Name of Group : Team 2

Members : 1. Aqib Saifi Hakim (934213620)

2. Frisca Putri Perdana (934213520)
3. Icarolla Praminta (934211920)
4. Nur Afiyatul Walidaini (934212220)
5. Maulani Binti Ma’arif Hijrotul Hasanah (934212520)
6. Yuliarti Diyah Rahayu (934213120)

Non-financial Reporting Challenges in Monitoring SDG’s Achievement:

Title
Investment Aspect for Transition Economy
Author/Writer Yuliia Kornieieva
Glossary of Terms
Cherry-picking = Memetik ceri
Commercial = Komersial
Comparative = Komparatif
Enterprise = Perusahaan
Entities = Entitas
Entity contribution = Kontribusi Entitas
Fixed Capital Investment = Investasi Modal Tetap
Indicator = Indikator
Intergovernmental = Antar pemerintah
Investation = Investasi
Investing = Berinvestasi
Mechanism = Mekanisme
Methodology = Metodologi
Non-financial = Non-keuangan
Production = Produksi
Promotion = Promosi
Result = Hasil
SDG-washing = Pencucian SDG
Statistical = Statiska
Sustainability = Pelaporan
Systematic = Sistematis
The UN = PBB
Transition = Peralihan
Transparency = Trasparansi
 SUMMARY
A. Introduction
By defining "sustainable inclusive economic growth" as progress in the development of
an economic system that makes it possible to Maintain a certain standard and quality of life
for the long term, we do emphasizes that the qualitative and quantitative characteristics of
sustainable development ensured on the basis of a balance of social justice, safety of the
production environment and economic efficiency.
The challenge of providing resources is related, first and foremost, to factors which
significantly limits private and public investment in achieving the SDGs, namely: high state
budget deficit; low FDI inflows; the loan interest rate high; limited liquidity of the banking
system; the need to strengthen the mobilization system domestic resources (DRM) through
the implementation of measures to cope with flows capital outflow and the erosion of the tax
base.
Institutional challenges that hinder the implementation of the development concept
sustainability and achievement of the SDGs for a transitive economy include: low maturity level
of public institutions, and consequently high levels of the economy shadow and corruption; the
need for intensification of structural transformation to the economy market oriented; the need
to ensure economic diversification of the industry oriented energy-dense raw materials into an
extra value-added industry high-tech, which will reduce exports of raw materials, improve
environment through the introduction of modern technology, and at the same time improve
national competitiveness. ; the need for further intensification of engagement national
economy into the globalization process by increasing participation in the global value chain.

B. Results and Discussion

Unclear targets and indicators cause difficulties in measuring progress. Unifying
reporting metadata forms the basis for progress in implementation SDGs that require
systematic and consistent reporting information. ikator GRI 201-4 (G4-EC4) "Financial
assistance received from the government" includes, among others, investment grants,
research and development grants, and types other relevant grants) (GRI 201: Economic
Performance, 2016). In addition, GRI contains Indicators Indirect Economic Impact 203-1
(G4EC7) which reflects “Investment infrastructure and services supported ”(GRI 203: Indirect
Economic Impacts, 2016). GRI also contains reporting requirements for investment agreements
and agreements significant coverage of human rights provisions Disclosure 412-3 (G4-HR1)
"Significant investment agreements and contracts that include human rights clauses or who
have undergone human rights checks "(GRI 412: Human Rights Assessment Human, 2016).
UNCTAD guidelines and SASB standards do not provide reporting about these aspects.
C. Monitoring the Achievement of the SDG̀ in Ukraine
It is important to emphasize that non-financial reporting in Ukraine is not mandatory.
And because of the corporate governance culture for non-financial reporting in weak
transitional economies, institutional mechanisms for data collection combines the collection
and processing of systematic data on contributions economic entities towards the
achievement of the SDGs need to be improved.
The UNCTAD investment indicators (A.3.1, A.3.2) address two aspects SDG
implementation - social and environmental issues. Indicator A.3.1 actually reflects the amount
invested in the protection facility environment in the context of withdrawal from the
stimulation type system technocratic economic development (according to components
sustainable economic growth - safety of the operating environment).
These indicators include investment in natural resource conservation (soil,
underground, water, atmospheric air, forests, wildlife, etc.); landscapes and other natural
complexes; the area and the object of the nature reserve fund. The social orientation of
investment activities is reflected in Indicator A.3.2 which is pay attention to investment in
health and people's lives.

