Implementation of ESG principles in public and corporate
Abstract
The article deals with the genesis of the ESG concept and its components — environmental, social, and governance dimensions. It explores the essence of key related terms such as ESG principles, ESG management, ESG factors, ESG ratings, ESG reporting, ESG investing, and ESG strategy. The paper proposes a definition of ESG as a systemic foundation for three-dimensional, balanced, socially significant, and value-driven governance of companies, markets, territories, sectors, countries, and regions. The study analyzes the manifestations of ESG in contemporary public governance frameworks, including Whole-of-Government, Multi-Level Governance, Collaborative Governance, Open Government, and Public Participation.
The article highlights the features of ESG-Governance in both the corporate and public sectors. It explores innovation management within the ESG paradigm and proposes a sequence of actions for integrating ESG principles into the innovation strategies of Ukrainian companies. Additionally, the study presents an algorithm for implementing a systemic assessment of ESG indicators into the analytical operations of corporate entities in Ukraine.
A set of critical issues regarding the implementation of ESG principles in public and corporate governance is identified, including the absence of a unified ESG methodology for public administration, the fragmentation of ESG approaches in strategic enterprise management, the lack of comprehensive ESG reporting and auditing systems, the insufficient level of ESG-related competencies among executives and managers, the underdevelopment of ESG infrastructure, and the need to design ESG indicator systems for public policy — particularly in the context of post-war market transformation and the assessment of ESG investment effectiveness in the reconstruction of infrastructure, energy, and transport.
The paper formulates the content and definition of ESG methodology for both public administration and corporate management. It presents a framework of six interconnected pillars for the implementation of ESG principles in public and corporate governance, grounded in the synergy between European integration, digital transformation, and sustainable development.
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References
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