ACCOUNTING FOR THE FORMATION OF ESG REPORTING INDICATORS ACCORDING TO USERS' INFORMATION REQUESTS: LEGISLATIVE REGULATION

Abstract

It has been found that the methodological recommendations on the meaningful content of the sections of the management report in Ukraine do not fully disclose the requirements of the EU Directive for ESG reporting. The "Environmental Aspects" section should contain information on the impact of climate on the company's activities and vice versa, possible risks to the results of the companies' activities due to climate change and the ability to maintain competitive positions and scale of operations in the case of different climate scenarios. It is suggested that the Social Aspects and Human Resources Policy section of the report be supplemented with information on forced labor and child labor in their value chain. The corporate governance section of the governance report should be supplemented with information on corporate culture, the fight against corruption and bribery, and the approach to business ethics. The stages of formation of an accounting information system for displaying indicators in ESG reporting are proposed. An algorithm for determining the adequacy of financing of environmental protection measures in case of payment of an environmental tax has been developed. It was found that in order to assess the adequacy of funding, the amounts of the paid environmental tax and the costs of environmental protection measures should be compared. It is substantiated that the actual volume of financing is insufficient if the amount of the paid environmental tax exceeds the amount of expenses for environmental protection measures. The sufficiency of the financing of environmental protection measures has been established, if the amount of the paid environmental tax and the amount of costs for environmental protection measures are the same. It is substantiated that the highest level of environmental responsibility arises if the amount of costs for environmental protection measures exceeds the amount of the paid environmental tax. It has been established that this level of financing exceeds the amount of estimated damage to the environment and allows for the planned environmental policy and the implementation of environmental protection measures in full in accordance with current needs and projects for the future.