Reporting on the sustainable development of mining and oil refining companies: a comparative analysis of the EU and Ukraine
DOI:
https://doi.org/10.51599/is.2022.06.04.05Keywords:
sustainability reporting, sustainable development, corporate social responsibility, Management Report, EU Directives, mining industry, oil refining industry, non-financial indicators.Abstract
Purpose. The purpose of this study is to compare the national recommendations for the preparation of the Report on the management of mining and oil refining enterprises with the existing international practice, and to draw conclusions about their compliance, in particular in the part of the structure and content of the Management Report.
Results. The article considers the necessity of forming non-financial reports of enterprises. The essence, purpose, tasks of reporting on sustainable development in Ukraine and the EU, in particular the Management Report, are highlighted. Types of non-financial reporting are considered, namely: Management report, integrated report, report according to the GRI standard, progress report on the implementation of the principles of the UN Global Compact, report on social and environmental projects, and their characterization according to Directive 2013/34/EU. An analysis of the EU legal framework and its implementation in Ukraine regarding reporting on the sustainable development of companies was carried out. A comparative analysis of the criteria for determining the size category of EU and Ukrainian enterprises was carried out. The prevalence of publication of Reports on the management of Ukrainian companies, which are among the 100 largest taxpayers of Ukraine, was studied, in particular, in the section of the mining and oil refining industry. A comparison was made of the structure and content of the Management Report in accordance with IFRS Practical Report 1, elements of the Management Commentary and Methodological Recommendations No. 982. The recommended information content of the Management Report was grouped taking into account IFRS and Methodological Recommendations No. 982. Recommendations on the introduction of certain corrections to the domestic regulatory framework in order to transition from the standard Ukrainian system to international standards for the preparation of reports on sustainable development are substantiated.
Scientific novelty. The novelty of the obtained results lies in the substantiation of scientific and practical provisions regarding the imitation of international standards for the further development of the domestic model of reporting on sustainable development. In addition, it is proposed to spread the practice of drawing up non-financial reports by companies, which will contribute to the formation of an effective management system for identifying existing and forecasting possible internal and external threats to its functioning, as well as taking measures to minimize the impact of these threats on the results of operations on the basis of sustainable development.
Practical value. The theoretical and methodological provisions of this study have been brought to practical recommendations for the introduction of certain corrections in the domestic regulatory framework in order to transition from the standard Ukrainian system to international standards for the preparation of reports on sustainable development. The obtained practical results can be used at enterprises of the mining sector and the oil refining industry to implement sustainable development.
References
Sustainable development report 2022. Cambridge University Press, 2022. 508 p. URL: https://doi.org/10.1017/9781009210058.
Статистична інформація Державної служби статистики України. URL: https://ukrstat.gov.ua/operativ/oper_new.html.
Економіка України під час війни: оперативна оцінка / Г. Вишлінський та ін. Центр екон. стратегії, 2022. 23 с.
Про бухгалтерський облік та фінансову звітність в Україні: Закон України від 16.07.1999 р. № 996-XIV. URL: https://zakon.rada.gov.ua/laws/show/996-14#Text.
On the annual financial statements, consolidated financial statements and related reports of certain types of undertakings: Directive 2013/34/EU of 26.06.2013 no. 2013/34/EU. URL: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32013L0034.
Кононенко Л. В., Юрченко О. В. Нефінансова (соціальна) звітність підприємств та цілі сталого розвитку. Advances in Technology and Science: матер. XII міжнар. наук.-практ. конф. (м. Берлін, 16–19.04.2021 р.). Берлін, 2021. С. 62–64.
Байрактар Ю. П. Нефінансова звітність підприємств та етапи її формування. Вісник ОНУ імені І. І. Мечникова. 2015. Т. 20. № 1/1. С. 57–60.
Жиглей І. В., Захаров Д. М. Звіт з управління – складова фінансової, нефінансової чи інтегрованої звітності? Проблеми теорії та методології бухгалтерського обліку, контролю і аналізу. 2019. № 1(42). С. 18–24. https://doi.org/10.26642/pbo-2019-1(42)-18-24.
Оніщенко В. П. Порівняння національних та міжнародних вимог до складання звіту про управління. Проблеми і перспективи економіки та управління. 2018. № 4(16). С. 230–238. https://doi.org/10.25140/2411-5215-2018-4(16)-230-238.
Макаренко І. О. Звітність зі сталого розвитку: перспектива для прийняття рішень стейкхолдерами, проблематичність для подання в інтегрованому форматі. Економічний часопис Східноєвропейського національного університету імені Лесі Українки. 2016. № 4. С. 49–54. URL: https://echas.vnu.edu.ua/index.php/echas/article/view/156/124.
Calabrese A., Costa R., Gastaldi M., Levialdi Ghiron N., Villazon Montalvan R. A. Implications for sustainable development goals: a framework to assess company disclosure in sustainability reporting. Journal of Cleaner Production. 2021. Vol. 319. 128624. https://doi.org/10.1016/j.jclepro.2021.128624.
