The impact of oil&gaz companies’ social policies on ther financial performance

The article discusses current trends in increasing business interest to ESG agenda in terms of the S-component (social policy) using the example of the largest Russian oil and gas companies. The aim of the article is to assess the relationship between the indicators, characterizing the financial efficiency of companies and their S-rankings. The article presents the result of a correlation analysis using ModelRisk software in respect of financial indicators such as EPS, P/S and P/E and S-rankings of Gazprom, Lukoil, Novatek, Surgutneftegaz and Tatneft companies. The novelty of this article is to explore the opportunity of increasing the value of companies’ stocks in the oil and gas sector through investments in the development of social practices. The authors conclusion illustrates the importance of social policy developing within the framework of implementing sustainable development programs to ensure long-term financial stability. The article may be of interest to researchers dealing with issues of ESG rating and sustainable development of companies.