Sustainable retail development through ESG standards implementation in business practices

Abstract

Global trends in sustainable development and stricter EU regulatory requirements are transforming the operating models of retail businesses. The purpose of this article is to examine the current state of readiness of Ukrainian retail businesses to implement European standards for sustainable development reporting, identify systemic barriers, and determine the competitive advantages of early adaptation. Methods. We analysed regulatory documents from Ukraine and the EU, synthesised empirical data from the Green Transition Office (2025), used an inductive approach to identify transformation trends, and a deductive approach to formulate recommendations. Results. The critical gap between the declared support for sustainable development principles and the actual ability of Ukrainian retail enterprises to prepare reports in accordance with European ESRS standards was analysed. Three main categories of obstacles to adapting to European reporting requirements have been identified: a lack of specialised competencies in ESG reporting, the absence of integrated digital systems for managing sustainability data, and regulatory uncertainty regarding national implementation standards. A two-tier model for adapting ESG standards to the Ukrainian business environment has been identified, with export-oriented enterprises ahead of domestic market companies in implementing European requirements. It has been substantiated that enterprises with developed sustainable development systems demonstrate preferential access to investment resources from international financial institutions. Conclusions. The transformation of retail trade toward sustainable development requires systemic organisational changes that go beyond formal reporting and encompass strategic planning, supply chain management, and stakeholder communication. Prospects for further research include developing unified digital platforms for ESG data and creating educational programs for retail-sector professionals