Finance, Economics, and Industry for Sustainable Development: Proceedings of the 3rd International Scientific Conference on Sustainable Development (ESG 2022), St. Petersburg 2022 3031304977, 9783031304972

Table of contents :
Contents
Contributors
Urban Improvement, Environmental Pollution and Population Health in the Context of Investment Priorities Working-Out for Susta...
Introduction
Materials and Methods
Results and Discussion
Conclusion
References
Basic Approaches to Counterparty´s Reliability Assessment Under Implementation of ESG Technologies
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Corporate Management and Sustainable Development: Case of the Fashion Industry
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Circular Business Models in Industry
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Digitalization of the Housing and Utilities Sector as a Factor of Its Sustainable Development
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Sustainable Development Financing as a Factor Affecting on Operational Efficiency of the Company
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Features of Financing the Green-Digital Way in Russia
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Innovative Transformations Management in Organizations in the Context of Its Sustainable Development Under Digital Transformat...
Introduction
Materials and Methods
Results
Economics/Technology
Strategy/Business Idea
Ecology/Sociology
Management/Tactics
Discussion
Conclusion
References
International Legal and Economic Aspects of Ensuring Energy and Climate Safety in Modern Conditions
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Conditions for the Formation of Sustainable Energy in Kazakhstan
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
AgeTech Innovations as an Instrument for Older Population Inclusion
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
ESG Concept of Growth in the Outlines of Real and Financial Institutions
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Non-standard Green Buildings and Smart Houses as Way to Get Additional Financial Resources
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Product Quality Management Through the Prism of Consumption in Modern Society
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Regulation of ESG-Ecosystem: Context and Content Evolution: Energy Sector Study
Introduction
Materials and Methods
Results
Global and Local Regulation
Discussion
Digital Economy Impact of the ESG-Balance and the ESG-Concerns in Energy Sector
Case: Severstal
Case: InterRos
Case: Gazprom
Case: France Nuclear Plants
Conclusion
References
Ecological and Humanitarian Approach to Assessing the Tourist and Recreational Attractiveness of Cultural Landscapes Drawing o...
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Marketing Communications as a Tool for Sustainable Development for City-Forming Organizations
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Sustainable Development Policy and Environmental Sustainability in the Arctic Territories
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Principles of Ecological and Economic Management of Innovative Development of Heat Supply
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Dynamics of Food Security Factors in the Regions of the Arctic Zone of the Russian Federation
Introduction
Materials and Methods
Results and Discussion
Conclusion
References
ESG Rankings to Confirm the Commitment of Universities to the SDGs
Introduction
Methodology and Theory
Discussion
Conclusion
References
Concept of Taking Risk-Tolerant Financial Decisions Under Elevated Uncertainty
Introduction
Materials and Methods
Results
Discussion
Discussion of the Conditions for Applicability of Analytical Estimates of Operating, Financial and Combined Leverages
Discussion of the Evaluation of Impact of a Change in the Dividend Policy on the Financial Leverage Arm
Discussion of Advice on Taking Risk-Tolerant Financial Decisions Under the Elevated and High Uncertainty
Conclusion
References
Reflection of the Sustainable Development Goals in Citizen Science Projects
Introduction
Materials and Methods
Results
Discussion
The Contribution of Citizen Science Projects to SDG Achievement: The Knowledge-Based Domain
The Contribution of Citizen Science Projects to SDG Achievement: The Technological Domain
The Contribution of Citizen Science Projects to SDG Achievement: The Participatory Domain
Conclusion
References
Personnel Risks of Media Organizations: An Approach from the Standpoint of the ESG Concept
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Analysis of the Estimation and Impact Methodology of Tax Evasion for Industrial Entities
Introduction
Materials and Methods
Results and Discussion
Conclusion
References
Selection of Methods for Assessing the Resultativeness of the Company´s Adaptation to Market Conditions
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Institutional Support of ESG-Initiatives Implementation for Sustainable Development Transition
Introduction
Materials and Methods
Discussion
Results
Conclusion
References
Eye Tracking as a Research and Training Tool for Ensuring Quality Education
Introduction
Materials and Methods
Discussion
Results
Conclusion
References
Improving the Methodology for Calculating the Index of Growth of Small and Medium-Sized Businesses
Introduction
Materials and Methods
Results
Discussion
Conclusion
References
Transformation of Electricity Markets in the Eurasian Economic Union Member States: Problems and Prospects of Liberalization
Introduction
Materials and Methods
Results and Discussion
Conclusion
References
The Contribution of Ecological and Medical Tourism to Sustainable Development Based on the Potential of Radon Water Springs in...
Introduction
Materials and Methods
Results and Discussion
Conclusion
References

Citation preview

Springer Proceedings in Business and Economics

Anna Rumyantseva Hod Anyigba Elena Sintsova Natalia Vasilenko   Editors

Finance, Economics, and Industry for Sustainable Development Proceedings of the 3rd International Scientific Conference on Sustainable Development (ESG 2022), St. Petersburg 2022

Springer Proceedings in Business and Economics

Springer Proceedings in Business and Economics brings the most current research presented at conferences and workshops to a global readership. The series features volumes (in electronic and print formats) of selected contributions from conferences in all areas of economics, business, management, and finance. In addition to an overall evaluation by the publisher of the topical interest, scientific quality, and timeliness of each volume, each contribution is refereed to standards comparable to those of leading journals, resulting in authoritative contributions to the respective fields. Springer’s production and distribution infrastructure ensures rapid publication and wide circulation of the latest developments in the most compelling and promising areas of research today. The editorial development of volumes may be managed using Springer Nature’s innovative EquinOCS, a proven online conference proceedings submission, management and review system. This system is designed to ensure an efficient timeline for your publication, making Springer Proceedings in Business and Economics the premier series to publish your workshop or conference volume. This book series is indexed in SCOPUS.

Anna Rumyantseva • Hod Anyigba • Elena Sintsova • Natalia Vasilenko Editors

Finance, Economics, and Industry for Sustainable Development Proceedings of the 3rd International Scientific Conference on Sustainable Development (ESG 2022), St. Petersburg 2022

Editors Anna Rumyantseva St. Petersburg University of Management Technologies and Economics St. Petersburg, Russia

Hod Anyigba Nobel International Business School Accra, Ghana

Elena Sintsova St. Petersburg University of Management Technologies and Economics St. Petersburg, Russia

Natalia Vasilenko St. Petersburg University of Management Technologies and Economics St. Petersburg, Russia

ISSN 2198-7246 ISSN 2198-7254 (electronic) Springer Proceedings in Business and Economics ISBN 978-3-031-30497-2 ISBN 978-3-031-30498-9 (eBook) https://doi.org/10.1007/978-3-031-30498-9 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

Urban Improvement, Environmental Pollution and Population Health in the Context of Investment Priorities Working-Out for Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elena E. Rumyantseva, Anna G. Bezdudnaya, and Miron A. Rastov Basic Approaches to Counterparty’s Reliability Assessment Under Implementation of ESG Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . Anna Rumyantseva, Natalia Lazareva, and Elena Goncharova Corporate Management and Sustainable Development: Case of the Fashion Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sergey Yu. Solodovnikov, Tatsiana V. Serhiyevich, Vitaly A. Mordovets, and Tatiana N. Kosheleva Circular Business Models in Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . Sergey Yu. Solodovnikov, Tatsiana V. Serhiyevich, Olga D. Ugolnikova, and Aleksandr L. Pastukhov

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Digitalization of the Housing and Utilities Sector as a Factor of Its Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vera Fedotova and Olga Ganina

35

Sustainable Development Financing as a Factor Affecting on Operational Efficiency of the Company . . . . . . . . . . . . . . . . . . . . . . . . . Anna Rumyantseva and Olga Tarutko

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Features of Financing the Green-Digital Way in Russia . . . . . . . . . . . . . Elena Vitsko, Elena Sintsova, and Mikhail Makarov Innovative Transformations Management in Organizations in the Context of Its Sustainable Development Under Digital Transformation of the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vladimir A. Kunin and Alexey A. Pestrikov

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Contents

International Legal and Economic Aspects of Ensuring Energy and Climate Safety in Modern Conditions . . . . . . . . . . . . . . . . . . . . . . . Yuriy V. Mishalchenko, Timofey N. Dovbush, and Maria Yu. Mishalchenko Conditions for the Formation of Sustainable Energy in Kazakhstan . . . . Zoya Gelmanova, Anastassiya Mezentseva, Ylia Valeeva, and Asem Aldabaeva

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AgeTech Innovations as an Instrument for Older Population Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Natalia N. Shestakova, Mikhail G. Djanelidze, and Margarita B. Skvortsova ESG Concept of Growth in the Outlines of Real and Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Elena Ivleva, Elena Sintsova, and Nina Shashina Non-standard Green Buildings and Smart Houses as Way to Get Additional Financial Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Nataly Sergievskaya Product Quality Management Through the Prism of Consumption in Modern Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Nataly Sergievskaya Regulation of ESG-Ecosystem: Context and Content Evolution: Energy Sector Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Nadezhda N. Pokrovskaia, Vitaly A. Mordovets, and Nataly Yu. Kuchieva Ecological and Humanitarian Approach to Assessing the Tourist and Recreational Attractiveness of Cultural Landscapes Drawing on the Example of the UNESCO World Heritage Site «Curonian Spit» . . . . 181 Babek Asadov, Alexander Baranov, Sofia Baranova, and Inga Philippova Marketing Communications as a Tool for Sustainable Development for City-Forming Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Tatiana Afanasyeva, Elena Torgunakova, and Evgeniy Torgunakov Sustainable Development Policy and Environmental Sustainability in the Arctic Territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Elena A. Borkova, Vladimir A. Plotnikov, Oleg G. Smeshko, and Elena V. Ushakova Principles of Ecological and Economic Management of Innovative Development of Heat Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Valeriya V. Glazkova

Contents

vii

Dynamics of Food Security Factors in the Regions of the Arctic Zone of the Russian Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 Ludmila N. Babkina, Oksana V. Skotarenko, and Elena S. Kuznetsova ESG Rankings to Confirm the Commitment of Universities to the SDGs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 Svetlana A. Zhutiaeva, Alexander Yu. Usanov, and Aleksandra V. Selezneva Concept of Taking Risk-Tolerant Financial Decisions Under Elevated Uncertainty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 Vladimir A. Kunin and Stanislav I. Peshko Reflection of the Sustainable Development Goals in Citizen Science Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Natalia Vasilenko and Anna Rumyantseva Personnel Risks of Media Organizations: An Approach from the Standpoint of the ESG Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Vladimir A. Plotnikov and Olga A. Shamina Analysis of the Estimation and Impact Methodology of Tax Evasion for Industrial Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 Nicu Șargu, Ylia Valeeva, Angela Timus, and Evgeny Yelesin Selection of Methods for Assessing the Resultativeness of the Company’s Adaptation to Market Conditions . . . . . . . . . . . . . . . . . . . . 297 Natalia Meshkova, Julia Stepanova, and Svetlana Kudinova Institutional Support of ESG-Initiatives Implementation for Sustainable Development Transition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Nataliya V. Shekhova, Vitaly A. Mordovets, Olga A. Smirnova, and Ivan A. Shekhov Eye Tracking as a Research and Training Tool for Ensuring Quality Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Marianna Ababkova, Irina Melnikova, and Olga Vasileva Improving the Methodology for Calculating the Index of Growth of Small and Medium-Sized Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Elena V. Yaluner, Mikhail G. Voronin, and Alexey B. Zelensky Transformation of Electricity Markets in the Eurasian Economic Union Member States: Problems and Prospects of Liberalization . . . . . . 341 Vahe Davtyan, Ylia Valeeva, Gulnara Valeeva, and Maria Vaganova

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Contents

The Contribution of Ecological and Medical Tourism to Sustainable Development Based on the Potential of Radon Water Springs in the Leningrad Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Artur V. Sauts, Pavel V. Zhukov, and Svetlana V. Eregina

Contributors

Marianna Ababkova Saint-Petersburg Electrotechnical University “LETI”, St. Petersburg, Russian Federation Tatiana Afanasyeva Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Asem Aldabaeva Karaganda Industrial University, Temirtau, Kazakhstan Babek Asadov Saint-Petersburg University of State Fire Service of EMERCOM of Russia, St. Petersburg, Russian Federation Ludmila N. Babkina Saint-Petersburg State University of Civil Aviation named in honor of Air Chief Marshal A.A. Novikov, St. Petersburg, Russian Federation Alexander Baranov Herzen State Pedagogical University of Russia, St. Petersburg, Russian Federation Sofia Baranova Herzen State Pedagogical University of Russia, St. Petersburg, Russian Federation Anna G. Bezdudnaya Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Elena A. Borkova Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Vahe Davtyan Russian-Armenian University, Yerevan, Armenia Mikhail G. Djanelidze Institute for Regional Economic Studies Russian Academy of Science, St. Petersburg, Russian Federation Timofey N. Dovbush Saint-Petersburg Institute (branch) of the All-Russian State University of Justice (RPA of the Ministry of Justice of Russia), St. Petersburg, Russian Federation Svetlana V. Eregina Vologda State University, Vologda, Russian Federation ix

x

Contributors

Vera Fedotova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Olga Ganina Perm National Research Polytechnic University, Perm, Russian Federation IT-company «Digital Ombudsman for Resident», Perm, Russian Federation Zoya Gelmanova Karaganda Industrial University, Temirtau, Kazakhstan Valeriya V. Glazkova Moscow State University of Civil Engineering (National Research University), Moscow, Russian Federation Elena Goncharova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Elena Ivleva Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Tatiana N. Kosheleva Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Saint-Petersburg State University of Civil Aviation named in honor of Air Chief Marshal A.A. Novikov, St. Petersburg, Russian Federation Nataly Yu. Kuchieva Federal Antimonopoly Service Administration for St. Petersburg, St. Petersburg, Russian Federation Svetlana Kudinova Gzhel State University, Electroizolyator, Russian Federation Vladimir A. Kunin Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Elena S. Kuznetsova Murmansk State Technical University, Murmansk, Russian Federation Natalia Lazareva Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Mikhail Makarov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Irina Melnikova Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation Natalia Meshkova Moscow State University of Civil Engineering (National Research University), Moscow, Russian Federation Anastassiya Mezentseva Karaganda Industrial University, Temirtau, Kazakhstan Maria Yu. Mishalchenko Saint-Petersburg State Marine Technical University, St. Petersburg, Russian Federation

