Development of theoretical and methodological approaches to organizing the process of creating ESG reports at enterprises

Abstract

The ESG concept (Environmental, Social, Governance) represents ecological, social, and governance indicators that play a crucial role in numerous sustainable development initiatives. The categorization into three spheres stems from the prevailing global consensus approach aimed at effectively realizing sustainable development. This approach is now referred to as ESG activity, emphasizing the pivotal role that enterprises play in addressing various existing challenges. A study of the level of information disclosure regarding the ESG activity of Ukrainian companies, conducted by The Corporate Governance Professional Association) and the Center for CSR Development Ukraine, showed that as of 2020, only about 20% of the companies they studied published reports that can be classified as ESG reporting , but the fact that in 2019 there were only about 10% of such companies is positive, that is, there is a trend towards an increase in the volume of this kind of reporting. It should be noted that the level of transparency of Ukrainian companies in matters of covering their ESG activity is extremely low. In part, such a weak level of involvement can be explained by the fact that Ukrainian companies generally ignore the processes related to the Sustainable Development Goals (SDGs) achievement - the formation of new approaches to the development of humanity based on a certain set of basic values: the fight against poverty, environmental sustainability, health care efforts, as well as the formation of a global partnership for the purpose of development. An important element of the company's ESG activity management system is communication with stakeholders, which is provided through ESG reporting. In general, ESG reporting is quantitative and qualitative information about a company's environmental, social and management efforts and results. ESG reporting has a number of specific features compared to traditional financial reporting. In particular, ESG-reporting can be mandatory or voluntary depending on the country and the company's field of activity, and the regulation of ESG-reporting, based on its specifics, is mostly supranational in nature.