ESG transformation of banks as a driver for the development of ESG practices under sanctions pressure

In our time, the pace and speed of change in the outside world is growing exponentially. The environment becomes non-linear, fragile, disturbing and incomprehensible. It is these synonyms that describe the development of the Russian economy over the past couple of years. In the aftermath of the Covid-19 pandemic, as well as the growing sanctions pressure, it is necessary to adapt and restructure development priorities and directions, as well as support industries with long-term prospects. In Russia, for several years now, a guideline for sustainable development and adherence to ESG principles and practices has been adopted. However, due to current events, this concept may be threatened and relegated to the background. The article considered the transformation of banks in accordance with the ESG strategy, which can become a catalyst and a tool for supporting the goals of the country’s overall sustainable development. In the course of applied practical research, the authors considered the general benefits of following ESG trends, conducted a regression analysis showing the relationship between the bank’s financial results and the presence of an ESG strategy, analyzed the external environment during the period of sanctions, identified problems and proposed support measures. The presented results from the need for proactive state support in the field of economics and finance, and also create new directions for research in this area.