IMPLEMENTATION OF ESG STRATEGIES AS A FACTOR IN STRENGTHENING THE ECONOMIC POTENTIAL OF AGRICULTURAL ENTERPRISES

Authors

  • Yuriy Hubeni dr.sc.(econ.), professor, head of the department of entrepreneurship and trade, Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies of Lviv
  • Nataliia Zelisko cand.sc.(econ.), assoc. prof., associate professor at the department of entrepreneurship and trade, Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies of Lviv
  • Nataliia Raiter cand.sc.(econ.), assoc. prof., associate professor at the department of entrepreneurship and trade, Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies of Lviv

DOI:

https://doi.org/10.37332/

Keywords:

ESG strategy, economic potential, agricultural enterprises, sustainable development, investment attractiveness, environmental responsibility, agribusiness

Abstract

Hubeni Yu.Ye., Zelisko N.B., Raiter N.I.  IMPLEMENTATION OF ESG STRATEGIES AS A FACTOR IN STRENGTHENING THE ECONOMIC POTENTIAL OF AGRICULTURAL ENTERPRISES

Purpose. The aim of the article is to provide a scientific substantiation of the theoretical and methodological foundations and to develop practical recommendations for the implementation of Environmental, Social, and Governance (ESG) strategies as a key tool for increasing the economic potential and competitiveness of agricultural enterprises in the context of global transformations.

Methodology of research. A complex of general scientific and special methods was used in the research process: the method of systematic analysis to study the components of economic potential; methods of induction and deduction to determine the impact of non-financial indicators on financial stability; comparative analysis to evaluate international experience in implementing ESG standards in agriculture; and the graphical method for visualizing of the ESG factor influence model.

Findings. It has been proven that the integration of ESG strategies into the operations of agricultural enterprises transforms the traditional business model, orienting it toward long-term value. It has been established that the environmental factor (E) promotes cost reduction through resource efficiency; the social factor (S) enhances labour productivity and community loyalty; and the governance factor (G) minimizes operational risks. Furthermore, the implementation of such strategies is identified as a prerequisite for attracting foreign investment and gaining access to international capital markets within the context of Ukraine’s European integration.

Originality. The definition of the “economic potential of an agricultural enterprise” has been further developed through the prism of sustainable development, where non-financial indicators (environmental footprint, social capital) are considered active drivers of market value growth. A conceptual model for the implementation of an ESG strategy has been formed, which, unlike existing ones, takes into account the specifics of agricultural production and land relations.

Practical value. The formulated recommendations can be utilized by executives of agro-holdings and farming enterprises to develop internal sustainable development policies. The proposed model of ESG factors enables the monitoring of resource potential utilization efficiency and the preparation of non-financial reporting in accordance with international standards.

Key words: ESG strategy, economic potential, agricultural enterprises, sustainable development, investment attractiveness, environmental responsibility, agribusiness.

 

References

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Published

2025-12-26

Issue

No. 4 (2025): INNOVATIVE ECONOMY

Section

Статті

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How to Cite

“IMPLEMENTATION OF ESG STRATEGIES AS A FACTOR IN STRENGTHENING THE ECONOMIC POTENTIAL OF AGRICULTURAL ENTERPRISES”. INNOVATIVE ECONOMY, no. 4, Dec. 2025, pp. 68-75, https://doi.org/10.37332/.