Contributors

xi

Yuriy V. Mishalchenko Saint-Petersburg Institute (branch) of the All-Russian State University of Justice (RPA of the Ministry of Justice of Russia), St. Petersburg, Russian Federation Vitaly A. Mordovets Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Aleksandr L. Pastukhov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation North-Western Institute of Management, Branch of the Russian Presidential Academy of National Economy and Public Administration, St. Petersburg, Russian Federation Stanislav I. Peshko Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Alexey A. Pestrikov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Inga Philippova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Vladimir A. Plotnikov Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Nadezhda N. Pokrovskaia Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Saint-Petersburg Electrotechnical University “LETI”, St. Petersburg, Russian Federation Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation Herzen State Pedagogical University of Russia, St. Petersburg, Russian Federation Immanuel Kant Baltic Federal University, Kaliningrad, Russian Federation Miron A. Rastov Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Anna Rumyantseva Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Elena E. Rumyantseva National Research University “Higher School of Economics”, Moscow, Russian Federation Nicu Șargu Academy of Economic Studies of Moldova, Chișinău, Republic of Moldova Artur V. Sauts Saint Petersburg State Chemical and Pharmaceutical University of the Ministry of Healthcare of the Russian Federation, St. Petersburg, Russian Federation

xii

Contributors

Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Aleksandra V. Selezneva Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Nataly Sergievskaya Moscow State University of Civil Engineering (National Research University), Moscow, Russian Federation Tatsiana V. Serhiyevich Belarusian National Technical University, Minsk, Republic of Belarus Olga A. Shamina Saint-Petersburg State University of Industrial Technologies and Design St. Petersburg, Russian Federation Nina Shashina Saint-Petersburg Electrotechnical University “LETI”, St. Petersburg, Russian Federation Nataliya V. Shekhova Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Ivan A. Shekhov Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Natalia N. Shestakova Institute for Regional Economic Studies Russian Academy of Science, St. Petersburg, Russian Federation Elena Sintsova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Oksana V. Skotarenko Murmansk Arctic State University, Murmansk, Russian Federation Military Educational Institution of Logistics named after General of the Army A.V. Кhrulyov, St. Petersburg, Russian Federation Margarita B. Skvortsova Institute for Regional Economic Studies Russian Academy of Science, St. Petersburg, Russian Federation Oleg G. Smeshko Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Olga A. Smirnova Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Sergey Yu. Solodovnikov Belarusian National Technical University, Minsk, Republic of Belarus Julia Stepanova Lugansk Vladimir Dahl State University, Lugansk, Russian Federation Olga Tarutko Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation

Contributors

xiii

Angela Timus National Institute for Economic Research, Chișinău, Republic of Moldova Elena Torgunakova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Evgeniy Torgunakov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Olga D. Ugolnikova Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Alexander Yu. Usanov Financial University under the Government of the Russian Federation, Moscow, Russian Federation Elena V. Ushakova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Maria Vaganova Kazan Federal University, Kazan, Russian Federation Gulnara Valeeva Kazan State Agrarian University, Kazan, Russian Federation Ylia Valeeva Kazan State Power Engineering University, Kazan, Russian Federation Natalia Vasilenko Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Olga Vasileva Herzen State Pedagogical University of Russia, St. Petersburg, Russian Federation Elena Vitsko Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Mikhail G. Voronin Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Elena V. Yaluner Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Institute for Regional Economic Studies Russian Academy of Science, St. Petersburg, Russian Federation Evgeny Yelesin Kazan State Institute of Culture, Kazan, Russian Federation Alexey B. Zelensky Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Pavel V. Zhukov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation LLC «Terra», St. Petersburg, Russian Federation

xiv

Contributors

Svetlana A. Zhutiaeva Emperor Alexander I St. Petersburg State Transport University, St. Petersburg, Russian Federation Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation

Urban Improvement, Environmental Pollution and Population Health in the Context of Investment Priorities Working-Out for Sustainable Development Elena E. Rumyantseva, Anna G. Bezdudnaya, and Miron A. Rastov

Introduction Despite the use of international methods of project analysis (developed by the OECD, the World Bank, UNIDO, FAO and other international organizations), the investment priorities for the improvement of many countries of the world, including Russia, as a rule, do not take into account the problems of environmental pollution and its negative impact on public health (in the international methods of project analysis, widely used in the development of investment projects and programs, the aspect of the impact of investments on people’s health is not analyzed, but the environmental and social aspects are formally present). In particular, it is expressed in the lack of compliance with environmental safety requirements in the construction of residential and industrial facilities in practice, although in scientific terms this topic has been developed quite deeply and long ago (Rumyantseva, 2008), but is not taken into account in the legislation, is not implemented at the level of initiatives of public and private customers and developers. And landscaping, including urban areas greening (often formal, not based on calculations related to air purification and assessments of the prospective state of public health), is mainly designed to increase only the commercial (and/or budgetary) attractiveness of the construction projects taken into use, to satisfy mainly aesthetic needs of residents of a particular city, district, etc. In addition, hastily planted green spaces (for the success of the facility commissioning or work under administrative pressure) often dry out during the next year after planting, thereby creating losses from this activity. According to the

E. E. Rumyantseva National Research University “Higher School of Economics”, Moscow, Russian Federation A. G. Bezdudnaya · M. A. Rastov (✉) Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_1

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E. E. Rumyantseva et al.

authors, this fate covers at least a third of the green spaces of Moscow (including due to the lack of watering, planting in unprepared depleted soil, neglect of fertilization, unprofessional choice of planting site, as well as the performance of work on the current improvement of territories not on planned-scientific basis, but exclusively at the request of individual concerned residents, uploaded to the Our City web-portal). At the same time, the results of international scientific studies draw attention to the importance of revising approaches to the development of investment priorities for the improvement of most countries of the world, including Russia, with the inclusion of indicators of the public health state dependence on the degree of environmental pollution and the significant role of greening in improving the ecology of living in one area or another. In Europe, acting in the papers of Russian researchers as a progressive guide for the development of Russia in many areas, the task is also set to develop and adopt rules for assessing the impact of buildings on the environment and human health based on the application of the European Regulation on Construction Products by the Member States of the European Union (Gartiser et al., 2017). The purpose of this study is to form a significant holistic scientific understanding of the relationship between the theory and practice of urban improvement with air pollution, greening and public health based on the application of an interdisciplinary approach and the method of causal relationships, and to propose changes to the requirements for development and implementation of investment projects and programs in this area, standardized by state bodies and professional communities, on this basis.

Materials and Methods One of the main sources of information on this issue is the papers of international organizations based on system analysis, the method of international comparisons, causal relationships and the interdisciplinary approach with a focus on the reliability of information sources, protection of the interests of the majority of the population of the countries of the world and the depth of scientific study, the achievement of scientific maturity and the investment decisions authenticity. According to the World Health Organization (WHO), air pollution is one of the most significant environmental risks of excess morbidity and premature mortality. According to the standards of this international organization, almost the entire population of the world (99% of the world’s inhabitants) lives in conditions of air pollution beyond the maximum permissible standards established by WHO as a result of long-term anthropogenic pressure on the environment. And this poses a threat to the health of many people (World Health Organization, 2022). The World Air Quality Index, calculated on the basis of the US Environmental Protection Agency Standard, identifies significantly more areas of the planet with small and moderate air pollution, using less demanding standards than WHO, but pays attention to the indicator of differentiation of pollution levels in neighboring territories. For example, in this

Urban Improvement, Environmental Pollution and Population Health in. . .

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version of global monitoring that is milder in terms of maximum permissible levels of pollution, Russia, together with the United States and Kyrgyzstan, forms a group of countries with a high differentiation of air pollution levels (from safe to the most dangerous one for human health), even within Moscow and other regions (World Air Quality Index project, 2022). Russian official sources also confirm the high differentiation of pollution levels. For example, in accordance with the official data of the North-Western Department for Hydrometeorology and Environmental Monitoring FSBI, on Russian standards of maximum permissible pollution, in September 2022 the level of air pollution in the cities of the Leningrad Region was assessed as increased one in Kirishi and as low one in Vyborg, Kingisepp and Luga (Federal State Budgetary Institution «North-Western Department for Hydrome-teorology and Environmental Monitoring», 2022). The State Darwin Museum website simply informs that “more than 1200 types of pollutants enter the aerial environment of Moscow. The main and most dangerous ones are: nitrogen dioxide, carbon monoxide, sulfur dioxide, ammonia, heavy metal compounds, dust, soot, asbestos, phenol, hydrogen cyanide, xylene, toluene, gasoline” (State Darwin Museum, 2001). With such a flow of pollutants, the presentation of air quality in many cities of Russia as “good” by a number of official sources seems implausible and requires additional verification (including the accuracy of equipment locations), especially in the context of a lack of monitoring stations (Moroshkina & Dranishnikova, 2021) and the risk of overwriting, embellishing reality under pressure of corruption instead of drawing public attention to solving health problems. Because of the use of methods for assessing air quality that differ greatly in terms of maximum permissible standards and the presence in the countries of the world, including Russia, a serious problem of information distortion, it seems relevant to conduct independent public studies along with closed institutional studies of air quality, compare different sources of information on air quality at one and the same object and draw conclusions on this basis. Sources for the preparation and dissemination of information among the population characterizing the air quality in Moscow as “good” or “safe for health” differ significantly in the conclusions of the analysis from air quality monitoring by Greenpeace, for example, that presented a significant number of local places of air pollution only on the map of Moscow and the Moscow Region, identified as a result of the analysis of 5625 complaints about landfill gases, industrial emissions and unidentified sources (but without specifying the consequences of pollution for human health) (Yablokov et al., 2017).

Results and Discussion Outdoor air pollution (outdoor air characterized as even worse in quality than atmospheric air) in both urban and rural areas, classified as carcinogenic to humans by the WHO International Agency for Research on Cancer (IARC) in 2013, is the cause of 7 million premature deaths worldwide (World Health Organization, 2021).

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According to the UN, almost a third of all deaths from strokes, chronic respiratory diseases and lung cancer, as well as a quarter of deaths from heart attacks (out of these 7 million annual deaths) are caused by air pollutants (United Nations, 2019) tied to industrial activities, automobile exhaust, dust, unsatisfactory collection and recycling of garbage, lack of state and public control over dog walking, etc. Researchers from around the world pay attention to the relationship between air pollution, greening and the risk of developing cardiovascular diseases (Gascon et al., 2016), cancer of the bladder, lung, prostate, breast (Terre-Torras et al., 2022), general health of the population, its mental health and mortality from all causes (Van den Berg et al., 2015). An analysis of 189 articles, published in 2020–2022, led the researchers from the Netherlands and China to the conclusion that urban green spaces have been identified as a key factor in improving the urban population health. At the same time, the green area quality plays an important role in the people’s perception of the greening work results, since abandoned areas overgrown with shrubs and other unkempt places, lanes of green spaces formed along highways, etc. are invisible, inaccessible and unattractive to citizens and therefore cannot be identified on the GIS map as a green area (Zhang et al., 2022). In addition, studies draw attention to the fact that urban green spaces (of good quality, in sufficient quantity and with all the necessary care for them) provide not only water and air filtration, but also noise pollution buffering, create a habitat for animals and birds; they reduce heat stress in cities, significantly expand opportunities for people to relax in urban conditions, are significant places of aesthetic value, inspiration, spiritual experience and education for many people, are convenient for conducting thematic field trips for various educational programs, and even cause a decrease in the crime rate (Ogletree et al., 2022). The remoteness of green areas from the places of residence is one of the signs of the life inequality in cities, even the most comfortable ones. Belgian scientists draw attention to the relevance of the study of supply and demand for urban green spaces, emphasizing that cities are faced with the problem of a fair supply of high-quality green spaces that meet the demand of residents. According to them, as a rule, the poorest areas are the least planted and with the least quality trees, shrubs and flowers (with their great diversity in the green space market) (Phillips et al., 2022).

Conclusion Overwhelming evidence of the public health state dependence on the level of air pollution and the development of directions for spending on greening allows the authors to conclude that it is necessary to analyze the air pollution levels using different methods and international comparisons and identify sources of pollution for further work with them; gives grounds for making changes to the standardized requirements for the development and implementation of investment programs in the field of urban improvement with the inclusion of measures for “smart” gardening and assessments of the consequences of investment activities for the health of the

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urban population (as part of deepening the environmental and social aspects in the international project analysis methodology used in Russia) in these programs as well as in the Russian legislation. Correction of the situation with underestimation of the connection between urban improvement, environmental pollution and changes in the population health state is facilitated by the use of the WHO concept of Healthy Cities in Russia that is universal for all countries of the world (World Health Organization & UN-Habitat, 2018), its further development and promotion both in the methodological terms (development of methods assessing the quality, sufficiency and accessibility of green spaces to places of residence), and in terms of conducting international comparisons, sociological surveys to determine the degree of satisfaction of people’s needs for green spaces in their places of residence, work and recreation, as well as awareness of the importance of checking information sources on their credibility. Researchers include the use of mobile treatment plants (Fedotov et al., 2017), the transition from a system of poor air quality management to effective management, the safe disposal of waste (Al Huraimel et al., 2022) instead of their accumulation (as is still happening in Russia) (Rumyantseva, 2019), etc. to the list of methods for improving air quality, methods that are relevant and meaningful to use at all levels of government and civil initiatives today.

