Photo: seenext.org
Corporate ESG practices in Bulgaria are evolving, as simplified EU regulations bring both new opportunities and increased pressure for companies to show tangible results, especially in the often-overlooked social and governance (S&G) areas, which have historically lagged behind the environmental pillar.
SeeNext’s latest study – ESG and Sustainability in Bulgaria: Walking the Talk on S&G Impact – provides a comprehensive analysis of social and governance best practices and how Bulgarian businesses are adapting to the EU’s 2025 Omnibus package, highlighting key trends, challenges, and incentives shaping ESG performance in the country.
Key Insights:
- Shifting Regulatory Landscape – The EU’s 2025 Omnibus package limits CSRD reporting to companies with over 1,000 employees, cutting the number of affected firms by an estimated 80% and reducing administrative burdens by around 25%. Disclosure deadlines are extended by two years for those not yet required to report, while SMEs can now report voluntarily. Sector-specific ESRS standards have been removed.
- Significant but Uneven Progress in S&G – While banks and public companies lead in ESG reporting, many firms still fall short, particularly in areas like human rights and anti-corruption, which are implicitly deemed compliant. Some progress is evident in areas such as employee well-being, inclusion, and gender diversity, with Bulgaria exceeding the EU average in female leadership.
- Workforce and community – Community investments are common, focusing on infrastructure, education, and digital skills. Despite low national rates of lifelong learning, over 40% of firms offer technical training.
- Incentives and Challenges – Businesses face hurdles including limited resources, regulatory uncertainty, and the risk of superficial compliance and social washing. However, a mix of financial, regulatory, and reputational incentives is encouraging more companies to adopt responsible practices and invest in workforce skills and community development.