D. Conclusions and Recommendations

Non-financial reporting challenges in monitoring achievement of the SDGs for the
economy transitions include:
 lack of clear reporting requirements in the development sector continuing, which
complicates the process of appraising the entity's contribution economy towards the
achievement of the SDGs;
 the need to establish a data compliance and reliability monitoring system sustainable
development reporting in order to overcome information asymmetry and increase
transparency;
 the need to develop an approach for assessing the materiality of that information
received for investment purposes in order to establish relevant data for investment
decision making process.
 a weak corporate governance culture for reporting in transitional economies (company
accounting policies);
 improved institutional mechanisms for aggregating data collection systematic
collection and processing of data about the contribution of economic entities to
achievement of the SDGs;
  the need to ensure the coordination of the national statistical system to address
inconsistency and controversy over data reflecting the achievement of the SDGs;
 bring non-financial reporting formats into a uniform based format the principle of
harmonization and comparability;
 the use of so-called “SDG laundering” practices in non-financial reporting; - selective
presentation of facts through the use of the deep "cherry picking" practice non-financial
reporting;
 difficulties in measuring the progress of the entity's contribution to SDGs achievement
based on indicators available in reporting non-financial.
To prevent information asymmetry in continuous and purposeful reporting disclose the
company's efforts to use “SDG washing” and "cherry picking", we propose to expand the
reporting initiative by ratio sustainable development investment priority. The proposed
indicators will be reflects the part of Fixed Capital Investment that contributes to increase the
environmental performance of the company (green capital investment) in the total amount of
Capital Investment Fixed that reflects the trend of economic growth, represents the potential
for development through expansion or renewal of production capacity. .
Progress in the development of
an economic system that
makes it possible to maintain
certain standards and quality
of life for the llong term
balance of social
justice, environmental Institutional challenges hinder the
The challenge of providing
security of production implementation of the concept of
resources is related to factors
and economic sustainable development and the
that significantly limit private and
efficiency achievement of the SDGs for a
public investment in achieving
transitive economy
the SDGs

Sustainability management
definition basic characteristis needs to be integrated into
institutional day-to-day business decision-
resource reporting making processes, and
effective reporting
Sustainable Inclusive
Economic Growth Challenges

exchange information between countries on a

Concept Map Article regular basis. Thus, the analysis is based on
evaluating progress on achievement of the SDGs
Non-Financial Reporting Challenges launched an at the national and subnational levels, which In an active The
PBB international involves the preparation and submission of roole government
in monitoring SDG’s Achievement: initiative voluntary national reviews (VNRs) by countries
Aspects Investment for Transitional
Economies

challenges of non-financial
reporting in monitoring the
achievement of the SDGs for a
transitional economy
Goal 10; target 10.b; indicator 10.b.1 appeal GRI Standard/G4: GRI 201-4(G4-EC4)
Core investment
Goal 9, target 9.a; indicator 9.1.a
indicators
appeal GRI Standard/G4: GRI 203-1(G4-EC7) appeal SABS Standard: FN-IB-410a.2
Goal 9; target 9.1; indicator 9.4

SDG’s
 unclear reporting requirements
Goal 17; target 17.17; indicator UNCTAD Guidance : A.3.2 GRI Standard/G4: GRI 201-1(G4-EC4)
 the emergence of the need to build a appeal appeal appeal SABS Standard: FN-IB-410a.2
17.17.1
monitoring system
 the need to develop an approach to assess
the materiality of information received for
investment purposes Goal 8; taks 8.5; target 8.8; indicator
GRI Standard/G4: G4-EN31; GRI G-4 SABS Standard: FN-IB-410a.2 and EM-
 weaknesses corporate governance culture 8.8.2 appeal UNCTAD Guidance : A.3.1 appeal
and OG2 appeal EP-420a.3
for reporting Goal 10, target 10.4; indicator 10.4.1
 improved institutional mechanisms for data
collection
 the need to ensure coordination of national GRI Standard/G4: GRI 412-3(G4-HR1)
statistical systems Goal 7;target 7.b; indicator 7.b.1 appeal SABS Standard: FN-IB-410a.2
appeal
 bringing non-financial reporting formats into
Goal 13;target 13.1
a uniform format
 using the practice of "SDG laundering" in Goal 17; target 17.7 indicator 17.7.1
non-financial reporting
 facts presented selectively through the use
of the practice of "cherry picking" in non-
financial reporting expand reporting initiatives with investment priority sustainable development ratios that reflect Fixed Capital Investment which contributes to improving the
 there is difficulty in measuring the progress environmental performance of the company in the total amount of Fixed Capital Investment that reflectseconomic growth trends, representing the potential for
of the entity's contribution to the recommendation company development through expansion or renewal production capacity
achievement of the SDGs.
Information
1. Shape and colour

Title of Concept map Sub-title: Sustainable Sub-title: challenges

Inclusive Economic Growth

Sub-title: challenges of non-

Sub-title: Comparison of financial reporting in
Sub-title: PBB monitoring the achievement
Investment
of the SDGs for a
transitional economy

Sub-title pointer Sub-title explanation pointer

2. Code of Core investment indicators

 UNCTAD Guidance A.3.2. = Community Investments
 UNCTAD Guidance A.3..1 = Green Investments
 GRI 201-4 (G4-EC4) = Financial assistance received from government (includes
investment grants)
 GRI 203-1 (G4-EC7) = Infrastructure investments and services supported
 GRI 201-1 (G4-EC1) = Direct economic value generated and distributed (includes
community investments)
 G4-EN31 = Total environmental protection expenditures and investments by type
 GRI G4 = Oil and gas sector disclosures
 OG2 = Total amount invested in renewable energy
 GRI 412-3 (G4HRI) = Significant invesment agreements and contracts that include
human rights cluses or that underwent human rights screening
 FN-IB-410a.2 = (1) number and (2) total value of investments and loans incorporating
integration of environmental, social, and governance (ESG) factors, by industry
 EM-EP-420a,3, = Amount invested in renewable energy, reveneu generated by
renewable energy sales