References Al Huraimel, K., Alhosani, M., Gopalani, H., Kunhabdulla, S., & Stietiya, M. H. (2022). Elucidating the role of environmental management of forests, air quality, solid waste and wastewater on the dissemination of SARS-CoV-2. Hygiene and Environmental Health Advances, 100006. https://doi.org/10.1016/j.heha.2022.100006 Federal State Budgetary Institution «North-Western Department for Hydrometeorology and Environmental Monitoring». (2022). Information on atmospheric air pollution in the cities of the Leningrad Region in September 2022. http://www.meteo.nw.ru/articles/index.php?id=1486 Fedotov, V., Gorbacheva, A., Dorodnikova, A., & Yerokhina, M. (2017). Cleaning of atmospheric air in a city street and road network as an environmental safety technology for road transport. Transportation Research Procedia, 20, 200–204. https://doi.org/10.1016/j.trpro.2017.01.052 Gartiser, S., Heisterkamp, I., Schoknecht, U., Bandow, N., Burkhardt, N. M., Ratte, M., & Ilvonen, O. (2017). Recommendation for a test battery for the ecotoxicological evaluation of the environmental safety of construction products. Chemosphere, 171, 580–587. https://doi.org/ 10.1016/j.chemosphere.2016.12.115 Gascon, M., Triguero-Mas, M., Martínez, D., Dadvand, P., Rojas-Rueda, D., Plasència, A., & Nieuwenhuijsen, M. J. (2016). Residential green spaces and mortality: a systematic review. Environment International, 86, 60–67. https://doi.org/10.1016/j.envint.2015.10.013 Moroshkina, S., & Dranishnikova, M. (2021, September 20). Why air quality is poorly controlled in Russia. Vedomosti. Retrieved September 20, 2021, from https://www.vedomosti.ru/partner/ articles/2021/09/20/887309-kachestvo-vozduha (In Russ.) Ogletree, S. S., Larson, L. R., Powell, R. B., White, D. L., & Brownlee, M. T. (2022). Urban greenspace linked to lower crime risk across 301 major US cities. Cities, 131, 103949. https:// doi.org/10.1016/j.cities.2022.103949 Phillips, A., Canters, F., & Khan, A. Z. (2022). Analyzing spatial inequalities in use and experience of urban green spaces. Urban Forestry & Urban Greening, 74, 127674. https://doi.org/10.1016/ j.ufug.2022.127674

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Rumyantseva, Е. Е. (2008). Environmental safety of building materials, products and structures. Industrial Policy of the Russian Federation, 2, 52–61. (In Russ.). Rumyantseva, E. E. (2019). Crisis in the field of waste management in Russia: strategic goals of state policy and real practice. Russian Journal of Industrial Economics, 12(2), 159–166. https:// doi.org/10.17073/2072-1633-2019-2-159-166 State Darwin Museum. (2001). Air pollution. https://www.darwinmuseum.ru/subprojects/class/ retrospectiva/3_11.htm (In Russ.) Terre-Torras, I., Recalde, M., Díaz, Y., de Bont, J., Bennett, M., Aragón, M., et al. (2022). Air pollution and green spaces in relation to breast cancer risk among pre and postmenopausal women: A mega cohort from Catalonia. Environmental Research, 214, 113838. https://doi.org/ 10.1016/j.envres.2022.113838 United Nations. (2019). Stressing air pollution kills 7 million people annually, secretary-general urges governments to build green economy, in message for World Environment Day. https:// press.un.org/en/2019/sgsm19607.doc.htm Van den Berg, M., Wendel-Vos, W., van Poppel, M., Kemper, H., van Mechelen, W., & Maas, J. (2015). Health benefits of green spaces in the living environment: A systematic review of epidemiological studies. Urban Forestry & Urban Greening, 14(4), 806–816. https://doi.org/ 10.1016/j.ufug.2015.07.008 World Air Quality Index project. (2022). World’s air pollution: Real-time Air Quality Index. https:// waqi.info/ World Health Organization. (2021). New WHO Global Air Quality Guidelines aim to save millions of lives from air pollution. https://www.who.int/news/item/22-09-2021-new-who-global-airquality-guidelines-aim-to-save-millions-of-lives-from-air-pollution World Health Organization. (2022). Billions of people still breathe unhealthy air: new WHO data. https://www.who.int/news/item/04-04-2022-billions-of-people-still-breathe-unhealthy-air-newwho-data World Health Organization & UN-Habitat. (2018). Global report on urban health: Equitable, healthier cities for sustainable development. World Health Organization. Yablokov, V., Chebanova, E., & Drozdovskiy, A. (2017). Interactive map “WHAT DOES MOSCOW BREATHE?”. Global Mapping Hub by Greenpeace. Retrieved May 2, 2018, from https:// maps.greenpeace.org/airpollution/#9/55.7546/37.6228 Zhang, Y., Zhang, Y., van Dijk, T., & Yang, Y. (2022). Green place rather than green space as a health determinant: A 20-year scoping review. Environmental Research, 113812. https://doi. org/10.1016/j.envres.2022.113812

Basic Approaches to Counterparty’s Reliability Assessment Under Implementation of ESG Technologies Anna Rumyantseva, Natalia Lazareva, and Elena Goncharova

Introduction The globalization of economic processes, the increasing influence of digitalization on the development of new technologies and tools in business valuation and forecasting system, which identifies the most important areas of business development, enable organizations to solve the problems of survival and ensure the growth of performance efficiency. Recently, such non-financial reporting indicators as “social”, “environmental (green)”, “corporate governance” have recently begun to appear more frequently in the annual reports of companies that follow global trends and maintain their business reputation. With the growth of environmental problems in the global economic space, the problems of “green” and social planning and corporate governance become particularly important. The question of counterparty’s reliability is a matter of concern for all business participants not only in the course of business activities but also at the preliminary stage of preparing contracts for conclusion. At this stage, the organizational leadership faces the major challenge: to prevent interactions with potentially unreliable suppliers and customers. A comprehensive research, confirming the counterparty’s reliability, allows to build healthy partnerships and avoid many risks. Checking the counterparty before entering into business contracts by means of special resources and a set of criteria developed and systematized by the authors, will improve the business reputation and rating, and avoid unpredictable outcome arising from “communication” with an unreliable counterparty. At the present time, socially responsible investors and shareholders adhere to the ESG approach when checking the counterparties’ investment projects, taking into account the companies’

A. Rumyantseva · N. Lazareva · E. Goncharova (✉) Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_2

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environmental impact, the specific features of fund formation, preservation of funds and its efficient usage (increment).

Materials and Methods In order to confirm the hypothesis and to obtain the necessary data to analyze the implementation of ESG concept in Russia, the survey of 100 respondents was conducted. Among the respondents were specialists from the industrial enterprises, the scientific community, the field of stock market, as well as scientists and university students. Geographically, respondents were located in Moscow, Saint Petersburg, Ufa, Rostov-on-Don, Stavropol, Krasnodar, as well as Los Angeles, Hamburg, Dusseldorf. Among the interviewees were employees of Research and Development Enterprise “BURINTEKH”, Ltd (Ufa); the head of “GRIFON-EXPERT”, LLC (Saint Petersburg), CJSC “Techservice” (Georgiyevsk, Stavropol krai), “Kamyshinsky Crane Plant”, LLC; FSBEI RSUE “RINH” (Rostov-on-Don); as well as entrepreneurs of small and medium-sized enterprises, teachers and students from the universities of Moscow, Saint Petersburg, Krasnodar, Rostov-on-Don, Volgograd and other cities. The majority of the respondents are well-versed in the topic of ESG indicators and believe that it should be taken into account when assessing the counterparty’s reliability. Nevertheless, the respondents from Russia do not consider such indicators as the environmental approach and the company’s social program to be important. This is confirmed by the results of the survey. So, 82% of respondents answered “Yes” to the question “Do you consider it necessary to take into account company’s credit rating when assessing the counterparty’s reliability?” (Fig. 1). However, only 40.9% of respondents answered “Yes” to the question “Is the environmental performance indicators of the company, the quality of the information in the reporting, important for making a decision to sign an agreement with a counterparty?”. This confirms the fact that the Russian Federation has not yet formed a sufficiently strong mentality regarding the need and the importance of developing “green economy trends” (Fig. 2).

Yes, it is necessary No, I don’t think it is important Only for customers and consumers In conjunction with other types of assessments

Fig. 1 Survey results on the necessity to assess the company’s credit rating when forming an opinion on its reliability

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No, I don’t think it is important Only for customers and consumers Only for suppliers and contractors Yes, it is necessary In 2022 it is desirable In certain activities Fig. 2 Survey results on the necessity to consider environmental performance indicators when entering into contracts with counterparties

The information was collected using Google form over a period of 2 weeks. The respondents were offered to answer the questionnaire, which included seven questions, and were asked to choose one answer or suggest their own answer. The data obtained were analyzed, using statistical methods, including methods of descriptive statistics, systematized and interpreted. The authors came to the conclusions, which they consider important for the development of new mentality for Russian business participants in the context of the implementation of ESG technologies, the introduction of the new term “technical company” (1-day firm) and the growing importance of corporate environmental responsibility. The survey results are summarized in the table below (Table 1): Also, in the survey, the respondents were asked about using of specialized software for counterparty’s reliability assessment. One of the respondents said: “Due to the lack of a standardized report form for non-financial statement, it is difficult to measure environmental performance indicator, corporate social responsibility performance indicator and other indicators. There are no specific information resources for such purposes. The Internet can provide helpful data, including information on taxes, finances, arbitration cases, inspections, etc., that can be found at Rusprofile.ru, a data portal, developed by “Business information solutions”, LLC. The rest of the respondents answered that they use unbiased Internet resources, the opinions of those private or legal entities with whom they have already interacted, as well as reports from government agencies.

Results The market economy is characterized by random processes and phenomena that cause unpredictable consequences, including those that have a harmful effect on the environment. There are official data confirming that the fight in Russia to reduce the amount of pollutant emissions into the atmosphere is being carried out at the proper level, which shows their decrease by 14.7% during 2021 compared to 2020 (Federal State Statistics Service, 2021). One of the reasons is the reduction in production

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Table 1 Survey results on the necessity to assess counterparty’s reliability

Studied indicators Credit rating Environmental performance indicators Level of social responsibility Management criteria Quality of the internal control system Use of information resources Should government agencies monitor the reliability of companies

Necessary to assess 82.1 40.3

Do not consider it necessary 3 31.3

Only suppliers – 17.9

Only customers 13.4 7.5

Other (it is difficult to get the information) 1.5 1.5

Only in certain activities – 1.5

76.1

7.5

10.4

3

1.5

1.5

62.7

16.4

16.4

1.5

1.5

1.5

58.2

13.4

17.9

7.5

1.5

1.5

76.1

1.5

7.5

4.5

8.9

1.5

66.1

21.0

1.6

4.8

4.9

1.6

volumes in general, the second reason is the introduction of new modern technologies by organizations, the conversion of production to a more environmentally friendly form, long-term business planning, which is a hallmark for further cooperation, conclusion new contracts, etc. Such a counterparty is considered as reliable already at the preliminary stage of the study of its activities. Most business processes and phenomena are subject to certain patterns, a detailed study of which allows minimizing risks, generating forecasts for the activities of the organization as a whole and its individual divisions, and developing optimal solutions. To make timely management decisions, a methodology is needed to assess the impact of external and internal factors on the results of economic activity (Savelyeva, 2008). Among practitioners, entrepreneurs in various business areas, there are opposing opinions regarding management, some believe that only clear mathematical calculations and well-prepared forecasts are the basis for the effective operation of the company, others argue that in a market economy, the organization’s activities are unpredictable and under conditions of uncertainty intuition and a fortunate combination of circumstances make it possible to keep the organization afloat. Of course, clear mathematical calculations alone cannot be a guarantee of successful entrepreneurial activity and protect against possible difficulties, since, in addition to socio-economic relations, there are various natural influences (a pandemic, for example), the influence of public opinion, political conditions, military operations and others.

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When developing the financial policy of an enterprise, it is necessary to pay special attention to such areas as the dividend rate, credit history, investment policy, tax, depreciation, price and other components, as well as the algorithm for managing financial risks and cash balances (Kurilov, 2014). In this regard, in our opinion, it is extremely important for companies when planning and forming a development strategy to pay special attention to the impact of external factors, first of all, the reliability of counterparties. If we recall the Japanese management, when each of the enterprises is engaged in increasing its reputation for the sake of the well-being of its partner’s business, then we can consider the counterparty reliability assessment scheme as a double listing system. The financial strategy of an enterprise consists of a certain order and composition of sections, which gives confidence not only to the management of the enterprise, its owners, but also to its counterparties. In addition to the elements considered at the preparatory stage, such as the results of financial analysis, forecasting the external environment, the prospects for the development program of the enterprise and its expected cash flow, there are also decision-making stages, the development of a qualitative and quantitative assessment of the financial strategy, the formation of financial reporting forecasts, taking into account the implementation of certain proposals and improvement of the financial condition (Snigireva & Malykh, 2019). Despite the fact that the time of the 90s has already passed, 1-day firms continue to emerge despite increased control over their registration and financial transactions. As M. Gorovtsova points out in her work “10 Ways to Check a Counterparty: Necessary Documents and Useful Services”, “1-day” counterparties can cause damage to both the state and the taxpayer, who will have to prove the validity of the tax benefit received as a result of interaction with unscrupulous contractors (Gorovtsova, 2013). Therefore, the management of the organization faces the most important task: to prevent interaction with unreliable suppliers and buyers. In our opinion, it is advisable to check the counterparty before concluding business contracts with the help of special resources or business reputation rating. Rating information is placed in a special register. The unified register of the RDR business reputation rating is an electronic re-source that reflects in real time the state of affairs of companies that have proven themselves to be reliable executors of state and municipal contracts (Alfa Bank, 2022). You can get up-to-date information about the rating of a small company and a large company on your own on the official website of the registry. The most important document confirming the fact that an organization has been included in the register is a certificate of conformity with a business reputation rating (RDR). To improve their business reputation, organizations can obtain this certificate, which will be a confirmation of its reliability as a bona fide counterparty. It should be noted that a firm or an enterprise can independently take part in the formation of its rating. In order to receive a business reputation rating certificate, they need to fulfill a number of conditions in relation to their previous transactions, with state and municipal companies. The RDR certificate includes information in the following format: a report on financial results, judicial practice, balance sheet, information on the availability of licenses, certificates and permits for SROs, information on

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staffing, a list of founders and affiliation, information on procurement activities and the value of the business reputation index (Certification Center of organizations «Altair M», https://reestr-rating.ru/?ysclid=l91st8724x55560880). Each interested person can independently obtain information about the financial position and financial results of enterprises on the official website of the registry. To facilitate the examination of companies located in Russia, the assessment of compliance with the standard and the issuance of business reputation rating certificates are authorized to be carried out by accredited certification centers. This is the first way to obtain information about the reliability of the counterparty. The second way is to check the reliability through the 1C Enterprise platform. The third way is to check the company through the website of the Federal Tax Service. One of these resources is the state information resource of accounting financial statements— https://bo.nalog.ru/about. In accordance with the amendments made by Federal Law No. 444-FZ dated November 28, 2018 “On Amendments to the Federal Law “On Accounting”, the Federal Tax Service of Russia is entrusted with the functions of forming and maintaining the state information resource of accounting (financial) statements. At the moment, the format of non-financial indicators is not fixed in any regulatory legal acts, therefore, in our opinion, legislators have an important task to develop them taking into account ESG technologies. First of all, in our opinion, it is necessary to establish at the legislative level the possibility (for individual companies that are large or the largest—the need) to obtain an ESG certificate or conduct an audit (verification) of statements reflecting the main non-financial indicators. According to the list of questions developed by the State Duma Committee on Industry and Trade, enterprises can expect to receive such ESG certificates in the future. But first, it is necessary to develop and approve: 1. Evaluation criteria by which the categories of companies (PJSC, JSC, etc.) will be established. 2. List (names) of forms of reporting documents disclosing ESG indicators.

