ESG REPORTING IN UKRAINE: PROSPECTS, CHALLENGES, AND A ROADMAP FOR IMPLEMENTATION

Abstract

Introduction. Non-financial aspects, particularly ESG factors (Environmental, Social, Governance), are rapidly emerging as paramount in modern business. Ukraine, driven by its European integration aspirations and global trends, is in the initial yet dynamic phase of ESG reporting institutionalization. However, the widespread implementation faces significant technical and regulatory complexities, necessitating substantial support for small and medium-sized businesses. Purpose. This article aims to investigate the prospects and challenges associated with the implementation of ESG reporting in Ukraine. It proposes a practical roadmap for the effective integration of ESG reporting into the national business environment. Methods. The research employs a multifaceted approach, combining a systematic literature review with analytical and synthetic methods. A comparative analysis with European Union directives, specifically the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), is utilized to identify harmonization gaps and opportunities. The methodology also incorporates foresight techniques to predict likely future developments and implications of ESG reporting for Ukrainian enterprises. Results. The study's findings indicate that ESG reporting implementation in Ukraine is in an active formation stage. Significant challenges persist at the state level, including a fragmented regulatory framework, a notable lack of unified methodology and national standards for ESG data collection and reporting, and a critical shortage of qualified personnel. The research highlights that CSRD and ESRS are transforming ESG from a "nice-to-have" reputational tool into a mandatory reporting requirement, directly impacting Ukrainian companies through export activities, cooperation with European investors, and plans for European representation. The existing "Strategy for the Introduction of Sustainable Development Reporting by Enterprises" lays a fundamental basis for harmonization but lacks detailed methodological guidance, creating uncertainty for companies. Conclusion. ESG reporting has become an integral component of contemporary business practice. Companies failing to prepare promptly risk losing their competitive advantage. Ukrainian enterprises must proactively adapt to CSRD requirements now to effectively prepare for changes taking effect from 2025. The proposed implementation roadmap includes: (1) Establishing a robust regulatory and institutional framework (2024-2026), covering legislative harmonization, digital platform development, and regulatory oversight. (2) Fostering capacity building and methodological support for businesses (2025-2027) through comprehensive training, practical guides, and audit development. (3) Driving practical implementation and continuous monitoring (from 2026 onwards) via pilot projects, systematic data collection, and ongoing adaptation.