Launch of a Multi-Stakeholder Dialogue Platform on Responsible Business Conduct (UA0112)

Launch of a Multi-Stakeholder Dialogue Platform to Integrate Standards of Responsible Business Conduct into Recovery Processes at the National and Local Levels

At present, Ukraine lacks a standardised approach to conducting integrity and social responsibility audits of businesses involved in reconstruction projects. Even where financial control mechanisms are available, issues relating to respect for human rights, adherence to environmental standards and principles of corporate ethics are often not adequately integrated into the procedures for selecting and managing contractors, creating a risk that companies with reputational concerns may be involved in the implementation of recovery projects. Under such circumstances, the main tools of public oversight tend to focus on responding to breaches after they have occurred, rather than exerting a preventive influence on the rules and criteria governing the selection of contractors.

The main reason is insufficient coordination of approaches and communication among the key stakeholders in the recovery process: public authorities focus on deadlines and the cost of the work, businesses are concerned about profits, while the public seeks to exercise oversight and mitigate risks. The lack of a standardised process for agreeing on responsible business conduct criteria prior to the commencement of procurement procedures and project implementation limits the ability to establish rules jointly. At the same time, the existing digital tools, in particular the ProZorro and DREAM systems, ensure procedural transparency and provide data on projects and procurements. However, they do not include a harmonised set of indicators that would make it possible to assess aspects of responsible business conduct (ESG criteria) as part of risk management in reconstruction.

Ukraine has declared its commitment to European integration and has adhered to the OECD Guidelines for Responsible Business Conduct (RBC). As part of Ukraine's participation in the Open Government Partnership Initiative, open data tools and registers were established at an earlier stage to support the verification of information on beneficial owners, and the DREAM digital ecosystem for recovery management was launched, enabling the display of an extensive dataset on projects and contractors. At the same time, such tools often operate separately from RBC policies, while system-wide coordination of approaches to their integration and practical application in the recovery process remains limited.

With a view to addressing these shortcomings, it is proposed to launch a multi-stakeholder platform for consultations and organising the work process within the framework of the open government architecture. The platform will operate through a series of regular strategic sessions and thematic working groups involving public authorities, businesses, civil society organisations and experts, and will aim to develop a 'Code of Responsible Recovery' and practical checklists for business entities. The solution also provides for the development of recommendations for entities commissioning works under recovery projects, to ensure that the criteria established on the platform (human rights, environmental aspects and anti-corruption policies) are taken into account when planning and implementing the relevant procedures. The proposed approach will make it possible to improve the predictability and quality of reconstruction by agreeing on the rules and criteria in advance and making them transparent to the public.

The expected outcomes of these measures are:

a sustainable framework for open dialogue has been established. As part of this framework, criteria for RBC in relation to participation in reconstruction are being developed with the involvement of stakeholders, including civil society.

recommendations on the application of RBC principles in public procurement and recovery projects, as well as methodological guidance for public monitoring of the non-financial aspects of contractors' activities, have been developed. This will contribute to strengthening trust in the recovery management system, including among international partners.

transparency has been improved through the disclosure of non-financial information about companies (in particular, ESG indicators and compliance policies), and harmonised data standards have been developed that can be applied to participation in recovery projects on a voluntary or regulated basis;

mutual accountability tools have been introduced: public authorities report on the incorporation of agreed approaches into their recovery management practices, while businesses report on their compliance with RBC standards through due diligence procedures relating to corporate sustainability. The public verifies the information and provides feedback, helping to strengthen contractors' accountability for minimising negative social and environmental impacts and respecting the rights of residents of territorial local communities during project implementation.

Milestones Table:

Steps:
1. Launch of a multi-stakeholder dialogue platform and development of a roadmap for its operation
Responsible agency: Ministry of Economy and Environment, Ministry of Communities and Territories Development, Ministry of Justice, National Agency on Corruption Prevention, other relevant executive authorities
Completion time/period: June - September 2026
Partners: United Nations Development Programme in Ukraine (subject to consent), other international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent), Yaroslav Mudryi National Law University (subject to consent), local self-government bodies (subject to consent), NGO Social Action Centre (subject to consent), other civil society organisations (subject to consent)
Delivery indication: At least three multi-stakeholder meetings have been held, and the working arrangements of the multi-stakeholder dialogue platform have been agreed; thematic sub-groups have been set up, focusing on human rights, environmental issues, corruption prevention and other relevant areas; priority areas for the implementation of RBC standards have been identified; a roadmap for the operation of the multi-stakeholder dialogue platform has been drawn up.

2. Preparation and publication of guidelines on responsible business conduct during the recovery process
Responsible agency: Ministry of Economy and Environment, Ministry of Communities and Territories Development, Ministry of Justice, National Agency on Corruption Prevention, other relevant executive authorities
Completion time/period: September - December 2026
Partners: business associations (subject to consent), local self-government bodies (subject to consent), civil society organisations (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent)
Delivery indication: The draft guidelines have been developed based on input from the sub-groups and set out practical criteria and indicators for integrity and responsible business conduct; the draft guidelines have been released for public consultation; the finalised version of the guidelines has been presented and recommended for use.

3. Organisation of training on the application of the guidelines at the national and local levels
Responsible agency: Ministry of Economy and Environment, National Agency of Ukraine on Civil Service
Completion time/period: January - December 2027
Partners: civil society organisations (subject to consent), local self-government bodies (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent)
Delivery indication: A training course/module has been developed; training sessions on the practical application of the guidelines have been held for contracting authorities, including territorial hromadas, and businesses.

4. Organisation of pilot implementation of the guidelines in selected recovery projects and report on the results of the multi-stakeholder dialogue platform's work
Responsible agency: Ministry of Economy and Environment, Ministry of Communities and Territories Development, Agency for Recovery
Completion time/period: January - December 2027
Partners: civil society organisations (subject to consent), local self-government bodies (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent)
Delivery indication: The guidelines have been piloted in selected recovery projects; a public assessment (shadow report) has been carried out; a report on the results of the multi-stakeholder dialogue platform has been published.