Discussion After the financial crisis of 2008–2009, information on non-financial reporting became the focus of investors’ attention. This interest has only intensified over time (Beerbaum, 2018). Currently, all responsible investors and shareholders adhere to the ESG approach when checking investment projects of counterparties and assessing the impact of firms on the environment, the specifics of the formation of company funds and the procedure for their preservation and effective use (increment). To form an expert opinion on the degree of reliability of counterparties operating on the basis of ESG technologies, it is necessary to study:

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1. ESG reports (all forms of non-financial reporting). 2. ESG indicators (all non-financial report indicators). 3. Evaluation/rating of the company according to ESG indicators. When forming an ESG strategy, it is necessary to draw up such reporting that would represent a combination of financial and non-financial indicators. The integrated report, as Irina Bogataya points out, discloses financial and non-financial information about the company’s value creation process and the use of six types of capital, as well as aspects related to sustainable development (Bogataya, 2022). The format of non-financial reporting is regulated by the Decree of the Government of the Russian Federation dated 05.05.2017 No. 876-r “On approval of the concept for the development of public non-financial reporting and the action plan for its implementation” (Decree of the Government of the Russian Federation No. 876-r, 2017). The concept reflects the composition of financial statements, it is established that the organization is given the right to independently choose its format, the composition of indicators; ways to ensure control and evaluation of the quality of the information provided. An important prerequisite for creating favorable conditions for introducing non-financial reporting into practice is the work of a quality management system, within which non-financial reporting in the context of all forms of social responsibility is established by the GOST R ISO 26000-2012 “Guidelines for social responsibility” standard. As part of the research topic, I would like to highlight the task in which non-financial reporting will be a tool to increase investment attractiveness, since corporate reporting quality ratings take into account the availability of information on economic, social and environmental results. The presence of an organization’s report in the ratings (for example, TOP-100 annual reports on the quality of training) indicates public confidence in the information, and, consequently, an improvement in business reputation (Nurova, 2019). Table 2 shows data on the areas in which information on the reliability of suppliers and buyers should be systematized, which should be taken into account in order to avoid negative consequences for companies and their investors. If such information is eventually obtained, the counterparty may be reliable. You can derive the following dependency. So, if all 100% of the answers received correspond to the list presented, the counterparty is reliable. If 91% (or, in two areas of verification, other results are obtained) of the answers correspond to the list presented, the counterparty is more reliable than not. If 83% (or other results were obtained in four areas) of the answers correspond to the list presented, the counterparty is less reliable. If 74% (or other results were obtained in six areas) of the answers correspond to the list presented, the counterparty is rather unreliable than reliable. If 65%, that is, 2/3 of the total number (or other results were obtained in eight directions) of the answers correspond to the list presented, the counterparty is unreliable. The results obtained may indicate that either information about the company, financial information, non-financial reporting indicators do not meet business standards, the degree of responsibility for its conduct is not properly defined or not fixed by the relevant local regulatory legal act of the company.

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Table 2 A system of indicators for checking a counterparty in order to establish its reliability and compliance with ESG criteria No. p/p 1.

2.

3

4.

Name indicator Environmental criterion (evaluates the company’s activities in terms of its impact on the environment)

Social responsibility (established on the basis of regulation of relations with employees, suppliers, customers and communities)

Management criterion (management of the organization, salaries of senior employees, audit system, internal control mechanisms and shareholder rights).

Monitoring of law enforcement practice, incl. in the field of ecology (verification of court proceedings, arbitration)

Check directions Greenhouse gas emissions in excess of established standards Is the organization among the violators of the environmental regime Penalties from regulatory authorities Impact on climate change Rational water consumption Measures to reduce harmful emissions Are labor standards developed and approved by internal local acts High level of health and safety performance The management of the company has the appropriate education and work experience Management is a member of the founders Relationships with clients and consumers Relationships with suppliers and contractors Business status check Prevention and Prevention of Corruption Ensuring tax transparency Ways of decision-making by the Board of Governors Signs of fictitious bankruptcy Signs of a fictitious business split Whether claims have been filed against the company’s actions Number of court cases, total, including – won – lost Tax disputes Dubious transactions

Result of checking No No No No Yes Yes Yes Yes Yes

Yes High level High level Yes Yes Yes High level No No No 0 0 0 No No

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Conclusion The company must develop a procedure for checking the reliability of the counterparty and approve it as the ESG policy of the company. This regulation can be used both for internal use when checking counterparties, and not only for internal use, but also for tax audits, if tax inspectors check on what basis the company selects counterparties and concludes contracts. It is necessary to familiarize all employees of the company with the regulation. This local regulatory legal act is drawn up on the basis of Federal legislation, taking into account the norms and rules of International Standards. Companies operating in compliance with the principles of ESG achieve the highest financial performance, as investors show increased interest in them, and as a result, there is a reduction in production costs, a stable income and a reduction in business risk. If we recall the Japanese management, when each of the enterprises is engaged in improving its reputation for the sake of the well-being of its partner’s business, then we can consider the counterparty reliability assessment scheme as a double listing system. The formation of integrated reporting (financial and non-financial, compiled using ESG tools) is based on consolidated thinking, which allows you to create a continuous cycle of integration within the company (Guillot & Tilley, 2021). This is also stated in the published document of the International Integrated Reporting Council: the global integration of regulators, investors, companies, accounting standards, professional and NGOs that contribute to the creation of financial profits and other indicators are necessary elements in the effective distribution of company capital and aligning corporate behavior with broader goals of financial stability and sustainability through a cycle of integrated reporting and thinking (Integrated reporting, 2017). Currently, the most responsible investors and shareholders adhere to the ESG approach when checking investment projects of counterparties, assessing the impact of firms on the environment, maintaining and effectively using (incrementing) the company’s capital. Using the system of indicators developed by the authors to check the counterparty in order to establish its reliability and compliance with ESG criteria at the stage of forming business partnerships, it is possible to minimize or eliminate interaction with an unreliable counterparty, simplify the procedures for tax and other types of audits, and increase business reputation. confusion of the company and expand the information boundaries in the economic space.

References Alfa Bank. (2022). Business reputation rating. https://club.alfabank.ru/company/2524729/ blog/4212/?ysclid=l8u0rhmiph595021666 (In Russ.)

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Beerbaum, D. (2018). Towards Integrated Reporting in Europe–An analysis of 40 annual corporate reports regarding their value creation disclosures. https://doi.org/10.13140/RG.2.2.21102. 51527 Bogataya, I. N. (2022). Research into the practice of using integrated thinking in the formation of corporate reporting. Intellect. Innovation. Investments, 4, 10–25. https://doi.org/10.25198/20777175-2022-4-10. (In Russ.). Decree of the Government of the Russian Federation No. 876-r dated 05.05.2017 “On approval of the concept for the development of public non-financial reporting and the action plan for its implementation”. https://base.garant.ru/71673686/ (In Russ.) Federal State Statistics Service. (2021). Key indicators of environmental protection. Statistical Bulletin. https://rosstat.gov.ru/compendium/document/13294. (In Russ.) Gorovtsova, M. (2013). 10 ways to check a counterparty: Necessary documents and useful services. https://www.garant.ru/article/511892/?ysclid=l7ri0ffkbd702284139 (In Russ.) Guillot, J., & Tilley, С. (2021). Integrated thinking: A virtuous loop. https://www. integratedreporting.org/wp-content/uploads/2021/06/Integrated-thinking-virtuous-loop.pdf Integrated Reporting. (2017). Investors support integrated reporting as a route to better understanding of performance. https://www.integratedreporting.org/wp-content/uploads/2020/07/ Investor-statement-2020.pdf Kurilov, K. Y. (2014). Financial strategy of the enterprise, content and main components. Audit and Financial Analysis, 2, 265–271. (In Russ.). Nurova, I. D. (2019). Financial and non-financial reporting: Information boundaries. Modern Scientific Research and Innovation, 12. https://web.snauka.ru/issues/2019/12/90998 (In Russ.) Savelyeva, I. P. (2008). Assessment of the influence of management decisions on the results of economic activity of small construction enterprises. Problems of Modern Economics, 1(25). http://www.m-economy.ru/art.php?nArtId=1836 (In Russ.) Snigireva, G. D., & Malykh, Yu. V. (2019). The main components of the financial strategy of the enterprise and the sequence of its development. Vector of Economics, (10). http://www. vectoreconomy.ru/images/publications/2019/10/economicsmanagement/Snigireva_Malykh2. pdf (In Russ.)

Corporate Management and Sustainable Development: Case of the Fashion Industry Sergey Yu. Solodovnikov, Tatsiana V. Serhiyevich and Tatiana N. Kosheleva

, Vitaly A. Mordovets,

Introduction The capitalist economic system became the basis for the emergence of a consumer society that took shape in the second half of the twentieth century (Baudrillard, 1998). One of the main factors in the economic growth of the previous century is the growth in consumption, due to the socio-psychological stimulation of the constant desire of individuals to renew the consumed goods. «Twentieth-century capitalism is based on maximal consumption of the goods and services produced as well as on routinized teamwork» (Fromm, 2008, p. 4). Indeed, in order to meet the evergrowing needs of society, labor productivity must constantly increase, which is fully consistent with the economic needs of the capitalist system of the twentieth century. For a long time, there was no critical reflection in relation to economic and environmental arbitrariness. This contributed to the formation of a mass consumer society from the middle of the twentieth century in the United States, somewhat later in Western Europe, and by the end of the century in many other countries of the world. The market ideology justifies the environmental and social externalities of economic growth with the highest value of a capitalist society namely the realization S. Yu. Solodovnikov · T. V. Serhiyevich (✉) Belarusian National Technical University, Minsk, Republic of Belarus V. A. Mordovets Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation T. N. Kosheleva Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Saint-Petersburg State University of Civil Aviation named in honor of Air Chief Marshal A.A. Novikov, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_3

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of economic interest in the form of profit maximization or growth in capitalization of assets (Solodovnikov, 2020, p. 22). The source of energy for continued economic growth is the mass drive to gain access to consumer abundance, which, however, does not arise spontaneously. On the contrary, the system of controlled consumption is formed by socio-economic entities with certain economic interests. The contribution to maintaining the illusions of modern society (such as the possibility of achieving consumer abundance for all, social equality and social mobility) is made even by those whose economic interests are contrary to such actions. This becomes possible due to the transformation of the economic content of the system of needs. In particular, the tools of social differentiation and the construction of social statuses are used to influence the economic motivation of individuals, mismatching the logic of forming a balanced structure of income and expenses. A consumerist culture is being imposed on the masses, who are trapped in a vague ideology of economic growth. The main criterion for the effectiveness of labor activity (in the social field measured by the category of success) is not personal satisfaction from work, self-realization and recognition of others, but the amount of spending possible with a certain level of income from labor activity or other income. At the same time, the illusory nature of the ideology of the growth of personal wellbeing is confirmed by the fact that the economic inequality between the rich and the poor is not decreasing, but is growing rapidly. The formation of a consumer society gives rise to many economic, financial, environmental, social, socio-psychological, spiritual and other risks. And there is a conflict of interests between corporate management and sustainable development society. The fashion industry in the context of sustainable development is a relevant topic of research. The emergence of the phenomenon of “fast fashion” and fast fashion business models research is the subject of works of Barnes and Lea-Greenwood (2006), Doeringer and Crean (2006), Bhardwaj and Fairhurst (2010), Hausman and Thorbeck (2010), Mihm (2010), Cachon and Swinney (2011), Choi (2013) Caro and Martinez-De-Albeniz (2015), Aggour et al. (2018), Fares et al. (2018), Cachon (2019), Backs et al. (2021). The transition from fast fashion to sustainable and slow fashion and responsible consumption was researched by Marques et al. (2020), Hugo et al. (2021), Centobelli et al. (2022), Agarwal (2019), Scaturro (2008), Xue and Huang (2022), Gardetti and Torres (2017), Ozdamar Ertekin and Atik (2015), Henninger et al. (2016). The impact of fashion brand sustainability and green brand strategies on consumer purchasing decisions and loyalty were studied by Chan and Wong (2012), Kim and Hall (2015), Mandaric et al. (2022). We also explored the relationship between the fashion industry and sustainability (Serhiyevich, 2018). At the same time, there is a lack of research on the conflict between the interests of corporate management in the fashion industry and sustainable development society. This article is devoted to the study of this contradiction and the search for solutions to overcome it.

