Stock market as a catalyst of ESG transformation

2021 ◽  
pp. 111-117
Author(s):  
E. Altukhova
Keyword(s):  
Sustainable Development ◽  
Stock Market ◽  
Social Bonds ◽  
Special Significance ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
World Community ◽  
Market Participants ◽  
Financial Products ◽  
Regulatory Practice

The modern climate agenda requires tremendous efforts from all market participants, including in terms of improving management mechanisms. It is important to have a working toolkit available that can fulfill the interests of all participants. In this regard, the stock market comes to the fore, which is acquiring special significance today. The emergence of green bonds, as well as other methods of hedging risks using stock market instruments, is becoming an integral part of the ESG agenda. In recent years, the world community has been trying to focus its efforts as much as possible on achieving the principles of sustainable development through the stock market. In these conditions, the existence of well-developed mechanisms for regulating the issue and circulation of financial instruments that contribute to solving climatic and social problems becomes a rather important aspect. The article discusses the features of the use of green and social bonds. The contradictions and systemic shortcomings that hinder the process of introducing «green» financial products have been identified. The experience of Russian and foreign financial institutions in the field of responsible investment has been studied. The author also analyzed the regulatory practice and formulated proposals to ensure the consistency of interests of the participants in the process. The paper gives recommendations in terms of synchronizing work on the formation of ESG-ratings, and also substantiates the importance of the management component in the sustainable development system.

scholarly journals Could Mergers Become More Sustainable? A Study of the Stock Exchange Mergers of NASDAQ and OMX

2020 ◽  
Vol 12 (20) ◽  
pp. 8581
Author(s):  
Wenjing Xie ◽  
João Paulo Vieito ◽  
Ephraim Clark ◽  
Wing-Keung Wong
Keyword(s):  
Sustainable Development ◽  
Stock Market ◽  
Financial Markets ◽  
Stock Markets ◽  
Stock Exchange ◽  
International Treaties ◽  
National Policies ◽  
The Sustainable Development ◽  
Long Run ◽  
Stock Market Investors

This study investigates whether the merger of NASDAQ and OMX could reduce the portfolio diversification possibilities for stock market investors and whether it is necessary to implement national policies and international treaties for the sustainable development of financial markets. Our study is very important because some players in the stock markets have not yet realized that stock exchanges, during the last decades, have moved from government-owned or mutually-owned organizations to private companies, and, with several mergers having occurred, the market is tending gradually to behave like a monopoly. From our analysis, we conclude that increased volatility and reduced diversification opportunities are the results of an increase in the long-run comovement between each pair of indices in Nordic and Baltic stock markets (Denmark, Sweden, Finland, Estonia, Latvia, and Lithuania) and NASDAQ after the merger. We also find that the merger tends to improve the error-correction mechanism for NASDAQ so that it Granger-causes OMX, but OMX loses predictive power on NASDAQ after the merger. We conclude that the merger of NASDAQ and OMX reduces the diversification possibilities for stock market investors and our findings provide evidence to support the argument that it is important to implement national policies and international treaties for the sustainable development of financial markets.

Strengthening impact integrity in investment decision-making for sustainable development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fara Azmat ◽  
Ameeta Jain ◽  
Fabienne Michaux
Keyword(s):  
Decision Making ◽  
Sustainable Development ◽  
Management Practices ◽  
Investment Decision ◽  
Investment Strategies ◽  
Content Type ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Investment Decision Making ◽  
Development Outcomes

