Comparative analysis of international and European non-financial reporting standards

Abstract

The article provides a comprehensive study of the essence, economic content, and transformative significance of non-financial reporting in the context of globalization of the world economy, intensified competition, digitalization of business processes, and increasing requirements for transparency and accountability of enterprises. It is proven that traditional financial reporting is limited in terms of reflecting the full range of impacts of company activities, particularly on the environment, social sphere, and corporate governance systems, which necessitates the active development of non-financial reporting. Its role is defined as an important tool for building trust among investors, creditors, the state, and society, as well as a factor in enhancing transparency, responsibility, and management efficiency of enterprises. The significance of non-financial reporting is revealed within the framework of the ESG concept, which integrates environmental, social, and governance aspects of business activities and serves as a key guideline for investment decision-making. A comprehensive comparative analysis of international non-financial reporting standards, including GRI, SASB, TCFD, and ISSB, as well as European approaches based on the NFRD and CSRD directives and ESRS standards, is conducted. Key differences between international and European standards are identified according to criteria such as mandatory application, level of regulatory influence, structure, purpose, degree of detail, and geographical scope. The necessity of harmonizing Ukraine’s national non-financial reporting system with international and European requirements is substantiated as a strategic prerequisite for integration into the European economic area, increasing investment attractiveness, and enhancing the competitiveness of domestic enterprises. Current trends in the development of non-financial reporting are outlined, including the standardization of indicators, integration of financial and non-financial information, digitalization of reporting processes, development of integrated reporting, and strengthening the role of ESG factors in strategic management, risk assessment, and the formation of long-term business value.