Subject. The study deals with risk assessment of sustainable development of the enterprise. Objectives. The purpose is to review and evaluate the main methods for analysis of social, environmental, and economic condition of the company, build a risk model and underpin its key methodological stages; provide empirical proof of the proposed concept based on data from financial and non-financial reporting and stock market risk of the organization. Methods. The study employs techniques of stochastic and deterministic types of analysis of enterprise economic activity. Results. The paper offers a new method to assess ESG risk based on a normative approach to calculating risk indicators. I modified the classical parameter of the challenge to sustainable development, as well as the methodology for integrated assessment of sustainable business development. Conclusions. The risk theory is currently a worthy way to obtain transparent and objective information to assess the sustainable development of a corporate unit. The proposed risk analysis tool for a complex of socio-ecological and economic areas has a better quality of explanation of the current situation in the stock market than the classical valuation technique that serves as its basis.
Keywords: socio-ecological and economic condition, risk theory, stock market risk
References:
Pavlova E.A., Druzhinina A.R., Ivanov D.S. [Analysis of the methods of external and internal environmental management of organizations, ways to minimize greenwashing]. Nauchnyi zhurnal NIU ITMO. Seriya: Ekonomika i ekologicheskii menedzhment, 2022, no. 1, pp. 126–133. (In Russ.) URL: Link
Khorin A.N., Brovkin A.V. [Purposes and features of the analysis of the integrated reporting, corporate capital and complex performance of business process]. Kreativnaya ekonomika = Journal of Creative Economy, 2018, vol. 12, no. 4, pp. 499–512. URL: Link (In Russ.)
Nazarova V.V., Tikhomirov E.D. [The impact of environmental performance of oil and gas companies on their financial performance]. Vestnik Moskovskogo universiteta. Seriya 6: Ekonomika = Moscow University Bulletin. Series 6. Economics, 2022, no. 5, pp. 145–171. URL: Link (In Russ.)
Avino D.E., Stancu A., Simen C.W. The Predictive Power of the Dividend Risk Premium. Journal of Financial and Quantitative Analysis, 2020, vol. 56, iss. 8, pp. 2843–2869. URL: Link
Bataeva B.S., Kokurina A.D., Karpov N.A. [The impact of ESG reporting on the financial performance of Russian public companies]. Upravlenets, 2021, vol. 12, no. 6, pp. 20–32. URL: Link (In Russ.)
Huiyuan Liu, Kaiyao Wu, Qiuhua Zhou. Whether and How ESG Impacts on Corporate Financial Performance in the Yangtze River Delta of China. Sustainability, 2022, vol. 14, iss. 24. URL: Link
Ceccarelli M., Glossner S., Homanen M., Schmidt D. Which Institutional Investors Drive Corporate Sustainability? Netspar Working Paper,2021, December 13, 70 p. URL: Link
Míguez J.L., Rivo-Lopez E., Porteiro J., Perez-Orozco R. Selection of Non-Financial Sustainability Indicators as Key Elements for Multi-Criteria Analysis of Hotel Chains. Sustainable Production and Consumption, 2023, vol. 35, pp. 495–508. URL: Link
Khan M., Lockhart J., Bathurst R. A Multi-Level Institutional Perspective of Corporate Social Responsibility Reporting: A Mixed-Method Study. Journal of Cleaner Production, 2020, vol. 265, no. 121739. URL: Link
Shnaider O.V. [Reporting on the sustainable development of economic entities: Importance and significance in modern business conditions]. Балканско научно обозрение, 2020, vol. 4, no. 1, pp. 83–86. URL: Link otchetnost-ob-ustoychivom-razvitii-ekonomicheskih-subektov-vazhnost-i-znachenie-v-sovremennyh-usloviyah-vedeniya-biznesa?ysclid=ltd2h8a5xh598442530 (In Russ.)
Raghavan K. ESG Reporting Impact on Accounting, Finance. Journal of Global Awareness, 2022, vol. 3, iss. 1, article 9. URL: Link
Kraay A. The World Bank Human Capital Index: A Guide. World Bank Research Observer, 2019, vol. 34, iss. 1, pp. 1–33. URL: Link
Ferova I.S., Kozlova S.A., Osadchenko E.A. [Special Features of Assessing the Accomplishment of Companies' Sustainability Goals during the COVID-19 Pandemic]. Peterburgskii ekonomicheskii zhurnal = Petersburg Economic Journal, 2021, no. 3, pp. 55–65. URL: Link (In Russ.)
Dekina M.P. [The index method in the analysis of wages]. Statistika i Ekonomika = Statistics and Economics, 2018, vol. 15, no. 3, pp. 50–58. (In Russ.) URL: Link
Khorin A.N., Brovkin A.V. [Key indicators of the organization's Sustainability Report]. Teoreticheskaya i prikladnaya ekonomika, 2018, no. 1. (In Russ.) URL: Link
Kaplan R.S., Ramanna K. How to Fix ESG Reporting. Harvard Business School Working Paper,2021, no. 22-005. URL: Link
Smart N., Briggeman B.C., Tack J., Perry E. Examining U.S. Grain Marketing and Farm Supply Cooperatives' Sustainable Growth Rates. Agribusiness, 2019, vol. 35, iss. 4, pp. 499–681. URL: Link
Maoyong Zheng, Escalante C.L., Taylor C.E. Did Aggressive Business Growth Strategies Lead to Bank Failures? Lessons from the Late 2000s Great Recession. Journal of Applied Finance & Banking, 2020, vol. 10, iss. 6, pp. 135–151. URL: Link
Groening C., Peloza J. Are We Paying Attention to the Right Metric? The Impact on Firm Value of Consumers' Perceptions versus Actual Corporate Social Responsibility Actions. Journal of Cleaner Production, 2023, vol. 417, no. 137981. URL: Link
