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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The appeal of private aviation is clear. It offers time-pressed executives, celebrities and the ultra-wealthy the flexibility to travel on their own schedule, avoid crowded airports and maintain privacy. But this convenience comes at a staggering environmental price. Each hour in the air can emit up to two tonnes of carbon dioxide, meaning a single transatlantic trip may generate more emissions than the average person in the EU produces in an entire year (“CO2 emissions from private jets.” European Federation for Transport and Environment AISBL, 2021).

In the context of ESG thinking, this poses a reputational and  ethical problem for individuals and organisations alike. Companies committed to reducing their carbon footprint cannot credibly champion net zero strategies while continuing to rely on private jets for corporate travel. This hypocrisy risks undermining stakeholder trust and negating the gains made through other sustainability initiatives.

At your next AGM of a publicly listed company ask how many private jet flights any of their employees took.

The ESG Foundation has previously highlighted how innovation can help address environmental challenges in Bright Ideas: Advancements in Solar Energy, pointing to the need for rapid adoption of cleaner technologies. In the aviation sector, while experimental electric aircraft and sustainable aviation fuels show promise, these are not yet viable at scale. Until such alternatives become widespread, the only genuinely sustainable choice is to reduce private jet use drastically.

There is also an equity dimension to consider. In Greening the Screen: Tackling ESG Challenges in the UK Film and TV Industry, the Foundation explored how industries can take responsibility for their environmental impact. Private jet travel stands out as a luxury accessible to a tiny fraction of the global population, yet it disproportionately contributes to the climate crisis that affects everyone. Continuing to normalise such travel deepens the perception that climate responsibility is optional for the wealthy.

Approximately 40 million commercial flights take off worldwide each year, private jets accounting for around 1 million flights annually globally – roughly 2.5% of commercial flight volume. Yet, private jets produce up to 14 times more CO₂ per passenger than commercial flights (Transport & Environment, 2021).

Alternatives exist. High-speed rail in Europe offers a comfortable and significantly lower-carbon option for journeys of under 1,000 kilometres. For longer trips, scheduled commercial flights, especially those using newer, more fuel-efficient aircraft, dramatically reduce per-passenger emissions. Advances in virtual conferencing also allow many business meetings to take place without travel at all.

If ESG principles mean anything, they require consistency. It is time for organisations and individuals who claim to prioritise environmental stewardship to make a clear choice: either embrace lower-carbon modes of travel or admit that convenience outweighs commitment. The climate emergency leaves no room for half-measures. As the ESG Foundation continues to document, the solutions are within reach – but are you willing to take them?

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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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Recent technical innovations are boosting the efficiency and adaptability of solar panel technology. Bifacial solar panels capture sunlight from both sides, increasing efficiency and energy production by up to 30%. Tandem solar cells made by layering two or more photovoltaic materials on top of each other allow for the absorption of sunlight and power generation from a broader range of the solar spectrum. Panels with a combination of traditional silicone and perovskite, a calcium titanium oxide mineral with a unique crystalline structure, have achieved efficiencies 30% greater than standard silicone solar panels. Experimental all perovskite tandem panels are achieving even greater efficiencies with the potential to provide 80% more electricity than traditional panels of the same size.

The most dramatic boost in solar panel efficiency may be found in ferroelectric solar panels. Bold claims about this technology, currently in development for commercial application, suggest the potential of 1000 times the efficiency of traditional solar generation and may offer the advantages of simpler manufacturing and greater durability.

Technical advancements in materials such as copper indium gallium selenide (CIGS) and cadmium telluride (CdTe) have enabled the production of lightweight and flexible solar panels films. These can be installed in novel ways including integration into building facades. Solar power films are also being integrated into glass balconies guards and transparent windows, opening up more applications for solar technology in commercial settings. Research continues into new high-performance solar absorber materials, stretchable solar cells, and organic photovoltaics (OPV) that use less environmentally impactful carbon-based materials.

Beyond material science developments, AI technology is influencing the solar energy industry. Artificial intelligence is being used to optimize solar energy production, energy storage, and power consumption in real-time. AI systems monitor weather patterns, energy needs and grid demand to maximize efficiencies and minimize energy costs for businesses.

Solar is also benefitting from shifting governmental polices and reinforced commitments to sustainable energy targets. The UK government has set a legally binding target to reach net zero greenhouse gas emissions by 2050 and has acted to achieve this goal by supporting solar power. In late 2023, the requirement for planning permissions for commercial rooftop solar installations greater than one megawatt was eliminated and, as part of its clean energy target, the UK government has set the aim of delivering 95% of Britain’s electricity from low-carbon power sources by 2030. In May 2025, the government announced that it has relaunched the Solar Taskforce, a joint government and industry body, which will publish a roadmap to more than double the installed solar capacity in the UK by 2030 in support of the Clean Power Action Plan. Further, in June 2025, UK Energy Secretary Ed Miliband announced that the “vast majority” of new homes built in the UK will be required to have solar panels. Although solar is not mandated for commercial buildings, it is strongly encouraged. The momentum behind these plans is likely to pave the way for greater access to solar installations with simplified approvals and reduced administrative costs.

The benefits of solar installations also align directly with the ESG priorities of many corporations. By reducing reliance on fossil fuels, companies reduce their Scope 2 carbon emissions, a significant metric in ESG reporting. Further, implementation of on-site power generation using solar shows foresight in risk management and compliance with continually evolving environmental regulations. As the UK requires climate-related disclosures for large businesses, solar adoption is a measurable and reportable initiative that demonstrates corporate accountability and sustainability achievement.

As solar technology advances and supportive policies expand, solar energy is shifting from a sustainability trend to a practical business solution in the UK. By embracing solar power, companies can not only reduce their energy costs and GHG emissions, but also strengthen their ESG narratives, demonstrating their leadership in a changing energy landscape.

Additional Information

UK Clean Power 2030 Action Plan
https://www.gov.uk/government/publications/clean-power-2030-action-pla

History of Solar Panels
https://www.smithsonianmag.com/sponsored/brief-history-solar-panels-180972006/#:~:text=It%20all%20began%20with%20Edmond,to%20light%20or%20radiant%20energy.

Perovskite Solar Cells
https://www.energy.gov/eere/solar/perovskite-solar-cells

Ferroelectric Solar Cells
https://www.german-energy-solutions.de/GES/Redaktion/EN/News/2021/20210804-ferroelectric-solar-cells.html

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