TRANSITION TO SUSTAINABILITY: AN EMPIRICAL ANALYSIS OF FACTORS MOTIVATING INDUSTRIAL COMPANIES TO IMPLEMENT ESG PRACTICES

Abstract

Currently, more and more companies follow the principles of sustainable development and implement ESG practices in corporate strategies. At the same time, a number of Russian companies experience barriers to implementing ESG practices and do not have the necessary competencies to build work on the implementation of sustainable development practices. In this context, it is important to understand the factors contributing to the implementation of ESG practices in Russian industrial companies.The research presented in the article is based on the data of a survey of 167 industrial companies. The results obtained allow us to speak about a variety of factors influencing the implementation of environmental, social and managerial initiatives.  Thus, new technologies, consumer expectations, companies’ work on international markets, and regulatory requirements are the key factors in the implementation of environmental practices by industrial companies. Costs of current operations, the presence of a division and/or manager responsible for achieving sustainability goals, investment attractiveness, profitability of operations and operational efficiency improvements are drivers for the introduction of social practices by industrial companies. The implementation of management practices is most influenced by the factors of having units responsible for achieving sustainability goals, consumer expectations, companies’ performance in international markets, investment attractiveness and costs of current operations.The results of the study lead to conclusions about the need to create specialized units responsible for the implementation of sustainable development goals, to introduce new technologies, to pay attention to employee development and their social security in order to successfully achieve sustainable development goals.