The concept of sustainable finance and the prospects for its implementation in Russia

The authors propose an instrumental apparatus for calculating the ratings of Russian companies in the oil and gas and electric power industries based on a weighting method, risk assessment using the minimax criterion and an intellectual tree structure. The relevance of the developed system is justified by the need to create Russian rating systems for companies that will represent their actual state and place in the analyzed group. The problem of data redundancy has been solved by using the hierarchical principle for the isolated indexing of absolute and relative indicators from the financial statements of the companies in question into sub-indexes, with further integral indexing and correction for the volatility of changes over the past three years. The authors used a financial analytics apparatus based on the regular financial (accounting) statements of companies according to accepted forms, and balance sheets and reports on financial results were applied. The authors developed and tested a methodology for sub-indexing important indicators of financial statements: capital structure—equity, debt capital, highly liquid assets (cash and settlement accounts in reliable banks, short-term financial investments) and net profit. Based on the results of the analysis, recommendations are provided for the long-term development of the energy business.

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“…Stage III. Rating volatility estimation using approximation problems-the OLS method and Chebyshev minimax problem [39].…”

Section: Methodsmentioning

confidence: 99%

Rating of Stability of Russian Companies in Oil and Gas and Electric Power Industries Based on Interval Volatility

et al. 2023

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“…The second stream of literature focuses on green finance as a tool to fund climatefriendly or climate-improving projects like in Porfiriyev (2016), Rubtsov and Annenskaya (2019), Danilov (2021). To achieve of this paper, the implication of cli- mate risk for financial strategies and regulation was equally studied.…”

Section: Literature Reviewmentioning

confidence: 99%

Measuring climate-credit risk relationship using world input-output tables

Penikas¹,

Vasilyeva²

2023

RUJEC

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The Basel Committee recommended the use of input-output tables to properly measure climate risks. However, the majority of previous studies only limits the use of input-output tables to carbon emissions and this is not applied in climate risk ratings. The existing climate (E) risk ratings (scores) was modified or transformed from Sustainalytics to the full climate risk scores using input-output tables. Positive relationship between credit risks and the full climate risk estimates at the industry level was identified, and this justifies the interest rate discount granted to firms in the green industries. Thus, for the purpose of lending the full degree of greenness derived from input-output tables should be considered, not substituting this by the easily observable and publicly available marginal climate risk ratings like those provided by Sustainalytics.

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“…However, this does not indicate that green bond schemes are equally effective in promoting RE and energy efficiency projects throughout Asia. Green bonds can fund loans but not necessarily support green assets in a specific area (Danilov, 2021). Consequently, the lack of green databases and data impedes renewable resources investments.…”

Section: Literature Reviewmentioning

confidence: 99%

Role of sustainable finance, geopolitical risk and economic growth in renewable energy investment: Empirical evidence from China

et al. 2022

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The global economic recession caused by COVID‐19 has posed a severe threat to the feasibility of renewable energy projects, hampering the United Nation (UN) sustainable development goals. Sustainable financing (SF) is a crucial instrument for promoting investment in renewable energy (IRE) sources, as it is regarded as a crucial aspect in achieving long‐term sustainability. This study sheds insight on the impact of SF, geopolitical risk (GPR), economic growth (EG), and environmental regulation (ER) on IRE sources by evaluating 10 years of data from 35 Chinese energy businesses from 2012 to 2021. The data analysis is done by utilizing quantile regression and dynamic analytic techniques, demonstrating that SF, EG, and ER have a significant positive effect on IRE sources. However, GPR has a significant detrimental impact on IRE in China. This is one of the early studies to examine the crucial role of SF, GPR, EG, and ER in IRE, which is critical for environmental sustainability. In addition, it provides policymakers and environmentalists with crucial insights for developing and executing environmental strategies that can deliver long‐term benefits and meet SD goals.

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The concept of sustainable finance and the prospects for its implementation in Russia

Cited by 17 publications

References 18 publications

Rating of Stability of Russian Companies in Oil and Gas and Electric Power Industries Based on Interval Volatility

Rating of Stability of Russian Companies in Oil and Gas and Electric Power Industries Based on Interval Volatility

Measuring climate-credit risk relationship using world input-output tables

Role of sustainable finance, geopolitical risk and economic growth in renewable energy investment: Empirical evidence from China

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