Authors: V.V Guzyr’

Title of the article: Innovative ESG-Transformation of Firms as a Global Trend of Sustainable Development

Year: 2022, Issue: 1, Pages: 33-43

Branch of knowledge: 5.2.1 Economics

Index UDK: 378.1

DOI: 10.26730/2587-5574-2022-1-33-43

Abstract: The development of entrepreneurship in the modern economy is influenced by a number of social development trends driven by certain endogenous and exogenous forces. Endogenous processes, such as the growth of labor productivity under the influence of innovations, an increase in aggregate demand, and an increase in the capitalization of companies, are unfolding in parallel with such exogenous processes as the growth of public interest in solving environmental problems, the strengthening of state requirements for the environmental and social responsibility of firms, overcoming negative climate change and the consequences of the pandemic. The new conditions for the development of modern entrepreneurship, associated with the strengthening of its environmental and social orientation, are summed up in the ESG trend, which Russian business entities need to take into account in order to increase international competitiveness in the long term. In this regard, the purpose of the study presented in this article is to analyze the factors that influence innovation activity on the ESG transformation of firms. For this purpose, the following tasks were set and solved in the article, such as identifying the relationship between the sustainability of firms and the global process of transition to sustainable development, determining environmental and social indicators of the sustainability of firms and the structure of their ESG transformation in the course of innovative development. The obtained results make it possible to positively evaluate the effect of such factors for accelerating ESG transformation through innovation, such as the desire of firms to ensure long-term income growth in the context of tougher environmental and social responsibility, the spread of ESG criteria for issuing securities and investments, the promotion by stakeholders of corporate policies that take into account responsible investment, social and environmentally friendly innovations.

Key words: innovation ESG competitiveness environmental responsibility social responsibility

Receiving date: 17.03.2022

Approval date: 31.03.2022

Publication date: 04.04.2022

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