ESG Instruments’ Market Analysis: Investment Attractiveness and Benefits for the Issuers

Over the past few years, significant development of interest in responsible investing takes place. Companies strongly care about the observance of ESG principles in their performance. Every year there are more and more initiatives, verifiers and standards in this field, the area of application of special ESG ratings is intensively developing. The Russian market has a retarded dynamic of development in this segment. Nevertheless, today it is in a rapid growth phase. The work aims to identify the investment advantages of ESG instruments and to determine the benefits for companies from their issue. The relevance of this work is primarily due to the insufficient development and research of the Russian market for ESG instruments. To achieve this goal, an event analysis is carried out using the Ms Excel package. The analysis is based on two models: a model with an average and a market model. The data consists of 265 green bond placements in the time period from 2016 to 2021. The issuers are 145 unique companies that are publicly traded on various world stock exchanges. As a result of the study, the hypothesis of a positive reaction of the company's value to the issuance of green instruments was confirmed.