Scientific paper ID 2360 : 2023/2

In today”s society, sustainability is at the center of our attention. The accelerating pace of change in both society and the climate is intensifying stakeholder focus on the environmental, social and governance (ESG) risks facing many organizations. We are witnessing irreversible human-caused climate change. It is for this reason that the topic of sustainability and the transition to a greener world is now at the very top of Europe”s political agenda.

ESG stands for Environmental Social and Governance, and refers to the three key factors for measuring sustainable development. EЅG presents a general overview of the company”s impact on the environment and society, as well as the quality of its cooperative behavior.

ESG regulations in the European Union are growing significantly every year, and with them the ments for businesses that want to be sustainable and visible to investors in the Union. Adopted at the end of 2022, the Corporate Sustainability Reporting Directive CSRD (Corporate Sustainability Reporting Directive) set new ments for the majority of companies in the European Union.

In order to meet CSRD ments, companies must apply the European Sustainability Reporting Standards (ESRS), which the European Commission will gradually adopt and expand in the form of delegated acts to supplement the CSRD Corporate Sustainability Reporting Directive.

A focus of regulations and expectations is how companies manage and account for climate impacts, business risks and opportunities.