ESG-banking in Russia and the European Union: concept and problems of legal regulation

Occupation: Professor of Civil Procedural Law of Department of Civil Law and Civil Procedure and Private International Law, Law Institute, RUDN University
Affiliation: RUDN University
Address: Russian Federation, Moscow

Journal name

Gosudarstvo i pravo

Edition

Issue 7

Pages

161-174

Abstract

The article presents the author's view of the current situation with the regulation of ESG-banking in Russia and the European Union. According to the author, the ESG-banking business model is the conduct of banking business in accordance with the sustainable development standards enshrined in the UN. At the national level, ESG-banking must comply with taxonomy parameters. Taxonomy provides for the identification and classification of phenomena and processes to assess the results of ESG-banking. The author came to the following conclusions: 1) there is currently no established international practice in regulating ESG issues: the problem is not a lack of existing standards or frameworks, but the absence of a universal standard; 2) in 2020, documents regulating ESG-banking were published in Russia and the European Union: in the Russian Federation - Recommendations for the implementation of the principles of responsible investment dated 15.07.2020 and Regulation on securities issue standards No. 706-P of the Bank of Russia; as well as Methodological recommendations on "green financing" from 13.07.2020 "VEB.RF"; in the European Union - the EU Taxonomy Regulation dated 18.06.2020, as well as the ECB's Climate and Environmental Risk Guidelines dated 27.11.2020; 3) the adoption of the Federal Law “On Environmental Audit and Environmental Auditing”, developed by the Ministry of Natural Resources and Environment of the Russian Federation, would contribute to the improvement of the implementation of “green” projects in Russia.

Keywords

ESG-banking, green finance, sustainable finance, taxonomy, European Union law

Acknowledgment

The reported study was funded by RFBR, project No. 20-011-00270 "а".

Received

19.04.2021

Publication date

12.08.2021

Number of characters

48062

Cite

GOST	Ermakova E. ESG-banking in Russia and the European Union: concept and problems of legal regulation // Gosudarstvo i pravo – 2021. – Issue 7 C. 161-174 [Electronic resource]. URL: https://gospravo-journal.ru/S102694520016188-7-1 (circulation date: 24.04.2024). DOI: 10.31857/S102694520016188-7
MLA	Ermakova, Elena P "ESG-banking in Russia and the European Union: concept and problems of legal regulation." Gosudarstvo i pravo 7 (2021):161-174. DOI: 10.31857/S102694520016188-7
APA	Ermakova E. (2021). ESG-banking in Russia and the European Union: concept and problems of legal regulation. Gosudarstvo i pravo (7), pp.161-174 DOI: 10.31857/S102694520016188-7

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