ESG-Linked KPI as a Tool for Ensuring Financial Resilience and Strategic Value of Ukrainian Agricultural Companies
DOI:
https://doi.org/10.62911/ete.2026.04.01.06Keywords:
financial stability, agricultural enterprises, sustainable development, non-financial indicators, managerial decisions, performance efficiency, integral index, corporate governanceAbstract
The purpose of this study is to develop a theoretical and methodological approach to constructing ESG-linked key performance indicators (KPIs) for agricultural enterprises and to substantiate their role in ensuring financial resilience, enhancing adaptability to external shocks, and improving the quality of managerial decision-making. The study employs system analysis, generalization, comparative analysis, and econometric modeling. ESG factors are operationalized through a system of ESG-linked KPIs based on the principles of materiality, measurability, comparability, industry relevance, and integration into financial indicators. A structured framework of ESG-KPIs is proposed, covering environmental, social, and governance dimensions with sector-specific indicators. An approach to normalization and aggregation of indicators into an integrated ESG index is developed as a comprehensive measure of ESG integration. The study develops a system of ESG-linked KPIs that enables the formalization of non-financial factors within financial management and supports their integration into strategic and financial planning processes. Methodological approaches to assessing and comparing ESG integration across firms are substantiated. The empirical application of the proposed framework to Ukrainian agricultural companies confirms its analytical validity and demonstrates that higher ESG integration, measured through the KPI system, is associated with increased return on assets and reduced financial leverage, indicating improved efficiency and lower risk exposure. The originality of the study lies in the development of an integrated ESG-linked KPI system tailored to the agricultural sector of Ukraine, which ensures the alignment of non-financial and financial indicators within a unified analytical framework. The practical value is determined by the applicability of the proposed approach for enhancing financial resilience, improving decision-making quality, and increasing the investment attractiveness of enterprises.
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