Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation

The relevance of the research topic is determined by the growing role of ESG standards (Environmental, Social, Governance) in shaping corporate financial strategies amid global challenges. The modern business environment requires the integration of environmental, social, and governance principles to...

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Main Author: Maksym Zhytar
Format: Article
Language:English
Published: V. N. Karazin Kharkiv National University 2025-04-01
Series:Фінансово-кредитні системи: перспективи розвитку.
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Online Access:https://periodicals.karazin.ua/fcs/article/view/24996
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author Maksym Zhytar
author_facet Maksym Zhytar
author_sort Maksym Zhytar
collection DOAJ
description The relevance of the research topic is determined by the growing role of ESG standards (Environmental, Social, Governance) in shaping corporate financial strategies amid global challenges. The modern business environment requires the integration of environmental, social, and governance principles to ensure long-term sustainability and enhance competitiveness. The implementation of ESG approaches facilitates the adaptation of business models to new regulatory requirements, fosters investor trust, and ensures socially responsible resource management. The aim of this study is to identify global trends, challenges, and prospects for implementing ESG standards in corporate financial strategies. The research object is corporate financial strategies in the context of ESG adaptation, while the subject is their impact on financial performance, investment attractiveness, and long-term business value. The research methodology is based on systematic analysis and economic-mathematical modeling of the impact of ESG indicators on corporate financial performance. Methods of comparative analysis, statistical modeling, and expert evaluation were used to identify key factors contributing to the successful integration of ESG approaches into business strategies. The main research findings indicate that the implementation of ESG standards is a crucial factor in enhancing financial stability and corporate reputation. In particular, an analysis of international experience shows that companies with high ESG ratings face lower financial risks and have better access to investment resources. The presented economic-mathematical model for assessing the relationship between ESG indicators and financial parameters allows for the optimization of a company's long-term value, ensuring a balance between profitability and social responsibility. The practical significance of the obtained results lies in the development of recommendations for the effective implementation of ESG standards in corporate financial strategies. A systematic approach is proposed, including the use of innovative financial instruments (green and social bonds), digital technologies to improve reporting transparency, and state incentives for sustainable development. It is proven that ESG integration is a key factor in transforming modern business models, ensuring their alignment with new economic realities and long-term sustainability.
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spelling doaj-art-cc5745a26f4e4f0dbb51dba65e883a242025-08-20T03:20:58ZengV. N. Karazin Kharkiv National UniversityФінансово-кредитні системи: перспективи розвитку.2786-49952786-50022025-04-01116334210.26565/2786-4995-2025-1-0324996Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluationMaksym Zhytar0Kyiv Metropolitan Borys Grinchenko University The relevance of the research topic is determined by the growing role of ESG standards (Environmental, Social, Governance) in shaping corporate financial strategies amid global challenges. The modern business environment requires the integration of environmental, social, and governance principles to ensure long-term sustainability and enhance competitiveness. The implementation of ESG approaches facilitates the adaptation of business models to new regulatory requirements, fosters investor trust, and ensures socially responsible resource management. The aim of this study is to identify global trends, challenges, and prospects for implementing ESG standards in corporate financial strategies. The research object is corporate financial strategies in the context of ESG adaptation, while the subject is their impact on financial performance, investment attractiveness, and long-term business value. The research methodology is based on systematic analysis and economic-mathematical modeling of the impact of ESG indicators on corporate financial performance. Methods of comparative analysis, statistical modeling, and expert evaluation were used to identify key factors contributing to the successful integration of ESG approaches into business strategies. The main research findings indicate that the implementation of ESG standards is a crucial factor in enhancing financial stability and corporate reputation. In particular, an analysis of international experience shows that companies with high ESG ratings face lower financial risks and have better access to investment resources. The presented economic-mathematical model for assessing the relationship between ESG indicators and financial parameters allows for the optimization of a company's long-term value, ensuring a balance between profitability and social responsibility. The practical significance of the obtained results lies in the development of recommendations for the effective implementation of ESG standards in corporate financial strategies. A systematic approach is proposed, including the use of innovative financial instruments (green and social bonds), digital technologies to improve reporting transparency, and state incentives for sustainable development. It is proven that ESG integration is a key factor in transforming modern business models, ensuring their alignment with new economic realities and long-term sustainability.https://periodicals.karazin.ua/fcs/article/view/24996esg standardscorporate financial strategiesglobal trendsbusiness processesfinancial performancestrategic planningfinancial resiliencesustainable development
spellingShingle Maksym Zhytar
Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation
Фінансово-кредитні системи: перспективи розвитку.
esg standards
corporate financial strategies
global trends
business processes
financial performance
strategic planning
financial resilience
sustainable development
title Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation
title_full Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation
title_fullStr Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation
title_full_unstemmed Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation
title_short Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation
title_sort global trends and challenges in implementing esg standards in corporate financial strategies integration adaptation and performance evaluation
topic esg standards
corporate financial strategies
global trends
business processes
financial performance
strategic planning
financial resilience
sustainable development
url https://periodicals.karazin.ua/fcs/article/view/24996
work_keys_str_mv AT maksymzhytar globaltrendsandchallengesinimplementingesgstandardsincorporatefinancialstrategiesintegrationadaptationandperformanceevaluation