The role of leading financial institutions in the realization of the ESG agenda

Abstract

Aim. To identify trends and directions of development of ESG-agenda of the Russian banking sector in the new geopolitical environment.Objectives. To analyze the reaction of the Russian banking sector to the promotion of ESGagenda by the West in the pre-sanctions period and the change of priorities after the introduction of large-scale financial and technological sanctions for Russia; to determine the required transformation of business strategies and risk management systems; to propose additional measures of support from the state to increase the priority of sovereign technologies in the implementation of ESG-transformation and the development of a competitive national system of standards.Methods. The authors applied a mixed method of analysis, combining qualitative and quantitative data, to form the empirical base of the study. Content analysis and empirical methods were used to analyze qualitative data. In turn, quantitative data were processed using statistical and logical tools.Results. The conducted research allowed to confirm the effectiveness of ESG-tool in the realization of the concept of sustainable development. It was determined that the significant driving force of ESG-transformation today is mainly large banks. However, the potential of ESG-transformation on the part of banks may be exhausted, and the practical part of fulfillment of plans reflected in their ESG-policies requires additional incentives from the state.Conclusions. Based on the results of the conducted research, it becomes clear that it is necessary to form a competitive Russian sovereign ESG-model, which should include a national regulatory framework, technological standards, and domestic platform IT management systems. Strengthening the work in this direction’ financial market participants are most able to influence the introduction of innovations in the sphere of tools for achieving sustainable development goals (SDGs) and national projects, to take into account national interests in view of ESG-agenda realization, to ensure their development and financing.