The Interdependence of Environmental Activities and Investment Attractiveness: Finances of Russian Metallurgy

Abstract

All countries now share a long-term vision of the importance of implementing technology development and transfer to improve climate resilience and reduce greenhouse gas emissions. Metallurgical enterprises play a significant role in achieving this goal, since they produce a large amount of carbon dioxide emissions into the atmosphere. In connection with the changing operating conditions and changing markets of presence, the issues of ensuring their investment attractiveness are acquiring obvious importance in the framework of the finances of Russian metallurgical companies. The object of the study is an assessment of the investment attractiveness of Russian metallurgical companies. The subject of the study is the relationship between the investment attractiveness of metallurgical companies and the results of their environmental protection activities. The purpose of this study is to identify the interdependence of environmental metrics and the investment attractiveness of steel companies. The methodological basis is a regression analysis of the impact of environmental metrics on the investment attractiveness of metallurgical companies. The authors chose the following indicators of environmental performance: CO2 emissions, energy consumption, water recycling, waste. To assess the investment attractiveness of metallurgical companies, the following indicators were used: revenue, EBITDA, investment in R&D. The authors concluded that the environmental activities of companies have a significant impact on their investment attractiveness. The scientific novelty of the study lies in identifying the interdependence of environmental protection activities and the investment attractiveness of Russian metallurgy companies. The results of the study can be used by both Russian steel companies and institutional investors as part of the development of an investment strategy.