Purpose This paper aims to focus on impact integrity in investment decision-making – an under-researched yet important topic – as a means for optimising investor contributions to sustainable development outcomes, including achieving the sustainable development goals (SDGs). Design/methodology/approach This conceptual paper adopts a two-step approach. First, this paper reviews existing “responsible” investment strategies and products used in practice and highlight their shortcomings in terms of optimising sustainable development outcomes. Second, drawing from the minimal standards theory, this study explores how emerging impact management practices may strengthen impact integrity in investment decision-making and mitigate shortcomings in existing “responsible” investment approaches to increase their contribution to sustainable development outcomes. Findings Current “responsible” investment approaches often do not optimise sustainable development outcomes and may facilitate “impact washing”. The theoretically grounded framework demonstrates standardised impact management practices based on a bounded flexibility approach – adaptable to different contexts within limits and assessed by skilled analysts – along with incorporating shared language and conventions supported by appropriate accountability mechanisms that can be used to mitigate shortcomings in current “responsible” investment approaches. The authors further propose accountability mechanisms to systematically involve stakeholders (including rightsholders) in decisions that impact them with effective grievance and reparation mechanisms. Such an approach, the authors argue will strengthen impact integrity and the capacity of investments to optimise contributions to sustainable development outcomes. Practical implications The findings have implications for the ability of investment markets to optimise their contributions to sustainable development and the SDGs. Social implications By highlighting shortcomings in current “responsible” investment approaches and focussing on strengthening impact integrity in investment decision-making through standardised impact management practices, the findings enhance the capacity of investment markets to contribute positively to sustainable development and the SDGs. Originality/value Despite its importance, impact integrity in investment decision-making is severely under-researched with little academic attention. This paper fills this void.

ESG-Factors and Responsible Investment in the Focus of Strategic Development

2021 ◽  
pp. 4-11
Author(s):  
Oksana Kirillova ◽  
Elena Zhukova
Keyword(s):  
Sustainable Development ◽  
Strategic Development ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Financial Investment ◽  
Development Goals ◽  
Sustainable And Responsible Investment ◽  
Relationship Of ◽  
The Relationship ◽  
Financial Issues

Achieving the sustainable development goals laid down in the national projects of the Russian Federation requires the formation of new strategic guidelines for companies. They can be most succinctly represented by the concept of ESG factors (environmental, social, managerial), which in turn are closely related to the concept of sustainable and responsible investment, which directly addresses financial issues in the light of global risks of climate degradation, ecology, and corporate governance. Revealing the essence, role and place of strategic management based on ESG factors, the authors justify the necessity and possibility of shifting the emphasis of the financial investment market towards responsible investment. The article discusses its main elements, the theory of the relationship of ESG factors with the financial performance of firms, driving the interests of investors, and provides approaches to investment that contribute to sustainable development in various ways.

FEATURES OF THE SUSTAINABLE DEVELOPMENT OF REGIONAL SYSTEMS

2021 ◽  
Author(s):  
Наталия Александровна Иванова
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Economic Activity ◽  
Economic Conditions ◽  
Human Potential ◽  
The Sustainable Development ◽  
World Community ◽  
Regional Systems ◽  
The World ◽  
The Creation

Актуальность предложенной статьи обусловлена вопросами устойчивого развития регионов, получившее распространение в связи с концепцией устойчивого развития, выдвинутой мировым сообществом на рубеже 80-90-х гг. XX в.. В последние годы этот процесс заметно интенсифицируется, что связано с возрастающим значением устойчивого развития регионов как важнейшего фактора повышения эффективности в новых условиях хозяйствования. Ведущим подходом к исследованию данной проблемы является задействование прогрессивных источников экономического роста, значительного усиления экологизации хозяйственной деятельности, создания условий для развития человеческого потенциала. The relevance of the proposed article is due to the issues of sustainable development of regions, which became widespread in connection with the concept of sustainable development put forward by the world community at the turn of the 80-90s. XX century. In recent years, this process has been noticeably intensified, which is associated with the increasing importance of sustainable development of regions as the most important factor in increasing efficiency in the new economic conditions. The leading approach to the study of this problem is the involvement of progressive sources of economic growth, a significant increase in the greening of economic activity, and the creation of conditions for the development of human potential.

