SUSTAINABLE DEVELOPMENT OF DOMESTIC BUSINESS IN THE MODERN CHALLENGES CONTEXT

Abstract

The article provides a comprehensive study of the sustainable development of domestic business in the context of modern challenges, with a particular focus on the implementation of sustainability reporting by Ukrainian enterprises. The research generalizes practical experience and identifies the main obstacles to integrating international and national regulatory frameworks. It has been established that the balance between social, economic, and environmental components of business is a critical determinant of long-term competitiveness. Based on the analysis of reports prepared by Ukrainian issuers, the necessity of applying the principle of «double materiality», the expansion of reporting principles according to international standards, and the broader use of non-financial indicators to assess performance in short- and long-term horizons has been substantiated. The study reveals that the absence of uniform regulatory requirements, as well as the dominance of limited liability companies over joint-stock companies in Ukraine, hinders the effective adaptation of European directives, in particular the Corporate Sustainability  Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). It has been determined that the implementation of risk-oriented management should be integrated into corporate strategy, ensuring systematic identification, evaluation, and mitigation of sustainability-related risks. Empirical results confirm that Ukrainian companies insufficiently disclose non-financial data, which reduces transparency and complicates comparability across industries. Recommendations are formulated for regulators regarding the development of a unified set of financial and non-financial indicators adapted to sectoral needs, as well as for businesses concerning the strengthening of their internal control and audit practices. The novelty of the research lies in the systematization of methodological approaches to sustainability reporting in Ukraine, the justification of sector-specific benchmarks, and the proposal of practical tools to harmonize national corporate reporting with European standards. The conclusions emphasize the importance of integrating sustainability criteria into management systems, which will contribute to improving transparency, investment attractiveness, and resilience of Ukrainian business in conditions of uncertainty and global transformation.