The ESG approach will become the main factor in the development of the agro-industrial complex in Russia in the next five years

The principles of ESG (environmental, social and governance - ecology, social development and corporate governance) will become one of the main factors in the development of agriculture in RUSSIA in the next five years, analysts from Rosselkhozbank say.

"ESG principles are playing an increasingly important role and are becoming an indicator of companies' responsible attitude to the environment and their willingness to invest in technologies that ensure sustainable development. Agriculture is no exception. In the next five years, the ESG approach will become one of the fundamental principles of the industry, and the introduction of modern technologies as a tool to reduce the burden on the environment," the study of the Russian Agricultural Bank notes.

Bank analysts note that the integration of ESG approaches into the work of agribusiness companies has already begun, however, further reduction of the industry's environmental impact is possible through the introduction of modern technologies. "This applies both to already developed zero-waste closed-cycle technologies and to the digitalization of agricultural production. For example, based on digital maps of soil conditions, fertilizers are applied only where it is really needed and in a reasonable amount. As a result, the burden on the environment is reduced" , analysts point out.

The HEAD of Rosselkhozbank, Boris Listov, in turn, is sure that agriculture already meets many ESG principles. "We need such a development paradigm that will allow, on the one hand, to strengthen the socio-economic situation of the country, and, on the other hand, to protect the environment. Even now, not a single project in agriculture is being implemented without analyzing the potential impact on the environment, assessing environmental risks and compliance with the requirements of environmental legislation. The next step is the implementation of "green" projects, when the introduction of the best available technologies will be directly aimed at reducing emissions," Listov added, commenting on the analysts' conclusions through the bank's press service.

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Issues of sustainable development in the field of ecology, social and corporate governance are becoming an increasingly significant factor in the investment and financing of companies.

"Green" financing involves the provision of funds to the project on the condition of environmental improvement, climate change mitigation and more efficient use of resources.