Uzbekistan is pushing ahead with a sweeping overhaul of financial reporting across its state-owned enterprises (SOEs), as part of a wider campaign to improve transparency, attract investment, and modernize corporate governance.

Under reforms mandated by Presidential Decree No. 4611, a growing number of major enterprises are now required to produce financial statements in line with International Financial Reporting Standards (IFRS). The first wave of compliance, launched in 2021, is beginning to bear fruit, with government officials hailing early successes and promising full adoption across all largest SOEs by the end of 2025.

A recent seminar in Tashkent brought together finance leaders from SOEs, international audit firms, and regulators to share progress and lessons learned. Officials from the Ministry of Economy and Finance noted that 20 major state enterprises are on track to submit IFRS-compliant reports by the end of this year.

Among the most recent adopters is Navoiyuran, the state uranium producer, which has already published two consecutive years of IFRS financials. The company received an unqualified audit opinion from Deloitte, marking a significant milestone. Its statements included fair-value assessments of key assets – an essential step for the company’s ambitions to secure a credit rating from Fitch. As a result, on 13 June Fitch Ratings has published State Enterprise Navoiyuran’s Long-Term Issuer Default Rating (IDR) of ‘BB-‘ with a Stable Outlook. The Standalone Credit Profile (SCP) is ‘BB-‘.

“This is not just about ticking boxes,” said Bobur Abdinazarov, Chairman of UzAssets. “It’s about laying the foundations for greater accountability, market confidence, and eventual investment.”

The IFRS push is part of a broader reform agenda backed by the Asian Development Bank and the European Bank for Reconstruction and Development. Alongside new accounting standards, SOEs are being required to implement governance frameworks covering anti-corruption measures, internal audits, and whistleblowing protections.

The Ministry of Economy and Finance has translated and endorsed more than 60 IFRS documents into Uzbek, while working with the Big Four accounting firms to train finance teams and build capacity. Auditors have been deployed to guide first-time adoption and ensure quality control during the transition period.

In the mining sector, beyond uranium, companies such as Navoi Mining and Metallurgical Complex (NMMC) and Almalyk Mining and Metallurgical Complex (AMMC) have already institutionalized IFRS reporting, with their financial statements audited by Big Four firms for several consecutive years. With a strategic role in Uzbekistan’s gold, copper metals output, NMMC and AMMC is seen as a bellwether for sector-wide financial reform. Greater transparency is a prerequisite for foreign investor interest in the country’s vast mineral reserves.

Uzbekneftegaz, the largest company in the country’s oil and gas sector, adopted IFRS in 2018. Its financial statements for the year ended 2024 were issued in April 2025, setting a new benchmark for accelerated financial reporting among SOEs. This marked a significant improvement, as the company had historically released its audited financial statements in July. Other key sector players, including Uztransgaz and Hududgazta’minot, also report under IFRS. However, significant delays persist in their period-end closing and issuance of audited IFRS financial statements, which limit the flexibility for those companies to have efficient communication with investors. The reforms are seen as critical to attracting capital for infrastructure upgrades and gas export expansion.

In manufacturing, the state has earmarked enterprises in textiles, chemicals, and automotive production for IFRS alignment. Firms such as UzAuto Motors, a key employer and export contributor, have been issuing IFRS-based financials for several years as part of broader engagement with capital markets and preparation for future privatisation initiatives.

The energy sector, which comprises strategic and infrastructure-related assets is undergoing a fundamental transformation. Following the unbundling of Uzbekenergo in 2019, the sector was restructured into separate entities for generation (Thermal Power Plants JSC), transmission (National Electric Grid of Uzbekistan JSC), and distribution (Regional Electric Networks JSC). These entities have been publishing IFRS-compliant financial statements for several years and are actively preparing for partial privatization as part of Uzbekistan’s broader energy sector reform agenda.

The transport and logistics sector, particularly Uzbekistan Railways and the national airline Uzbekistan Airways, is also part of the IFRS drive. IFRS-based reporting has already become standard practice for Uzbekistan Airways, positioning the company among SOEs in terms of financial transparency. Uzbekistan Railways, after undergoing diagnostic assessments and internal restructuring, is set to publish its first IFRS-adopted financial statements by the end of 2025. These efforts aim to enhance transparency, financial accountability, and investment attractiveness across one of the country’s most capital-intensive sectors.