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Materials and Methods The object of our study is harmonization of interests of corporate management in the fashion industry and the society of sustainable development. The objective of this study is to show the conflicting interests of corporate management in the fashion industry and society of sustainable development and find solutions to overcome it. The methodology of the authors is based on a political and economic approach, according to which socio-economic phenomena and processes are viewed through the prism of the economic interests of the actors involved. Research works of international scientists-economists, data of the research reports carried out by the authors were used to prepare this paper. We used analysis, synthesis, system and institutional approaches in our research. This study is based on the methodology of the great French thinker J. Baudrillard (Baudrillard, 2019) and continues and develops the ideas embodied in the work on assessing the impact of the fashion industry on the environment (Serhiyevich, 2018).

Results Currently the goods exchange is becoming determined by the sign exchange, which is based on social, limitless in its essence exchange. Modern society with more complicated system of economic relations is especially subject to the illusion of social mobility. The gap between real and illusory social mobility is a phenomenon inherent in all socio-economic systems. However, in modern society, real social mobility is becoming more and more difficult to achieve, and this gap is widening. The function of the socio-economic phenomenon of fashion justifies the speed of these changes (Bhardwaj & Fairhurst, 2010; Cachon & Swinney, 2011; Choi, 2013). In such a society the function of a person from the sphere of production passes into the sphere of consumption (the production of signs). The essence transformations in the structure of production in the current economy are associated with an increase in the consumption of symbolic goods. The classic sphere of production of sign exchange values is the fashion industry, where added value is created by managing the mechanisms of social demonstration. The relevance of considering the fashion industry in the context of sustainable development is due to the fact that the negative impact of the fashion industry on the environment is constantly increasing. Fashion corporations are putting a lot of pressure on the environment, which is especially true for the fast fashion segment (Scaturro, 2008; Kim & Hall, 2015; Henniger et al., 2016; Agarwal, 2019). The fashion industry is a system of production, distribution, appropriation and consumption of goods with a sign exchange value, the functioning of which is directed by the production, management, intellectual, creative and information activities of subjects of various sectors of the economy, ensuring the constant renewal of these goods. It is difficult to evaluate an impact of the fashion industry

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on the environment. For example, the clothing industry is often characterized as ecofriendly. However, in order to estimate the development of the fashion industry in the context of sustainable development, the impact on the environment must be presented in a complex way, from the activities of suppliers of raw materials to the utilization of consumer products. The speed and efficiency of the fast fashion business model is linked to market failure—externalities. The environmental costs of the fashion industry are borne primarily not by fashion industry corporations, but by society as a whole. According to the United Nations Conference on Trade and Development (UNCTAD) regarding the negative impact of the fashion industry on the environment, today the fashion industry is the second most polluting industry in the world, second only to the oil industry. «Fashion accounts for up to 10% of global carbon dioxide output—more than international flights and shipping combined It also accounts for a fifth of the 300 million tons of plastic produced globally each year» (Dottle & Gu, 2022). Synthetic textiles shed tiny pieces of plastic with every wash and wear (microplastics). «Scientists in Australia estimate that between 9.25 to 15.86 million tons of microplastics can be found on the ocean floor» (Dottle & Gu, 2022). Additionally, immeasurable damage to the environment is caused by the technology of growing cotton, which uses pesticides that pollute the soil and consumes huge amounts of water for irrigating the land. The high differentiation of countries in terms of the institutionalization of approaches to the maintenance of ecological rent, which meets the requirements of the current socio-ecological and economic development, affects the structure and distribution of world productive forces. Low environmental, social and labor standards and their incomplete compliance in certain countries attract foreign investment in the production of textiles, footwear, clothing and accessories, which allows the leaders of the fashion industry to make super profits through the appropriation of natural rent without fully recovering environmental costs. As a result, there are threats to the ecological safety of entire regions and even threats of environmental disasters. An example is the most polluted rivers on our planet—Chitarum in Indonesia, Buriganga in Bangladesh, Matanza in Argentina, Marilao in the Philippines, Zhujiang in China and others, where chemical waste from leather, fur, textile industries is dumped and the waters of which are used by local residents for vital needs. This is the reason of the total destruction of ecosystems and health problems for local communities. Another ecologic problem connected with the fashion industry is recycling and disposal of clothing and other goods of fashion industry. The culture of consumption in modern society has changed—it is becoming a norm to buy clothes, wear them several times or never wear them at all, and throw them away. «Only a fraction of what’s manufactured gets recycled. Eighty-seven percent of the total fiber input used for clothing is ultimately incinerated or sent to a landfill» (Dottle & Gu, 2022). At the same time, reports show that almost all of the clothing that is thrown away with household waste could be reused, with an estimated 95% that could be re-worn or recycled, depending on the state of the textile waste. Instead, in countries with developed consumer societies, the vast majority of old clothes are thrown away

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with household waste and end up in landfills or incinerators. According to expert estimates, today, on average, a person buys 60% more items of clothing annually than 15 years ago and throws them away about two times faster (Cobbing & Vicaire, 2017). Only a small part of used clothing is subsequently recycled or reused. Often the disposal of textiles and clothing is carried out by incineration directly by the corporations that produce these goods (Dottle & Gu, 2022). The phenomenon of fast fashion was formed in the conditions of the consumer society. An increasing number of objects, along with their pragmatic functions, are endowed with sign functions, which often become primary, which predetermines the choice of the modern buyer. Consumption is mediated by the intensive and constant renewal of things (Serhiyevich, 2020) and the simulation of choice. «The consumer society needs its objects in order to be. More precisely, it needs to destroy them. The use of objects leads only to their dwindling disappearance. The value created is much more intense in violent loss. This is why destruction remains the fundamental alternative to production: consumption is merely an intermediate term between the two» (Baudrillard, 1998, p. 47). The new source of the value for the consumer is opportunities for intensive renewal of goods, which is a sign in itself. Such is the socio-economic nature of the fast fashion phenomenon. In the same time humanity in the twenty-first century throw a new look at the goals and criteria of social development, among which social and environmental criteria begin to play an important role, which is reflected in the concept of sustainable development. A certain attempt to respond to the threats to environmental security is the development of the concept of sustainable or responsible consumption. Consumers supporting this concept reduce individual consumption, recycle clothes, and show a decrease in loyalty to corporations that don’t share the values of sustainable fashion. Against this background, many manufacturers demonstrate their commitment to sustainable development goals by taking measures to stop burning clothes, use recycled and environmentally friendly materials, collect used clothes for recycling, etc. However, initiative measures without state regulation do not have a significant impact on the size of the negative environmental impact of the industry environmental fashion. However, initiative measures without state regulation don’t affect significantly the negative environmental impact of the fashion industry on the environment. However, in addition to the environmental goals of sustainable development, there are also social goals related to the eradication of poverty in all its forms everywhere and the promotion of sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. The measures to overcome the existing contradiction between the consumer society and sustainable development should be balanced and systematic. Obviously, today there is a predominant satisfaction of the interests of corporate management. The state configures the socio-economic interests of the subjects included in the fashion system, including the interests of corporate management, and public interests, expressing the desire for environmental security. The state is a representative of public interests and must create conditions for the implementation of the concept of

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sustainable development at the national and regional levels, as well as defend these interests in the international arena. The solution to this problem is to find the optimal balance (compromise) between the goals of economic, social and environmental security. One form of such compromise is the move towards circular business models in the fashion industry. In determining the direction of the fashion industry development, environmental threats in the context of achieving sustainable development goals, along with economic and social risks, matter.

Discussion Our paper throws the light on the conflict of interests of the corporate management and society of sustainable development. The most demonstrative example is the case of the fashion industry. This paper shows possible ways of the harmonization of interests of corporate management in the fashion industry and of the society of sustainable development. This paper demonstrates increasing science interest to the environmental problems and place of the business in the creating and solving this problem. This interest is expected to have a further growth due to the complexity of the reconciling conflicting interests. We began our contribution with a review of the literature review of the topics of the phenomenon of “fast fashion” and fast fashion business models, the relationship between the fashion industry and sustainability, trends in modern society. Than we showed the results we obtained in our recent research of the topics of the fashion industry and sustainability. We discussed methodological approaches and restrictions of our research. We showed the sign essence of current exchange, the relationship of the social mobility and level on the goods consumption. We researched the impact of the fashion industry on the environmental and showed the place of the state in the reducing of the conflict of interest between corporate management and society of sustainable development. This research has some limitations. In the research of the impact of the fashion industry on the environment, first of all we meant the production of fashion garment and shoes. At the same time, with a broad approach, the fashion industry includes the production of a wider range of consumer goods. Our contribution can be continued with the research on corporate management and sustainability in other industries. Of interest is the impact of the pandemic and subsequent decline in demand for fashion industry products on the environmental performance of the industry.

Conclusion Opposite tendencies are observed in current social development. On the one hand, we see the formation of a consumer society. The development of the fashion industry has become a factor in the intensification of the transition to a consumer society. On

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the other hand, environmental issues and sustainable development are becoming increasingly important. The corporate interests of major players in the fashion industry hinder the implementation of the concept of sustainable development. The contradiction between the corporate interests of the fashion industry and the sustainable development society cannot be resolved by purely market methods. Only the state is able to configure the socio-economic interests of corporate management, and public interests seeking for environmental security.

References Agarwal, V. (2019). Technology, sustainability, and consumer expectation – new ways of thinking about future fashion. Smart Innovation, Systems and Technologies. 7th International Conference on Research into Design, ICoRD 2019, Bangalore, 9–11 January 2019, 134, 403–411. https://doi.org/10.1007/978-981-13-5974-3_35 Aggour, A., Moussaid, A., & El Hassan, A. A. (2018). Fast fashion assessment tool: A case study of a Moroccan apparel supply chain. International Journal of Supply Chain Management, 7(5), 213–220. Backs, S., Jahnke, H., Luepke, L., Stuecken, M., & Stummer, C. (2021). Traditional versus fast fashion supply chains in the apparel industry: An agent-based simulation approach. Annals of Operations Research, 305(1–2), 487–512. https://doi.org/10.1007/s10479-020-03703-8 Barnes, L., & Lea-Greenwood, G. (2006). Fast fashioning the supply chain: Shaping the research agenda. Journal of Fashion Marketing and Management, 10(3), 259–271. https://doi.org/10. 1108/13612020610679259 Baudrillard, J. (1998). The consumer society: Myths and structures. SAGE Publications. 221 p. Baudrillard, J. (2019). For a critique of the political economy of the sign. Verso. 272 p. Bhardwaj, V., & Fairhurst, A. (2010). Fast fashion: Response to change in the fashion industry. International Review of Retail, Distribution and Consumer Research, 20(1), 165–173. https:// doi.org/10.1080/09593960903498300 Cachon, G. P. (2019). A research framework for business models: What is common among fast fashion, e-tailing, and ride sharing? Management Science, 1–21. https://doi.org/10.1287/mnsc. 2018.3275 Cachon, G. P., & Swinney, R. (2011). The value of fast fashion: Quick response, enhanced design, and strategic consumer behavior. Management Science, 57(4), 778–795. https://doi.org/10. 1287/mnsc.1100.130 Caro, F., & Martinez-De-Albeniz, V. (2015). Fast fashion: Business model overview and research opportunities. International Series in Operations Research and Management Science, 223, 237–264. https://doi.org/10.1007/978-1-4899-7562-1_9 Centobelli, P., Abbate, S., Nadeem, S. P., & Garza-Reyes, J. A. (2022). Slowing the fast fashion industry: An all-round perspective. Current Opinion in Green and Sustainable Chemistry, 38, 100684. https://doi.org/10.1016/j.cogsc.2022.100684 Chan, T.-Y., & Wong, C. W. Y. (2012). The consumption side of sustainable fashion supply chain: Understanding fashion consumer eco-fashion consumption decision. Journal of Fashion Marketing and Management, 16(2), 193–215. https://doi.org/10.1108/13612021211222824 Choi, T.-M. (2013). Fast fashion systems: Theories and applications (140 p). https://doi.org/10. 1201/b16230 Cobbing, M., & Vicaire, Y. (2017). Fashion at the crossroads: A review of initiatives to slow and close the loop in the fashion industry. Hamburg. 107 p. Doeringer, P., & Crean, S. (2006). Can fast fashion save the US apparel industry? Socio-Economic Review, 4(3), 353–377. https://doi.org/10.1093/ser/mwlo14

