DEVELOPING THE ESG RATING METHODOLOGY FOR RUSSIAN COMPANIES

Dmitry Anikin; Yulia Finogenova; Kristina Subbota; Aleksandra Ermakova

doi:10.26668/revistajur.2316-753X.v2i74.6371

DEVELOPING THE ESG RATING METHODOLOGY FOR RUSSIAN COMPANIES

Dmitry Anikin, Yulia Finogenova, Kristina Subbota, Aleksandra Ermakova

Resumo

Objective: This article discusses the assessment model used to evaluate the ESG (Environmental, Social, and Governance) performance of companies. The purpose of this article is to present a new ESG (Environmental, Social, and Governance) rating methodology developed in accordance with the recommendations of the Bank of Russia and explain its benefits for sustainable investment in the context of the Russian market. Methods: The data structure, preprocessing, and scoring methodology have been elaborated. The scoring algorithm considers the intrinsic value of each criterion and evaluates the relative performance of a company within an industry. The methodology discussed here can provide a basis for investors to select companies based on ESG performance. Results: The authors accomplished several tasks in this study, including introducing the concept of ESG and discussing its importance, describing sources of data and criteria used to evaluate sustainable development, and developing a methodology for assessing ESG scores. They also discussed the benefits of this methodology for the Russian market and created a consolidated rating of companies based on ESG factors. Conclusion: The authors have developed a comprehensive and objective assessment model for evaluating the Environmental, Social and Governance (ESG) factors of companies in Russia. The model's approach to data collection, preprocessing, and scoring provides investors with reliable and informative data for making responsible investment decisions.

Palavras-chave

ESG performance; Assessment model; Scoring methodology; Qualitative and quantitative data; Industry rank

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DOI: http://dx.doi.org/10.26668/revistajur.2316-753X.v2i74.6371