Environmental, Social and Governance Investment Standardization: Moving Towards Sustainable Economy

Alex Plastun, Inna Makarenko, Yulia Yelnikova and Serhiy Makarenko (2019). Environmental, social and governance investment standardization: moving towards sustainable economy. Environmental Economics, 10(1), 12-22. doi:10.21511/ee.10(1).2019.02

12 Pages Posted: 31 Jul 2019

See all articles by Oleksiy Plastun

Oleksiy Plastun

Sumy State University

Inna Makarenko

National Bank of Ukraine - Ukrainian Academy of Banking of the National Bank of Ukraine

Yulia Yelnikova

Sumy State University

Serhiy Makarenko

АF LLC «Sumycoop-audit»

Date Written: May 8, 2019

Abstract

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: ESG investment, standardization, sustainable economy

JEL Classification: Q00, Q01, G11

Suggested Citation

Plastun, Oleksiy and Makarenko, Inna and Yelnikova, Yulia and Makarenko, Serhiy, Environmental, Social and Governance Investment Standardization: Moving Towards Sustainable Economy (May 8, 2019). Alex Plastun, Inna Makarenko, Yulia Yelnikova and Serhiy Makarenko (2019). Environmental, social and governance investment standardization: moving towards sustainable economy. Environmental Economics, 10(1), 12-22. doi:10.21511/ee.10(1).2019.02. Available at SSRN: https://ssrn.com/abstract=3427652

Oleksiy Plastun (Contact Author)

Sumy State University ( email )

Rymskyi-Korsakov str., 2
Sumy, 40000
Ukraine

Inna Makarenko

National Bank of Ukraine - Ukrainian Academy of Banking of the National Bank of Ukraine

57, Petropavlivska str.
Sumy, 40030
Ukraine

Yulia Yelnikova

Sumy State University

Rymskyi-Korsakov str., 2
Sumy, 40000
Ukraine

Serhiy Makarenko

АF LLC «Sumycoop-audit»

Ukraine

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