Russia-Ukraine War: Impact on Sustainability

War In Ukraine

While it was hoped that a situation like this would never occur, on February 24th Russia initiated a full-scale attack on the neighboring region of Ukraine, leading to horrific tragedies for the whole world to see. As a response to this tragic development, the EU and other Western organizations have imposed strict sanctions against Russia, while others across the globe have been coming together in support of Ukraine. We’ve also seen a shift in company response to the tragedy as well, as many companies are voluntarily ending their operations in Russia to help enforce the sanctions. 

Despite the horrific environmental and social tragedies as a result of the war, there may be light at the end of the tunnel for Ukraine and for the world watching.

Environmental and Social Catastrophes

A letter was issued to the Environmental Peacebuilding Association on March 3rd to express solidarity with Ukraine as a result of the environmental and humanitarian toll of the war. The letter highlights that the attacks on citizens and military bases are causing air, ground, and water pollution as well as shortened food security for people in Ukraine and the other countries that rely on its wheat and corn exports. The most troubling environmental concern, however, was the damage it would cause to energy or industrial facilities. Specifically with the targeting of some nuclear sites, such as Chernobyl, running of risk of nuclear contamination. There’s also the issue of future climate policy, which is now overshadowed by the resulting war. 

However, some are more optimistic about what this could mean for the future of sustainability. Since Russia supplies 40 percent of the European Union’s natural gas, some predict that European nations may begin to move away from Russia-supplied oil and gas, which potentially means dramatically reducing the use of fossil fuels in our everyday lives. As companies and countries divest from Russia, ethical consumption may become financially material as there will be a significant reputational risk for companies sourcing Russian goods.

Future of Sustainability

The future of sustainability is uncertain at the current moment, but this war does highlight one thing: the importance of sustainability. As long as we hold on to the unsustainable practices of the past, and resources become further depleted over time, the hope we hold for the future may never come to fruition. Companies in the private sector are becoming more aware of the risks involved with pursuing more unsustainable methods of production, and as such it’s important for any investor to take note of recent developments and apply that to their own portfolio.

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