Environmental, social and governance investment standardization: moving towards sustainable economy
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DOIhttp://dx.doi.org/10.21511/ee.10(1).2019.02
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Article InfoVolume 10 2019, Issue #1, pp. 12-22
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This paper is devoted to the investigation of environmental, social and governance investment (investment with ESG criterion) normative base in the context of standardization process in sustainable economy financing. Complexity of such standardization and the lack of commonly accepted regulations, indexes metrics are under discussions of scholars, which encourage the need for clear guidance in ESG investment. 651 sustainability rating products and more than 300 investment policy instruments in different countries show the need for classifying the ESG standards. The solution of this scientific and practical task is based on the developed ESG investment standards system classifications. Proposed classification incorporates such criteria as level of standards adoption, mandatory degree, sectorial specificity, degree of companies’ awareness of responsible activity, ensuring transparency and the benchmarks formation, creating the institutional support of the ESG investment standardization process in sustainable economy and making more grounded investment and regulatory decisions.
- Keywords
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JEL Classification (Paper profile tab)Q00, Q01, G11
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References20
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Tables2
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Figures5
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- Figure 1. Standards distribution in the ESG investment sphere in the largest 50 countries in the world in 2016
- Figure 2. Sustainability products in 2017
- Figure 3. Structure of sustainability ratings issuers in 2017
- Figure 4. Target audience of sustainability ratings in 2017
- Figure 5. Criteria for the compilation of sustainability ratings in 2017
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- Table 1. Countries’ experience in ESG investment process regulation
- Table 2. Key benchmarks in the ESG investment system
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