ecpolicyЭкономическая политикаEconomic Policy1994-51242411-2658Economic Policy10.18288/1994-5124-2023-2-80-103ecpolicy-59Research ArticleМенеджментManagementTheory and Practice of ESG Transformation of Management SystemsTheory and Practice of ESG Transformation of Management SystemsChungRae KwonChungRae Kwon

Rae Kwon Chung, Chairman, International Award Committee; Recipeint of personal copy of the Nobel Peace Prize 2007 awarded to the Inter-governmental Panel on Climate Change (IPCC); Board Director; Professor Emeritus and the Chief scientific adviser of the Institute of Finance and Sustainable Development; Honorary Doctor, Moscow State University,

F5, 33 Gyeonghuigung-gil, Jongno-gu, Seoul, 03176.

Rae Kwon Chung, Chairman, International Award Committee; Recipeint of personal copy of the Nobel Peace Prize 2007 awarded to the Inter-governmental Panel on Climate Change (IPCC); Board Director; Professor Emeritus and the Chief scientific adviser of the Institute of Finance and Sustainable Development; Honorary Doctor, Moscow State University,

F5, 33 Gyeonghuigung-gil, Jongno-gu, Seoul, 03176 .

raechung@yahoo.comMargolinAndrey M.MargolinAndrey M.

Andrey M. Margolin, Dr. Sci. (Econ.), Professor, Director of the Institute of Finance and Sustainable Development, Vice-Rector,

82, Vernadskogo pr., Moscow, 119571.

Scopus AuthorID: 57205301323.

Andrey M. Margolin, Dr. Sci. (Econ.), Professor, Director of the Institute of Finance and Sustainable Development, Vice-Rector,

82, Vernadskogo pr., Moscow, 119571.

Scopus Author ID: 57205301323.

margolin-am@ranepa.ruVyakinaIrina V.VyakinaIrina V.

Irina V. Vyakina, Dr. Sci. (Econ.), Head of the Department of Economics and Production Management,

22, nab. Afanasiya Nikitina, Tver, 170026.

ivyakina@yahoo.com

ResearcherID: G-6146-2016;

Scopus AuthorID: 56711983200.

Irina V. Vyakina, Dr. Sci. (Econ.), Head of the Department of Economics and Production Management,

22, nab. Afanasiya Nikitina, Tver, 170026.

ResearcherID: G-6146-2016;

Scopus AuthorID: 56711983200.

ivyakina@yahoo.comThe Global Energy Prize; Ban Ki-Moon Foundation for a Better Future; The Russian Presidential Academy of National Economy and Public AdministrationЮжная КореяThe Global Energy Prize; Ban Ki-Moon Foundation for a Better Future; The Russian Presidential Academy of National Economy and Public AdministrationKorea, Republic ofRussian Presidential Academy of National Economy and Public Administration (RANEPA)РоссияRussian Presidential Academy of National Economy and Public Administration (RANEPA)Russian FederationTver State Technical UniversityРоссияTver State Technical UniversityRussian Federation20232804202318280103Copyright © Chung R., Margolin A.M., Vyakina I.V., 20232023Chung R., Margolin A.M., Vyakina I.V.Chung R., Margolin A.M., Vyakina I.V.Данная работа распространяется под лицензией Creative Commons Attribution 4.0.This work is licensed under a Creative Commons Attribution 4.0 License.https://www.ecpolicy.ru/jour/article/view/59

The paper explores different approaches to defining the concepts of ESG (Environmental, Social, Governance) and sustainable development and substantiates the position that ESG transformation of management systems is the ideological embodiment of a comprehensive solution to economic, social, and environmental problems facing the state, business, and society. In this regard, it is advisable to view the seventeen UN sustainable development goals (SDGs) through the prism of a set of specific mechanisms to ensure that their achievement is based on ESG ideology. In essence, ESG ideology integrates the triunity of economic, environmental, and social principles inherent in all SDGs, and is a tool for verifying the feasibility of the specific mechanisms that are developed and implemented to achieve each of these goals. Applying an interdisciplinary approach, which is preferable for research of sustainable development issues and assessment of key factors for ESG transformation of management systems, the authors reveal manageable and unmanageable risks, define trends for skill development in managers capable of its implementation, and identify the nuances of achieving sustainable development goals through increased efficiency of interaction between government, business, and society. Specific examples demonstrate that while good practices of the influence of developed civil society institutions on SDG achievement exist, its role is still underestimated, which is a significant hindrance to the achievement of a balance between meeting the objectively existing needs of the population and ensuring no harm to future generations. Research results can be used by the professional community interested in promoting the ESG agenda and achieving sustainable development goals based on ESG transformation of public and corporate management systems.

The paper explores different approaches to defining the concepts of ESG (Environmental, Social, Governance) and sustainable development and substantiates the position that ESG transformation of management systems is the ideological embodiment of a comprehensive solution to economic, social, and environmental problems facing the state, business, and society. In this regard, it is advisable to view the seventeen UN sustainable development goals (SDGs) through the prism of a set of specific mechanisms to ensure that their achievement is based on ESG ideology. In essence, ESG ideology integrates the triunity of economic, environmental, and social principles inherent in all SDGs, and is a tool for verifying the feasibility of the specific mechanisms that are developed and implemented to achieve each of these goals. Applying an interdisciplinary approach, which is preferable for research of sustainable development issues and assessment of key factors for ESG transformation of management systems, the authors reveal manageable and unmanageable risks, define trends for skill development in managers capable of its implementation, and identify the nuances of achieving sustainable development goals through increased efficiency of interaction between government, business, and society. Specific examples demonstrate that while good practices of the influence of developed civil society institutions on SDG achievement exist, its role is still underestimated, which is a significant hindrance to the achievement of a balance between meeting the objectively existing needs of the population and ensuring no harm to future generations. Research results can be used by the professional community interested in promoting the ESG agenda and achieving sustainable development goals based on ESG transformation of public and corporate management systems.

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The authors declare that there are no conflicts of interest present.