Formation of the company's financial policy taking into account ESG criteria

Abstract

This article analyzes the formation of an enterprise’s financial policy through the lens of the ESG approach, which encompasses environmental, social, and governance aspects of business operations. The purpose of this work is to study the impact of ESG criteria on the formation of enterprises' financial policies and to identify ways to integrate them into business planning. The article outlines the key problems of integrating ESG principles into the financial policy of enterprises and suggests ways to overcome them. The author considers the impact of ESG on investment strategies, assessment of financial risks and opportunities, and adaptation of internal policies and reporting standards. Methods. The study applies a literature review method to explore the theoretical foundations of ESG integration, a comparative analysis to assess different approaches to ESG implementation in financial strategies and a system analysis for a comprehensive evaluation of ESG’s impact on financial policy. Additionally, the case study method is used to illustrate real-world examples of ESG strategy implementation in enterprises. Results. The paper describes different types of financial policies that are formed depending on the enterprise's development strategy, its economic condition, and risk tolerance. The impact of the main internal and external factors on the enterprise's activities is determined and the main methodological approaches to integrating ESG principles are systematized. Special attention is paid to the impact of ESG factors on investment strategies, as well as the assessment of financial risks and opportunities. Recommendations are developed for the implementation of effective ESG reporting standards. Conclusions. The study proposes a comprehensive and consistent approach to integrating ESG into financial policy, emphasizing the need for internal reporting adaptations. This approach enhances investor, creditor, and partner trust, improves corporate reputation, and facilitates access to green financial resources. The findings suggest that modern financial policy should shift from a purely profit-oriented model to one that incorporates social, environmental, and long-term responsibility. The research contributes to a deeper understanding of ESG's role in corporate finance and supports the development of scientific approaches to shaping enterprise financial policy in line with global sustainability trends.