Global trends and challenges in implementing ESG standards in corporate financial strategies: integration, adaptation, and performance evaluation

Abstract

The relevance of the research topic is determined by the growing role of ESG standards (Environmental, Social, Governance) in shaping corporate financial strategies amid global challenges. The modern business environment requires the integration of environmental, social, and governance principles to ensure long-term sustainability and enhance competitiveness. The implementation of ESG approaches facilitates the adaptation of business models to new regulatory requirements, fosters investor trust, and ensures socially responsible resource management. The aim of this study is to identify global trends, challenges, and prospects for implementing ESG standards in corporate financial strategies. The research object is corporate financial strategies in the context of ESG adaptation, while the subject is their impact on financial performance, investment attractiveness, and long-term business value. The research methodology is based on systematic analysis and economic-mathematical modeling of the impact of ESG indicators on corporate financial performance. Methods of comparative analysis, statistical modeling, and expert evaluation were used to identify key factors contributing to the successful integration of ESG approaches into business strategies. The main research findings indicate that the implementation of ESG standards is a crucial factor in enhancing financial stability and corporate reputation. In particular, an analysis of international experience shows that companies with high ESG ratings face lower financial risks and have better access to investment resources. The presented economic-mathematical model for assessing the relationship between ESG indicators and financial parameters allows for the optimization of a company's long-term value, ensuring a balance between profitability and social responsibility. The practical significance of the obtained results lies in the development of recommendations for the effective implementation of ESG standards in corporate financial strategies. A systematic approach is proposed, including the use of innovative financial instruments (green and social bonds), digital technologies to improve reporting transparency, and state incentives for sustainable development. It is proven that ESG integration is a key factor in transforming modern business models, ensuring their alignment with new economic realities and long-term sustainability.