The Development of a Model to Quantify the Impact of ESG Principles on Chinese Corporate Investments in Joint Projects with Partner Countries, Using Russia and the CIS as Examples

By constructing a regression analysis model, this research quantitatively evaluates the impact of implementing ESG (environmental, social, and governance) policies in Russia and the CIS countries on Chinese companies’ investment decisions in the region. The authors propose three hypotheses that explore the impact of ESG policy strictness, policy transparency, and the company’s own ESG performance on the investment scale. By collecting relevant data and conducting empirical analysis, variables such as market size, resource endowment, political stability, and exchange rate fluctuations are included. According to the research findings, some factors, such as policy strictness and market size, exhibit a positive but statistically insignificant impact on the investment scale. Meanwhile, other factors, including policy transparency and corporate ESG performance, show no significant influence on the investment scale. The research reveals the specific role of ESG policies in promoting or hindering Chinese companies’ investment in Russia and the CIS countries. The research results indicate that ESG policy stringency and market size have a positive but statistically insignificant impact on the investment scale of Chinese companies in Russia and CIS countries. Similarly, factors such as policy transparency and the company’s own ESG performance show no significant influence on the investment scale. Other control variables, including resource endowment and political stability, also exhibit a positive but insignificant effect on the investment scale. These findings provide valuable insights for policymakers and companies as they navigate investment strategies in these regions.