IDEAS home Printed from https://ideas.repec.org/a/fru/finjrn/250107p108-125.html
   My bibliography  Save this article

Organizational and Economic Barriers to the Development of Sustainable Finance (on the Example of Large Industrial Businesses in the Ural Region)

Author

Listed:
  • Yuliya G. Lavrikova

    (Institute of Economics, Ural Branch of RAS, Ekaterinburg, Russian Federation; Financial Research Institute, Moscow, Russian Federation)

  • Ekaterina O. Wegner-Kozlova

    (Institute of Economics, Ural Branch of RAS, Ekaterinburg, Russian Federation; Financial Research Institute, Moscow, Russian Federation)

  • Olga N. Buchinskaia

    (Institute of Economics, Ural Branch of RAS, Ekaterinburg, Russian Federation; Financial Research Institute, Moscow, Russian Federation)

Abstract

Despite the fact that the green finance market in Russia is actively developing, its growth rates still lag behind foreign countries. In order to create incentives to include ESG agendas in the strategic plans of the industrial sector, as well as to adapt financial market participants to new types of risks associated with sustainable development, it is necessary to identify and solve a number of organizational and economic problems. In particular, it is necessary to determine barriers to the development of sustainable investment in ESG projects from the perspective of the real economy sector, which determines the relevance of the study. The purpose of the study was to identify the reasons for the low spread of ESG projects in the activities of the large industrial sector of the Ural region in order to adapt the implementation of the ESG agenda to the needs of enterprises and the national interests of the Russian Federation. The objectives of the study included identifying the attitude of large industrial enterprises in the Ural region to the ESG agenda in terms of corporate and legal issues and operational activities and attitudes to the climate and environmental agenda, as well as determining the readiness of large businesses to use green finance and to disclose information about non-financial reporting and risks. The methodological basis of the study was the results of a questionnaire survey of management personnel responsible for consolidating ESG policy at large industrial enterprises in the Ural region. The results are as follows. All the companies surveyed expressed concerns that disclosure of information in ESG reporting could be used by unfriendly countries for political purposes or by other entities as an instrument of unfair competition. At the same time, the respondents demonstrated significant attention to the negative environmental impact of production activities. In the matters of the climate agenda, respondents are currently guided by legislative requirements. Insufficient attention is also paid to ESG training of personnel. The findings can be useful for creating incentives to include the ESG agenda in the strategic plans of the industrial sector, as well as for adapting green finance market players to new types of risks associated with sustainable development.

Suggested Citation

  • Yuliya G. Lavrikova & Ekaterina O. Wegner-Kozlova & Olga N. Buchinskaia, 2025. "Organizational and Economic Barriers to the Development of Sustainable Finance (on the Example of Large Industrial Businesses in the Ural Region)," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 108-125, February.
    • Handle: RePEc:fru:finjrn:250107:p:108-125
    DOI: 10.31107/2075-1990-2025-1-108-125
    as

