IMPLEMENTATION OF THE ESG-STRATEGY INTO THE BANK'S BUSINESS MODEL, TAKING INTO ACCOUNT ENVIRONMENTAL, SOCIAL AND MANAGEMENT RISKS

Abstract

The article is devoted to the topical issues of determining the directions for the implementation of the ESG strategy in the business model of Russian banks, taking into account environmental, social and managerial risks. The purpose of the study is to determine the directions of implementing the ESG strategy in the business model of banks, taking into account environmental, social and managerial risks in modern business conditions. The reasons for the need to take into account ESG risks in the risk management of banks are highlighted; ways to integrate ESG principles into their activities and decision-making processes; basic components of the assessment of ESG risks of banks. By integrating ESG strategies into their business models, banks can avoid image destruction and gain value. They will be able to attract new customers, sell fintech products, reduce operating costs and better manage risks. The implementation of ESG strategies includes four interrelated stages. It is concluded that in order to achieve the Sustainable Development Goals, banks must not only define a strategy and goals for ESG risks, but also adapt the organizational structure and risk management processes with the distribution of roles and responsibilities between the three lines of protection in order to ensure effective identification, assessment, management, control and non-financial reporting.