Interregional Academy of Personnel Management

Oleksandr Akimov, Doctor of Sciences in Public Administration, Associate Professor and Honored Economist of Ukraine at the Interregional Academy of Personnel Management (IAPM), is a co-author of the international research paper “Social and environmental trends in ESG financing: New challenges for optimizing the value of capital of companies,” published in the European Journal of Sustainable Development Research - an international academic journal focused on sustainable development research.

The journal is distinguished by its interdisciplinary focus, bringing together research on environmental sustainability, economics, management and social development. It is a peer-reviewed publication using a double-blind peer-review process and is indexed in Scopus.

Research on ESG Financing and the Cost of Capital

The research was co-authored by Liudmyla Sokolenko, Nina Petrukha, Serhii Petrukha, Larisa Khrystenko, and Oleksandr Akimov. The authors examine the relationship between environmental and social ESG factors and the cost of capital of companies in the context of sustainable development.

The study focuses on how the integration of ESG indicators may affect corporate financial performance, particularly the weighted average cost of capital (WACC). This approach considers ESG not only as a component of non-financial reporting but also as a factor associated with financial decision-making and long-term business sustainability.

Methodology and Research Findings

The study is based on a quantitative analysis of panel data from publicly listed companies covering the period from 2015 to 2023. To assess ESG performance, the authors used ratings from MSCI and Sustainalytics, allowing them to examine relationships between ESG performance and the cost of capital.

The analysis indicates that higher ESG performance is generally associated with a lower cost of both equity and debt capital. The most pronounced effects were observed in capital-intensive industries, including manufacturing, energy and mining.

The study also examines regional differences. The authors identified the strongest relationship between ESG indicators and the cost of capital among companies in the European Union and North America, which they associate, among other factors, with more developed regulatory frameworks.

Practical Significance of the Research

One of the outcomes of the study is the development of methodological approaches and practical tools for incorporating ESG factors into financial analysis and corporate strategic planning.

The research demonstrates that environmental and social characteristics can be considered in relation to financial indicators and decisions concerning capital acquisition. This approach contributes to a broader understanding of long-term corporate financial sustainability and highlights the role of sustainable development principles in corporate governance.

Research and IAPM Sustainable Development Goals

The research is connected with two of the Interregional Academy of Personnel Management’s Sustainable Development Goals:

Goal 8: Decent Work and Economic Growth.

The study examines financing mechanisms and long-term corporate financial sustainability, as well as the relationship between ESG approaches and economic performance. In this context, the findings relate to sustainable economic development and the formation of conditions for responsible business practices.

Goal 9: Industry, Innovation and Infrastructure.

The connection with this Goal is reflected in the study’s focus on capital-intensive industries, financial instruments and strategic approaches relevant to the development of modern economic infrastructure. The integration of ESG criteria into financial analysis can also support more informed management and investment decisions.

Overall, the research combines sustainable development, financial management and corporate strategy, highlighting the interdisciplinary nature of contemporary academic research.

Bibliographic Information

Sokolenko, L., Petrukha, N., Petrukha, S., Khrystenko, L., & Akimov, O. (2026). Social and environmental trends in ESG financing: New challenges for optimizing the value of capital of companies. European Journal of Sustainable Development Research, 10(3), em0402. DOI: 10.29333/ejosdr/18523

The full research paper is available in open access on the European Journal of Sustainable Development Research platform: https://www.ejosdr.com/article/social-and-environmental-trends-in-esg-financing-new-challenges-for-optimizing-the-value-of-capital-18523