A Comprehensive Analysis of the Best Practices in Applying Environmental, Social, and Governance Criteria within the Energy Sector

Abstract

This article embarks on a crucial exploration of the implementation and integration of environmental, social, and governance (ESG) criteria within the energy sector of European countries, with the ultimate objective of refining the energy legislation in Ukraine. The research delves into the evolving role of ESG standards as a cornerstone in corporate strategy and investment, transitioned from its roots in socially responsible investing to a comprehensive framework that intertwines ethical, environmental, and governance considerations with financial analysis. The main thrust of the study is the following: firstly, it provides a panoramic overview of ESG applications within European energy projects, underscoring pivotal policies, strategies, and instances of successful ESG standard incorporation. Secondly, it benchmarks and compares ESG practices across Europe’s energy sector to distill best practices and their consequential trends and impacts. Lastly, this study converges these European insights to forge pragmatic recommendations for Ukraine’s energy legislation, aiming for an elevated integration of ESG standards that are in step with European benchmarks. The anticipated outcomes offer recommendations for enhancing Ukraine’s energy sector with robust ESG standards, proposing steps that align with the country’s newly adopted Energy Strategy 2050 and international sustainability goals.