The Role of Modern Financial Instruments in Supporting the Sustainable Development of Companies in Ukraine

Abstract

Introduction. Ukraine's transition to a green economy requires comprehensive environmental development of enterprises, which directly depends on financial instruments and corporate social responsibility.

The purpose of the study is to determine the role of financial instruments in ensuring the financial sustainability of enterprises and supporting sustainable development in the current conditions and in the post-war period in Ukraine.

Results. Traditional business models were focused mainly on maximising profits for investors and perceived 'green' fiscal instruments as an element of state regulation and inefficient use of resources. Over time, under the influence of society and the transformation of approaches to the formation of companies' value orientations, these perceptions have changed. When attracting investors for environmental projects, companies are increasingly guided by the principles of openness and transparency.

Over the past decade, Ukrainian businesses have been actively integrating consolidated reporting and the concept of corporate social responsibility into their overall sustainability strategy, which contributes to financial sustainability and increased competitiveness on the path to a green economy. In addition, raising investor awareness to attract funding for environmental projects is an important factor. Ukrainian companies should realise the benefits of disclosing their reports as a means of effective communication with potential investors and raising funds for environmental initiatives. This will promote corporate social responsibility and stimulate the introduction of green financial instruments that will increase the financial sustainability of enterprises.

The government should provide regulatory support to businesses to encourage the introduction of corporate sustainability reporting. In addition, it is necessary to develop and implement national standards for the disclosure of information in corporate sustainability reporting.

Conclusions. On the way to a 'green' economy, it is important to introduce new financial instruments, including 'green' derivatives and environmental insurance products. The main idea of the sustainable development strategy of enterprises should be to find ways to form and implement a balanced economic development with rational use of resources. This will help to harmonise key parameters, in particular, to increase the financial sustainability of enterprises and minimise the negative impact on the environment.