Approaches to making investment decisions based on ESG factors

Abstract

One of the manifestations of globalization and mass integration processes is the emergence of the responsibility of every citizen for minimizing the spread of global problems. To date, the focus of the world community's attention is aimed at solving environmental problems in connection with the expansion of their influence zones in a geometric progression, which threatens the sustainability of economic development. The ESG agenda affects business: more and more companies are required to focus on environmental, social and governance factors when addressing strategic goals and objectives. The ESG agenda encourages companies to focus on environmental, social and managerial factors when solving strategic goals and objectives. In this article, approaches to ESG investing are considered as investment strategies based on the analysis of the dynamics of the priority of ESG components. Using the example of the Russian market, ESG ratings of companies are considered and analyzed separately by factors and in an aggregated format. Assumptions are made on the directions of development of ESG investments in the context of economic sectors and the main trends in the sustainable investment market are formulated.