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Attitudes Toward ESG Reporting in a Crisis�Economy: Insights From Interviews With Ukrainian�Agricultural Enterprises

Volodymyr Metelytsia¹² | Vladislav Valentinov²³⁴ | Taras Gagalyuk²�¹ Department of Accounting and Consulting, The State Tax University, Irpin, Ukraine�² Department of Structural Development of Farms and Rural Areas, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), Germany�³ Department of Law and Economics, Martin Luther University, Halle, Germany�⁴ Next Society Institute, Kazimieras Simonavičius University, Vilnius, Lithuania

EAAE | Bonn, Germany | August 26-29, 2025

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The problem of the unrealized potential of ESG reporting in a crisis economy

18th EAAE Congress | Bonn, 2025

Global scale�• 78% of the world’s largest revenue-generating companies apply the Global Reporting Initiative (GRI) standards�• 23,000 companies with a total market capitalization of USD 67 trillion disclose their environmental impact via the Carbon Disclosure Project (CDP)�• 90% of Fortune 500 companies follow the standards and guidelines of the Greenhouse Gas (GHG) Protocol

EU Regulatory Requirements

EU Taxonomy (2020)
Corporate Sustainability Reporting Directive (CSRD, 2022)
Carbon Border Adjustment Mechanism (CBAM, 2023)
European Sustainability Reporting Standards (ESRS, 2023)

Ukraine’s Green Deal

Draft Law on Sustainability Reporting approved by the Government (2025)
National Energy and Climate Plan until 2030 (2024)
Strategy for the Implementation of Sustainable Development Reporting by Enterprises (2024)
Decarbonization Fund (2024)
Green Transition Office (2024)

Role of Ukraine’s Agricultural Sector

Before the war:�- 50% of global vegetable oil exports and 14% of grain exports�- 12,672 enterprises; 26,629 farms; 4.6 M households
During the war:�- Cultivated area decreased to 26.5 M ha

- Employment fell to 404,900 people

- 78% of large farms donate to the army, 83% support war veterans

ESG reporting in Ukraine has not yet become an effective instrument for attracting investment in post-war recovery and sustainable development of the agricultural sector

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Research Objective

18th EAAE Congress | Bonn, 2025

To investigate how Ukrainian agricultural enterprises perceive and implement ESG reporting practices under conditions of war, economic instability, weak institutional support, and increasing EU integration-elated regulatory pressure

To analyze how businesses adapt sustainability approaches amid limited resources and existential threats, taking into account moral imperatives, widespread skepticism, and the absence of clear financial incentives

To identify the barriers and motivations that shape readiness for ESG reporting adoption

To develop an adaptive ESG reporting model tailored to the needs of a crisis economy and capable of reducing the regulatory burden on SMEs

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Research methods�

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Data collection

Distribution

Questionnaire	11 questions
Interviews	Semi-structured via telephone
Period	April – July 2024
Coverage	18 regions of Ukraine
Respondents	30 agricultural enterprises
Specialization	Сultivation of grains and oilseeds
Position	Managers and chief accountants
Exclusion	Active combat zones

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Data analysis

18th EAAE Congress | Bonn, 2025

Key themes identified in ESG reporting practices among Ukrainian agricultural enterprises

Theme	Description	Binary coding (1 = Yes; 0 = No)
Operational ESG priorities	Enterprises engage in wartime social support (e.g., aid to communities and military) and implement environmentally sound practices (e.g., precision farming, fertilizer reduction), yet these actions are rarely systematically disclosed in official ESG reports	1 = ESG actions occur but are not formally reported; 0 = No ESG actions reported or implemented
Regulatory pressure and practical constraints	EU-aligned ESG frameworks are viewed as complex and burdensome, with low awareness, limited training, and minimal advisory support impeding adoption	1 = Respondent mentions regulatory or resource-related constraints; 0 = No such concerns expressed
Financial materiality and the land market	ESG reporting is valued primarily for its potential to unlock subsidies, financing, or market access, especially concerning land acquisition and investment. Without financial incentives, ESG is seen as burdensome	1 = Financial incentives as motivators are cited; 0 = No reference to financial motivations
Skepticism toward ESG reporting	Respondents express doubt about the reliability, relevance, or impact of ESG disclosures, often citing poor internal metrics and unclear benefits	1 = Scepticism or reluctance toward ESG reporting is expressed; 0 = No scepticism mentioned
Sustainability investments and wartime innovation	Firms mention investments in decentralized energy, resilient infrastructure, and adaptive technologies. Some reference risk assessments related to conflict.	1 = Concrete innovation or adaptation practices cited; 0 = No mention or lack of capacity to implement

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Operational ESG priorities

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% of respondents

“We are constantly helping the community. We take care of two schools and a kindergarten… support the military… donate to brigades… maintain roads and public spaces.” (Respondent 28, Large, South)

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Regulatory pressure of European integration and practical limitations