Outsider Antitrust

2018 ◽  
Author(s):  
Eleanor M Fox
Keyword(s):  
Sustainable Development ◽  
United Nations ◽  
Sustainable Development Goals ◽  
Competition Law ◽  
The Sustainable Development ◽  
World Community ◽  
The People ◽  
The World ◽  
Development Goals ◽  
Environmentally Sound

The United Nations has published the Sustainable Development Goals, which it aspires to achieve by 2030. The goals aspire to end poverty and hunger, build dignity, and create an inclusive, safe, and environmentally sound society. To much of the world community, markets are the problem, not the solution. This chapter argues the contrary; namely, that markets properly harnessed to work for development and for the people are an essential prong in the plan to end poverty, hunger, and exclusion by empowering people to help themselves. It shows how Competition Law in the service of markets helps to achieve these goals.

scholarly journals Socio-Economic Transformations in Ukraine towards the Sustainable Development of Agriculture

2020 ◽  
Vol 12 (13) ◽  
pp. 5441 ◽  
Author(s):  
Olha Kravchenko ◽  
Anatolii Kucher ◽  
Maria Hełdak ◽  
Lesia Kucher ◽  
Joanna Wysmułek
Keyword(s):  
Sustainable Development ◽  
Food Security ◽  
Capital Investment ◽  
The State ◽  
Economic Conditions ◽  
The Sustainable Development ◽  
Economic Relations ◽  
Market Participants ◽  
The Social ◽  
Livestock Products

The social and economic conditions of all market participants are incentives and constraining factors influencing the levels of food, social, economic and ecologic security. The purpose of the article lies in the presentation of the author’s concept of the social and economic conditions where the transformation of economic relations between agrofood market participants is happening—in particular, the livestock products market of Ukraine—and the assessment of the state of food security of the country, as well as a comparison, by the same criteria, of the conditions of agrofood market participants in Ukraine and in four European countries: Germany, France, Italy, and Poland. This research was based on the application of empirical knowledge methods: observation, comparison, description, measurement, statistic methods, etc. So far, the participant functioning conditions in the agricultural market in Ukraine are unfavorable for the sustainable development of agriculture, especially the livestock industry. The debt burden of external creditors is growing, the amount of direct investments from the countries of the world decreases, and the growth of capital investment in terms of calculation per one employee is slowing down. The food security of Ukraine is unstable. The “market” itself is not capable of remedying all the negative phenomena. Therefore, it is necessary to apply the weighted power of the state.

scholarly journals Research on China’s Green Finance Promoting Sustainable Economic Development

2021 ◽  
Vol 275 ◽  
pp. 02049
Author(s):  
Kai Xiong ◽  
Yijun Yao
Keyword(s):  
Sustainable Development ◽  
Economic Development ◽  
Market Mechanism ◽  
The Sustainable Development ◽  
Development Status ◽  
Financial Products ◽  
Sustainable Economic Development ◽  
Green Finance ◽  
Green Development ◽  
Normal Green

With China’s economic development entering a new normal, green finance has become a new direction to explore the sustainable development of economy in the supply side structural reform task of “three removal, one reduction and one compensation”. Firstly, this paper analyzes the concept of green finance and its development status. Secondly, taking green credit as an example, this paper makes an empirical study on the contribution of green finance to sustainable economic development. Finally, according to the results of empirical research, some suggestions including increasing the application proportion of green finance, improving green financial products and business model and forming a market mechanism for green finance to promote green development independently, are put forward to improve the sustainable development of green finance in China.

scholarly journals Education of International Migrants’ Children: A Contribution to the Sustainable Development?

