Consideration of <i>ESG</i> factors in investors’ activities: Experience of individual countries

Abstract

Aim. To identify common and specific features in the approaches of countries in the aspect of formation of national policy of financial market regulation in order to motivate investors to finance sustainable development.Tasks. To analyze the approaches of countries to the legislative fixation and introduction of mandatory accounting of ESG factors in the activities of investors; to study the practice of voluntary accounting of ESG factors in the activities of investors; to systematize the ESG approaches of countries used by them in the financial segment of the national economy.Methods. The study of foreign experience of integration of ESG factors into the national financial policy is based on the traditional methodological approach, including methods of structural-logical, systemic and comparative analysis. The analysis of national normative legal acts, documents of voluntary national associations of financial organizations and investors, regulating the rules of conduct of financial market participants to take into account ESG factors in their strategies and activities was carried out. These are open access documents posted on the Internet on the websites of relevant organizations.Results. The following facts were found: 1) regulatory impact has different degrees of rigor; 2) creating demand for sustainable finance is the key challenge that countries are primarily seeking to address; 3) creating incentives for investors to motivate them to engage in sustainable finance is recognized as the main challenge. Countries are choosing different strategies to address it. First, simultaneously influencing both the supply of and demand for sustainable development projects. Second, creating and stimulating demand for sustainable development projects primarily from investors.Conclusions. Principles and standards for ESG risk assessment and ESG investor reporting are now being actively incorporated into supervisory rules, procedures and investor management systems, although a wait-and-see approach still prevails in most of them.