Bose S., Khan H. Z. Sustainable development goals (SDGs) reporting and the role of country-level institutional factors: an international evidence. Journal of Cleaner Production. 2022. Vol. 335. 130290. https://doi.org/10.1016/j.jclepro.2021.130290.
Yan M., Jia F., Chen L., Yan F. Assurance process for sustainability reporting: towards a conceptual framework. Journal of Cleaner Production. 2022. Vol. 377. 134156. https://doi.org/10.1016/j.jclepro.2022.134156.
G3.1 Sustainability Reporting Guidelines. Global Reporting Initiative, 2011. 195 p. URL: https://www.yumpu.com/en/document/read/21481965/g31-sustainability-reporting-guidelines-global-reporting-initiative.
Про затвердження Методичних рекомендацій зі складання звіту про управління: Наказ Міністерства фінансів України від 07.12.2018 р. № 982. URL: https://zakon.rada.gov.ua/rada/show/v0982201-18#Text.
Зінченко А., Резнік Н., Саприкіна М. Індекс прозорості сайтів українських компаній. Київ: Юстон, 2018. 28 с.
Король С. Нефінансова звітність підприємства. Вісник КНТЕУ. 2011. № 6. С. 102–113.
Гамкало О. Б. Нефінансова звітність як інструмент вимірювання соціальної діяльності вітчизняних підприємств. Статистика України. 2017. № 4. С. 79–86.
Костирко Р. О. Інтегрована звітність – інструмент соціально відповідального бізнесу. Часопис економічних реформ. 2014. № 1(13). С. 49–54.
Amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups: Directive 2014/95/EU of 22.10.2014 no. 2014/95/EU. URL: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32014L0095.
Guidelines on non-financial reporting (methodology for reporting non-financial information): Communication from the Commission of 05.07.2017 no. C/2017/4234. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52017XC0705(01).
Eurostat. European Commission. URL: https://ec.europa.eu/eurostat/data/database.
Реєстр великих платників податків (ВПП) України на 2022 рік. Опендатабот. URL: https://opendatabot.ua/open/large-tax-payers.
Офіційний сайт Центру «Розвиток корпоративної соціальної відповідальності. CSR Ukraine. URL: http://csr-ukraine.org.
IFRS Practice Statement 1: Management Commentary: of 08.12.2010. URL: https://www.ifrs.org/issued-standards/list-of-standards/management-commentary-practice-statement.
Подання інформації про надання суб’єктом аудиторської діяльності послуг підприємствам, що становлять суспільний інтерес. ОСНАД – орган суспільного нагляду за аудиторською діяльністю. URL: https://www.apob.org.ua/?page_id=3616.
Про аудит фінансової звітності та аудиторську діяльність: Закон України від 21.12.2017 р. № 2258-VIII. URL: https://zakon.rada.gov.ua/laws/show/2258-19#Text.
Amending Regulation (EU) No. 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting: DIRECTIVE (EU) of 14.12.2022 no. 2022/2464. Official Journal of the European Union. 2022. 16 December. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2464.
Макаренко І., Кравченко О., Овчарова Н., Земляк Н., Макаренко С. Стандартизація аудиту звітності зі сталого розвитку компаній. Agricultural and Resource Economics. 2020. Vol. 6. No. 2. Pp. 78–90. https://doi.org/10.51599/are.2020.06.02.05.
Pasko О., Marenych T., Diachenko O., Levytska I., Balla I. Stakeholder engagement in sustainability reporting: the case study of Ukrainian public agricultural companies. Agricultural and Resource Economics. 2021. Vol. 7. No. 1. Pp. 58–80. https://doi.org/10.51599/are.2021.07.01.04.
Костенко О., Кравченко О., Овчарова Н., Олексіч Ж., Дмитренко А. Інтегрована звітність у процесі прийняття інвестиційних рішень: бібліометричний аналіз наукового ландшафту. Agricultural and Resource Economics. 2021. Vol. 7. No. 2. Pp. 141–159. https://doi.org/10.51599/are.2021.07.02.08.
References
Sustainable development report 2022 (2022). Cambridge University Press. https://doi.org/10.1017/9781009210058.
State Statistics Service of Ukraine (n.d.). Statistical information. Available at: https://ukrstat.gov.ua/operativ/oper_new.html.
Vyshlinskyi, G., Repko, M., Gaidai, Y., Goryunov, D., Kolomiets, O., & Samoiluk, M. (2022). Economy of Ukraine during the war: operational assessment. Analytical note. Center for Economic Strategy.
Verkhovna Rada of Ukraine (2022). Law of Ukraine “On accounting and financial reporting in Ukraine”. Available at: https://zakon.rada.gov.ua/laws/show/996-14#Text.
European Union (2013). Directive 2013/34/EU “On the annual financial statements, consolidated financial statements and related reports of certain types of undertakings” No. 2013/34/EU. Available at: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32013L0034.
Kononenko, L. V., & Yurchenko, O. V. (2021). Non-financial (social) reporting of enterprises and the goals of sustainable development. Materials of the XII international scientific and practical conference “Advances in Technology and Science”. Berlin, April 16–19, 2021.
