SUSTAINABILITY REPORTING AS AN OPPORTUNITY TO IMPROVE GOVERNANCE REPORTING PRACTICES

The concept of sustainable accounting has emerged as a result of the development of accounting over the past forty years. Two different approaches emerged: The first is the debate about accountability, based on a completely new accounting system and designed to strengthen the sus-tainability strategy; The second approach is a management perspective, which is related to many sus-tainability terms. It can therefore be considered an extension of conventional financial management accounting.The paper discusses the purpose of sustainability accounting, stages of development, and the pos-sibility of implementing and using two of the most important standards in Georgian companies. Key considerations and responses to the use of standards in sustainability reporting regarding disclosures have been formulated. Based on European experience, Georgia has introduced international standards for sustainable development. The goal of sustainability reporting is to reduce the negative impacts of businesses on the environment and society. The main challenge is to standardize the process of pre-paring sustainability reports, ensuring their robustness and reliability. The introduction of standards is important and a priority for the sustainable development of local enterprises. The early adoption of these principles represents an opportunity for the country to improve its management reporting practices as stipulated in the Law on Accounting, Reporting, and Auditing of Georgia. Contribute to the creation of a more sustainable and competitive economic environment, which ultimately ensures the creation of a European business environment. The implementation of these standards will strengthen investor confidence and create opportunities for making informed decisions.