№ 11/2019

Fìnansi Ukr. 2019 (11): 76–96https://doi.org/10.33763/finukr2019.11.076

MONITORING SUSTAINABLE DEVELOPMENT GOALS

KORNIEIEVA Iuliia ¹

¹SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0002-1823-7618

Monitoring Sustainable Development Goals: an investment aspect

The article is devoted to the analysis of the investment aspects of monitoring the achievement of sustainable development goals (SDGs). The author conducts a comparative analysis of the composition of core investment indicators for sustainable development reporting contained in the UNCTAD Guidelines, as well as those presented in the Global reporting initiative (GRI) and standards developed by the Sustainability Accounting Standards Board (SASB) in the context of providing investment information. It is proposed to systematize the investment challenges for transitive economies in order to achieve SDGs into three groups: resource support, institutional and accounting, which can still be called reporting challenges. Reporting challenges include: the lack of clear sustainability reporting requirements; the problem of reporting uniformity, which covers the lack of harmonization, comparability and consistency in existing methodologies that lead to information asymmetry; the use of SDG-washing and Cherry-picking practices in non-financial reporting; the difficulty in measuring progress of the entity’s contribution to the achievement of the SDGs on the basis of available indicators in the non-financial reporting; weak corporate governance culture concerning reporting issues (company’s accounting policies);. the need to develop approaches to assess the materiality of information received for investment purposes in the context of the formation of data relevant for the investment decision-making process. In order to prevent information asymmetry in SDG reporting at the level of individual companies, regions and countries, the author proposes to expand core indicators in thr economic area with an investment priority indicator reflecting the share of Fixed Capital Investment contributing to improving the environmental performance of the enterprise (green capital investments) in the total volume of Fixed Capital Investment that reflects trends towards economic growth, representing the enterprise’s potential development through expansion or renewal of production capacity. The available sources for the information on the indicator are defined in entity`s financial reporting and state statistical observations.

Keywords:Sustainable Development Goals, nonfinancial reporting, green investments, indicators, information asymmetry, voluntary national reviews, national statistical observations

JEL: A12, D82, E01, E16, E22, M48

Kornieieva I. . Monitoring Sustainable Development Goals: an investment aspect / I. Kornieieva // Фінанси України. - 2019. - № 11. - C. 76-96.

Article original in Ukrainian (pp. 76 - 96)

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