The purpose of this paper is to emphasize the importance of creating and implementing
sustainable business practices in terms of environmental, social and ethical responsibility in daily
management of the activity. The commitment to company sustainability has become an essential
priority for businesses aiming to balance economic growth for all stakeholders with environmental
and social responsibility in line with the global regulatory framework. While industries have
expanded their awareness to include potential regulatory pressures, as well as social and
consumer demand for their ethical behavior, the inclusion of sustainability into business models
has become necessary also in Albania. The study indicates that investing in sustainable projects
requires fostering more in the sustainability policies from the regulatory bodies in line with the EU
policy framework, as Albania adheres to be part of the Union. In addition, the paper suggests that
building sustainable business practices may require additional financing that might be obtained in
the financial market. The paper features a comparison of the variety of lending options in green
projects in terms of financial instruments, limited profitable financial instruments and limited
awareness of and policy framework in the Albanian market. Secondary quantitative analysis was
done using official data taken from Banks annual reports operating in the Albanian market and
official websites of international organization and EU. Results from the analysis conducted
suggest that companies who implement sustainability practices (i.e. resource efficiency, waste
minimization, and ethical supply chains) will have a comparative advantage, not only from a cost
savings perspective, but from brand reputation as well. The businesses that succeed in
harmonizing objectives that align with societal existential goals and parameters of change for
sustainable development, such as UN SDGS for Sustainable Development (SDGS), are best
positioned to thrive and sustain in an evolving business landscape. Moving to sustainable business
practices requires strategic initiatives such as investments and financing in environmentally
friendly technologies, circular economic models and CSR activities that might require additional
financing from financial institutions. In the Albanian market there are possible ways of financing
the green projects, although limited variety. Businesses also need to foster a culture of
sustainability by encouraging employees, stakeholders, and consumers to embrace
environmentally friendly and socially responsible behaviors. Sustainable business practices not
only facilitate the global ecological and social sustainability agenda but are essential for business
resiliency in a more conscious economic environment.
Value: As per recommendation of the above-mentioned analysis, Albania has started the
implementation of sustainability regulations in line with the EU regulatory framework. In terms of
access to green financing, the policymakers need to put more pressure on the financial institutions
on increasing the range of green financing with favorable terms and conditions as there are limited
options in the market so that the entities can see them as favorable.
Keywords: Sustainable business practices, green financing, challenges of green financing,
Albanian policy area.