Conceptual approach to analyzing the impact of ESG on the value of a business entityy

Abstract

Aim. To analyze and identify trends, mechanisms and problems of ESG-trends impact on the value of the company.Objectives. Systematization of key approaches to consideration of the essence of ESG-paradigm impact on the company's value; identification of prerequisites, advantages and barriers hindering the implementation of ESG-principles in the practice of Russian companies; substantiation of multilevel impact of internal and external environment on the implementation of ESGmechanisms in the context of strategic business development.Methods. In this article the trends and mechanisms of ESG-principles impact on the company's value as an integral indicator reflecting the efficiency of its activity are considered in various aspects using general methods of scientific cognition.Results. In the course of the research the important role of the company's value as an indicator that allows to comprehensively monitor the state of its affairs is shown. The analysis revealed the fact that crises, environmental degradation, the need to optimize corporate governance and the social demands of employees and local communities have become the driving factors for the introduction of ESG in the practice of companies. The author concluded that the application of ESG practices allows optimizing business processes, improving financial indicators and branding system, creating an attractive image for investors, transforming comfortable mechanisms of interaction with stakeholders based on trust, openness and transparency, as well as creating sustainable competitive advantages. The paper substantiates the assertion that the lack of unified standards, significant differences in the industry aspect in the application of ESG-paradigm, insufficient spread of this concept in our country and unformed information support serve as barriers that significantly hinder the introduction of non-financial reporting forms and ESGtools.Conclusions. The conducted research makes it possible to form a four-level model of ESG-trends impact on the company's value. It allows to take into account the factors and trends of each of them, to develop optimal mechanisms of adjustment and adaptation to new realities.