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“There are many discrepancies with European norms – corruption, bureaucracy. To bring everything in line will take time. There’s a big question as to whether our products will remain competitive. If we talk about sustainable development reporting, we need to understand why we should do it.” (Respondent 10, Medium, North)

% of respondents

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Financial materiality in the context of the land market

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“If the publication of the report leads to an increase in the company’s income, access to affordable loans, investments, and more opportunities to receive green subsidies… this could stimulate us to prepare it.” (Respondent 17, Small, North)

% of respondents

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Skepticism about ESG reporting

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“After the EU introduces the carbon tariff… if Ukraine comes up with some reporting documents that will allow avoiding or reducing such a tariff, it will be a significant incentive… But right now, it's hard to say whether there will be any effect from such a report and what its size will be.” (Respondent 2, Large, South)

% of respondents

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Investments and innovations in sustainable development under wartime conditions

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“We do not abuse herbicides… We use precision-applied liquid fertilizers… We also implement anti-erosion measures and treat the land with modern German equipment.” (Respondent 9, Medium, East)

% of respondents

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Crisis Adaptation of ESG Factors

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Business strategy or moral justification of ESG reporting?

Business strategies are not based on abstract ethical ideals
New technologies are implemented only when they offer concrete results
Sustainable development is viewed through the lens of survival actions: support for the army, local investments
Moral imperatives are aligned with business goals

Extreme financial materiality

In crisis economies, global ESG frameworks undergo financially-centered adaptation
ESG reporting is relevant only when there is a financial benefit (e.g., market access, credit)
Without financial benefit, non-financial reporting is seen as an “administrative burden”
Long-term development depends on deeper integration of social and environmental aspects

High authenticity

Skepticism toward reporting arises from uncertainty about data reliability and questionable usefulness
In low-institutionalized environments, ESG practices exhibit greater authenticity
Limited resources eliminate motivation for “glossy” reports or “greenwashing”
Reporting focuses on operational priorities rather than formal adherence to global standards

Shaping a new ESG landscape in Ukraine’s agricultural sector

EU phytosanitary and environmental requirements create additional pressure on enterprises during wartime
ESG principles must take into account the existing system of tax, statistical, and environmental reporting
An adaptive model with simplified requirements for SMEs is needed
Ukraine serves as a case for testing ESG as a survival strategy

Adapted ESG reporting model

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ESG reporting model adapted to crisis situations

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Comparative characteristics of traditional and adaptive ESG models

Criterion	Traditional ESG Model (Global West)	Adaptive ESG Model (Crisis Economies, e.g., Ukraine)
Market conditions and ESG approach	Stable, predictable market conditions; ESG integrated into long-term strategic planning	High instability due to war and economic crisis; ESG commitments are situational and driven by immediate needs
Regulatory environment	Strong institutional enforcement of international standards (e.g., GRI, SASB, CSRD, TCFD)	Weak institutions and inconsistent enforcement require flexible, context-sensitive reporting mechanisms
ESG landscape formation	Shaped by investor expectations and global ESG rankings	Shaped by EU integration pressures; requires tailored, less burdensome ESG pathways, especially for SMEs
Materiality focus	Double materiality emphasized; financial and impact dimensions weighted equally	Financial materiality prioritized; environmental and social impacts treated as forward-looking or secondary
Authenticity and institutionalization	High institutionalization may foster symbolic compliance and “greenwashing” risks	Low institutionalization fosters substantive, pragmatic ESG engagement tied to operational constraints
Business vs. moral justification	Business strategies and moral imperatives may conflict or be pursued separately	Moral and business rationales are aligned, with ESG practices supporting enterprise survival and continuity

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Conclusions for policy and management

18th EAAE Congress | Bonn, 2025

Geopolitical instability requires a reorientation of global ESG frameworks towards financial materiality in crisis economies
EU integration necessitates the creation of a level playing field for Ukrainian agricultural enterprises; therefore, Ukraine needs an adaptive ESG model with moderate regulatory pressure
At the national level, policy should focus on the development of advisory services and education in the field of sustainable development and green finance, strengthening the institutional infrastructure through professional associations, extension services, and independent consulting centers
The implementation of ESG reporting in Ukraine’s agricultural sector at the corporate level may be facilitated by support mechanisms that compensate for the costs of environmental data collection, staff training, financial consulting, and independent auditing
Future academic research in crisis economies can expand the empirical basis established in this study by using larger samples and quantitative analysis to assess causal mechanisms

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Acknowledgments

18th EAAE Congress | Bonn, 2025

This study has received funding through the Marie Sklodowska-Curie Actions for Ukraine (MSCA4Ukraine) program of the European Union.

Publication

Metelytsia, V., Valentinov, V., & Gagalyuk, T. (2025). Attitudes toward ESG reporting in a crisis economy: Insights from interviews with Ukrainian agricultural enterprises. Business Strategy & Development, 8(2), 1-19. https://doi.org/10.1002/bsd2.70123

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Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

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06120 Halle (Saale), Germany

+49 345 2928-0

iamo@iamo.de

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