FROM ESG FRAMEWORKS TO RESPONSIBLE INVESTMENT: FINANCIAL MATERIALITY IN THE REPUBLIC OF MOLDOVA THROUGH THE LENS OF EU EXPERIENCE

Abstract

Аbstrаct: This article examines the development of responsible investment in the Republic of Moldova through the lens of European Union experience and the increasing relevance of ESG-related financial materiality. The study starts from the premise that responsible investment should not be interpreted only as an ethical or reputational concept, but as a financial and institutional mechanism that integrates environmental, social and governance factors into enterprise value assessment, risk management, capital allocation and long-term sustainability. Particular attention is given to Moldovan manufacturing enterprises, which operate in a small, open economy exposed to external regulatory, financial and trade requirements. The research analyses the influence of international ESG frameworks, the principles for responsible investment and related sustainable finance initiatives. Although Moldovan enterprises are not always directly subject to these frameworks, the study shows that they may experience indirect pressure through value chains, banks, foreign investors, export partners and European business relations. The article also compares Moldova’s current stage with Romania’s more advanced experience in responsible investment, green bonds, green lending, ESG reporting and climate risk monitoring. The findings indicate that responsible investment in Moldova remains at an emerging stage and is currently shaped more by institutional development than by mature market instruments. The most realistic short- and medium-term benefits for Moldovan manufacturing enterprises are associated with energy efficiency, risk reduction, improved governance, transparency, export readiness and better access to finance. The study concludes that Moldova should not mechanically copy advanced ESG markets, but should adapt responsible investment tools to its own economic structure, data limitations, banking-based financing model and enterprise capacity. The success of responsible investment will depend on the interaction between external institutional pressure and internal managerial capacity, especially the ability of enterprises to transform ESG principles into measurable financial, operational and governance practices.

Keywords: sustainable finance, manufacturing enterprises, green transition, risk management, enterprise resilience.