English
Received 26.12.2024, Revised 28.02.2025, Accepted 25.03.2025
Given the growing importance of sustainable development and Ukraine’s integration into the European economic area, high-quality and comprehensive sustainability reporting is critical for the banking sector. The study aimed to assess the completeness of sustainability disclosures in the non-financial reporting of Ukrainian banks, to identify challenges and opportunities for improving the quality of such information to achieve positive effects at both the micro and macroeconomic levels. To achieve this goal, the case study method was used, which involved a comprehensive analysis of the websites of all Ukrainian banks to study their non-financial reporting. An in-depth analysis was conducted to determine the availability and quality of disclosed information on environmental, social and governance (ESG) factors. The study results showed that Ukrainian banks are only beginning to adopt sustainability reporting. The disclosed sustainability information is largely descriptive, lacking quantitative or financial data, and is often heterogeneous and unstructured. Even banks that position themselves as socially and environmentally oriented do not fully disclose sustainability risks or provide comprehensive information in the context of sustainable development goals. Only 35% of Ukrainian banks submit a “Sustainable Development Report” as part of their management report and only 45% of these banks address all ESG factors in the report. It has been demonstrated that, despite significant challenges in complying with the requirements of the Corporate Sustainability Reporting Directive, which remains voluntary for Ukrainian banks, adopting these standards is essential. Doing so will improve the profitability and transparency of banks’ operations, strengthen investor confidence, and create a more stable financial system in Ukraine. The urgent need for Ukrainian banks to take a more proactive and comprehensive approach to sustainability reporting and to prepare for the requirements of the future regulatory environment was emphasised
non-financial reporting; financial institutions; information disclosure; economic, social, and governance factors; requirements; indicators; audit
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