SOCIALLY RESPONSIBLE INVESTMENT AND ITS ROLE IN THE ENERGY SECTOR OF ECONOMY

Abstract

The article studies socially responsible investment and its role in the energy sector of the economy. In recent years, Ukraine has been reforming the energy sector of the economy and introducing sustainable practices. Encouraging socially responsible investment in energy companies, as well as legal and regulatory changes, are essential to accelerate this process. Although Ukraine has adopted certain strategies, laws and regulations, as well as adheres to international documents, socially responsible investment is still a relatively new practice for the energy sector of the economy. It was determined that the key areas of socially responsible investment in the energy sector of the economy should be the development of renewable energy sources (RES) and the improvement of energy efficiency. Renewable energy sources have the potential to significantly reduce greenhouse gas emissions, improve air quality and human health, and provide access to energy for the underprivileged. Energy efficiency remains an important aspect for most countries aimed at reducing energy consumption and using clean energy sources. Investments in energy-efficient technologies and equipment are critical, although the level of such investments is currently insufficient. Risks of socially responsible investment in the energy sector of the economy have been classified into the following groups: political-legal, environmental, social, financial-economic, technical-technological, managerial. Factors affecting the flows of socially responsible investments in the energy sector of the economy are singled out: geophysical conditions; the economic condition of the country and the level of income of the population; peculiarities of technological processes and the level of innovation; state policy on socially responsible investment; population size; expenditure on fossil fuels; costs of starting a socially responsible business. To reform the energy sector of the economy in the context of achieving the goals of sustainable development, it is necessary to actively work on increasing energy efficiency, increasing the share of RES and creating a favorable environment for socially responsible investment.