FINANCIAL INSTRUMENTS FOR ENSURING THE ECONOMIC AND ENVIRONMENTAL SECURITY OF ENTERPRISES

Abstract

This article examines modern financial instruments for ensuring economic and environmental security of enterprises on the context of global ecological challenges and strengthening sustainable development requirements. The research analyzes theoretical foundations of enterprise economic-environmental security as a comprehensive category combining economic stability with environmental responsibility. The study systematizes and classifies environmentally oriented financial instruments by funding sources, functional purpose, and temporal criteria, investigating the application of green bonds, environmental credits, ESG investments, insurance and compensation mechanisms. The research demonstrates that economic-environmental security represents a multidimensional category characterized by an enterprise’s ability to maintain stable financial performance while minimizing environmental impact and ensuring long-term sustainability. Achievement of this state requires mobilization of significant financial resources through specialized instruments that function as comprehensive mechanisms enabling enterprises to transform environmental challenges into competitive advantages. The classification framework encompasses internal instruments based on enterprise resources including environmental funds, accelerated depreciation, and profit reinvestment, alongside external instruments providing access to larger financing volumes through green bonds, environmental credits, ESG investments, and specialized grants. Functional classification reveals investment instruments for capital expenditure financing, insurance instruments for environmental risk management, and compensation instruments enabling additional revenue generation from environmental activities. The study identifies temporal categories spanning short-term instruments for operational financing, medium-term solutions for project implementation, and long-term mechanisms supporting strategic business model transformation toward sustainability. Analysis demonstrates comprehensive approaches in leading jurisdictions combining regulatory frameworks, financial incentives, and infrastructure development. Key advantages of green financial instruments include access to expanded investor bases, reduced capital costs, enhanced corporate reputation, and alignment with regulatory trends. However, limitations encompass strict transparency requirements, certification complexities, administrative burdens, and market liquidity constraints. The study concludes that successful utilization requires substantial organizational changes, transparency enhancement, internal expertise development, and supportive regulatory environments. State involvement remains critical for market development through favorable policies, infrastructure creation, and targeted incentive provision.