Analysis of ESG factors impact on the management of corporate innovations and investments

Abstract

Importance: the article examines the influence of ESG factors on the economy of sustainable development of the Russian Federation in the context of country and geopolitical risks in significant industries and the formation of new mechanisms of corporate innovation management. Objective: it is necessary to substantiate the influence of ESG factors on the management of corporate innovations and the attraction of investments in the oil and gas, electric power and banking industries as the main drivers of economic growth of the Russian economy and the transition from a linear to a circular development model. The author aims to test the hypothesis of the relevance of the ESG agenda in conjunction with the Sustainable Development Goals. Research design: in order to test the hypothesis, the author formalized the content of the studied factors within the ESG agenda and the ranking and carried out the analysis of companies in the studied industries for 11 periods, according to the main elements of the ESG concept presented. Results: the indicators of the March 2022 rating presented the worst positions for the studied industries, that confirms the active relationship with the political situation and changes in country risks, which are also taken into account in the ESG rating. The author developed the forecasts of ESG ranks in the studied industries. The article also contains the proposed directions of risk reduction, which help to strengthen the positions of the studied companies through the introduction of corporate innovations in order to increase investment attractiveness in the current geopolitical situation.