Corporate governance in generating companies of the Russian electric power industry in the context of ESG agenda

Abstract

To address the issues of investment appeal in the Russian electric power industry, this study analyzes the dynamics of corporate governance, including permanent redistribution of property and compliance with the Russian Corporate Governance Code, in wholesale and territorial-generating companies. The increasing concentration of property in the hands of the state and its implications for investors are also noted. This study reveals the violations of essential principles, and the substantial differences in corporate governance practices, in the best- and worst-performing companies. Additional standards for better corporate governance practices to benefit the investors in the context of the current Environmental, Social, and corporate Governance (ESG) agenda are proposed. This study provides a new insight at the development of corporate governance in Russian power generating companies through property redistribution and compliance with corporate governance principles.