40% of companies in Russia have reduced funding for ESG policies
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The decision to reduce funding for ESG (policy of social responsibility and sustainable development) in 2022 was made by 40% of Russian companies, follows from the survey (.pdf) of the Mikhailov and Partners group. 52% of companies reported plans to adjust their ESG strategy in 2023.
ESG strategies are implemented by companies to address environmental, social and governance issues. E (environmental, environmental criteria) determine how much the company cares about the environment. S (social, social criteria) reflect the company’s attitude towards staff, suppliers, customers and partners. G (governance, management criteria) are associated with the effectiveness of management, the reasonableness of the remuneration of managers, the rights of shareholders and corruption.
According to a survey of 17,000 respondents, Mikhailov & Partners found that 55% of Russian companies are currently not ready to involve their employees in planning ESG initiatives. At the same time, 84% of respondents reported that their companies hold educational events that talk about current trends in the ESG sphere, as well as internal corporate initiatives and ESG programs.
52% of companies intend to adjust their sustainable development goals and revise their ESG strategies. Nearly 70% of companies that produce sustainability reports will continue to certify them in 2023. 70% of companies consider social as the main direction of ESG and focus on it. The environment takes the second place – it was noted by 62%.
The study indicates that in an environment where Western capital markets are inaccessible to Russian business, and foreign rating agencies have suspended cooperation with companies from the Russian Federation, corporations have restructured their ESG activity and began to focus on domestic ratings, metrics and reporting verifiers.
In addition, the priorities in the companies’ projects in different areas have also changed: the S factor bypassed the E aspect in importance. 74% of companies pay attention to the S aspect, 62% of the companies E, and 40% G. Analysts predict the emergence of new projects and methods in the social direction: descriptions of human rights impact assessment processes, programs to ensure inclusion and support for employees with disabilities, an increase in the number of cooperation projects with local communities in the regions where businesses operate.
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