Global ESG transformation and sustainable development trends of Russian companies under sanctions pressure

Abstract

The article discusses the concept of environmental, social and governance factors (ESG) and their importance for sustainable development. In recent years, this concept has gained significant popularity as a basis for assessing the non-financial performance of companies, while investors and stakeholders are increasingly aware of the importance of ESG factors in creating long-term value, risk management and stakeholder engagement. The paper explores key trends and challenges in the current business environment, such as the proliferation of reporting forms, the need for more standardized and comparable data on ESG factors, and the importance of stakeholder participation in decision-making on the implementation of ESG policies. The author emphasizes the correspondence between the goals of sustainable development and ESG factors in the activities of companies. The study provides examples of successful implementation of ESG by companies from different sectors of the economy. The theoretical basis of the ESG concept is explored, outlining the key principles, as well as the connection with corporate performance. ESG factors are identified as key drivers of the sustainability process, and this article provides an in-depth analysis of each of these factors, highlighting the challenges and opportunities they present to implement this concept. The article also looks at the specific challenges and opportunities for ESG in emerging economies, in particular Russia, where the transition to a more resilient economy is complicated by geopolitical tensions and sanctions pressure in 2022. The article explores the issue of sanctions creating risks and opportunities for companies and investors seeking to introduce ESG into business practice. An analysis of ESG implementation practices in Russian organizations based on some case studies and empirical data is provided to illustrate the current state of ESG implementation in the country. The author identified the main problems and opportunities for companies in Russia. Overall, the article presents evidence-based conclusions and suggestions for companies, investors, policy makers and society to inform their efforts to create a more sustainable future. The author emphasizes the importance of continuous learning, the adaptation of ESG policies for business, cooperation between companies and stakeholders for the effective implementation of environmental, social and governance factors that have the potential to shape sustainable development in the 21st century.