The Role of Sustainable Governance in Corporate ESG Rating Performance: the Case of Russian Market

This study delves into the intricate relationship between sustainable governance practices and Environmental, Social, and Governance (ESG) rating performance within the Russian market. While ESG considerations have gained global significance in recent years, the Russian market presents a distinctive scenario marked by the absence of traditional responsible investors and the government has issued new legislations focusing on environmental and social aspects. Using the samples of an annual and sustainable reports of 100 companies in Russia, published from 2021 to 2023, the study investigates how sustainable governance mechanisms influence ESG rating performance among Russian companies. Based on the study’s findings, companies with high levels of sustainable governance will have higher ESG ratings than companies with weaker levels of governance. Additionally, the study delves into the potential long-term value of sustainable governance on corporate competitiveness, resilience, and attractiveness to both domestic and international investors operating within the Russian market.