Due Diligence in the Implementation of the Sustainable Development Goals and the ESG Agenda: the Balance of Soft and "Hard" Regulations

Abstract

The subject of the study is the due diligence of the company, which can manifest itself to it in corporate governance. Due diligence in corporate governance, considered in the context of the implementation of the sustainable development goals and the ESG agenda, differs significantly from the understanding adopted in Russia from the position of the highest courts in the field of detection and prevention of tax abuses. Both approaches, as well as the definition under consideration, are not normatively fixed, and the first, in accordance with world tradition and practice, is implemented through soft regulation. In an environment of uncertainty and risk diversification, there is a growing trend to make SDG and ESG prudence mandatory. In Russia, such a transition is being discussed, but there is no readiness for it, and references to European experience in the current conditions are problematic. The existing ones in this area have not yet been studied, which hinders the choice of ways and mechanisms for their regulation. The novelty of the study is to identify the need to monitor the effectiveness of soft regulation and the actual activities of Russian companies in the context of the SDGs and the ESG agenda.