Bayraktar, Yu. P. (2015). Non-financial reporting of enterprises and stages of its formation. Bulletin of I. I. Mechnikov ONU, 20(1/1), 57–60.
Zhiglei, I. V., & Zakharov, D. M. (2019). Management report: is it a component of financial, nonfinancial or integrated reporting? Problems of Theory and Methodology of Accounting, Control and Analysis, 1(42), 18–24. https://doi.org/10.26642/pbo-2019-1(42)-18-24.
Onishchenko, V. P. (2018). Comparison of national and international management reporting requirements. Problems and prospects of economic and management, 4(16), 230–238. https://doi.org/10.25140/2411-5215-2018-4(16)-230-238.
Makarenko, I. O. (2016). Sustainability reporting: a perspective for stakeholder decision-making, challenges for presenting in an integrated format. Economic Journal of the Lesya Ukrainka Eastern European National University, 4, 49–54. https://echas.vnu.edu.ua/index.php/echas/article/view/156/124.
Calabrese, A., Costa, R., Gastaldi, M., Levialdi Ghiron, N., & Villazon Montalvan, R. A. (2021). Implications for sustainable development goals: a framework to assess company disclosure in sustainability reporting. Journal of Cleaner Production, 319, 128624. https://doi.org/10.1016/j.jclepro.2021.128624.
Bose, S., & Khan, H. Z. (2022). Sustainable development goals (SDGs) reporting and the role of country-level institutional factors: an international evidence. Journal of Cleaner Production, 335, 130290. https://doi.org/10.1016/j.jclepro.2021.130290.
Yan, M., Jia, F., Chen, L., & Yan, F. (2022). Assurance process for sustainability reporting: towards a conceptual framework. Journal of Cleaner Production, 377, 134156. https://doi.org/10.1016/j.jclepro.2022.134156.
Global Reporting Initiative (2011). G3.1 Sustainability Reporting Guidelines. Available at: https://www.yumpu.com/en/document/read/21481965/g31-sustainability-reporting-guidelines-global-reporting-initiative.
Ministry of Finance of Ukraine (2019). Order of the Ministry of Finance of Ukraine “On the approval of the Methodological recommendations for the preparation of the management report”. Available at: https://zakon.rada.gov.ua/rada/show/v0982201-18#Text.
Zinchenko, A., Reznik, N., & Saprykina, M. (2018). Index of transparency of Ukrainian companies. Kyiv, Euston.
Korol, S. (2011). Non-financial reporting of the enterprise. Bulletin of KNTEU, 6, 102–113.
Gamkalo, O. B. (2017). Non-financial reporting as a tool for measuring the social activity of domestic enterprises. Statistics of Ukraine, 4, 79–86.
Kostyrko, R. O. (2014). Integrated reporting is a tool of socially responsible business. Journal of economic reforms, 1(13), 49–54.
European Union (2014). Amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups. Directive 2014/95/EU № 2014/95/EU. Available at: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32014L0095
Communication from the Commission № C/2017/4234 (2017). Guidelines on non-financial reporting (methodology for reporting non-financial information). Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52017XC0705(01).
Eurostat (n.d.). European Commission. Available at: https://ec.europa.eu/eurostat/data/database.
Opendatabot (n.d.). Register of large taxpayers (VPP) of Ukraine for 2022. Available at: https://opendatabot.ua/open/large-tax-payers.
The official website of the Center “Development of corporate social responsibility” (n.d.). Available at: http://csr-ukraine.org.
IFRS Practice Statement 1: Management Commentary (2010). Available at: https://www.ifrs.org/issued-standards/list-of-standards/management-commentary-practice-statement.
OSNAD (n.d.). Submission of information on the provision of services by the subject of audit activity to enterprises of public interest. Available at: https://www.apob.org.ua/?page_id=3616.
Verkhovna Rada of Ukraine (2017). Law of Ukraine “On the audit of financial statements and auditing activities”. Available at: https://zakon.rada.gov.ua/laws/show/2258-19#Text.
European Union (2022). Amending Regulation (EU) No. 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting, Directive (EU) № 2022/2464. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2464.
Makarenko, І., Kravchenko, О., Ovcharova, N., Zemliak, N., & Makarenko, S. (2020). Standardization of companies’ sustainability reporting audit. Agricultural and Resource Economics, 6(2), 78–90. https://doi.org/10.51599/are.2020.06.02.05.
Kostenko, O., Kravchenko, О., Ovcharova, N., Oleksich, Z., & Dmytrenko, A. (2021). Integrated reporting in investment decision-making: bibliometric analysis of scientific landscape. Agricultural and Resource Economics, 7(2), 141–159. https://doi.org/10.51599/are.2021.07.02.08.
Pasko, О., Marenych, T., Diachenko, O., Levytska, I., & Balla, I. (2021). Stakeholder engagement in sustainability reporting: the case study of Ukrainian public agricultural companies. Agricultural and Resource Economics, 7(1), 58–80. https://doi.org/10.51599/are.2021.07.01.04.