Yet challenges remain. Some enterprises are struggling to find qualified personnel, and the rollout of modern internal controls has been uneven. In many cases, there are still significant delays in the preparation and issuance of audited financial statements. To support transparency, improve oversight, and build investor confidence – particularly in the context of upcoming privatizations – a fast financial close process and full transition to IFRS are essential. Observers caution that sustained political will – and continued investment in governance systems – will be crucial to meeting the 2025 deadline.

Still, the government insists it is on track. “We are building a culture of financial discipline,” continues Mr Abdinazarov. “And that starts with telling the truth on the balance sheet.”

As Uzbekistan’s state sector prepares for potential privatisations and greater engagement with international markets, the ability to produce credible, transparent financial data could prove critical. With the 2025 deadline looming, all eyes will be on whether this ambitious shift from former government secrecy to global accounting standards can hold.

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Their principles – integrity, fairness, stewardship and accountability – would not be out of place in any modern ESG policy. But theirs was not a response to regulatory pressure. It was a matter of conscience.

Quakers were excluded from many professions due to their refusal to swear oaths, bear arms or conform to the established church. In response, many turned to trade, where their reputation for honesty became a competitive advantage. But more than that, they saw business itself as a moral endeavour – a way to serve society while making a living.

The most visible legacy of Quaker commerce lies in chocolate. Firms such as Cadbury, Fry’s and Rowntree became household names not just because of their products but because of how they treated people. Cadbury’s Bournville estate, built for factory workers near Birmingham, offered decent housing, schools, healthcare and green spaces – a deliberate rejection of the slums that surrounded most industrial sites. Joseph Rowntree went further, establishing charitable trusts to tackle the root causes of poverty. These were not philanthropic add-ons; they were integral to the business model.

Other Quaker-founded firms took a similarly progressive approach. Clarks Shoes, established in Somerset, offered fair pay, safe working conditions and resisted child labour – at a time when such practices were rife. Huntley & Palmers, the biscuit makers of Reading, built a company town with employee education and welfare baked into its structure. Even the world of finance was not immune: the early incarnations of Barclays and Lloyds banks were shaped by Quaker principles of prudence and trust, serving communities before shareholders.

What these firms shared was an instinctive sense of what is now described in ESG terms. Environmental concerns were framed as stewardship – a duty to care for the land and use resources responsibly. Social impact was felt in the way workers were housed, fed and educated. Governance was often collective and transparent, rooted in the Quaker tradition of decision-making by consensus. None of this was encoded in formal policies. It was lived practice, sustained by a belief that business could be a force for good.

Today’s ESG frameworks are more structured and more scrutinised. Investors demand disclosure. Regulators demand compliance. Critics question authenticity. Yet the challenges remain remarkably similar: how to make profit without exploiting people or planet; how to lead with integrity in the face of pressure to grow; how to balance short-term results with long-term consequences.

The Quaker experience offers both inspiration and caution. These were not perfect companies. Some, like Barclays, grew beyond their roots and left their founding values behind. Others were absorbed into larger conglomerates where social purpose became harder to sustain. But their legacy matters. They demonstrate that ethical business is not a new idea, nor a fringe concern. It has deep roots in British commercial history – and it worked.

In an age where ESG is often treated as either a marketing exercise or a compliance burden, the Quaker tradition offers something more radical: a vision of business as a moral enterprise, judged not just by how much it makes, but how it behaves.

If you’d like to learn more about ESG, there are lots of resources on the ESG Foundation’s website to explore:

Keeping Current: https://esgfoundation.org/keeping-current

The ESG Podcast: https://esgfoundation.org/esg-podcast

ESG Reports Showcase: https://esgfoundation.org/reports-showcase

The ESG Reporting App: https://reportingapp.esgfoundation.org/login/?redirect_to=https%3A%2F%2Freportingapp.esgfoundation.org%2F

(Image credit:Pexels.com)

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This future voluntary reporting standard for SMEs with less than 1,000 employees will also act as a “value-chain cap” to protect SMEs and other companies not subject to mandatory reporting under the CSRD from excessive information requests from their value chain partners: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1843

The voluntary standard for SMEs (VSME) was developed by EFRAG, the Commission’s technical advisory body for sustainability reporting.

The Commission encourages large companies and financial institutions that seek sustainability information from SMEs to base their requests on the voluntary standard as far as possible. SMEs may also wish to voluntarily report sustainability information to improve their access to sustainable finance and better understand and monitor their own sustainability performance, thereby improving their resilience and competitiveness.

