Development of the management component of ESG reporting in the system of accounting and analytical support for sustainable development of enterprises
Year: 2025
Type: article
Abstract: The article examines the theoretical and methodological foundations for the development of the management component of ESG reporting in the system of accounting and analytical support for sustainable development of enterprises. It is substantiated that in the context of European integration, digital transformation of the economy, increasing requirements for corporate transparency, responsibility, and reliability of non-financial information, ESG reporting is becoming not only an instrument of external communication with stakeholders but also an important element of enterprise management. It is determined that the management component of ESG reporting, or the Governance component, includes the quality of corporate governance, transparency of decision-making, management accountability, internal control systems, compliance, anti-corruption policies, risk management, ethical behavior, and stakeholder engagement. It is proven that this component should be considered as an object of accounting, analysis, and control, since its formation requires documentary confirmation, identification of information sources, development of internal registers of non-financial data, implementation of control procedures, and analytical interpretation of indicators. The regulatory prerequisites for the development of ESG reporting are analyzed, in particular the impact of the Corporate Sustainability Reporting Directive, European Sustainability Reporting Standards, IFRS Sustainability Disclosure Standards, and GRI Standards. The key elements of the management component of ESG reporting in the system of accounting and analytical support of an enterprise are systematized. The main stages of its implementation are proposed, including diagnostics of the existing reporting system, identification of Governance indicators, determination of information sources, development of internal regulations, formation of ESG registers, internal control of ESG data, preparation of ESG reporting, and policy adjustment. The practical significance of the results lies in the possibility of applying the proposed approaches in enterprise activities to form reliable ESG reporting, improve accounting policy, develop the internal control system, increase business transparency, ensure tax responsibility, strengthen stakeholder trust, and support sustainable development of enterprises under modern economic transformations.
Author: V.M. Ivanytskyi
Institution: Zhytomyr Polytechnic State University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7204158182