Non-financial reporting in the industrial sector

Abstract

Non-financial reporting has become an important aspect of corporate reporting, especially in the industrial sector, providing enhanced information on the social, environmental and ethical aspects of a companyʼs activities. By promo­ting transparency and accountability, non-finan­cial reporting (NFR) can help companies mitigate negative environmental impacts and strengthen their overall sustainability efforts. The aim of the article is to review the regulatory framework and international practice of preparing non-financial reports by industrial enterprises, to identify the specific features of ESG reporting and to provide recommendations on the content of non-financial reports of industrial enterprises in Ukraine. The methods of theoretical generalization and grou­ping of information, induction, analysis, synthesis and logical generalization were applied. It was determined that the unification of regulatory and legal regulation in the field of NFR is an important issue for business entities, including industrial enterprises. Many international organi­zations ha­ve developed a set of their own regulations in the field of non-financial reporting, which reflect public attention to important issues and the actual practice of solving them by enterprises and organi­zations. Based on the international practice of non-financial reporting, the lack of universal approa­ches to the preparation of NFR was revealed. Companies should adapt to certain environmental conditions, take into acco­unt the specifics of their activities, organizational structure and strategic goals. The relevance and benefits of implementing ESG principles are determined. The article highlights the shortco­mings of information disclosure in the NFRs of Ukrainian industrial enterprises. An important result of the study is the provision of recommend­dations on the content of non-financial reports of industrial enterprises in Ukraine. Taking into account the experience of international companies will allow them to improve their approach to business, improve their NFR, and provide a comprehensive and transparent view of their ESG performance.