Disclosure of environmental issues in compliance with ESRS in non-financial statements of state-owned enterprises of Ukraine

Introduction. Modern challenges related to environmental sustainability require Ukrainian state-owned enterprises to enhance the disclosure of information on the environmental aspects of their activities in non-financial reports. The European Sustainability Reporting Standards (ESRS) establish the requirements for environmental reporting, which are important for adapting the national approach to non-financial reporting. Problem Statement. The inconsistency of the depth of disclosure of information on the environmental direction of activity in the non-financial reports of Ukrainian state-owned enterprises with the requirements of the European Sustainable Development Standards and the lack a detailed list of indicators that reflect the progress of enterprises toward sustainable development, specifically regarding environmental issues, in the current Methodological Recommendations for preparing a management report. The purpose is to identify areas for improving the domestic regulatory framework based on a study of the level and scope of disclosure of environmental aspects in the non-financial reporting of Ukrainian state-owned enterprises and their compliance with the ESRS requirements. Results. The analysis revealed that most Ukrainian state-owned enterprises do not disclose complete information on environmental aspects in their non-financial reporting, although for the most part the relevant data and indicators can be obtained from the accounting system or alternative sources – forms of statistical observations. On the other hand, the Methodological Guidelines for preparing a management report do not contain a list of necessary indicators that would allow providing meaningful information on the mutual impact of the enterprise and the environment. As a result, certain indicators specified by the European Sustainability Standards, particularly those related to pollution, biodiversity, and the circular economy, are not communicated to stakeholders. Conclusions. To ensure compliance with the ESRS requirements, it is advisable to enhance the valid Methodological Guidelines by integrating sustainable development issues, which will help reduce duplication of information, reduce the administrative burden and ensure consistency of reporting approaches.