INTEGRATED REPORTING IN THE CONTEXT OF ESG PRINCIPLES

Abstract

Introduction and research objectives: sustainable development and sustainability are the basis of reliable performance management processes that must capture and take into account financial and non-financial risks, decisions made by organizations. Modern trends in performance management are important for building a flexible and transformative business model. Currently, organizations are expected to form a strategic vision for ESG (environmental, social, governance) components and implement projects in the field of environmental protection, climate change prevention, reduction of emissions into the atmosphere, accident-free operation, compliance with the principles of corporate governance and human rights. To support sustainable economic growth that addresses environmental, social and governance (ESG) issues. The purpose of the study is to determine the essence and component principles of integrated reporting and its impact on the sustainable development of the organization. Methodology: the following general scientific and special methods were used in the study: scientific generalization and systematization – to justify the features of integrated reporting and determine its role in the development of the organization; benchmarking – to compare integrated reporting and ESG principles; system analysis – to identify the principles of building integrated reporting; logical synthesis – to explain the research results. Today, decisions on non-financial issues affect the reputation of the organization and have tangible economic consequences. Integrated reporting facilitates the development and implementation of new data governance requirements for the collection of non-financial and ESG data that align with an organization's strategic objectives. The gradual introduction of integrated reporting due to the transition to integrated thinking, promotes the application of ESG (environmental, social, governance) components and is combined with the reporting system for sustainable development. This system is supported by standards governing the measurement and disclosure of information for certain types of capital. Integrated reporting is consistent with the results of financial and other reporting, but at the same time it differs from other reports and messages.