Investment aspects of ESG-strategies of Russian enterprises

The article discusses the investment aspects of ESG strategies of Russian enterprises. It has been established that the concentration of assets associated with the tilt of portfolios towards high-rated ESG issuers may, depending on the conditions, affect the profitability of Russian enterprises. It has been proven that various combinations of constructed portfolios based on slopes, which provide greater exposure to the risks of issuers with a higher rating, are often performed at a level below traditional indices for periods of time. Policy changes in several major markets indicate that, although policy initiatives are at different stages of development, efforts are being made to strengthen ESG practices so that they are transparent, effective and fair. It was found out that regulatory initiatives related to sustainable financing, and ESG in particular, cover such topics as taxonomy and disclosure of information about issuers, ESG fund products, rating agencies and benchmarks. It is determined that progress in increasing the importance of investments in ESG requires more active efforts to ensure transparency, consistency of indicators, comparability of rating methodologies and compliance with financial statements. Despite the efforts of regulatory authorities, standard-setting bodies, and private sector actors in various Russian regions, the intervention of federal authorities may be required to ensure efficiency.