Actual problems of innovative economy and law

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ESG-mechanism for strategic agribusiness management: integrating environmental and social standards into decision-making

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УДК: 005.35:631.11:330.34

DOI: https://doi.org/10.36887/2524-0455-2025-6-27

Marchuk Yulia,
Head of the Department of Rural Development, Exhibition and Investment Activities,
Department of Agro-Industrial Development of the Kharkiv Regional Military Administration,
https://orcid.org/0009-0001-1685-6140

Published: 27.11.25

The article provides scientific substantiation for the conceptual foundations of a strategically oriented mechanism of corporate governance in agricultural enterprises based on ESG (Environmental, Social, Governance) principles. The evolution of management paradigms — from a finance-centric model to sustainable development and stakeholder theory — is investigated. The author shows that, under the conditions of martial law and European integration, the implementation of ESG standards is shifting from a reputational management tool to a critical factor in attracting international capital and ensuring the viability of Ukraine’s agro-industrial complex. The scientific novelty of the study lies in developing a functional structure for the ESG mechanism that integrates environmental decarbonization, social resilience, and governance transparency into the strategic decision-making system. Attention is paid to the adaptation of domestic agribusiness to new EU regulatory requirements, specifically the CSRD Directive and ESRS reporting standards. The paper conducts a comparative analysis of the experiences of industry leaders (Kernel, Astarta) and confirms the effectiveness of establishing specialized ESG committees and incorporating non-financial KPIs into management incentive systems. The role of “Smart Farming” tools and regenerative agriculture is identified as the basis of the environmental component, enabling the verification of the carbon footprint in accordance with the GHG Protocol. The economic feasibility of ESG-oriented management is supported by access to “green” financing and cost savings from resource efficiency. Practical recommendations are provided for transitioning to the Farm Sustainability Data Network (FSDN) and implementing double materiality principles. It is concluded that the systemic implementation of ESG standards provides a foundation for Ukraine’s “Green Recovery” and strengthens its position in the global food market.

Keywords: corporate governance, ESG standards, agribusiness, sustainable development, CSRD, ESRS, decarbonization, social responsibility, post-war recovery.

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Quote article, APA style

Marchuk Y. ESG-mechanism for strategic agribusiness management: integrating environmental and social standards into decision-making. Actual problems of innovative economy and law. 2025. №6. 120-123 pp. https://doi.org/10.36887/2524-0455-2025-6-27

Quote article, MLA style

Marchuk Y. ESG-mechanism for strategic agribusiness management: integrating environmental and social standards into decision-making. Actual problems of innovative economy and law. https://doi.org/10.36887/2524-0455-2025-6-27