Transformation of ESG reporting in the context of implementing a sustainable development strategy

Abstract

The article provides an in-depth analysis of changes in the formation of corporate reporting under the influence of the implementation of the ESG strategy. The integration of the principles of sustainable development and the concept of double materiality into reporting disclosing non-financial analytical data is considered, which is a significant stage in the evolution of non-financial reporting. The study highlights the key problems faced by companies when preparing ESG reports: the lack of uniform methods for calculating indicators, poor data verification, and discrepancies in ratings from different rating agencies, which confirms the need to develop clear and unified standards to help resolve existing disagreements and simplify the process of disclosing non-financial information. The paper also highlights the importance of integrating the concept of dual materiality into corporate reporting, which obliges companies to comprehensively assess both the financial impact of ESG factors on the company’s operations and the impact of their activities on the environment, society and the economy. ESG reporting is no longer a tool for managing reputational risks and is becoming an element of strategic planning that helps create long-term value. The purpose of the work is to provide a holistic view of the transformation of corporate reporting under the influence of current trends in the implementation of ESG strategies. During the research, empirical and theoretical methods of scientific knowledge were used, such as comparative analysis, content analysis of scientific publications and regulations in the field of ESG reporting, on the basis of which an algorithm for integrating the concept of double materiality into corporate reporting was developed.