Мethodological principles for assessing the transparency of energy companies of Ukraine
Abstract
In modern conditions, the Concept of Sustainable Development has become a mandatory component of the strategy of any enterprise. This is facilitated by many factors, the main of which is the increasing of sustainable companies’ competitiveness because of improvement of stakeholders` attitude towards the company, which causes both increasing of the demand and increasing of its investment attractiveness. Sustainable Development Goal (SDG) 7 occupies a special place among all goals of sustainable development, because on the one hand, most of the SDGs can be implemented exclusively with the provision of energy, on the other hand, the energy sector is traditionally one of the main sources of environmental pollution, which can be significantly reduced by transition to renewable energy. The relevance of the study is also connected with the crucial need to restore the energy infrastructure of Ukraine destroyed during the invasion by the aggressor country; the investment process can only take place under the conditions of transparency of the investment objects. This study is aimed toward formation of methodological principles of Ukrainian energy companies` transparency evaluating. Based on foreign authors works studying the authors propose the mechanism for calculating the integral indicator of transparency of energy companies of Ukraine, which includes four groups of factors (CSR factors, ESG factors, SD factors, assessment of the fight against corruption). Each factor is evaluated using binary evaluations based on studying of public information of companies (management reports, integrated reports, information on the company's official website). The use of the proposed methodological principles will contribute to increasing the transparency of companies in the energy sector of Ukraine, which should significantly accelerate the attraction of investments for the restoration of the energy infrastructure destroyed during military operations.
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2 Salim, H. K., Padfield, R., Hansen, S. B., Mohamad, S. E., Yuzir, A., Syayuti, K., & Papargyropoulou, E. (2018). Global trends in environmental management system and ISO14001 research. Journal of cleaner production, 170, 645-653. https://doi.org/10.1016/j.jclepro.2017.09.017
3 Simon, C. A. (2020). Alternative energy: political, economic, and social feasibility. Rowman & Littlefield Publishers.
4 Hannan, M. A., Al-Shetwi, A. Q., Ker, P. J., Begum, R. A., Mansor, M., Rahman, S. A., ... & Muttaqi, K. M. (2021). Impact of renewable energy utilization and artificial intelligence in achieving sustainable development goals. Energy Reports, 7, 5359-5373. https://doi.org/10.1016/j.egyr.2021.08.172
5 Caglar, A. E., & Askin, B. E. (2023). A path towards green revolution: How do competitive industrial performance and renewable energy consumption influence environmental quality indicators?. Renewable Energy, 205, 273-280. https://doi.org/10.1016/j.renene.2023.01.080
6 IEA (2020) International Energy Agency. Renewables – Global Energy Review 2020 – Analysis – IEA
7 Razumkov center (2023) Renewable energy sector of Ukraine before, during and after the war Retrieved from: https://razumkov.org.ua/statti/sektor-vidnovlyuvanoyi-energetyky-ukrayiny-do-pid-chas-ta-pislya-viyny
8 May, J. R., & Brennan, D. J. (2006). Sustainability assessment of Australian electricity generation. Process Safety and Environmental Protection, 84(2), 131-142. https://doi.org/10.1205/psep.04265
9 Kowalski, K., Stagl, S., Madlener, R., & Omann, I. (2009). Sustainable energy futures: Methodological challenges in combining scenarios and participatory multi-criteria analysis. European journal of operational research, 197(3), 1063-1074. https://doi.org/10.1016/j.ejor.2007.12.049
10 La Rovere, E. L., Soares, J. B., Oliveira, L. B., & Lauria, T. (2010). Sustainable expansion of electricity sector: Sustainability indicators as an instrument to support decision making. Renewable and Sustainable Energy Reviews, 14(1), 422-429. https://doi.org/10.1016/j.rser.2009.07.033
11 Dorini, G., Kapelan, Z. & Azapagic, A. (2011) Managing uncertainty in multiple-criteria decision making related to sustainability assessment. Clean Techn Environ Policy 13, 133–139 . https://doi.org/10.1007/s10098-010-0291-7
12 Stamford, L., & Azapagic, A. (2012). Life cycle sustainability assessment of electricity options for the UK. International Journal of Energy Research, 36(14), 1263-1290. https://doi.org/10.1016/j.esd.2014.09.008
13 Roldán, M. C., Martínez, M., & Peña, R. (2014). Scenarios for a hierarchical assessment of the global sustainability of electric power plants in México. Renewable and Sustainable Energy Reviews, 33, 154-160. https://doi.org/10.1016/j.rser.2014.02.007
14 Santoyo-Castelazo, E., & Azapagic, A. (2014). Sustainability assessment of energy systems: integrating environmental, economic and social aspects. Journal of cleaner production, 80, 119-138. https://doi.org/10.1016/j.jclepro.2014.05.061
15 Maxim, A. (2014). Sustainability assessment of electricity generation technologies using weighted multi-criteria decision analysis. Energy Policy, 65, 284–297. https://doi.org/10.1016/j.enpol.2013.09.059
16 Atilgan, B., & Azapagic, A. (2016). An integrated life cycle sustainability assessment of electricity generation in Turkey. Energy Policy, 93, 168-186. https://doi.org/10.1016/j.enpol.2016.02.055
17 Rahman, M. M., Paatero, J. V., Lahdelma, R., & A. Wahid, M. (2016). Multicriteria-based decision aiding technique for assessing energy policy elements-demonstration to a case in Bangladesh. Applied Energy, 164, 237–244. https://doi.org/10.1016/j.apenergy.2015.11.091
18 Behl, A., Kumari, P. S. R., Makhija, H., & Sharma, D. (2021). Exploring the relationship of ESG score and firm value using cross-lagged panel analyses: case of the Indian energy sector. Annals of Operations Research. https://doi.org10.1007/s10479-021-04189-8
19 Naeem, N., & Cankaya, S. (2022). The impact of ESG performance over financial performance: A study on global energy and power generation companies. International Journal of Commerce and Finance, 8(1), 1-25.
20 Miao, S., Tuo, Y., Zhang, X., & Hou, X. (2023). Green Fiscal Policy and ESG Performance: Evidence from the Energy-Saving and Emission-Reduction Policy in China. Energies, 16(9), 3667. https://doi.org/10.3390/en16093667
21 DixiGroup (2022) Еnergy transparency index of Ukraine. Available at: https://index.ua-energy.org/assets/files/dixi_index_2022_final.pdf.
22 Transparency International (2023) Corruption Perceptions Index [Online]. Available at: https://nonews.co/wp-content/uploads/2023/01/CPI2022.pdf [Accessed: June. 4, 2023].
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