Sustainability reporting as a tool for ensuring transparency and economic security of state-owned enterprises in the security and defense sector

Introduction. In the current conditions of globalization, digital transformation of the economy and increased requirements for transparency of business entities, disclosure of information about environmental, social and management aspects of enterprises' activities is of particular importance. Growing attention to the principles of sustainable development and corporate responsibility has created a need for a high-quality system of non-financial reporting that will ensure transparency of operations and increase the degree of trust in companies from the state, investors, society and other stakeholders. Problem Statement. Issues of transparency, accountability and economic security are of particular importance for state-owned enterprises in the security and defense sector. In conditions of martial law, such enterprises ensure the fulfillment of strategic tasks of the state in the field of defense capability, development of the defense-industrial complex, support of critical infrastructure and implementation of security policy. Under these conditions, the quality of information disclosure, the effectiveness of corporate governance and the ability to timely identify risks become important factors of economic security for both individual enterprises and the state as a whole. The purpose is to study sustainable development reporting as a tool for ensuring transparency and economic security of state-owned enterprises in the security and defense sector, as well as to determine its impact on accountability, corporate governance effectiveness, risk management, and the sustainability of enterprise operations in the face of modern security challenges. Methods. General scientific and special methods of cognition were used, in particular analysis and synthesis, generalization, comparison, and systematization. Results. The article examines the role of sustainability reporting as a tool for ensuring transparency and economic security of state-owned enterprises in the security and defense sector. Modern approaches to sustainability disclosure, the principles of non-financial reporting, and international sustainability reporting standards, including GRI, ISSB, CSRD, and ESRS, are analyzed. The study substantiates the importance of sustainability reporting for enhancing accountability, improving corporate governance, strengthening risk management practices, and increasing the resilience of state-owned enterprises in the context of contemporary security challenges. Particular attention is paid to the role of sustainability reporting in ensuring economic security through greater transparency in the use of public finances, mitigation of fiscal risks, improvement of managerial decision-making processes, and enhancement of control over the use of state resources. The paper also highlights the importance of disclosing information related to human capital development, workforce resilience, professional training, and the management of social risks within enterprises operating in the security and defense sector. Conclusions. The study identifies the main barriers to the implementation of sustainability reporting practices, including difficulties in collecting and systematizing data, insufficient digitalization of reporting processes, fragmentation of information resources, and a shortage of qualified specialists. It is demonstrated that the implementation of international sustainability reporting standards contributes to increased transparency, strengthened economic security, reduced corruption and fiscal risks, improved efficiency in the use of public finances, and the integration of sustainable development principles into the strategic management of state-owned enterprises in the security and defense sector.