QUALITATIVE ANALYSIS OF ENVIRONMENTAL RISKS WITHIN THE FRAMEWORK OF IMPLEMENTING ESG PRINCIPLES

The article is devoted to the use of standard methods of qualitative analysis in relation to environmental risks generated by the activities of an organization in the implementation of ESG principles. The application of proven methodologies used in the field of risk management allows us to systematize analytical procedures and significantly reduce the time for their implementation. One of the important positive effects achieved by introducing methods of qualitative analysis of environmental risks into the processes of assessing the activities of a company and the projects it implements is the use of the results obtained for the purpose of subsequent development and implementation of a reasonable plan of control actions to reduce or prevent these risks. The purpose of the work is to conduct a qualitative analysis of typical environmental risks as part of the implementation of an organization’s ESG principles. Subject of research is organizational and economic relations that give rise to environmental risks of the organization. The research methodology is based on the works of domestic and foreign authors devoted to the theoretical justification and socio-economic feasibility of managing an organization’s environmental risks. Analytical materials and statistical reports of McKinsey analytical agency and professional publication Strategic Risk Magazine, Moscow Exchange, Bank of Russia, industry associations and operating industrial enterprises were used as source data. The research hypothesis is to increase the efficiency of an organization’s implementation of ESG principles by using the results of a qualitative analysis of the environmental risks generated by this process. As a result of the analysis, typical sources and consequences of environmental risks were identified and grouped for the purposes of introducing ESG principles by an economic entity. The findings and recommendations of the study can be used by private and institutional investors, financial institutions, state executive authorities and local governments when assessing the feasibility of investments and financing, taking into account the environmental risks generated by such projects.

ESG principles, analysis methods, corrective actions, preventive actions, environmental impact, qualitative risk analysis, sources of risk, consequences of risk occurrence, environmental risks, operational risks, legal risks, reputational risks

Bratarchuk T. V., Altunina V. V., Voytyuk V. N., Li N. O. Qualitative analysis of environmental risks within the framework of implementing ESG principles. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2024;1(66):53—63. DOI: 10.25683/VOLBI.2024.66.873.