Subject. The concept of sustainable development from the perspective of its origin, contemporary content, and application by corporate entities in relation to ESG principles. Objectives. To present the contemporary applied content of the sustainable development concept as implemented by corporate entities in the form of ESG policy — through a functional model based on a review, interpretation, and analysis of practical applications of this concept. Methods. The study employed mathematical modelling, comparative and analytical, graphical, and expert methods. Results. An attempt has been made to model the functional relationship between ESG policy and the key financial indicators of corporate entities. The model proposed by the authors reflects the use of tax incentives for self-promotion and market positioning under conditions of growing social and environmental requirements. Applying this model will make it possible to forecast the impact of such incentives on a company’s key financial indicators. The presented model can serve as the foundation for building an internal corporate control system for those sustainable development indicators that align with the corporate ESG policy and are linked to eligibility for tax incentives. Conclusions. The demonstrated functional model substantiates the positive impact of using tax incentives by corporate entities that implement the concept of sustainable development.
Keywords: sustainable development, green finance, green investors, tax incentives, ESG
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