THE APPLICATION OF ESG INSTRUMENTS AS A FUTURE CHALLENGE FOR SUSTAINABLE DEVELOPMENT IN CORPORATE GOVERNANCE

The European Directive on Corporate Sustainability Due Diligence (Directive 2024/1760) introduces significant advancements in promoting sustainable and responsible corporate actions within companies' global operations. This directive marks a pivotal shift in non-financial reporting and the application of Environmental, Social, and Governance (ESG) instruments, creating new expectations for businesses to align with sustainability goals. As sustainable corporate reporting becomes an integral part of the economic landscape, particularly due to the interconnected nature of domestic and EU economies through supply chains, the need for multidisciplinary research and analysis of ESG criteria has become evident. This research focuses on the legal frameworks and economic strategies that companies use to align their operations with sustainable development principles. The study will involve case studies, policy analysis, and evaluations of corporate governance models that integrate ESG standards. Its objective is to identify key success factors in incorporating ESG principles into legal and economic strategies while proposing models to enhance corporate governance. Key outcomes will include defining a model for assessing ESG performance, offering policy recommendations, and providing practical guidelines for companies to implement ESG strategies across various industrial sectors. This process will also focus on the harmonization of domestic legal systems with EU laws to ensure a seamless integration of ESG instruments into the national legal framework.