For companies with up to 1,000 employees, the Commission proposed a voluntary reporting standard which will be adopted by the Commission, based on the recommendation which has now been adopted. Available here: https://www.efrag.org/sites/default/files/sites/webpublishing/SiteAssets/VSME%20Standard.pdf

The ESG Foundation’s ESG Reporting App for small businesses has been developed to help SME business owners and entrepreneurs embed ESG into their business plans. The ESG Reporting App is free. If some of the questions are not applicable that’s fine. The Foundation’s purpose is to encourage you to think about how ESG principles can make your world better: https://reportingapp.esgfoundation.org/login/?redirect_to=https%3A%2F%2Freportingapp.esgfoundation.org%2F

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The Global ESG Landscape: A Mixed Picture

Companies Scaling Back on ESG Efforts

1. Disney
   Under political pressure in the U.S., particularly around social and governance issues, Disney has reassessed its ESG positioning. Environmental targets remain, but reductions in social commitments raise questions around corporate governance, risk disclosures, and stakeholder reporting. For accountants, this presents a case study in how non-financial risks can affect company value, especially as regulators look more closely at how companies define and disclose material ESG risks.
2. ExxonMobil
   As energy prices soared in 2023, ExxonMobil and other oil majors were rumoured to be easing their ESG ambitions. This shift can alter how accountants assess provisions, asset impairments, and long-term liabilities linked to environmental risks—key knowledge areas in corporate reporting and audit. Investment analysts and pension trustees may adjust risk weightings and stress tests accordingly, directly influencing asset allocations.
3. BlackRock
   The world’s largest asset manager continues to champion ESG principles but has adopted a more cautious tone amid U.S. political pushback, including from Donald Trump and Republican state treasurers. Accountants working in or with asset management must be alert to how changing ESG strategies influence fund allocation models, risk reporting, and performance metrics—especially for clients with fiduciary duties like pension funds. Additionally, the increased politicisation of ESG means that accountants must be prepared to assess reputational risk alongside financial disclosures.

Companies Strengthening Their ESG Commitments

1. Patagonia
   Still a gold standard for sustainability, Patagonia’s ESG transparency sets an example for ethical sourcing and climate accountability. For students and trainees focusing on sustainability assurance or integrated reporting, Patagonia exemplifies how ESG narratives can translate into brand value and investor confidence. As reporting frameworks demand more detailed, audit-ready disclosures, such companies help set the benchmark for what good looks like.
2. Unilever
   Unilever’s “Climate Transition Action Plan” reflects a serious commitment to ESG integration. For accountants, this links directly to the increased adoption of climate-related financial disclosures (TCFD), scenario planning, and ESG-related KPIs. For those entering advisory, audit, or risk management roles, understanding how to evaluate the credibility and financial impact of such plans will be an essential skill.
3. Microsoft and SAP
   These tech giants have pledged to be carbon negative by 2030. Their proactive approach to ESG enhances investor trust and ensures early compliance with emerging global standards such as the EU CSRD and IFRS S2. Accountancy professionals involved in financial planning, audit, or reporting will increasingly need to assess and validate carbon data and transition plans as part of due diligence and assurance processes.

The Rising Tide of ESG Reporting

In 2023, ESG reporting surged significantly, driven by:

• The EU Corporate Sustainability Reporting Directive (CSRD), requiring large and listed companies to provide detailed, audited ESG data
• The SEC’s proposed climate disclosure rules in the U.S., aimed at mandating climate risk disclosures in financial statements
• The launch of the IFRS Sustainability Disclosure Standards (IFRS S1 and S2), bringing consistency and comparability to ESG reporting globally

For accounting professionals, this marks a structural change in the reporting environment. Sustainability disclosures are now entering the realm of statutory reporting, moving from voluntary to mandatory across many jurisdictions. Part-qualified accountants must be ready to understand and apply these standards, particularly in relation to materiality, double materiality, and assurance over ESG metrics.

Looking ahead to 2025, ESG reports will become more detailed, auditable, and aligned with international standards. This is already influencing how pension funds assess long-term investment risk and how companies are benchmarked in financial models. ESG literacy will soon be a minimum requirement for roles in audit, corporate finance, financial planning, and consultancy.

Key Takeaways for Part-Qualified Accountants and Students

• Be ESG-literate: Understanding how ESG affects financial reporting, audit, investment decisions, and stakeholder communication is becoming essential.
• Know the frameworks: CSRD, IFRS S1/S2, TCFD, and GRI are no longer niche – they are core to reporting, both now and in the future.
• Understand investment relevance: ESG risks can materially impact valuations, cost of capital, and pension fund asset allocations.
• Think career-wise: Whether you’re heading into audit, corporate reporting, financial advisory, or risk, ESG competence will enhance your employability and strategic value.
• Sharpen ethical judgement: ESG data is still subject to interpretation. Professional scepticism, a cornerstone of accountancy ethics, is critical in evaluating narrative and numerical disclosures.

