SUSTAINABLE DEVELOPMENT GOALS AS AN IMPORTANT FACTOR IN THE FORMULATION OF STRATEGIES AND STRATEGIC PLANS FOR FINANCIAL INSTITUTIONS

Abstract

The article examines the integration of the Sustainable Development Goals (SDGs) into the strategic planning processes of financial institutions in Ukraine. While the SDGs were officially adopted at the national level in 2019, their practical implementation in institutional strategies remains incomplete due to the combined impact of global shocks such as the COVID-19 pandemic, Russia’s full-scale aggression, and insufficient methodological expertise. The study analyzes relevant international and national frameworks, including the UNEP FI Principles for Responsible Banking, the European regulatory standards on sustainable finance, and the National Bank of Ukraine’s initiatives on ESG risk management and sustainable reporting. Particular emphasis is placed on the gradual adoption of non-financial reporting in line with EU standards (ESRS), the introduction of green financial instruments, and the promotion of responsible banking practices. The article demonstrates that integrating SDGs into financial institutions’ strategies enhances resilience and long-term competitiveness. A sector-specific approach is proposed, which includes developing inclusive insurance products for vulnerable populations, introducing agricultural risk insurance to support food security, advancing medical and social insurance programs, promoting education financing and gender equality measures, and engaging in projects related to clean energy, ecological insurance, and sustainable urban development. Furthermore, the research highlights the importance of ESG-driven innovation financing, green bonds, and risk management mechanisms as tools to operationalize SDGs in practice. The analysis also reveals persistent imbalances in the prioritization of SDGs within financial strategies, where environmental goals are more frequently addressed than institutional or social dimensions. To overcome these limitations, the article proposes a structured methodology for embedding SDG-oriented components into corporate strategic plans, emphasizing phased implementation, designated responsibilities, and alignment with business model development. The findings underscore that the proactive adaptation of SDGs not only strengthens financial stability and transparency but also enhances public trust and institutional legitimacy. Ultimately, the article argues that the systematic involvement of the financial sector in implementing SDGs will significantly accelerate Ukraine’s progress toward achieving the official 2030 targets.