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Economics and Finances
ArticleName Possibilities of applying ESG-principles and methods of climate financing in the management practice of ferrous metallurgy enterprises
DOI 10.17580/chm.2023.05.12
ArticleAuthor N. N. Yashalova, I. M. Potravny

Cherepovets State University, Cherepovets, Russia:

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


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.

keywords ESG principles, non-financial reporting, company, benchmarking, ferrous metallurgy, greenhouse emissions, ESG rating, climate projects, climate finance

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