Harmonization of non-financial ESG reporting standards of Ukrainian companies with the requirements of international institutional investors

Abstract

The relevance of the study is determined by the growing requirements of international institutional investors for transparency and comparability of non-financial information, as well as the need to integrate Ukrainian companies into global financial markets. The fragmentation of national regulatory and methodological support for ESG reporting and its limited alignment with international standards reduce investment attractiveness and complicate the assessment of sustainability risks.

Purpose. The purpose of the study is to substantiate the theoretical and methodological foundations for harmonizing ESG reporting of Ukrainian companies in line with the requirements of international institutional investors.

Methods. The study applies methods of system analysis, generalization and systematization of scientific approaches, comparative analysis of international ESG reporting standards, as well as analytical methods to assess their implementation in the practice of Ukrainian companies.

Results. Modern approaches to ESG reporting have been investigated and their transformation towards standardization, quantification, and integration with financial reporting has been established. It has been revealed that international ESG standards form a complementary system of information disclosure, while their implementation in Ukraine remains uneven. It has been proven that effective harmonization is ensured through the integration of ESG indicators into management systems, digitalization of accounting processes, unification of metrics, and implementation of data verification procedures. Key problems have been identified, including fragmented regulation, underdeveloped data collection systems, the gap between non-financial and financial indicators, as well as limited competencies and motivation of businesses.

Conclusions. It has been proven that ESG reporting harmonization is a complex process requiring the combination of international standards with national institutional conditions and the transformation of internal management systems. It has been established that improving the quality and reliability of ESG data is a key prerequisite for increasing investor confidence and expanding access to financial resources.

Further research should focus on the development of quantitative models for evaluating ESG reporting effectiveness, integration of ESG factors into financial analysis and risk management, as well as the application of digital technologies for automating data collection and verification processes.