ASSESSMENT OF ENTERPRISES' COMPLIANCE WITH ESG CRITERIA: MAIN CHALLENGES
Abstract
The article provides a comprehensive analysis of the main challenges faced by enterprises in assessing compliance with ESG (Environmental, Social, and Governance) criteria. Modern business development requires enterprises to achieve economic efficiency and adhere to sustainability principles, which encompass environmental protection, social responsibility, and effective corporate governance. However, integrating ESG criteria into business practices is complex and encounters numerous challenges. Among the key issues are the need for unified standards for evaluating ESG metrics, insufficient transparency and quality of available data, and subjectivity in assessing enterprise activities' social and governance aspects. Additionally, implementing ESG criteria is often hindered by a need for more organizational and technical support and resources necessary for their proper realization. One of the essential elements of successful ESG integration is ensuring the reliability, quality, comparability, and accessibility of information, particularly in the sustainability and climate data field. These aspects are crucial for harmonizing risk analysis and assigning ESG ratings. A deeper understanding of data sources and specific metrics will enhance the comparability of results on a global scale, which is especially important given the international nature of climate change issues. To address these challenges, the authors propose a comprehensive approach to integrating ESG criteria into enterprise business processes. This approach involves the development of data collection and analysis systems, standardizing reporting, ensuring transparency in management processes, and formulating long-term sustainability strategies. Implementing these measures will allow enterprises to meet the growing demands of stakeholders and society and gain competitive advantages in the market. Enterprises that adapt their strategies to modern ESG requirements will be able to enhance their reputation and build trust with investors and partners. The article concludes that overcoming the main challenges in assessing the compliance of enterprises with ESG criteria requires coordinated efforts from enterprises, governments, and international organizations. Joint actions will contribute to long-term sustainable development, improve transparency, and increase the competitiveness of enterprises in the global economy, which is particularly relevant in the context of climate change and global sustainability challenges.
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