Adaptation of the Ukrainian accounting system to the requirements of sustainable investment

Abstract

In the context of the modern global economy, the problems of climate change, social inequality and limited natural resources are becoming critical for the strategic development of business and investment activities. The implementation of sustainable investment principles and the integration of ESG factors into the accounting system are essential conditions for ensuring transparency in enterprises' activities and increasing their competitiveness in the global market. The purpose of the article is to analyse the compliance of Ukraine's current accounting system with modern principles of sustainable development and investment standards. Methods. The study used methods of critical analysis of scientific sources, synthesis, systematisation, and abstraction to identify problems and develop recommendations for integrating ESG factors into accounting. Results. It was found that the traditional accounting system in Ukraine, which is mainly focused on financial indicators and historical cost, does not always adequately reflect non-financial risks and opportunities associated with ESG factors. The need to implement international non-financial reporting standards (GRI, ESRS, IFRS S, TCFD), integrate ESG reporting into financial processes, use modern analytical tools, and account for the value of natural resources and risk management to increase transparency and investment attractiveness is emphasised. It is shown that in Ukraine, the ESG regulatory framework is at an active stage of development, and the strategies and national plans adopted by the government demonstrate the political will to embed the principles of sustainable development into accounting practice and information disclosure. Conclusions. It is established that the introduction of sustainability principles into the financial accounting system of Ukraine requires not only updating reporting standards, but also changing the accounting concept – from fixing financial results to a comprehensive reflection of economic, social and environmental aspects of activity. At the same time, ESG reporting creates new opportunities for Ukrainian enterprises, increasing investor confidence and strengthening their competitive positions. Therefore, integrating ESG principles into the accounting system is a strategic direction for building a sustainable, transparent Ukrainian economy.