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Dottle, R., & Gu, J. (2022, February 23). The global glut of clothing is an environmental crisis. Bloomberg. https://www.bloomberg.com/graphics/2022-fashion-industry-environmentalimpact/?leadSource=uverify%20wall Fares, N., Lebbar, M., & Sbihi, N. (2018). Quick response in fast fashion retail: An optimization supply chain responsiveness model. Proceedings of the 2018 International Conference on Optimization and Applications, ICOA, 26–27 April 2018, 1–5. https://doi.org/10.1109/ICOA. 2018.8370565 Fromm, E. (2008). To have or to be? Continuum. 203 p. Gardetti, M. A., & Torres, A. L. (2017). Sustainability in fashion and textiles: Values, design, production and consumption (pp. 1–403). https://doi.org/10.4324/9781351277600 Hausman, W. H., & Thorbeck, J. S. (2010). Fast fashion: Quantifying the benefits. In T. C. E. Cheng & T.-M. Choi (Eds.), Innovative quick response programs in logistics and supply chain management, International handbooks on information systems (pp. 315–329). Springer. https://doi.org/10.1007/978-3-642-04313-0_16 Henninger, C. E., Alevizou, P. J., & Oates, C. J. (2016). What is sustainable fashion? Journal of Fashion Marketing and Management, 20(4), 400–416. https://doi.org/10.1108/JFMM-072015-0052 Hugo, A. A., de Nadae, J., & Lima, R. S. (2021). Can fashion be circular? A literature review on circular economy barriers, drivers, and practices in the fashion industry’s productive chain. Sustainability (Switzerland), 13(21), 12246. https://doi.org/10.3390/su132112246 Kim, H.-S., & Hall, M. L. (2015). Green brand strategies in the fashion industry: Leveraging connections of the consumer, brand and environmental sustainability. Sustainable Fashion Supply Chain Management: From Sourcing to Retailing, 31–45. https://doi.org/10.1007/9783-319-12703-3_2 Mandaric, D., Hunjet, A., & Vukovic, D. (2022). The impact of fashion brand sustainability on consumer purchasing decisions. Journal of Risk and Financial Management, 15(4), 176. https:// doi.org/10.3390/jrfm15040176 Marques, A. D., Marques, A., & Ferreira, F. (2020). Homo sustentabilis: Circular economy and new business models in fashion industry. SN Applies Sciences, 2(2), 306. https://doi.org/10.1007/ s42452-020-2094-8 Mihm, B. (2010). Fast fashion in a flat world: Global sourcing strategies. International Business & Economics Research Journal, 9(6), 55–64. https://doi.org/10.19030/iber.v9i6.585 Ozdamar Ertekin, Z., & Atik, D. (2015). Sustainable markets: Motivating factors, barriers, and remedies for mobilization of slow fashion. Journal of Macromarketing, 35(1), 53–69. https:// doi.org/10.1177/0276146714535932 Scaturro, S. (2008). Eco-tech fashion: Rationalizing technology in sustainable fashion. Fashion Theory – Journal of Dress Body and Culture, 12(4), 469–488. https://doi.org/10.2752/ 175174108X346940 Serhiyevich, T. V. (2018). Fashion industry development and sustainable development: Different directed vectors. Economic Science Today, 8, 74–79. https://doi.org/10.21122/2309-66672018-8-74-79 Serhiyevich, T. V. (2020). Stimulating the production of intensive renewal goods. Science and https://doi.org/10.21122/2227-1031-2020-19-2-139-147. Technique, 19(2), 139–147. (In Russ.). Solodovnikov, S. Y. (2020). Planning engineer training in economic security in the mineral mining sector: Theory and practice. Gornyi zhurnal, 11, 20–25. https://doi.org/10.17580/gzh.2020. 11.01 Xue, Z., & Huang, Z. (2022). Current development and future prospects of designing sustainable fashion. Autex Research Journal. https://doi.org/10.2478/aut-2022-0013

Circular Business Models in Industry Sergey Yu. Solodovnikov, Tatsiana V. Serhiyevich and Aleksandr L. Pastukhov

, Olga D. Ugolnikova,

Introduction New social, economic and technological processes in the world economy have led to the emergence of enterprises using new opportunities and demonstrating rapid growth and efficiency. This has led to an increase in the interest of researchers in the concept of a business model. For almost 30 years of analyzing business practices and accumulating theoretical knowledge, the concept of a business model has turned from a trendy term into an actual research subject and has taken a stable place in the main terminological series of economics and management. Business model research classics (Amit & Zott, 2001, 2015; Chesbrough & Rosenbloom, 2002; Johnson et al., 2008; Osterwalder & Pigneur, 2010; Teece, 2010; Magretta, 2011) have formed the theoretical basis for further study of specific forms of business models. In previous studies, we developed the theoretical features of the business model (Serhiyevich, 2022), studied the impact of robotization (Serhiyevich, 2020a) and digitalization (Solodovnikov & Serhiyevich, 2022) on the transformation of business models in industry as well as developed areas for improving the business models of industrial enterprises (Solodovnikov & Serhiyevich, 2022).

S. Yu. Solodovnikov · T. V. Serhiyevich (✉) Belarusian National Technical University, Minsk, Republic of Belarus O. D. Ugolnikova Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation A. L. Pastukhov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation North-Western Institute of Management, Branch of the Russian Presidential Academy of National Economy and Public Administration, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_4

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The interest of scientists in the study of the theoretical features of business models and the demand of the business community for the results of the analysis of the experience of building effective business models is largely due to an understanding of the limits of technological innovations applicability and raw materials. The important factors for the growth of companies in the industrial era were: first, a unique technical and technological advantage; and secondly, almost limitless scaling possibilities. Currently these factors can hardly provide an industrial enterprise with unconditional competitiveness. The governments, the population and the corporate top-management are faced with the fact that, firstly, the extracted resources are depleted in the foreseeable future; and secondly, the existing methods and technologies for the extraction of raw materials cause irreparable damage to our environment. The destructive consequences will be visible not only to the generations that will live on the planet after us, but are already visible to us. As a result, the development of new approaches to doing business in industry becomes relevant. These new approaches are driven by a growing awareness among corporations of the need not only to demonstrate commitment to sustainability, but also to take real action to incorporate elements of the circular economy into their business models. Scientific and technological progress and changes in the way of life increase the mobility of labor resources, capital and information with lower transaction costs. All this enable to create new combinations of factors of production and find reserves for the growth of economic efficiency under the influence of environmental imperatives. The most important role in this process is played by the formation of new, circular business models in the industry. The interesting systematic literature review on the circular economy and new business models topis are made by Centobelli et al. (2020), Foroozanfar et al. (2022), Alcalde-Calonge et al. (2022). Some tools of the transition towards circular business models in the industry were researched by Nußholz (2018), the plastic packaging industry case was revealed by Zucchella et al. (2022), the fashion industry case—by Dragomir and Dumitru (2022), the construction industry case—by Wuni (2022). Uçar et al. (2020) have identified the roles of digital technologies supporting Circular Economy. The exploring the implementation of the circular economy business model in densely populated emerging nations on the India example is made by Ahmed et al. (2022). There is a lack of research systematizing types of the circular business models in industry. The study of the essence and forms of circular business models is the purpose of this paper.

Materials and Methods The object of our study is the circular business models in industry. The objective of this study is the systematization of the notions and approaches to circular business models in industry. The methodology of the authors is based on the subject-activity approach, which enables us to show that any activity of the subject, including the transition to one or another type of circular business model, is based on economic

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interest. Research works of scientists-economists, data of the research reports carried out by the authors were used to write this article. General scientific methods (analysis, synthesis, unity of historical and logical), system approach, institutional approach were applied during the research. The system approach enables considering the business model as a holistic, sustainable system. The institutional approach allowed us not to ignore the transformation of forms of organization of interaction between subjects in the process of business model transformation. The research methodology was developed in previous studies by the authors (Serhiyevich, 2022). It is proposed to understand the business model as a stable, isolated, relatively independent mechanism of reproduction of use value, which regulates the emerging economic relations and ensures the viability of the enterprise. The business model defines unique combinations of labor, financial, material, information, scientific and technical and other resources for the creation and appropriation of use value. The specificity of the use value, in turn, is embodied in the peculiarities of the business model. The economic structure of the business model reflects the mechanism for generating and assigning revenue to the enterprise. The business model has a specific organizational structure that institutionalizes interactions within the enterprise. The business model determines the forms of organizing economic relations with other entities—consumers, business partners, suppliers, the state, including the distribution of economic and social benefits between them.

Results We define the recycling business model in the industry as a stable, isolated, relatively independent mechanism for the reproduction of use value, which regulates the socioecological and economic relations arising on this occasion, which enable to benefit from the residual value of products and materials, to ensure the viability of the enterprise and to allowing you to benefit from the residual value of products and materials, ensuring the viability of the enterprise and to reduce environmental damage. The specificity of the recycling business model in the industry is that the enterprise derives economic benefits from the reuse or processing of products whose life cycle is considered completed in the traditional linear economic model. The implementation of circular economy elements for world practice and in particular for the Republic of Belarus and the Russian Federation is not new (Fedotkina et al., 2019; Gorbatchev & Zenchanka, 2020; Solodovnikov & Sergievich, 2020; Zenchanka et al., 2020). However, we can talk about the transition of the circular economy only when circular business models prevail and become not only socially and environmentally responsible, but also cost-effective. It is important to note that circular business models in industry today are based not only on the recycling of waste at the end of the product life cycle, but also on the maximum extension of the life cycle in order to reduce the amount of waste. The world economy is characterized by multistructure (Solodovnikov et al., 2021). Therefore, world practice demonstrates a wide variety of implementation of

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elements of circular business models in the industry, which have significant industry specifics. We systematized scientific approaches to circular business models and singled them out as circular business models (or, sometimes, recycling strategies that allow transforming an existing traditional business model). The circular business models are used in mining, oil refining, chemical industry, light and fashion industry and others. These industries are, of course, vital for modern man and allow you to meet the basic needs of the economy and the individual (Solodovnikov & Meleshko, 2022). However, the greatest damage is caused to the environment as a result of their operation and, therefore, they are most often criticized by local communities, environmental activists and public organizations. That is why, in the context of an actively ongoing environmentally oriented discourse, all these industries are united by the need to develop and implement mechanisms to increase trust and loyalty on the part of consumers and local communities. In this regard, corporations are forced not only to demonstrate commitment to the goals of sustainable development, but also to take actual actions to reduce the negative impact on the environment, gradually introducing elements of a circular economy into their business models, in other words, moving to the circular business models. We have identified four types of circular business models. The proposed classification is based on the criterion of the specifics of product life cycle management. First, business models focused on the production of goods with a long life cycle. Secondly, business models focused on extending the life cycle of manufactured goods. Thirdly, business models focused on creating a circular life cycle of goods. Fourthly, business models focused on eco-neutral completion of the product life cycle. We take a closer look at each of them. The first type of the circular business models unites companies focused on increasing the life cycle of manufactured products. The duration of the life cycle of products can be ensured through the use of: firstly, technical and technological innovations that ensure the high quality of products. And secondly, societyfunctional innovations based on demand management. Mechanisms for increasing the life cycle of products, based on the use of technical and technological innovations, are more characteristic of industries involved in the extraction and processing of raw materials and the production of semi-finished products for subsequent intermediate consumption. For example, mining, metalworking, agriculture, textile industry. The basis for increasing the life cycle of manufactured products in this case is the growth in the quality of manufactured products, which can be used longer. Mechanisms for increasing the life cycle of products based on the introduction of society-functional innovations are characteristic of the sectors of the economy that produce final products (the production of furniture and household products, clothing and footwear, electronic equipment for final consumption and other). The variety of forms and scope of application of society-functional innovations, under the influence of which consumer choice is formed, is steadily increasing. Currently it is very important to understand the change in the specifics of competition, which is now conducted not only by traditional methods with the help of economic and political technologies, but also with the use of information technologies, primarily affecting the minds of people. The consequence of the spread of their new forms is the

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formation of certain consumer preferences of individuals and the intensification of consumption. The same technologies can essentially be used in reverse. To denote trends aimed at slowing down the pace of consumption, expert and scientific discourse uses the concept of “responsible (sustainable, rational, conscious) consumption”. Responsible consumption is a wide range of behavioral practices and principles. The purpose of those practices and principles is the economical use of natural and other resources in order to meet only the most necessary needs. Responsible consumption involves actions to reduce the amount of waste by re-involving it in economic circulation or consumption. Responsible consumption resists the destructive power of the fashion industry, which causes great damage to the environment (Serhiyevich, 2018, 2020b; Marques et al., 2020; Hugo et al., 2021; Centobelli et al., 2022; Dragomir & Dumitru, 2022). Leaving aside discussions about the terminology, content and criteria for responsible consumption, we emphasize that this concept formed the basis of the system of sustainable fashion and slow fashion. “Sustainable fashion” is the implementation of the principles and achievement of sustainable development goals in various industries producing the so-called “intensive renewal goods” (Serhiyevich, 2018), including changing approaches to both consumption and production. The concept of “slow fashion” covers the economic, environmental and ethical aspects of the consumption of such goods. The supporters of this concept oppose fast fashion and encourage consumers to abandon the purchase of goods in the mass market segment and give preference to locally produced products and handicrafts to support SME; support the secondary use of things (donation, resale, repair); to reduce the level of consumption in general; give preference to high-quality, classic goods, the production of which has not violated environmental and social imperatives. Risk industries are agriculture, such as the cotton or tea industry, manufacturing industries (garment industry), mining and oil extraction (here, mainly the informal economy and illegal mining). The concepts of responsible consumption and slow fashion are influencing traditional business models in the industry, stimulating the demand for high-quality products produced using a labor force with safer and more comfortable working conditions, fair wages and higher qualifications. In this regard, it is very important to implement the principle of publicity and increase the reputational capital of industrial enterprises. Society-functional technologies can serve as a tool for generating demand for the products of socially and environmentally responsible companies, which levels out the decline in economic efficiency and ensures an expanded reproduction of circular business models. The second type of circular business models unites companies focused on extending the life cycle of manufactured goods. This group includes business models generating income due to: firstly, the re-involvement in consumption of those goods whose life cycle has already been completed. This approach involves the use of products not as waste, but with the preservation of their original functional purpose—either through direct reuse or through warranty repair, modification, alteration. The income generation of circular business models is ensured by more

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intensive use of manufactured goods until they become obsolete. Today it is especially relevant, since in the production of many goods mechanisms of accelerated obsolescence are laid (for example, in the production of radio electronics or in the automotive industry). More intensive consumption of manufactured goods is achieved through sharing models in the sharing economy. Business models based on service strategies and forming the main source of profit generation are gaining ground not through the sale of goods, but through the provision of services. For example, the revenue can be generated by subscribing consumers for short-term leases of goods, with the option to buy back later. Companies can use another source of profit—the provision of an additional service, along with the rental of goods (for example, the services of a stylist for the selection of clothes, the services of a driver for car sharing, or the services of an industrial designer for using a 3D printer). The transition to a circular economy has been the incentive for a renaissance of traditional business models in the distribution industry (traditional secondhand, thrift stores, leasing at the commercial distribution level). In addition to updating traditional business models, responsible consumption has become a driver for the emergence of fundamentally new business models based on the commercialization of reciprocal exchanges (Serhiyevich, 2020a). What previously acted as a gift or exchange item in closed communities (as a rule, relatives, friends, acquaintances), today becomes an object of purchase and sale. An increasing number of unrelated people can participate in the sale or lease of such goods thanks to the development of electronic commercial exchange platforms. A new source of value creation in these business models arises from the conversion of cultural capital into economic capital. The third type of circular business models unites enterprises focused on creating a circular life cycle of goods by introducing recycling resources tools into production. The study of such business models allows us to answer the question, what do the major steel producer in Eastern Europe Byelorusian Steel Works have in common with the Swedish fast fashion company H&M? Each of them, being an industrial polluter, is making efforts to reduce the impact on the environment and minimize the risks of global climate change, including through the use of recycling tools. Byelorusian Steel Works is almost completely loaded with the processing of recyclable materials (waste and scrap of ferrous metals, which can be involved in economic circulation almost an unlimited number of times), it uses thermal secondary energy resources in the amount of more than half of its own production of thermal energy in order to save resources and use them more rationally (Solodovnikov & Sergievich, 2020). But in relation to one of the world’s largest clothing manufacturers H&M, not everything is so univocal (Fraser & van der Ven, 2022). The management of this company says that the growing movement that condemns consumers is a real social threat. Very often, a company’s controversial strategy is subject to justified criticism. The company, through a system of discounts and rewards, encourages its customers to hand over unnecessary things for recycling and at the same time make more and more new purchases. The question arises— what are the environmentally oriented strategies of industrial corporations really— their conscious contribution to sustainability or just an innovative marketing

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strategy tool? The example of the H&M strategy is indicative, since the company is one of the most criticized in terms of environmental pollution and at the same time a leader in terms of supporting recycling production in the industry of companies, and therefore reflects the complexity and ambiguity of the processes of formation of circular business models in the industry. Finally, the fourth type of recycling business models includes enterprises focused on the production of such goods, the completion of the life cycle of which is environmentally neutral. These enterprises invest heavily in the research and development of innovative materials, the disposal of which does not harm the environment. The production uses either fully recyclable or biodegradable resources. Such models have become widespread in the automotive industry, where parts at the end of the product’s service life are removed, restored, reused; in the energy sector, where, based on bioethanol production technologies, agricultural waste is processed into renewable fuel; in the light industry, where the production of fabrics from organic cotton (grown without fertilizers and pesticides), nettle, bamboo, corn and even algae has been developed.

