Modern realities of compliance with ESG principles in the activities of corporations

Abstract

Compliance with ESG principles is the modern narrative in the activity of domestic corporations, despite the destructive influence of Russian military aggression. Compliance with ESG principles, which in line with the goals of sustainable development, is a factor in reducing risks, building reputation, and making quality investment decisions. The article emphasizes that the compliance with ESG principles in the activities of corporations under martial law contributes to solving the tasks of environmental programs, nature conservation projects, ensuring the safety of production, and combating climate risks and the consequences of ecocide caused by the aggression of the Russian Federation on the territory of Ukraine. The war in Ukraine accelerated the “green transition” to reduce the specific weight of Russian energy imports. Compliance with ESG principles encourages Ukrainian corporations to modernize existing production from the point of view of environmental impact, despite the long-term military aggression of the Russian Federation. At the same time, corporations complying with the ESG principles in their activities implement social protection of employees, ensuring their well-being. Thus, under martial law, the probationary period for employment was abolished, especially for internally displaced persons. With martial law, the length of working time and rest time also changed. The socially responsible vector of enterprise development, as a component of compliance with the ESG principles, is now becoming the main long-term investment strategy. Management standards of ESG principles, such as anti-corruption measures, tax transparency, and undisguised decision-making methods of the board of directors, are gaining special importance in domestic realities. In general, compliance with ESG principles in the activities of corporations is the basis for obtaining several advantages, especially under martial law, when, despite the war, the main requirements of investors are focused on this aspect, along with the process of ensuring stable economic growth.