Activation of Sustainable Development Mechanisms on the Base of Green Projects of the Rail Transport

Abstract

: Russia is currently facing its traditional challenge, the necessity of economy diversification, as well as the challenge of the decrease of dependence on raw materials sector. Due to the slowdown in global business activities caused by COVID-19 pandemic, the fall in demand and in prices for fossil fuels may be long-term. What is more, some of the world's major economies are being involved in the global transformation of national economic systems in response to the global climate and environmental crisis. Railway transport of the Russian Federation, representing basically by JSC "Russian Railways", is in a leading position in the world transport system. The Holding's response to these challenges will largely predetermine the pathway of development not only of railway transport, but also the format of the development of the Russian economy for coming years or even decades. The purpose of this study is to determine the relationship between the adoption of a sustainable development policy and the effectiveness of the implementation of the projects of Russia’s high-speed railway infrastructure development. The authors argue that the functioning of transport organizations within the framework of the established principles of sustainable development (hereinafter referred to as ESG -Environmental, Social, and Corporate Governance) contributes to the improvement of their operational activities. The research methodology is based on the analysis of international approaches and assessment criteria for ESG factors using analytical procedures to identify cause-and-effect relationships of rail transport development strategy in the Russian Federation within the framework of ESG. The informational background of the study is based on the analysis of the reports of international organizations and the data of JSC Russian Railways in terms of funding, expected prospects and effects. As a result of the study we have found the terms of transformation of sustainable development of rail transport systems in the world and in the Russian Federation under the changes in the geography and commodity markets structure. We have set the favorable prospects through business direct participation in sustainable development implementation and reaching its goals. On this basis, the benchmarks of JSC Russian Railways in terms of sustainable development strategy have been assessed. In order to implement environmental infrastructural projects, the parameters of the compliance of the Russia’s railway transport development strategy with the goals of sustainable growth have been established.