Cherepovets State University, Cherepovets, Russia:

N. N. Yashalova, Dr. Econ., Associate Prof., Head of the Dept. of Economics and Management, e-mail: natalij2005@mail.ru

Plekhanov Russian University of Economics, Moscow, Russia:
I. M. Potravny, Dr. Econ., Prof., Basic Dept. of Capital Group Project and Program Management

The article reveals the disclosure of non-financial information by steel companies on the implementation of their strategies, taking into account environmental, social and management principles (ESG-principles) as a factor in attracting of investment concerning the low-carbon development. The purpose of the article is to identify and justify the opportunities associated with the development of climate finance methods in the practice of ferrous metallurgy enterprises to ensure sustainable development in the face of climate change. The analysis of non-financial statements of the largest Russian enterprises of the ferrous metallurgy for 2002–2021, reflecting ESG information, was performed, and the results of ESG ratings were presented. It was revealed that Russian companies in the metallurgical sector of the economy support the ESG agenda, they disclose information on environmental, social and management activities in more detail, which indicates their commitment to the principles of sustainable development and achieving carbon neutrality in their activities. It is shown that information transparency and high positions in ESG ratings are important for attracting climate finance on more favorable terms for the company. Among the methods and tools of climate finance for iron and steel enterprises, trading in greenhouse gas emission rights (carbon credits), green finance and bonds, feed-in tariffs in the energy sector, pricing taking into account climate factors, and hedging the risk of climate change in financial markets stand out. The practical significance of the study lies in the possibility of using ESG principles by ferrous metallurgy enterprises in order to further attraction of climate finance and projects implementation to reduce greenhouse gas emissions, adapt to climate change, and increase their sustainability in the markets.

1. Kogdenko V. G., Kazakova N. А. Monitoring the development sustainability of metallurgical companies. Chernye Metally. 2022. No. 11. pp. 73–80.
2. Decree of the Government of the Russian Federation of December 28, 2022 No. 4260-r “On approval of the Strategy for the development of the metallurgical industry of the Russian Federation for the period up to 2030”. Available at: https://www.garant.ru/products/ipo/prime/doc/405963845/#1000 (accessed: 20.03.2023).
3. Yashalova N. N., Vasiltsov V. S., Potravny I. М. Decarbonization of ferrous metallurgy: objectives and regulatory instruments. Chernye Metally. 2020. No. 8. pp. 70–75.
4. Raghupathi W., Wu S., Raghupathi V. Understanding corporate sustainability disclosures from the securities exchange commission filings. Sustainability. 2023. Vol. 15. p. 4134. DOI: 10.3390/su15054134
5. Kouwenberg R., Zheng C. A review of the global climate finance literature. Sustainability. 2023. Vol. 15. pp. 1255. DOI: 10.3390/su15021255
6. Potravny I. М., Novikov А. V., Chavez Ferreira K. Y. Elimination of objects of accumulated environmental damage in the coastal Arctic zone based on ESG-financing methods. Ekologiya i promyshlennost Rossii. 2022. No. 10. pp. 60–65. DOI: 10.18412/1816-0395-2022-10-60-65
7. Turzo T., Marzi G., Favino C., Terzani S. Non-financial reporting research and practice: Lessons from the last decade. Journal of Cleaner Production. 2022. Vol. 345. pp. 131154. DOI: 10.1016/j.jclepro.2022.131154
8. Balluchi F., Lazzini A., Torelli R. Credibility of environmental issues in non-financial mandatory disclosure: Measurement and determinants. Journal of Cleaner Production. 2021. Vol. 288. p. 125744. DOI: 10.1016/j.jclepro.2020.125744
9. Zenkina I. V. Increasing the informative and analytical value of public non-financial reporting. Mezhdunarodny bukhgalterskiy uchet. 2019. No. 1. pp. 4–23.
10. Pyatov М. L., Solovey Т. N., Sorokina А. S., Gusnieva А. А. Non-financial reporting in the economy: the experience of the 19^th – early 21^st centuries. Vestnik Sankt-Peterburgskogo universiteta. Ekonomika. 2018. No. 3. pp. 465–492.
11. Pivovarov I. S., Ostrovskiy D. А. The evolution of non-financial corporate reporting of companies in the context of corporate governance. Nauka i biznes: puti razvitiya. 2020. No. 5. pp. 139–144.
12. The most profitable companies in Russia – 2022. Forbes rating. Available at: https://www.forbes.ru/biznes/477863-samye-pribyl-nye-kompanii-rossii-2022-rejting-forbes (accessed: 20.03.2023).
13. National Register of corporate non-financial reports. Official website of the Russian Union of Industrialists and Entrepreneurs. Available at: https://rspp.ru/activity/social/registr/ (accessed: 20.03.2023).
14. Severstal has joined the World Economic Forum's initiative to develop unified ESG reporting metrics. Available at: https://severstal.com/rus/media/archive/2022-01-27-severstalprisoedinilas-k-initsiative-vsemirnogo-ekonomicheskogo-foruma-po-razrabotke-edinykhmetrik-esg-otchetnosti-/ (accessed: 20.03.2023).
15. Kabir L. S., Nikulina S. I. Climate finance. Byudzhet. 2020. No. 10. pp. 50–54.
16. Lee C.-C., Wang F., Lou R., Wang K. How does green finance drive the decarbonization of the economy? Empirical evidence from China. Renewable Energy. 2023. Vol. 204. pp. 671–684. DOI: 10.1016/j.renene.2023.01.058
17. Ershov D. N. Participation of institutional investors in climate finance: international experience and perspectives. Vestnik Povolzhskogo gosudarstvennogo tekhnologicheskogo universiteta. Seriya: Ekonomika i upravlenie. 2020. No. 4. pp. 26–44.
18. Long S., Lucey B., Kumar S., Zhang D., Zhang Z. Climate finance: What we know and what we should know? Journal of Climate Finance. 2022. Vol. 1. 100005. DOI: 10.1016/j.jclimf.2023.100005.
19. Lee C.-C., Li X., Yu C.-H., Zhao J. The contribution of climate finance toward environmental sustainability: New global evidence. Energy Economics. 2022. Vol. 111. 106072. DOI: 10.1016/j.eneco.2022.106072.
20. ESG ranking of Russian companies. Available at: https://raex-a.ru/rankingtable/ESG_ranking_companies/16/09/2021 (accessed: 20.03.2023).
21. National rating agency. Available at: https://www.ra-national.ru/ratings/?jsf=jetengine&tax=tip-reitinga:1540 (accessed: 20.03.2023).
22. Khachatryan А. V. Divergence in ESG ratings: foreign regulatory trends. Finansovy zhurnal. 2022. No. 5. pp. 89–104.
23. Methodology of ESG ratings: report of the Bank of Russia. Available at: https://www.cbr.ru/press/event/?id=14475 (accessed: 20.03.2023).