Honduras Advances Corporate ESG Transformation Through ILO and COHEP Partnership

In a major stride towards aligning corporate governance with international sustainability standards, the International Labour Organization (ILO), in collaboration with the Honduran Council of Private Enterprise (COHEP), has successfully supported several leading companies in Honduras in adopting and integrating Environmental, Social, and Governance (ESG) principles through the ILO’s global “Leader” programme.

The initiative marks a turning point in the private sector’s approach to sustainable development, responsible business practices, and stakeholder engagement. With strong institutional backing and the support of key sectoral associations, the programme has already delivered tangible results, including the development of risk and opportunity matrices, stakeholder maps, and Codes of Good Practice within multiple industries.

Pilot Companies Lead by Example

Three companies have been recognized as pioneers in the national ESG rollout:

• Ingenio Azucarero Choluteca (sugar industry)

• Banco Atlántida (banking)

• Corporación Petrolera Montecristo (COPEMSA) (energy sector)

With technical support from ILO experts, each company mapped ESG risks and opportunities specific to their operational environments and created stakeholder engagement frameworks. These tools are essential for building accountability, transparency, and long-term resilience in their respective sectors.

COHEP’s Strategic Pillars for ESG Integration

The transformation effort was steered by COHEP, Honduras’ apex private sector organization, with support from its affiliated members:

• Tegucigalpa Chamber of Commerce and Industry (CCIT)

• Honduran Sugar Producers Association (APAH)

• Honduran Association of Banking Institutions (AHIBA)

In consultation with the ILO, COHEP developed a seven-pillar strategy to guide Honduran enterprises through the ESG journey. Approved by COHEP’s Board of Directors, the strategy includes:

1. Leadership and Governance

2. Risk Management and Compliance

3. Stakeholder Engagement

4. Capacity Building and Awareness

5. Transparency and Communication

6. Sectoral Adaptation and Customization

7. Monitoring, Evaluation, and Reporting

A core component of this strategy is the creation of a Code of Good Practices, informed by successful case studies from:

• Grupo FICOHSA (banking)

• ENERSA (wind energy)

• SOLER (solar energy)

• FUNDAHRSE (CSR and responsible business conduct)

ILO Tools Adapted for the Honduran Context

The initiative drew upon the ILO Practical Guide for Business Organisations, originally developed by the ILO Bureau for Employers’ Activities (ACT/EMP) and the International Training Centre in Turin. The guide was localized to fit Honduras’ regulatory, economic, and cultural landscape, and became the backbone for capacity-building efforts in participating organizations.

“This collaboration reflects our commitment to equipping the Honduran private sector with tools to anticipate and manage ESG-related challenges,” said Armando Urtecho, Executive Director of COHEP. “We are preparing businesses to align with international expectations while remaining competitive.”

National Business Survey: ESG Awareness Growing, but Gaps Remain

As a baseline for action, COHEP and the ILO conducted a survey of 64 affiliated business organizations. The findings provided valuable insight:

• Most organizations are aware of ESG principles and eager to adopt them.

• Larger enterprises are ahead in integrating ESG criteria into their business models.

• Smaller firms face barriers such as lack of awareness, technical capacity, and perceived cost burdens.

The results underscored the urgent need for tailored support, especially for micro, small, and medium-sized enterprises (MSMEs), to ensure no business is left behind in the ESG transition.

Sector-Specific ESG Priorities Emerge

A subsequent business workshop on good ESG practices revealed that ESG concerns vary significantly across industries:

• Renewable energy firms prioritize environmental sustainability.

• Agribusinesses focus more on labor rights and social safeguards.

• Financial institutions emphasize governance and regulatory compliance.

This insight has guided the customization of training content and strategic recommendations, ensuring that ESG adoption is sector-sensitive and contextually appropriate.

Training of Trainers and the Path to Digital Learning

The ILO Leader programme culminated in the rollout of a pilot training course for businesses between February and March 2025, followed by a “Training of Trainers” (ToT) initiative involving APAH, AHIBA, and CCIT. These trainings validated the curriculum and built a core group of national ESG trainers, ready to expand the reach of the programme.

Building on this momentum, COHEP and the ILO are now preparing to digitize the course, making it accessible through a hybrid learning model:

• Self-paced online modules for flexibility

• Live synchronous sessions led by certified ESG trainers for deeper engagement

This approach is expected to scale ESG learning across Honduras, targeting both urban and rural enterprises.

Global Standards, Local Action: A Sustainable Future for Honduran Business

With global investors, regulators, and consumers increasingly demanding that businesses operate responsibly, ESG compliance is no longer optional. The ILO-COHEP initiative ensures that Honduran companies are not only ready to meet these expectations but also to lead the region in responsible corporate conduct.

By combining international expertise with local leadership, this collaboration demonstrates that transformative change is possible—even in complex business environments—when the private sector steps forward with vision and accountability.