Frontier Markets Compliance with Global ESG Practice: Sample of Baltic Countries

The chapter is dedicated to a comprehensive analysis of the Baltic countries listed and private companies’ ESG (Environmental, Social, and Governance) implementation and disclosure level as well as the trends regarding the compliance with global ESG practices. In addition to considering ESG adoption patterns, the authors also examine the significance of key stakeholders through corporate mission statement analysis. Furthermore, the chapter investigates the external motivation for implementing sustainability practice and pressures exerted on companies by financial market players. The findings of the research discussed in the chapter indicate a paradigm shift in the Baltic countries over the past decade. This shift suggests that companies are increasingly inclined to align with global sustainability standards. This inclination is driven not only by external pressures coming from capital providers and regulations but also by internal factors such as genuine business-driven necessity. While the self-assessment disclosure score has not yet reached the optimal level, the trend certainly shows a positive development trajectory. Similarly, also the financiers and pension funds in the region show increased adoption trend. Short summary: This study analyzes ESG implementation and disclosure trends in Baltic corporations, highlighting the impact of stakeholder pressure, financial market influences, and the evolution of corporate mission statements toward sustainability in Estonia, Latvia, and Lithuania.