INTEGRATION OF SUSTAINABLE DEVELOPMENT PRINCIPLES INTO ENTERPRISES’ FOREIGN ECONOMIC ACTIVITIES

Abstract

The relevance of this research stems from the necessity to incorporate sustainability principles into the strategic planning of foreign economic activities, particularly in the context of Ukraine's European integration and the increasing environmental requirements set by the European Union. The implementation of the Carbon Border Adjustment Mechanism and the Corporate Sustainability Reporting Directive presents new challenges for Ukrainian exporters, who could face significant annual losses if they do not decarbonize their production processes. The research methodology is grounded in a systematic approach that examines the evolution of strategic planning. It includes comparative analyses of classical and modern models, a synthesis method for developing cyclical and hierarchical models, and a classification method for organizing various influencing factors in line with international standards. The findings of the research feature the development of a cyclical model of strategic planning that incorporates sustainability principles at each stage, from ESG diagnostics to non-financial reporting. Six groups of factors affecting strategic planning have been systematized, highlighting the increasing importance of environmental considerations. The classification of international reporting standards has revealed a convergence among GRI, ESRS, and ISSB standards. Additionally, a hierarchical model for integrating sustainability assessment methods has been established, which consists of three levels: operational, tactical, and strategic. Six main assessment methods have been characterized: ESG rating, GRI standards, UN SDG Index, ISO standards, corporate methodologies, and the integral sustainability index. The practical implications of this research lie in the creation of a toolkit for export-oriented enterprises. This includes selecting optimal reporting standards, adapting to the requirements of the Carbon Border Adjustment Mechanism, implementing effective ESG management, and building sustainable supply chains. The research demonstrates that companies with high ESG performance can achieve long-term returns on investment up to 18% higher than their peers. For Ukrainian enterprises, the recommended strategy is a phased implementation, starting with GRI as the foundational framework, followed by ISO 14001 for operational management, and ultimately preparing for mandatory CSRD reporting.