FORMATION OF A SUSTAINABLE DEVELOPMENT STRATEGY TO STRENGTHEN THE COMPETITIVE POSITION OF THE FINANCIAL ENTERPRISE

Abstract

The article demonstrates the importance of developing a sustainable development strategy for financial organisations as a key factor in ensuring their long-term competitiveness, investment attractiveness and increased stakeholder confidence. Particular attention is paid to the specific nature of Ukrainian financial institutions' operations under martial law and European integration, which is accompanied by the harmonisation of regulatory requirements, the growing role of non-financial reporting and the implementation of ESG principles. The aim of the study is to develop theoretical and methodological foundations for the formulation and integration of a sustainable development strategy into a financial institution's management system. The methodological basis of the study comprises a systems approach, methods of analysis and synthesis, comparative analysis, and a synthesis of current international practices in the field of sustainable development and non-financial reporting. As a result of the study, a system of indicators harmonised with key areas of sustainable development is proposed, which allows for the assessment of a financial institution's current state and the generation of transparent signals for investors. The feasibility of implementing this system within a financial organisation's Balanced Scorecard, as well as its use as a basis for preparing annual non-financial reporting, is substantiated. A sequence of stages for integrating sustainable development principles into the management system has been developed, covering the strategic, operational and reporting levels. In addition, key obstacles to the implementation of sustainability reporting have been identified, including regulatory, organisational and information-related barriers. The conclusions state that the integration of sustainable development principles into the activities of financial institutions is a prerequisite for their effective functioning in the current environment, contributes to increased competitiveness and ensures compliance with European business standards.