ESG factors of city-forming enterprises and the growth of single-industry towns in Russia

Abstract

In research, the influence of city-forming enterprises on the single-industry town’s development is considered from the perspective of ESG-parameters of their activities. In the development of the researches of previous authors, the article presents a conceptual model of the influence of city-forming enterprise ESG-indicators on the socio-economic development of a single-industry town, including three types of indicators. If the social aspects of the organization activities are carried out at a city-forming enterprise, this contributes to increase the attractiveness of the labor market in the city and expanding the human potential of the city as a whole. When performing the G-component of organizing the city-forming enterprise activities this contributes not only to attracting investors, but also expanding the practice of co-production public goods in the city, due to the combined efforts of the city-forming enterprise, local governments and external investors. In the article application of ESG-indicators in non-financial reporting of large Russian city-forming enterprises. The authors found public non-financial reports (with ESG-reporting) only in 45 % of Russian city-forming enterprises. The non-financial reports of 30 city-forming enterprises from 19 regions of Russia were studied more detailed. What indicator: economic, social or corporate are presented in them. The authors concluded that the city-forming enterprises demonstrate mainly managerial indicators, the dynamics of staff turnover and responsibility in waste management. Indicators of the environmental, social and managerial components are not always presented in a sufficiently diverse way but one group of indicators may be present, or such indicators are used that do not reflect the initial value of ESG-monitoring. To overcome these imperfections, the article also presents some recommendations for the development of this practice.