DEVELOPMENT OF A METHODOLOGICAL APPROACH TO DETERMINING THE IMPACT OF ESG FACTORS ON THE SIGNIFICANCE OF THE COMPANY’S RISKS

ESG regulation is gaining momentum both in international practice and in the Russian regulatory framework. This was evidenced by the information letter of the Bank of Russia “On recommendations on disclosure by public joint stock companies of non-financial information related to the activities of such companies” published on June 12, 2021, as well as the consultation document Enhancing climate-related disclosures by standard listed companies and seeking views on ESG topics in capital markets, issued on June 22, 2021 by the British regulator of financial markets (Financial Services Authority). However, despite the active improvement of ESG regulation, effective ESG transformation mechanisms at the company level are still at the initial stage of development. Effective management of a company in any industry involves taking into account significant risks, including those related to aspects of sustainable development, and there are already examples in international practice of introducing regulatory requirements for public companies to take into account significant climate risks in their activities. Thus, a fundamental role in determining the guiding principles in the field of sustainable development in the organization’s activities belongs to the risk management system, expanded and supplemented by ESG risks. In this regard, the author has developed a new methodological approach to determining and assessing the impact of ESG factors on the degree of significance of all types of risks in the company, which is considered in this article. The methodology is explained by the example of a financial group in which both banks and non-financial organizations of the banking sector are directly represented.

ESG risks, ESG factors, risk assessment, risk management, business social responsibility, financial stability, financial risks, types of risks, risk classification, non-financial risks

Zhukova E. V. Development of a methodological approach to determining the impact of ESG factors on the significance of the company’s risks. Business. Education. Law, 2022, no. 1, pp. 142—150. DOI: 10.25683/VOLBI.2022.58.164.