2019 ◽  
Vol 19 (2) ◽  
pp. 306-316 ◽  
Author(s):  
Elena Aleksandrovna Omelchenko
Keyword(s):  
Sustainable Development ◽  
Psychological Adaptation ◽  
School Age Children ◽  
Research Experience ◽  
Conceptual Approach ◽  
The Sustainable Development ◽  
World Community ◽  
Development Goals ◽  
Un General Assembly ◽  
International Migrants

Due to the Agenda for Sustainable Development adopted by the UN General Assembly in 2015, the world community is to obtain a quality education and a possibility for life-long education for everybody. Children from the families of international migrants are the most vulnerable category of the population. At the end of 2017 nearly 36 million of school age children grew in the families of international migrants. The author describes problems of the education of migrants’ children in the context of the importance of achieving Sustainable Development Goals, stated by the international community. There is an analysis of the European and Russian experience in the sphere of organizing access of migrants’ children to preschool, primary and secondary education. The author has gathered concrete statistics concerning the percentage of international migrants’ children at schools in different countries. Some approaches to teaching and creating a comfortable integration-oriented environment for such children are described. Based on analyzing Russian and foreign publications, as well as on her own research experience, the author names main problems that prevent international migrants’ children from the integration into a new educational environment. Special attention is paid to the linguistic, social and cultural adaptation of such pupils. The efficiency of several concrete integration practices and the potential to apply them in Russia is searched. The author shows that there are no approaches to diagnose processes and results of integration by means of education. There is also no legislative basis for the regulation of such processes. It is shown that it is crucial for Russia to elaborate and implement the united conceptual approach to the organization of social, cultural, linguistic and psychological adaptation of children from the families of international migrants. The author proves that the education of such children is an important strategic priority and investment into the future of the whole world.

scholarly journals Transparency of Responsible Investment Environment

2020 ◽  
Vol 4 (4) ◽  
pp. 68-75
Author(s):  
Julia Yelnikova ◽  
Abdul Rahman Barhaq
Keyword(s):  
Sustainable Development ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Development Program ◽  
Global Reporting Initiative ◽  
Investment Environment ◽  
Un Global Compact ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Responsible Investing

The study deals with measuring the investment environment transparency for responsible investment, assessing it in Ukraine, and improving it through the rating means in sustainable development. There are ratings, rankings, indices, benchmarks and sustainable development standards as unique markers in responsible investment markets, considering the ESG − criteria for screening companies. The authors prove that ratings are tools for minimizing information asymmetry at the micro and macro levels, which is quite significant, especially in the responsible investment field. Rating is a leading factor in creating a transparent environment for investment decisions and ensuring a favorable investment climate in the world (considering the sustainable development ratings and progress towards sustainable development) and the investment attractiveness of companies (considering ESG − reporting criteria on sustainable development of companies). The authors pay much attention to the world’s sustainable development ratings, which incorporate the transparency component of the investment environment. The authors analyze Ukraine’s position in these rankings and conclude that its status and investment attractiveness are deteriorating in the international arena, particularly due to insufficient transparency of the investment environment, perception of corporate social responsibility and weak progress towards the Sustainable Development Goals. Structural and dynamic analysis of the signatories and participants of the UN Global Compact network in Ukraine confirm this thesis. Despite the positive dynamics of network members, especially in recent years, their number and composition are unrepresentative towards companies, financial sector institutions, NGOs and government organizations as leaders in the values of sustainable development and social responsibility in Ukraine. Consideration of the European countries’ experience embodied in the new EU investment plan, comprising three areas and ten measures aimed at mobilizing 650 billion euros of investment in sustainable development and the investigations made by a supranational organizations network (OECD, UN Development Program, the Sustainability Accounting Standards Board). The Global Reporting Initiative, the International Finance Corporation, the Global Impact Investing Network, and other stakeholders are essential steps in increasing Ukraine’s investment environment transparency. Ensuring environment transparency of the responsible investment by introducing methods of ranking companies and countries considering their social responsibility and achievements in the sustainable development field and its goals, standardization of products, techniques and strategies of responsible investment are key priorities of Ukrainian state investment policy. Keywords: Transparency, Investment Environment, Information Asymmetry, Ranking, Sustainable Development, Responsible Investing.

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