Discussion The present paper is the another step towards a comprehensive research of the business models, contributing to the development of an effective communication among the different researchers in the circular economy area. This paper demonstrates that new business-models is increasingly attracting the interest of both academics and practitioners, in particular when referring to sustainable development. This interest is expected to have a further growth due to the increasing environmental problems. We began our contribution with a review of the results that we obtained in our recent research of the topics of business-models. We reviewed existing research on the challenges of moving to circular business models. Then we discuss methodological approaches and restrictions of our research. We started with the methodological foundations of the study, presenting the definition of a business model in general. Then we have shown how do we interpret the circular business model. We also developed a classification criterion for circular business models and, thanks to this, identified four types of circular business models (business models focused: on the production of goods with a long life cycle, on extending the life cycle of manufactured goods, on creating a circular life cycle of goods, on eco-neutral completion of the product life cycle). Nevertheless, this research has some limitations. Some circular business models in practice cannot be attributed to one type or another, the distinction of different business-model types can sometimes be conditional. Our contribution can be supplemented by the study of trends in the transition to circular business models in the new geo-economic realities. The relevant topic is how the current energy crisis and the escalation of international economic sanctions will affect the speed and

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intensity of the transition to circular business models in the industry. So it requires a further increase in research of the circular business models in the conditions of the risk economy.

Conclusion There is a transition to circular business models more and more often in the current economic systems. In this contribution, we have identified four types of circular business models focused on the production of goods with a long life cycle, on extending the life cycle of manufactured goods, on creating a circular life cycle of goods, on eco-neutral completion of the product life cycle. Despite the existing examples of the transformation of traditional and the formation of new, recycling, business models, there is no radical change in the paradigm of industrial development. The most obvious constraint to the development of recycling business models is the contradiction between social and environmental efficiency and economic efficiency at the micro level. New composite materials are being developed that have improved properties, but are more difficult to process. Increasingly, a combination of artificial and natural materials is used in production. In addition, speaking of end products, one should not forget about their packaging, which is becoming more and more complex (these are multilayer materials made of paper, cardboard, various types of plastic, aluminum and other materials), it is becoming more difficult and expensive recycle. These already traditional challenges are complemented by new ones that arose during the pandemic, which led to a 30% increase in the consumption of disposable goods during the pandemic (this includes gloves, masks, individual packaging of goods). The society expects businesses to take decisive action to reduce the negative impact on the environment, which essentially threatens the existence of many traditional business models. At the same time, the question of whether the recycling strategies of industrial enterprises will become dominant or remain a marketing tool aimed at increasing the loyalty of an environmentally responsible consumer remains debatable. Such initiatives are likely to be peripheral in the short to medium term. Overcoming the contradiction arising from the achievement by manufacturers of the goals of maximizing economic efficiency and preserving reputational capital is carried out through evolutionary (rather than revolutionary) steps to transform business models towards sustainability and a closed economy. But the emergence of this contradiction in itself already inspires optimism on the path of Humanity to a circular economy.

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Digitalization of the Housing and Utilities Sector as a Factor of Its Sustainable Development Vera Fedotova

and Olga Ganina

Introduction Modern conditions and features of the current stage of development increase the importance of growth points that ensure the sustainability of the Russian economic system. One of these drivers is the housing and utilities sector. The housing and utilities sector is the most important socio-economic sphere of the Russian economy, giving impetus to the development of related sectors and the economy as a whole. According to the State Information System of Housing and Utilities, at the end of the first half of 2022 there are about 1,009,566 multi-family houses in Russia that is 48 million apartments that consume utilities. Housing and utility payments are a significant part of citizens’ expenses. Experts estimate that the market will grow at 5.3% annually in 2022–2024 due to an increase in tariffs, so even with the decline in real income of Russians, the market will not decrease (Panteleeva, 2022). In the past few years, economy digitalization, and in particular digitalization of housing and utilities, has accelerated, but in general the level of digital development is very low. The National Program “Digital Economy of the Russian Federation” defines the main goal that is the creation of the necessary conditions for the development of the digital economy of the Russian Federation. The digital economy is understood as an environment “in which data in digital form is a key factor of production in all spheres of socio-economic activity, which increases the country’s competitiveness, the quality of life of citizens, ensures economic growth and national sovereignty”. As V. Fedotova (✉) Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation O. Ganina Perm National Research Polytechnic University, Perm, Russian Federation IT-company «Digital Ombudsman for Resident», Perm, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_5

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part of this program, work is being done to accelerate the implementation of digital technology in the economy and social sphere. The increased interest in the digital economy, based on qualitatively new types of information and telecommunication technologies, is caused by the fact that the digital economy provides an opportunity for countries and their companies to dominate the market in key areas of socioeconomic development at present time. Residential property management services are highly topical issue in Russia and abroad. However, it is difficult to compare foreign and Russian experience in this area due to the peculiarities of the legislation, and in such a case, the implementation of effective digital practices is difficult because of the existing features of the infrastructure. The aim of this research is to identify promising areas of digital transformation in the housing and utilities sector to improve its sustainability. Economic reform of the housing and utilities sector is caused not only by the need to improve the quality of services, but also by the presence of a wide area of socioeconomic relations, which require the involvement of numerous and costly resources of the housing and utilities sector. The Strategy of Digital Development of Construction and Housing and Utilities developed by the Ministry of Construction of the Russian Federation assumes that 375 billion rubles will be invested into the digital infrastructure of housing and utilities until 2030. And this is primarily a modernization of the state information system of housing and utilities, that involves the implementation of electronic data interchange in all sectors of the economy and the implementation of management systems based on the Internet of Things. The problem of the new technology implementation is particularly acute for the housing and utilities sector in the context of sanctions. Under current conditions, such digital products and IT solutions must be the home-grown technologies. Meanwhile, the main feature of housing digitalization is the lack of successful global practices in creating standard, scalable effective solutions, especially when it comes to multifamily housing. First of all, it is connected with a large number of legislative acts, peculiarities of regional regulations that control this sector, and also, with a state of the housing. Citizens are interested in receiving services conforming to modern requirements, as the housing and utilities belong to the essentials. Nevertheless, despite the range of economic activities of the housing and utilities, the main problems are still: the excessive wear and tear of housing, engineering infrastructure and its accident rate, chaos in the residential property management, the federal system data on housing and utilities are not sufficiently used for decision-making at the regional level, the growth of housing and utility payments and lack of transparency of utility tariffs, low involvement of consumers (Speshilova et al., 2022). The importance of the sector is determined by the fact that the housing and utilities forms the appropriate living standards, determines the socio-economic potential of the territories. The main ideas of sustainable development have recently become widespread. The issues of building information modeling and efficiency of business processes automation current research topic. The authors presented the main directions for the implementation of building information modeling technology for the transition to digital exchange formats in construction. The authors also indicated the importance

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of digitalization and the transition to information technology. In research (Boldina, 2020) marked that investment in the development of digital technology is a significant factor of the business sustainability in the times of crisis. Another author (Chernyshov, 2003) in his research presented the classification of housing and utilities organizations. This classification meets modern market requirements and can be applied to create an information database that contributes to the effective managerial decision-making. The author (Cherniak & Bogdanova, 2018) in the research gives concept of efficiency improvement for housing and utilities were presented of the state and progress of the development of housing and utilities sector were presented in the research works of different author (Mordovets, 2010; Koscheev et al., 2019; Kemaykin & Pavlenkov, 2020; Kharitonov et al. 2017a, 2017b, 2019, Krivogina et al. 2019; Safonov, 2020a, 2020b). The scientists (Terelyansky & Zyabkin, 2020; Tarasova, 2020) justified the use of digital products for housing and utilities as a tool to improve the quality of services in accordance with the conceptual customer-oriented approach. In addition, the authors of this article used their own experience in managing and developing an IT product for the housing and utilities sector. Thus, in scientific papers, performance improvement of housing and utilities sector and its sustainable development, primarily associated with the digitalization. The conceptual approach to sustainable development requires the adjustment of the legal and regulatory framework of housing and utilities sector as well as the implementation of high information technologies into the business processes, since it is assumed that the activities will be transformed and the competitive products and services will be created in the long term, in accordance with modern scientific and technological level.

Materials and Methods Systems analysis of the housing and utilities sector serves as the methodological basis for the research. Systems approach consider the sector as an open system, including: objectives definition, organizational structure, intangible and tangible resources, technology and other elements, taking into account the interaction between the main market participants: government, business and citizens, that is aimed at achieving the goals of residential property management and digital transformation of housing. The main goal of digitalization of housing is to make it more comfortable and technologically advanced for citizens, to improve the quality of housing and utilities, and to extend the life of capital construction facilities. The main objectives of housing and utilities digitalization are the automation of interaction between market participants, cost saving, house maintenance data collection and classification, resulting in an increase of the quality of housing and utilities services and the strategic sustainability of the sector. It should be noted that many elements of Russia’s sustainable agenda must change and become more nationally oriented. Our country needs its own innovative solutions, taking into account the accumulated

38 Fig. 1 Model of IT company activity for the purpose of strategic sustainability. Source: Compiled by the author based on the source (Grigoreva, 2017)

V. Fedotova and O. Ganina Sustainability Risks Regulatory factors documentation Marketing Activities of IT-company in the field of housing and utilities: digitalization of housing

Economic performance indicators growth

Investment

Competitiveness

Staffing

Strategic sustainability

economic, social and managerial experience. The modern stage of the digital economy in the housing and utilities sector is characterized by the automation and robotization of production processes, the emergence and development of advanced digital technologies, such as technologies that can help solve problems in supply chain management (SCM), enterprise resource planning (ERP) and customer relationship management (CRM) (Nureev & Karapaev, 2019). In the process of transformation, the artificial intelligence development, software and IT platforms are implemented. In order to improve the efficiency of residential property management and provide services of proper quality, it is necessary to consider the following factors affecting the IT-company in the strategic sustainability management system in housing and utilities (data are presented in Fig. 1). Systems approach let the companies achieve goals and objectives by making appropriate managerial decisions, that are based primarily on the analysis of factors, conditions, circumstances that affect the housing and utilities sector, and the sector is a part of a larger supersystem of socio-economic and political and cultural relations. The factors presented in the figure are capable of having a positive influence on digitalization of the sector in the long term, that will correspond to strategic sustainability. In addition, today’s approach to strategic sustainability is based on the need for sustainable business strategies that ensure economic performance by taking into account the interests of all market participants. The positive results of the housing digitalization are predetermined for all parties. For citizens, as the main beneficiaries, the positive effects are expressed primarily in increased quality control of housing and utilities, increased transparency of pricing for services. The state is expected to benefit from the growth of digital transparency in the sector, the creation of digital twins of houses, increasing citizen satisfaction with the services provided by the housing and utilities. In addition, the green inclusion of residents in the residential property management is encouraged. For businesses, the positive results are primarily to reduce costs by providing services based on objective data on the state of houses, enabling digital services and improving the quality and accessibility of services in the financial market.

Digitalization of the Housing and Utilities Sector as a Factor of. . .

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Results One of the important directions of the development in the housing and utilities sector is the creation of user-friendly digital tools for residents, combining the provision of information and the ability to take actions that contribute to a constructive settlement of problems and more effective interaction between the residential property management and maintenance companies and owners. The experience of digitalization projects implementation in housing and utilities has shown the demand for such services. Currently, it is expected that the services will perform the following functions: – communicative: an application for a call or a service, a feedback or a complaint, payment for housing and utilities; – information: information about the house, landscaping, economy, online meetings and voting. We assume that the most important is the implementation of the activity function: the property management based on objective data (digital twins of houses and the Internet of Things). All market participants can be divided into the following groups: – platforms, applications and services for business-processes automation, that is the automation of the residential property management and maintenance companies’ activities; – platforms, equipment, separate hardware solutions for the Smart Home System; – platforms and equipment for data acquisition and processing by artificial intelligence (industrial Internet of Things) – public feedback platforms. The following stages of service development can be identified (Fig. 2). Changes in housing and utilities legislation and the emergence of a wide range of cloud tools, services and mobile applications are developing from “traditional” functions such as interaction between the residential property management and maintenance company and the resident of multi-family housing (owners and tenants of residential and non-residential premises) towards proactive management based on objective data, that implement informational and activity functions. Achievement of above mentioned effects is possible with the creation of a platform service with the ability to scale to the entire housing within the subjects of the Russian Federation, based on seamless data transmission and processing from meters, sensors and equipment within the apartment building to the residential property management and maintenance company and resident of the multi-family housing with access for expert evaluation, monitoring and obtaining necessary information for state and municipal structures, as well as supervisory authorities. The cost of individual development of such services is quite high. Individuals, startups, residential property management and maintenance companies, real estate developers and major technology companies: communications service providers,

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V. Fedotova and O. Ganina Traditional Basic Service

Desirable Digital Service

Attractive Digital Service

New Generation Service

Traditional Real-Estate Management Property, Facility

Digital management and BIM Residential property management and maintenance company with fully digital business processes Resident advocacy service Housing and utilities quality inspections and service quality management Control services in digital environment Residential property management and maintenance companies digital services process of an application, bill payment, information disclosure, access control, etc.

