IMPLEMENTATION OF ESG PRINCIPLES AS AN OPPORTUNITY TO INCREASE THE INVESTMENT ATTRACTIVENESS OF THE COMPANY

Abstract

The need to introduce ecological, social and managerial aspects into the corporate and social culture of the enterprise is argued. New regulatory requirements, investors' rethinking of new criteria for choosing potential sources of financing, push managers to implement ESG principles in business strategy and all business processes. During the analysis of a potential project for investment, attention is paid not only to the possible amount of profit, but also the social component of the business is carefully studied. The views of investors on the issues of sustainable development and the need to disclose information in non-financial reporting are considered. Currently, in Ukraine, in the context of the implementation of the EU Directive on Corporate Reporting on Sustainable Development (CSRD), primarily banking institutions, insurance companies, as well as enterprises of public interest with more than 500 employees, and others are required to publish a non-financial report enterprises subject to the established criteria. The main obstacles and problematic aspects of ESG implementation are identified. It has been proven that an important part of the research is the comparative analysis of ESG and CSR. The article analyzes the differences between ESG risks and Business risks. The article also pays attention to strategic problems depending on industry specifics. Depending on the type of activity, significant attention is paid to certain topics that have the greatest impact on the company or potentially constitute an ESG risk. The authors emphasize that for the social aspect of financial institutions, attention should be paid to data security, because leaks of customer data can harm a significant part of society. In the context of management, an example of a strategic priority is corporate ethics to prevent conflicts of interest, corruption and other forms of misconduct. Considering ESG in the context of global economic trends allows us to conclude that the implementation of such approaches not only increases the reputation of companies, but also becomes a necessity for maintaining their competitiveness on the international market.