Sustainable development, ESG and the “price” of health

Abstract

In today’s global community, there is an increasing focus on prioritizing the preservation of human health while addressing the challenges of transitioning to sustainable development and environmental protection. The significance of health is well emphasized in the UN Sustainable Development Goals. This article highlights the objectives and key indicators pertaining to Goals 3, 6, and 11. Within the context of health, the ESG (Environmental, Social, and Governance) approach is considered, emphasizing the integration of environmental (E) and social (S) aspects. It’s important to recognize the close relationship between environmental and social aspects, including health, while acknowledging the role of governance (G) in ensuring this integration and interconnection. In the realm of economic theory and practice, underestimating or neglecting the factor of health in socio-economic decision-making processes is a classic problem of «market failures» and negative externalities that remain uninternalized. The authors propose five categories of indicators that establish a connection between population health and the condition and pollution of the environment:1) levels of morbidity and mortality resulting from environmental pollution; 2) proxy indicators related to the impact on health; 3) economic assessment of the population’s willingness to pay for environmental quality and disease prevention; 4) direct economic harm to public health caused by environmental pollution; 5) comprehensive indicators that quantify the relationship between the state and pollution of the environment and the health of the population in monetary terms. Particular emphasis is placed on a set of indicators that evaluate the direct economic harm to the health of the population. The total environmental damage to the health of the Russian population, primarily attributable to air and water pollution, can be estimated at 2.3-6.1% of the GDP.