Introduction of ESG Principles as a Factor of Increasing the Investment Attractiveness of the Region

Abstract

ESG principles are important for investors when deciding whether to invest their funds in the implementation of investment projects on the territory of a particular entity. The article presents the structure of ESG-principles, consisting of three main aspects: ecology, management and social development. It substantiates why ESG principles are important for companies and investors. Special attention is paid to the principles of responsible investment. The article presents a model of investment attractiveness of the region based on ESG principles, which shows that investment attractiveness depends not only on the development of the main factors, but also on the effectiveness of the implementation of the principles of sustainable investment. Particular attention is paid to the factors that should be taken into account in the methodology for assessing the investment potential of the region, namely: the degree of disclosure of non-financial information by organizations in the region and environmental costs. The authors note the need for extra-budgetary funding and the mobilization of federal funds for the transition to ESG principles, as well as the importance of introducing ESG principles into the strategic planning documents of the regions.