    Download full text from publisher

    File URL: https://www.finjournal-nifi.ru/images/FILES/Journal/Archive/2025/1/statii/07_1_2025_v17.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31107/2075-1990-2025-1-108-125?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ester Clementino & Richard Perkins, 2021. "How Do Companies Respond to Environmental, Social and Governance (ESG) ratings? Evidence from Italy," Journal of Business Ethics, Springer, vol. 171(2), pages 379-397, June.
    2. Zhanna A. Mingaleva & Maria V. Sigova, 2022. "Financial Aspects of the Implementation of the Fourth Energy Transition," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 43-58, October.
    3. Yanwei Lyu & Yangyang Bai & Jinning Zhang, 2024. "Green finance policy and enterprise green development: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 414-432, January.
    4. Svetlana I. Chuzhmarova & Andrei I. Chuzhmarov, 2023. "Tax Incentives for Investments in Green Technologies: Experience of Selected Countries," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 74-89, April.
    5. Ekaterina V. Popova & Nikolay I. Strikh, 2022. "The impact of ESG and personal environmental concern on performance of Russian companies," Upravlenets, Ural State University of Economics, vol. 13(5), pages 2-16, November.
    6. Susanne Arvidsson & John Dumay, 2022. "Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy and practice?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1091-1110, March.
    7. Selena Aureli & Mara Del Baldo & Rosa Lombardi & Fabio Nappo, 2020. "Nonfinancial reporting regulation and challenges in sustainability disclosure and corporate governance practices," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2392-2403, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bjorg Jonsdottir & Throstur Olaf Sigurjonsson & Lara Johannsdottir & Stefan Wendt, 2022. "Barriers to Using ESG Data for Investment Decisions," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    2. Marta Szczepańczyk & Paweł Nowodziński & Adam Sikorski, 2023. "ESG Strategy and Financial Aspects Using the Example of an Oil and Gas Midstream Company: The UNIMOT Group," Sustainability, MDPI, vol. 15(18), pages 1-24, September.
    3. Jianzhuang Zheng & Muhammad Usman Khurram & Lifeng Chen, 2022. "Can Green Innovation Affect ESG Ratings and Financial Performance? Evidence from Chinese GEM Listed Companies," Sustainability, MDPI, vol. 14(14), pages 1-32, July.
    4. Olivier Boiral & Marie‐Christine Brotherton & Léo Rivaud & David Talbot, 2022. "Comparing the uncomparable? An investigation of car manufacturers' climate performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2213-2229, July.
    5. Scholz, Robert, 2023. "Unternehmensmitbestimmung und die sozialökologische Transformation: Zusammenhang zwischen Mitbestimmungsindex und ESG-Kriterien in börsennotierten Unternehmen," Mitbestimmungsreport 79, Hans-Böckler-Stiftung, Düsseldorf.
    6. Helfaya, Akrum & Aboud, Ahmed & Amin, Essam, 2023. "An examination of corporate environmental goals disclosure, sustainability performance and firm value – An Egyptian evidence," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 52(C).
    7. Dunbar, Kwamie & Treku, Daniel & Sarnie, Robert & Hoover, Jack, 2023. "What does ESG risk premia tell us about mutual fund sustainability levels: A difference-in-differences analysis," Finance Research Letters, Elsevier, vol. 57(C).
    8. Wang, Jianli & Wang, Shaolin & Dong, Minghua & Wang, Hongxia, 2024. "ESG rating disagreement and stock returns: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    9. Massimo Arnone & Carlo Drago & Alberto Costantiello & Angelo Leogrande, 2025. "Political Trust in Italy: How Environmental, Social, and Governance Factors Shape Confidence in Parties," Working Papers hal-04920996, HAL.
    10. Da Gao & Xiaotian Zhou & Jing Wan, 2024. "Unlocking sustainability potential: The impact of green finance reform on corporate ESG performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4211-4226, September.
    11. Juan Oliveros Fontaine & Cristina del Campo & Elena Urquía-Grande, 2024. "What Are Investors Most Interested in about Sustainability? An Approach from the Scientific Literature," Sustainability, MDPI, vol. 16(8), pages 1-23, April.
    12. Marius Banke & Stephanie Lenger & Christiane Pott, 2022. "ESG Ratings in the Corporate Reporting of DAX40 Companies in Germany: Effects on Market Participants," Sustainability, MDPI, vol. 14(15), pages 1-21, August.
    13. Edna Aparecida Greggio Possebon & Felippe Aparecido Cippiciani & José Roberto Ferreira Savoia & Frédéric de Mariz, 2024. "ESG Scores and Performance in Brazilian Public Companies," Sustainability, MDPI, vol. 16(13), pages 1-18, July.
    14. Jiazhan Gao & Guihong Hua & Baofeng Huo, 2025. "Turning “green” into “gold”: A study on the impact of green finance pilot zone policy on energy carbon emission efficiency," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 129-143, February.
    15. Yujuan Wu & Jacquline Tham, 2023. "The Impact of Executive Green Incentives and Top Management Team Characteristics on Corporate Value in China: The Mediating Role of Environment, Social and Government Performance," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    16. Matteo Molinari & Maria Pia Maraghini & Angelo Riccaboni, 2021. "Reporting di Sostenibilit? e Controllo Manageriale: L?esperienza di Edison S.p.A," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(2), pages 61-86.
    17. Xin Wang & Xiayun Song & Mingyang Sun, 2023. "How Does a Company’s ESG Performance Affect the Issuance of an Audit Opinion? The Moderating Role of Auditor Experience," IJERPH, MDPI, vol. 20(5), pages 1-17, February.
    18. Dongheng Han & Zhihui Li & Xun Cui & Lin Liang, 2025. "How Can We Improve the ESG Performance of Manufacturing Enterprises?—The Carbon Resilience Perspective," Sustainability, MDPI, vol. 17(6), pages 1-26, March.
    19. Sara De Masi & Agnieszka Słomka‐Gołębiowska & Claudio Becagli & Andrea Paci, 2021. "Toward sustainable corporate behavior: The effect of the critical mass of female directors on environmental, social, and governance disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1865-1878, May.
    20. Ruixin Su & Na Li, 2024. "Environmental, Social, and Governance Performance, Platform Governance, and Value Creation of Platform Enterprises," Sustainability, MDPI, vol. 16(17), pages 1-21, August.

    More about this item

    Keywords

    ESG agenda; ESG reporting; green finance; disclosure; green transition challenges;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fru:finjrn:250107:p:108-125. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gennady Ageev (email available below). General contact details of provider: https://edirc.repec.org/data/frigvru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.