ESG INFORMATION PRACTICES AS A DRIVER OF VALUE CREATION
DOI:
https://doi.org/10.35774/jee2024.02.225Keywords:
ESG, sustainability; informational practices; reporting; accounting.Abstract
Achieving sustainability goals is mainly driven by information practices that support decision-making. The study dwells on recommendations in the field of design and methodology for information support of sustainability. It was motivated by a diversity and low convergence of existing information practices; the objective is to define ways of their transformation for ESG value creation and sustainability governance. The article aims to give a holistic view of ESG information practices and suggest theoretical insight and practical ways to transform them, primarily accounting, and ESG-reporting, to create a transparent information environment for sustainability. The study is designed as a qualitative analysis with summarising, categorizing, and interpreting open access sources data, such as unidirectional studies, non-financial reporting and ESG-rankings databases, program documents, frameworks and standards for responsible reporting, professional audit analytics, and others. Thematical, logical, and comparative analysis was mostly used for data processing. The study’s theoretical framework is based on social science theories, particularly the Interpretative paradigm. There were assessed quality of the current information field and proposed ways to upgrade an up-to-date system of informational practices by the requirements of a transparent ESG environment for the value creation. New approaches to ESG accounting were suggested, and an integrated balance model of total capitals engaged in ESG value creation was developed. Analysis of a corporate organizational reporting variety allows us to define two key models for better understanding and further convergence. Recommendations for the transformation of accounting, nonfinancial reporting, streamlining, and methodological development of related practices can be used in programmatic, advisory, and regulatory documents that structure the information field of sustainable development.
JEL: O10; M40; M48; C81; O44.
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