Conclusion: ESG Isn’t Optional – It’s Evolving

Despite political resistance, including from figures like Donald Trump, ESG principles are being embedded into global regulatory frameworks and investor expectations. For accountants – especially those in training – this represents an opportunity as much as a challenge. The profession is being called upon to uphold transparency, ensure accountability, and provide insight into how companies are responding to environmental and social change.

For those entering the workforce now, ESG awareness isn’t just a box to tick – it’s a cornerstone of future-proof finance careers. Whether you’re preparing for your next exam or stepping into the profession, make ESG part of your toolkit.

You can subscribe to PQ magazine for free. Here’s a link to this month’s issue: https://issuu.com/pqpublishing/docs/pq_magazine_august_2025

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Surely that’s great, isn’t? Well, not really.

In this morning’s ‘Deloitte Monday Briefing’ they’ve taken a look at UK graduates’ prospects:  “We start with three facts about UK higher education. UK graduates earn far more than non-graduates over their lifetime, are more likely to be in work and are far more likely to work later in life.

“How, then, can we explain newspaper stories about graduates earning less than they would have done had they not gone to university, being unable to find work and doing jobs that don’t require a degree?

“Here’s our view on what’s happening.

“Graduates do, indeed, earn more than non-graduates on average. A 2020 study by the Institute for Fiscal Studies (IFS) found that after allowing for previous educational attainment and the cost of a degree, the average male or female earns about 20% more over their lifetime as a result of having a degree.

“That generalisation hides some important caveats. Earnings vary, especially by degree subject. The IFS estimates that over their lifetime, male graduates in creative arts will be £169,000 worse off than had they not gone to university. At the other end of the spectrum male medical students achieve a return of over £1 million.

“Where you go to university matters. The last 50 years has seen a tripling, to 147 institutions, in the number of accredited UK universities. Male graduates of the 34 Russell group universities earn, over their lifetime, more than seven times as much as the least selective universities.

“The class of degree plays a role, too. The IFS, for instance, estimates that in law and in economics, a graduate with a 2:1 degree earns 15% more than someone graduating with a 2:2.

“On average, graduates earn more than those who don’t go to university, but the IFS also found that roughly one in five graduates will see a negative return from going to university.

“Whatever the uplift to earnings from having a degree, it seems to have narrowed. A number of studies suggest that the graduate premium – or the excess income earned by a graduate over their lifetime – is shrinking. Data from the Department for Education (DfE) shows that for graduates aged 21–30 the premium over non-graduate pay fell by one-third between 2007 and 2024. (Even more alarmingly, the data shows that real median graduate pay for the 21–30 age group dropped by 9% over this period.)

“One obvious explanation for the waning of the graduate premium is an increase in the number of people with degrees. In 1950, just 3.4% of 17–30-year-olds went to university in the UK. By the year 2000, the proportion had risen to 33%. Today about half attend university.

“Competition for graduate jobs has sharpened, with data showing consistently weaker growth in graduate job vacancies than for the overall job market since 2021. The Institute of Student Employers reported that last year businesses received an average of 140 applications per graduate position, the highest since records began in 1991.

“A sharply increased supply of graduates has coincided with a squeeze on graduate pay in the public sector and with sharp, real terms increases in the minimum wage. The inevitable result has been a narrowing of the graduate premium.

“If this weren’t complex enough, we need to acknowledge a risk of relying on averages when looking at the graduate premium. If, as seems to be the case, more recent graduates earn less than their predecessors, averages, based on earlier cohorts of graduates, provide a flawed picture of what a degree is worth today.

“So what conclusions can we draw? The uplift to having a degree is significant, subject- and institution-dependent, and appears to have narrowed. Graduates are more likely to be in work than those who didn’t go to university, but competition for jobs has intensified and more graduates are doing jobs that do not require a degree. Whether these trends are temporary is hotly debated.

“It would help to have better information. We don’t have high quality, timely data on the uplift to earnings and job prospects conferred by a degree (as distinct from pre-18 educational attainment and potential) by subject and by institution. Given that half of young people go to university, this seems like a gap. We end with a perhaps obvious caveat. This briefing has been about income and jobs. Important though they are, they provide a very incomplete measure of the value of a university education to the individual or to society.”

To subscribe and/or view previous editions just google ‘Deloitte Monday Briefing’.

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