ESG-BANKING IN UKRAINE AND THE WORLD: CHALLENGES AND LATEST TRENDS
Abstract
The article is devoted to the analysis of ESG implementation in the banking sector. At the beginning, the significance of integrating ESG standards into Ukrainian banks activities, their impact on banks’ financial stability and competitiveness, as well as the prospects for adaptation to international regulatory requirements are studied. Additionally, the current state of ESG-banking regulation in Ukraine and the role of the National Bank of Ukraine as well as other financial institutions in shaping sustainable development policy are assessed. Also, the ESG activities of Ukrainian banks are considered and a comparative analysis is conducted with the practices of leading global financial institutions. The Top 10 trends in the banking sector for 2025 are presented, where the ESG strategy takes ninth place, which emphasizes its growing role in the financial system. The roadmap for sustainable finance from the European Supervisory Authority is also provided. Furthermore, the rating of the Top 15 most capitalized banks by the level of ESG implementation in 2024 and the Top 15 countries by "green" initiatives of central banks are analyzed. Thus, special attention is paid to the study of the level of readiness of various sectors of the economy to implement ESG reporting, in particular, the Top 5 industries that demonstrate the highest level of adaptation to new standards are analyzed. Moreover, the impact of stakeholders on the implementation of ESG among financial market participants is studied and the benefits of applying sustainable financial practices are assessed, including increased trust in banks, improved operational efficiency, risk reduction and increased brand reputation. As a whole, based on the analysis, the main directions of ESG banks activities for the future are identified. In particular, special attention is paid to the development of "green" financing, increasing the transparency of ESG reporting, the implementation of socially responsible initiatives and adaptation to international corporate governance standards. To sum up, the article highlights the current challenges and prospects of ESG-banking, outlines key trends and contributes to the formation of strategies for the sustainable development of the banking sector of Ukraine in the context of global financial changes.
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