Implementation of Principles of Sustainable Development Attracts More Investments
Economists from HSE and RUDN University have analysed issues related to corporate digital transformation processes. The introduction of digital solutions into corporate operations reduces the number of patents in the field of green technologies by 4% and creates additional financial difficulties. However, if a company focuses on sustainable development and increases its rating in environmental, social, and governance performance (ESG), the negative effects decrease. Moreover, when the ESG rating is high, digitalisation can even increase the number of patents by 2%. The article was published in Sustainability.
Digital transformation provides businesses with new tools to increase efficiency and competitiveness. Companies apply new technologies for data collection, customer service, and analytics. However, this entails high costs and increases energy consumption, which diverts resources from environmental initiatives. As a result, companies experience mixed manifestations of the ‘double transformation’ effect and have to choose whether to invest in digitalisation or develop green technologies. This problem is especially relevant to Chinese companies. China, one of the largest energy consumers, now faces serious environmental problems. Therefore, companies have to combine the goals of digital modernisation and sustainable development.
The economies of Russia and China are similar, and the experience and strategies used by Chinese companies can be applied to Russian practice. Irina Ivashkovskaya and Yanfei Wu, staff members of the School of Finance at the HSE Faculty of Economic Sciences, together with their colleagues from the HSE Department of Applied Economics and RUDN University, studied how Chinese business is responding to this challenge. They analysed data from 1,443 companies listed on the Shanghai Stock Exchange main board between 2013 to 2022.
The authors determined the level of digitalisation, indicators of sustainable development, financial constraints and their impact on green innovations for each company. To define the level of digital transformation, the researchers analysed companies’ annual reports to determine the frequency of repetitions of more than 70 marker keywords related to digital innovation. Then, they studied the relation between two transformation processes: the level of digitalisation and innovation in technology, expressed by the number of patents in the field of green technologies.
The results show that increasing the level of digitalisation reduces the number of green patents by 4%. This happens due to competition for financial resources between digital and environmental projects. Financial constraints also increase as companies find it difficult to attract investments. Nevertheless, an increase in the ESG rating weakened this effect, increasing the number of patents by 2–3% on average. Companies with a high ESG profile better coped with challenges related to financing and internal allocation of resources.
To get a clearer result, the authors also divided companies into two groups: those with a high and low level of digital transformation. If a business was not engaged in sustainable development and its ESG rating was low, increased investment in digitalisation reduced the number of patents for green innovations by 12%. However, if the company's rating was high, this transition, on the contrary, increased investments in green technologies by 6%. The study shows that the relationship between digital and ESG transformation works differently in public and private companies. In both groups, digitalisation produces financial constraints. However, in state-owned companies, the ESG profile does not have a mitigating effect on the results of green innovation.
The authors note that companies should strategically balance internal resources and not neglect other areas in order to accelerate digitalisation. In addition, regular disclosure of ESG indicators will increase transparency and attract additional funding.
‘Despite the fact that the study was conducted on data from Chinese companies, its results are relevant to Russia as well. Our country has a similar type of economy—in terms of large public companies, resource-based, energy-consuming enterprises dominate, and a significant number of companies are partially owned by the state,’ said Irina Ivashkovskaya, Head of the School of Finance at the HSE Faculty of Economic Sciences.
Yanfei Wu
See also:
Scientists Show That Peer Influence Can Be as Effective as Expert Advice
Eating habits can be shaped not only by the authority of medical experts but also through ordinary conversations among friends. Researchers at HSE University have shown that advice from peers to reduce sugar consumption is just as effective as advice from experts. The study's findings have been published in Frontiers in Nutrition.
HSE University Develops Tool for Assessing Text Complexity in Low-Resource Languages
Researchers at the HSE Centre for Language and Brain have developed a tool for assessing text complexity in low-resource languages. The first version supports several of Russia’s minority languages, including Adyghe, Bashkir, Buryat, Tatar, Ossetian, and Udmurt. This is the first tool of its kind designed specifically for these languages, taking into account their unique morphological and lexical features.
