Accounting and Analytical Support for Environmental Risk Management in the System of Strengthening Investment Attractiveness and ESG Strategy of the Enterprise

Abstract

The article examines the theoretical and methodological foundations for the formation of accounting and analytical support for environmental risk management in the context of implementing an enterprise's ESG strategy. The author proposes an algorithm for identifying and classifying environmental risks into physical and transition risks. Particular attention is paid to the methodology for discounting future environmental costs and the procedure for forming appropriate provisions (reserves) in accordance with the requirements of IAS 37 and ESRS standards. It has been proven that transparent disclosure of environmental liabilities in financial statements eliminates information asymmetry, contributes to a reduction in the risk premium, and directly increases the investment attractiveness of economic entities in the context of the global energy transition. CZU: 657:[005.35:502.131.1]; JEL: M41, Q56, G32