Financial instruments and social and environmental responsibility: international practice and perspectives of implementation in Ukraine

Abstract

Introduction. The effective transition to social and environmental oriented economy is based on numerous factors. In many countries, financial correction is taking place, the main mechanism of which is the transformation of the economy into a new format. Financial intermediation based on the principles of social and environmental financing can have a significant impact on overall progress.

Purpose. The purpose of the article is to assess the current state of the Ukrainian financial market within the level of implementation of the studied tools for the possibility of improving the state of social and environmental responsibility.

Methodology.During the study, the following methods were used: dialectical method and methods of analysis and synthesis – to study the main options for social and environmental development of the country based on the use of financial instruments that are actively and successfully used by developed countries; statistical method – to analyse of monthly volumes of issue of "green" bonds in the world; structural and logical analysis – to study projects implemented in Ukraine in conjunction with IFC.

Results. The application of financial instruments, such as "green bonds", social impact bonds and "green banking", in international practice to increase the level of social and environmental responsibility has been studied. The prospects of application of the researched financial instruments in Ukraine in the context of financing the projects of sustainable development are estimated.