ESG-Based Approaches to Human Resource Management and Competence Development in Enterprises

The intensification of economic crisis transformations, the growth of stakeholder demands, and the implementation of European requirements for sustainable development reporting significantly increase the role of personnel management and the need for competence development. Under these conditions, an ESG-oriented competence approach becomes particularly significant, as it can ensure adaptability, social sustainability, and the long-term value of enterprises' activities. The article aims to reveal the theoretical and methodological foundations and improve the ESG-oriented approach to the development of competencies as a component of enterprise personnel management. The methodological basis of the study includes the abstract-logical method, the monographic method, the comparative method, the systemic approach, analysis, and synthesis. The article offers a view on the role of competencies in personnel management and on the growth of enterprises' competitive advantages from the perspective of the ESG concept and its relationship with the requirements of users of non-financial and sustainable development reporting. The authors determined the projection of ESRS S1 "Own Workforce" onto the processes of enterprise personnel management and proposed a classification of ESG competences of personnel, taking into account their relationship with the ESRS requirements. A holistic scientific and methodological approach to integrating the ESG approach into the practice of personnel management in enterprises allows the development of a process model for the development of its competencies. The ESG-oriented model ensures the strategic coherence of human capital management with the long-term goals of enterprise development and enables moving from fragmented training and formal advanced training to the systemic management of competencies formed in accordance with real business processes, ESG risks, and stakeholder expectations. The HR managers can use the results of this study to develop and improve enterprises' personnel management systems based on ESG, particularly in the formation and development of employee competencies. Additionally, accountants can apply the authors' approaches to the preparation of non-financial and integrated reporting in accordance with ESRS standards.