The current state and the mechanism of the transformation of the ESG agenda by Russian companies. Part 2.

Abstract

Purpose:   development of a mechanism for the ESG transformation of Russian companies based on a critical assessment of the evolution and modern implementation of the ESG agenda in Russia. In the second part of the article, the author solves the problem of analyzing the compliance of the content of the Russian ESG agenda with global risks and developing a mechanism for the ESG transformation of Russian companies.Methods:  methods of theoretical analysis were applied, which made it possible to reveal the conceptual component of the ESG agenda and sustainable development; empirical analysis of the global risk landscape and the implementation of the Russian ESG agenda; a statistical method for determining priority areas for the implementation of the Russian ESG agenda; abstraction and modeling to formalize the ESG transformation mechanism/Results:  the conceptualization of the ESG agenda and sustainable development was carried out, the content basis of which harmonizes with corporate social responsibility. The mobility of the landscape of global risks with a steady trend of the prevalence of environmental and social risks is determined. The results of the implementation of the Russian ESG agenda based on the results of 2022 and the tasks for the near future are summarized. Priority directions and barriers to the implementation of the ESG agenda have been established. Proposed mechanism for ESG transformation of Russian companies. Conclusions and Relevance:  the functioning of national economies is influenced by global threats: environmental and social risks are leading in the next decade. The results of the implementation of the Russian ESG agenda indicate its adequacy to the nature of global risks. In environmental policy, attention is focused on energy saving and waste recycling technologies, in social policy - on social guarantees and support for the professional and personal development of employees, in corporate policy - on consumer surveys and selection of suppliers. Among the barriers to the implementation of the ESG agenda: financial, associated with fears of non-return of investments and high costs for the ESG agenda; methodical, manifested in the absence of uniform standards and ESG indicators; lack of external incentives and low ESG-competence of management. The low awareness of company management about ESG and how to incorporate it into business processes served as the basis for developing a mechanism for transforming a business model based on ESG principles, including an ESG transformation model, operating principles and required competencies.