Theory and Practice of ESG Transformation of Management Systems

Abstract

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.