BENEFITS OF SUSTAINABILITY REPORTING FOR ENTERPRISES
BENEFITS OF SUSTAINABILITY REPORTING FOR ENTERPRISES

Summary/Abstract: The process of sustainability reporting contributes to generating significant financial and non-financial benefits for the business management within enterprises. The non-financial benefits of sustainability reporting are related to improving competitiveness, visibility, goodwill, and the overall corporate image; attracting new customers and investors; developing original energy-saving and environmentally friendly products and services; implementing new, innovative practices that preserve and responsibly use biological diversity; conducting environmental, social, and governance monitoring of work processes; and applying comprehensive sustainable practices for environment protection and restoration, etc. The financial benefits are associated with improving the financial position of enterprises; generating profits by reducing costs for energy-intensive production and activities and increasing revenues from the realization of new environmentally friendly products and services; replacing morally and physically obsolete assets that cause losses and harm the environment; and investing in new assets that contribute to the purification of air, water, and soil and help to protect the environment. Sustainability reporting in enterprises represents a process of documenting, initially and subsequently assessing, recording, and processing primary accounting information related to the three aspects of sustainability – environmental, social, and governance; preparation of specific accounting entries for performed environmental, social, and governance economic operations; creation of specific accounting documents and registers that accurately and fairly reflect the created sustainability-related information and its disclosure in the Sustainability Report, which is prepared and published together with the annual financial statements of enterprises, as well as analysis and control of sustainability-related information. The sustainability reporting benefits reflected in the Sustainability Report of enterprises will contribute to the occurrence of new investment opportunities for stakeholders (shareholders, partners, investors), to improving relationships with customers and suppliers, and to ensuring compliance with legal provisions of state regulatory authorities concerning sustainability. The information disclosed in this report will reveal the enterprises’ commitments to long-term sustainable development; their management policies related to environment protection and restoration, and biodiversity conservation; their social and governance responsibilities aimed at ensuring full transparency regarding the actions undertaken to create added value for the society in relation to the preservation of the planet’s natural environment, improvement of human relations, protection of human rights, combating corruption, money laundering, and terrorism financing.

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