Exploring institutional drivers and barriers for green ESG strategies performance in Russian regions

Abstract

Stakeholders are interested in creating an institutional environment in regions that promotes green economic growth. However, the increased risks of failing to achieve sustainable development goals are shifting stakeholders’ focus towards strategic evidence-based and data- driven approaches to environmental, social, and governance (ESG) strategies. This article aims to identify the drivers and barriers to green ESG strategies in Russian regions. Using regression analysis, institutional factors affecting the green index, calculated based on national sustainable development indicators, were identified. The green index proposed by the author includes indicators of water quality, green urbanization, and local climate impact. The results showed that the drivers of effective green ESG strategies are environmental investments, activities of small and medium- sized enterprises in the region, high-quality urbanization, and the development of public transportation infrastructure. Barriers to green performance include regional unemployment and a low level of health capital, reflected through mortality from cardiovascular diseases and cancers. The findings of this study can be used for green monitoring of the effectiveness of regional ESG strategies.