ESG Agenda: New Reality for Russian Ferrous Metallurgy Enterprises in Time of the Geopolitical Crisis

Abstract

The article examines the conditions for the implementation of the ESG agenda in Russian ferrous metallurgy enterprises during the global geopolitical crisis. The subject is the condition of the largest Russian ferrous metallurgy enterprises under US and EU sanctions. The goal is to study the relevance and capability for the implementation of the ESG principies by the largest Russian ferrous metallurgy enterprises. The research uses methods of analysis, synthesis, comparison; descriptive, table methods. The sanctions have had a significant impact on the carbon-intensive sectors of the national economy, including the ferrous metallurgy industry. Even before the events of February 2022, the promotion of ESG principles at the international level was used as an instrument of political and economic pressure. Despite the efforts of Russian iron and steel producers, the amount of CO2 equivalent emissions is largely determined by economic, political, and other factors. For the successful implementation of the ESG agenda, it is necessary to radically restructure the technological chains of steel production, which requires financial support from the state. In addition to reorientation to the Asian market and the countries of the Middle East, it is necessary to conduct ESG assessments of Russian ferrous metallurgy enterprises. However, most likely, the results of the assessments of domestic ESG providers, will not be in demand.