From Sustainable Development to ESG: Experience of European Companies and Governments

Abstract

This article presents a review of ESG practices of European business, public and market climate regulation in EU and the experience of different industries investors and companies in the middle of February 2022. This experience may be useful for domestic Russian companies methodologically and for management practice. Today the influence of the European ESG agenda on Russian exporters is obvious to many business practitioners. The article attempts to present the main areas of such influence on the management practices of Russian business. The author puts forward the argument that there is a need of adapting the European experience. The main conclusion of the study is that the Green transition, European Green Deal bring not only the risks of losing revenues, but also unique opportunities to make the business model more efficient, to enter new markets, such as a market for carbon units and hydrogen, and also to gain access to international green financing even in the face of sanctions pressure on Russia. A hypothesis of the research was verified partially: using its catch-up status Russian business studies non-financial reports of companies of the European Union, as well as the requirements of regulators, and can apply methods for calculating indicators in three areas of ESG, may embed the strategy for sustainable development in the main strategy of business, etc., but few businesses in Russia will put ESG in the leading strategic position for the own development in the nearest future.