Влияние на ESG регулациите върху бизнеса
Impact of ESG Regulations on Business

Author(s): Plamen Iliev
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, Governance, EU-Approach / EU-Accession / EU-Development, Accounting - Business Administration, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: business; environment; climate; regulation; reports
Summary/Abstract: About seventy years ago, Robert Gray in Scotland started serious research in the field of environmental accounting, which gradually developed at a faster pace, as environmental accounting began to be associated with social accountability and the preparation of environmental accounting statements by companies, in order to arrive at the end of the last century to apply sustainable development accounting. Only a dozen years ago, it was believed that the main goal of business was to maximize profits and short term returns for shareholders, without regard to the social or environmental impacts of doing so. After 2020, based on the previously adopted Paris Agreement on climate change and the UN Sustainable Development Program until 2030. as well as the crises of recent years, this is no longer fashionable, and more and more companies are revising this basic dogma, taking into account the public interest as well. The field of corporate social responsibility (CSR) is already being imposed, and today there is already talk about ESG (Environmental, Social and Governance) as a cornerstone of sustainable and responsible investing. It is accepted that ESG is based on three main factors to measure the sustainability of investments – environmental, social and corporate responsibility. Environmentalists see it as caring for nature with actions against climate change, harmful emissions and greenhouse gases, use of clean water, etc. Social factors help a company manage its relationships with employees, suppliers, customers, communities, which includes labor standards, health and safety, relationships, and more. Corporate governance includes the qualities of company management, executive pay, audits and internal controls, management transparency, etc., with the expectation that any well-run and responsible company that cares about people, customers and the environment is more likely to perform better and outperform its competitors who do not. ESG is perceived as a general framework of organizations' impact on the environment and the quality of management, therefore when each company evaluates its impact through the prism of ESG, it will be able to plan its development to respond to changes and regulations in this direction.

• Details
• Contents