HSE Scientists Uncover How Authoritativeness Shapes Trust
Researchers at the HSE Institute for Cognitive Neuroscience have studied how the brain responds to audio deepfakes—realistic fake speech recordings created using AI. The study shows that people tend to trust the current opinion of an authoritative speaker even when new statements contradict the speaker’s previous position. This effect also occurs when the statement conflicts with the listener’s internal attitudes. The research has been published in the journal NeuroImage.
Language Mapping in the Operating Room: HSE Neurolinguists Assist Surgeons in Complex Brain Surgery
Researchers from the HSE Center for Language and Brain took part in brain surgery on a patient who had been seriously wounded in the SMO. A shell fragment approximately five centimetres long entered through the eye socket, penetrated the cranial cavity, and became lodged in the brain, piercing the temporal lobe responsible for language. Surgeons at the Burdenko Main Military Clinical Hospital removed the foreign object while the patient remained conscious. During the operation, neurolinguists conducted language tests to ensure that language function was preserved.
AI Overestimates How Smart People Are, According to HSE Economists
Scientists at HSE University have found that current AI models, including ChatGPT and Claude, tend to overestimate the rationality of their human opponents—whether first-year undergraduate students or experienced scientists—in strategic thinking games, such as the Keynesian beauty contest. While these models attempt to predict human behaviour, they often end up playing 'too smart' and losing because they assume a higher level of logic in people than is actually present. The study has been published in the Journal of Economic Behavior & Organization.
Scientists Discover One of the Longest-Lasting Cases of COVID-19
An international team, including researchers from HSE University, examined an unusual SARS-CoV-2 sample obtained from an HIV-positive patient. Genetic analysis revealed multiple mutations and showed that the virus had been evolving inside the patient’s body for two years. This finding supports the theory that the virus can persist in individuals for years, gradually accumulate mutations, and eventually spill back into the population. The study's findings have been published in Frontiers in Cellular and Infection Microbiology.
HSE Scientists Use MEG for Precise Language Mapping in the Brain
Scientists at the HSE Centre for Language and Brain have demonstrated a more accurate way to identify the boundaries of language regions in the brain. They used magnetoencephalography (MEG) together with a sentence-completion task, which activates language areas and reveals their functioning in real time. This approach can help clinicians plan surgeries more effectively and improve diagnostic accuracy in cases where fMRI is not the optimal method. The study has been published in the European Journal of Neuroscience.
For the First Time, Linguists Describe the History of Russian Sign Language Interpreter Training
A team of researchers from Russia and the United Kingdom has, for the first time, provided a detailed account of the emergence and evolution of the Russian Sign Language (RSL) interpreter training system. This large-scale study spans from the 19th century to the present day, revealing both the achievements and challenges faced by the professional community. Results have been published in The Routledge Handbook of Sign Language Translation and Interpreting.
HSE Scientists Develop DeepGQ: AI-based 'Google Maps' for G-Quadruplexes
Researchers at the HSE AI Research Centre have developed an AI model that opens up new possibilities for the diagnosis and treatment of serious diseases, including brain cancer and neurodegenerative disorders. Using artificial intelligence, the team studied G-quadruplexes—structures that play a crucial role in cellular function and in the development of organs and tissues. The findings have been published in Scientific Reports.
New Catalyst Maintains Effectiveness for 12 Hours
An international team including researchers from HSE MIEM has developed a catalyst that enables fast and low-cost hydrogen production from water. To achieve this, the scientists synthesised nanoparticles of a complex oxide containing six metals and anchored them onto various substrates. The catalyst supported on reduced graphene layers proved to be nearly three times more efficient than the same oxide without a substrate. This development could significantly reduce the cost of hydrogen production and accelerate the transition to green energy. The study has been published in ACS Applied Energy Materials. The work was carried out under a grant from the Russian Science Foundation.