Improving the approach to integrating ESG factors into the financial strategy of energy engineering enterprises in the context of the energy transition
Year: 2026
Type: article
Abstract: The object of research is the process of integrating ESG factors into the financial strategy of power engineering enterprises. One of the most problematic aspects is the lack of a comprehensive approach to integrating ESG factors into the financial strategy of enterprises. Quantitative confirmation of the effectiveness of the proposed approach was obtained using the example of JSC “Ukrainian Energy Machines”. In 2022–2024, the current liquidity ratio increased from 1.98 to 2.23, the financial autonomy ratio from 0.67 to 0.71, and the net profitability from 0.03% to 0.11%. This is due to the fact that in the long term, the integration of ESG factors contributes to improving the management of financial flows of enterprises. The assessment showed that in the short term, the implementation of “green” investments is accompanied by a negative financial effect due to significant initial costs. This provides the possibility of long-term adaptation to military challenges, post-war recovery and integration of enterprises into the global economic space in accordance with international ESG standards. Compared to existing approaches, the proposed approach combines financial and non-financial indicators; takes into account the short-term and long-term effects of the implementation of ESG factors; provides a comprehensive assessment of their impact on financial security and investment attractiveness. The industry specifics are specified by taking into account the energy intensity of production, dependence on qualified personnel and the duration of production cycles. The practical significance of the results obtained lies in the possibility of their use by financial services of energy engineering enterprises for the integration of ESG factors into budgeting, planning of environmental modernization and risk management in conditions of military threats and post-war recovery. The application of the proposed approach assumes the availability of reliable financial and ESG data, taking into account the specifics of the enterprise's activities and coordinating the volume and timing of investment costs with its payment capabilities and available sources of financing.
Institutions: Hochschule Niederrhein, V. N. Karazin Kharkiv National University, Taras Shevchenko National University of Kyiv, National Technical University "Kharkiv Polytechnic Institute", Simon Kuznets Kharkiv National University of Economics, Kyiv National Economic University named after Vadym Hetman
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $75
OpenAlex ID: W7225189643