Causal Relationship between Environmental and Financial Indicators of Russian Industrial Companies

Abstract

The high level of negative impact on the environment and the deterioration of its quality necessitate the greening of production and economic activities. The purpose of this study was to determine the direction and degree of the causal relationship between the environmental and financial indicators of Russian industrial companies. Taking into account the lack of a systematic study of the relationship between the level of environmental responsibility of Russian companies and their financial condition, as well as only single works analyzing all possible types of causation of corporate indicators, the stated goal looks relevant and significant. The research methodology assumed the use of applied statistics methods. In the course of the work, the direction and strength of the correlation were determined for different periods of time both between individual environmental and financial indicators, as well as for their aggregation. It was shown that the predominantly financial interests of Russian industrial companies and public env ironmental interests are weakly but positively interrelated, except for such objects as air pollution and waste. It is concluded that there is an institutional trap in the stock mark et that prevents an effective transition to a green economy. Recommendations are given for increasing the level of greening of Ru ssian companies. The conclusions drawn expand knowledge in the field of green economy and green finance in particular. The practical importance of the work for corporate managers is determined by the ability to predict the dynamics of environmental and financial indicators when developing plans to increase the level of environmental responsibility of the company, and for state and municipal authorities – the ability to effectively motivate companies to green their activities.