question was at the heart of the recent webinar, "Building Legal Pathways to Sustainability in Transitioning Economies: Ukraine’s Experience," featuring Olena Savchuk, Counsel at INTEGRITES.

Olena argues that for a nation like Ukraine, embedding Environmental, Social, and Governance (ESG) principles into law and policy is not a future aspiration but the key to immediate resilience and long-term economic survival. Her perspective, forged by the challenges that began in 2022 , redefines the role of law as a powerful tool for attracting sustainable investment and guiding green, inclusive growth.

Sustainability: The New 'Basic Need'

Olena Savchuk immediately challenges the perception that a country in a survival mode must postpone sustainable development. Drawing a compelling parallel to the Maslow pyramid of needs, she asserts that pursuing a "higher goal"—like being greener, healthier, or more socially oriented—provides the reason to satisfy basic needs.

"Sustainable development is observed as a luxury while it is a must actually," Olena states.

She highlights that sustainable solutions require stability, which can be elusive in a transition. However, Ukraine's strategic decision to pursue EU membership has provided a clear, non-negotiable legal roadmap, forcing the nation to accelerate its path toward infrastructural modernization and green transition.

Data-Driven Resilience: The Legal Pathway to Green Energy

The webinar revealed impressive real-world data demonstrating how legal frameworks underpin resilience, even during wartime:

• Pre-War Green Foundations: Before the full-scale invasion, INTEGRITES was already advising on an extensive renewables portfolio (wind and solar) amounting to more than three gigawatts (3 GW).
• Decentralized Energy Success: In 2022, Ukraine began decentralizing its energy system. This legal and technical reform now ensures that when one power plant is hit, another switches on to support the system, proving the efficacy of resilient, distributed infrastructure.
• New Trade Routes: With Ukrainian airspace closed, the railway has become a crucial instrument, not only for humanitarian efforts but also for the economy to transfer cargoes, underscoring the vital role of modernizing the transport.

The Human Capital Imperative: ESG as Economic Recovery

Perhaps the most compelling argument for intertwining sustainability and economy lies in the human element. Olena uses hard demographic numbers to show that 'Social' factors are direct drivers of GDP:

• Veterans' Employment: The number of war veterans in Ukraine is over 100,000 and growing. Sustainability efforts include the creation of inclusive and sustainable jobs to ensure these veterans can return home and stay employed.
• Demographic Return: An estimated over 5 million people left the country. The national goal of creating green housing and sustainable opportunities is essential to motivate these millions to return, as they directly impact the nation's population and GDP.

Innovation: The Dream Platform for Transparency

To bridge the gap between investor expectations and local capabilities, Ukraine is leveraging digitalization. Olena highlights the Dream Platform, launched in 2024, as a key legal innovation. This online platform allows every local community to transparently present its projects to potential investors, with the public able to monitor the status and developments of each project. This radical transparency is crucial for attracting international capital, as Olena notes that the main challenge is often coordination, not legal deficiencies.

For other transitioning economies and investors watching Ukraine, the ultimate lesson is clear: The push for sustainability must start now. Olena advises that local communities and large businesses should "do the homework" and begin adopting sustainable practices before they become mandatory (which, for ESG reporting in Ukraine, will be around 2028).

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