The changing role of the management report with the adoption of the sustainability reporting standards (ESRS)

Moskaliuk Hanna
PhD in Economics, Associate Professor of the Department of Accounting, Analysis and Audit, Odesa National University of Economics, Odesa, Ukraine, E-mail:moskaliukann@gmail.com, ORCID ID: https://orcid.org/0000-0002-9810-0522

Nikitenko Kateryna
student, Department of Accounting, Analysis and Audit, Odesa National University of Economics, Odesa, Ukraine, E-mail:niki.kateryna@gmail.com, ORCID ID:

Cite this article:

Moskaliuk H., Nikitenko K. (2024) The changing role of the management report with the adoption of the sustainability reporting standards (ESRS). Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Zmina roli zvitu pro upravlinnia z pryiniattiam standartiv zvituvannia zi staloho rozvytku (ESRS); za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 3-4 (316-317), pp. 22-29.

Abstract

The purpose of the article is to review the peculiarities of creating a Management Report and the impact of sustainability standards on the role of the Management Report in the process of managing business sustainability, and the study also aims to identify the conceptual framework of ESRS for developing approaches to their implementation in national reporting practice. The strengths and weaknesses of the published reports of Ukrainian companies are presented. When preparing a report for an enterprise, it is important to determine its form since it is the form that affects the expansion of the circle of users, increasing their loyalty and consolidating a positive reputation in the market. Unresolved issues related to the values, goals, and vision of global and international organizations in terms of approaches to the formation of reporting information describing sustainable development indicators in accordance with the needs of stakeholders have been identified. Disclosure of additional environmental, social or governance criteria and Sustainable Development Goals through non-financial reporting can significantly increase the degree of satisfaction of stakeholders' information requests and the accountability of companies to them, and help monitor the progress of companies in sustainable development. Сomprehensive and full disclosure of sustainability information will help to increase the transparency of companies and their investment attractiveness in financial markets. The article analyzes how changes in legislation can solve problems in Ukrainian reporting practice and identifies problems that companies may face when publishing their Sustainability Reports. General scientific and special methods are used: analysis, method of specification, generalization, systematization, visualization. Particular attention is paid to the processes that are currently characteristic of the EU countries with the adoption of sustainability reporting standards.

Keywords

management report, Sustainability reporting, ESRS standard, financial information, non-financial information, Reporting format.

JEL classification: М410; DOI: https://doi.org/10.32680/2409-9260-2024-3-4-316-317-22-29

UD classification: 657.37:006.2(043.2)

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