SYSTEM OF GREEN REQUIREMENTS, CRITERIA AND INDICATORS OF ESG STRATEGIES FOR BUSINESS DEVELOPMENT

Abstract

This study provides an in-depth and comprehensive analysis of the environmental requirements, evaluation criteria, and key indicators that form the foundation of ESG (Environmental, Social, and Governance) strategies in contemporary business development. The research systematically classifies the green benchmarks and offers a detailed framework for understanding how businesses can embed sustainability into their operational and strategic agendas. A key finding reveals that while Ukrainian businesses have historically lagged behind international and European counterparts in implementing robust environmental and climate-related policies, recent years have witnessed a notable shift toward recognizing climate change as a strategic priority. Companies are beginning to incorporate climate considerations into their internal policies, decision-making processes, and long-term planning.

The study underscores that investors are no longer focused solely on financial performance; instead, they are increasingly evaluating the environmental and social commitments of companies. They assess not only the presence of ESG strategies but also the feasibility of such initiatives, the scope of implementation projects, and the availability of dedicated financial and organizational resources. Furthermore, transparency in ESG reporting and the alignment of disclosures with global standards are becoming critical investment criteria.

It is emphasized that ESG reports must be compiled on a regular basis, capturing essential green indicators that illustrate a company’s ecological footprint and its progress toward achieving the United Nations Sustainable Development Goals (SDGs). These indicators serve as vital tools for both internal management and external stakeholders, offering a clear view of the environmental, social, and governance performance of a company.

Based on the analysis, the study offers several recommendations aimed at enhancing the quality and consistency of ESG disclosures in Ukraine. These include developing a national framework for climate governance, familiarizing businesses with funding eligibility criteria, initiating the process of ESG reporting in accordance with international standards, participating in global ESG ratings, and setting corporate decarbonization targets. Additionally, companies should begin conducting climate and environmental impact assessments, integrating SDGs into their strategic policies, and implementing human rights and environmental due diligence mechanisms. Adopting these steps will contribute to more responsible corporate governance, minimize ecological and reputational risks, and align Ukrainian business practices with global sustainability standards.