Digital housing and utilities management platform Automated management and communication system, housing and utility services marketplace

Smart apartment / office / Residential Complex Automation, engineering system remote control, equipment remote control

Community – Services Group chats, Hobby clubs, polls

Fig. 2 Modification of the digital service development in housing and utilities sector. Source: Compiled by the author

integraters, ecosystem participants, they all can be developers. For example, the budget for the development of home-grown software for the management of infrastructure real estate starts at 300,000 rubles and reaches several million rubles, which primarily depends on the functionality required, but in such services, there is no possibility of technical monitoring of the housing state, which is essential for the automation. Therefore, additional costs can be avoided by offering residents standard software for monitoring the state and maintenance of houses, taking into account the regional regulations and the specifics of the housing. Nowadays the market offers out-of-the-box solutions with the following monetization strategies: 1. for residents of multi-family housing, the payment is made through the collective payments; the average price per square meter is around 5 rubles or 100–200 rubles per apartment per month 2. for the residential property management and maintenance company, depending on the service functionality and the number of personal accounts, the cost can be calculated by the number of square meters, and the average cost is between 25,000 and 150,000 rubles per month for the house. Currently, there is an active development of the state information systems at the expense of the state financial resources, and in this case the use of the platform for users is free, but the functions will be limited for citizens. It is worth mentioning a certain feature that clearly stands out in the digitalization of the new housing market. In the market of new constructions the following models of digitalization are formed: the first model is activated at the stage of sale of new

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construction to the residential property management and maintenance company from the developer, using standard services of the developer, in this case the sources of funding of digital home systems are the developers’ funds, which are included in the cost per square meter of housing sold without increasing the estimated construction cost; the second model involves the cost of investment, carried out by the relevant participants of the digitalization market, namely communications service providers, integretors, ecosystem participants, then the costs are included in the tariffs for the operation of these systems and additional revenue from the provision of services and sales of goods to house residents. At the moment the market is actively developing and saturated with platform solution offers for the interaction between the residential property management and maintenance companies and residents, representing the communication and information function, although many companies are just at the beginning and are in the process of developing individual services and functional solutions, nevertheless the active development of software solutions for the residential property management and maintenance companies continues.

Discussion An important area of development is the systemic transformation of the housing and utilities sector through the implementation of digital tools using domestic technology. Based on the analysis, we can identify the following trends that have a significant impact on digitalization in the sphere of multi-family housing: 1. Changes in the consumer behavior of citizens: the consumers must be informed and involved; with state support the citizens feedback platforms are actively developing, including platforms for housing and utilities sector; requirements for disclosure of information by residential property management and maintenance companies to their clients—owners—are increasing. With the active and widespread development of these technologies and the implementation of information transparency requirements, positive changes in the provision of housing and utilities and in the quality of life of citizens can be observed. In the world and in Russia, the concept of “Smart City” is actively developing, citizens are placing more and more demands on the comfort and safety of the living environment. 2. Management of multi-family housing is most often performed by a residential property management and maintenance company authorized by the owner of the housing to carry out activities for the purpose of proper maintenance and provision of housing and utilities. The main trend is that the number of owner-managed companies is increasing, while the number of commercial management companies is decreasing. According to the State Information System of housing and utilities, at the end of the first half of 2022 there are about 74,383 managing authorities, 24,210 of which are management organizations, and the rest are

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managed by owners. Owners have become more proactive and are increasingly moving away from residential property management and maintenance companies. There are more and more such companies, but the average number of houses under their management is decreasing, management is organized under one or two houses. 3. In addition, there is a trend in the development market—developers are not only starting to manage new facilities themselves, but also to return the already delivered housing to themselves. First of all, this is due to the fact that the first few years the house is under warranty and the builder must deal with the maintenance of the house, fulfill warranty requests, scheduled warranty inspections. In this case, even at the design stage of the project, all opportunities to provide quality services to tenants are taken into account, but in this case, there is a question of an effective control system to protect not only the interests of the consumer, but also the provider. In addition, the complexity and technological sophistication of capital construction facilities are increasing, new technologies are being implemented in engineering systems, a single digital building environment is being created and, in connection with this, qualification requirements for employees who service the facility are growing. Therefore, more and more often the developer, who has expertise in digital solutions to be implemented at the sites, takes care of the operation. Under the influence of the above trends and in the context of government digitalization programs, new standards for management companies appear, which leads to the search for digital solutions, as the introduction of digital technology significantly increases the comfort of service to residents. Currently, it is necessary to combine the information and activity functions in the domestic IT-product. The main task should be the development of an automated examination of the quality of housing and utilities in multi-family housing. The key requirements for the digital solution architecture are: • providing a comprehensive assessment of the quality of housing and utilities based on the collection of primary data; • verification of compliance of multi-family housing operating processes and the quality of provided housing and utilities in accordance with state standards; • collection, storing, processing and analysis of data generated in the process of providing housing, utilities and other services to residents at the apartment/house/ block level, increasing the degree of reliability and relevance of data; • formation of a unified data environment for the housing and utilities of multifamily housing (operation and supervision); • provision of objective primary data of digital business analysis for proactive management of multi-housing operating and quality of housing and utilities; • provision of “seamless” interaction with information systems of the regional and federal level, with information systems of subjects of the housing and utilities ecosystem, as well as other organizations whose activities are related to or affect the housing and utilities, through the use of unified formats and software interfaces;

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As a result of data collection, information about the current state of the house should be available, and a list of the most common violations should be formed. The results of such a service should be understandable to residents, useful to residential property management and maintenance companies and developers, effective for public administration. In this case, the estimated cost of using the service should correspond to the average market value: 100–200 rubles per apartment or 25,000–30,000 rubles per multi-family housing, in this case the digitalization of the housing and utilities sector is possible not only if funded by the state, but also using the resources of all stakeholders. Thus, the use of such a comprehensive service of digitalization of housing and utilities will help to form an effective proactive management, create a transparent and understandable information space for all parties of interaction. Given these prospects and the possibility of using such a service, we believe the proposed IT solution is innovative and high in demand, as IT product is aimed at the development of digitalization of housing and utilities and data verification of the state of housing and utilities in multi-family housing, as well as the formation and increment activity of property owners, combining the information and activity functions. At the moment it is necessary to widely apply and use a comprehensive domestic digital solution, which includes tools for the formation of digital passports of houses with weekly updated data; accumulation of a database of housing and utilities of the housing; protection of residents’ interests when providing services that do not conform to current standards; automation of work related to the inspection of communal property. In this case, the justification of the digitalization of housing and utilities and automation of data collection, is based on the main strategic documents, that is the Strategy of digital development of construction and housing and utilities and relevant regional regulations. The service may have the potential to be used in the state housing and utilities information system development in connection with such features of the product as: – obtaining an objective and independent assessment of the state of housing and utilities; – objectification of expert evaluations and implementation of data automation; – consideration and protection of residents’ interests, and delimitation of the areas of responsibility of the parties interacting in the space of housing and utilities (residential property management and maintenance companies, developers, service organizations, service providers, etc.); – fostering of the implementation of intelligent digital systems and technologies in apartment buildings, contributing to the evolution of housing standards. The data obtained can be used in the housing and utilities management and transformation, as well as in the development and implementation of IT services and projects in the housing and utilities sector in different regions of the Russian Federation.

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Conclusion Despite the scale and high importance of the digital transformation of this sector, the development of the housing and utilities management system requires a detailed study and implementation of new management models for economic efficiency and strategic sustainability of the industry. Formed methods and mechanisms to ensure effective and sustainable development of the sphere of housing and utilities in modern conditions are based on the need to form sustainable business strategies that provide economic performance. The key factors of sustainable development should also include, first of all, the state support of this sector and the development of management methods that take into account the interests of all market participants, including their accumulated managerial, economic and financial potential. The state is actively implementing a number of measures aimed at the digitalization of the housing and utilities in order to provide the population with comfortable living environment and sustainable development of the housing and utilities sector as one of the main sectors of the economy. To implement these measures, it is necessary to implement the most important principle of economic expediency, to regulate the rules of interaction between market participants, taking into account the active implementation of digital tools, to unify the requirements to the quality of housing and utility services by means of the implementation of digital technology. For specific IT-enterprises it is significant to manage the factors of strategic sustainability, allowing to coordinate the interests of stakeholders, taking into account the risks in the economic and social spheres. To accelerate digitalization in the housing and utilities sector, it is necessary to reduce administrative barriers in the sphere of utilities, promote the development of services aimed at the implementation of automated data collection on housing and utilities and digital management. The introduction of digital technology should be meaningful for residents and economically profitable for businesses. The introduction of automated management systems and maintenance of the housing contributes to changes in the internal business processes of companies, namely optimization of operational processes and improving the quality of services. The proposed example of the service functionality reflects the model in which the actions of the executive chain of command and all market participants, including the professional community, science and manufacturing business are coordinated. The active position of citizens in the control of housing and utilities and the management of their own housing should improve their quality of life and the quality of housing and utilities. In this area, the main trend is the development and implementation of public private partnership, that will add new responsibilities and new digitalization opportunities for businesses and proved new IT infrastructure services to the public. Digital platforms and services can solve problems in the housing and utilities sector, as digitalization becomes a new requirement for promotion of competitiveness and helps demonstrate “transparency” and sustainability of the sector. Conclusions and practical recommendations based on the study of national experience can find be applicable and useful for the state and

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business, namely in the sphere of state and municipal administration, as well as for professionals working in the field of housing and utilities. Acknowledgements This research was founded by Digital Ombudsman for Resident, LLC.

References Boldina, A. V. (2020). Digitalization as a factor in increasing the strategic sustainability of an enterprise. Innovative Aspects of the Development of Science and Technology, 2, 36–40. (In Russ.). Cherniak, V. Z., & Bogdanova, E. N. (2018). Actual problems of managing the competitiveness of housing and utilities enterprises. Innovation and Investment, 10, 168–171. https://cyberleninka. ru/article/n/aktualnye-problemy-upravleniya-konkurentosposobnostyu-predpriyatiy-zhkh (In Russ.) Chernyshov, L. N. (2003). Management of housing and communal services in Russia. M. ASB. Grigoryeva, S. V. (2017). Innovations in management system of strategic stability of enterprise development. Kreativnaya ekonomika, 11(3), 347–362. https://doi.org/10.18334/ce.11.3.37661. (In Russ.). Kemaykin, N. K., & Pavlenkov, M. N. (2020). Development directions of housing and communal services of Russia. Vestnik Tomskogo gosudarstvennogo universiteta. Ekonomika – Tomsk State University Journal of Economics, 51, 21–34. (In Russ.). Kharitonov, V., Alekseev, A., Krivogina, D., Spirina, V., Shaydullin, R., & Safonov, N. (2019). Intuition and quantification of mental variables of cognition subjects in the processes of comprehension of the surrounding. In World Digital Science: Advances in Intelligent Systems and Computing (AISC) (Vol. 850, pp. 191–199). Springer Nature Switzerland AG. https://doi. org/10.1007/978-3-030-02351-5_23 Kharitonov, V. A., Vychegzhanin, A. V., Grevtsev, А. М., Krivogina, D. N., & Safonov, N. I. (2017a). Tools for “connecting creativity and manufacturability” in tasks of subject-oriented management. Economic Systems Management, 7, 1–1. (In Russ.). Kharitonov, V. A., Krivonogina, D. N., & Safonov, N. I. (2017b). Detection of subjectivity in tasks of automation and management of technological processes. Information and Mathematics Technologies in Science and Management, 2(6), 79–87. https://www.imt-journal.ru/userfiles/ file/IMT-2(6)-2017.pdf (In Russ.) Koscheev, V. A., Tsvetkov, Y. A., & Vishnevskaya, A. I. (2019). Elements of digital economy in housing and communal services. Bulletin of Civil Engineers, 2, 173–179. (In Russ.). Krivogina, D. N., Safonov, N. I., & Kharitonov, V. A. (2019, February). The assortment approach to the selection of building materials for the construction of real estate. In IOP Conference Series: Materials Science and Engineering (Vol. 481, No. 1, p. 012055). IOP Publishing. https://doi.org/10.1088/1757-899X/481/1/012055 Mordovets, V. A. (2010). Improving the management system for services provided by the housing sector of the economy based on a competitive approach (dis. of the candidate of ec. Sciences, St. Petersburg State University of Service and Economics). Nureev, R. M., & Karapaev, O. V. (2019). Three stages of digital economy formation. Journal of Economic Regulations., 10(2), 6–27. https://doi.org/10.17835/2078-5429.2019.10.2.006-027. (In Russ.). Panteleeva, M. S. (2022). Calculation of the private investor’s income in the housing and utilities sector in the context of transition to long-term tariff regulation. Real Estate: Economics, Management, 2, 29–35. Safonov, N. I. (2020a). Agreement concept for decision-making in managing project of residential repair based on the multi-model assessment mechanisms and forecasting parameters. Applied

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Mathematics and Control Sciences, 2020(2), 144–161. https://doi.org/10.15593/2499-9873/ 2020.2.08. (In Russ.). Safonov, N. I. (2020b). Mechanisms of coordination of decision-making by participants of the organizational system at the stage of drawing up plans for repair and restoration work in apartment buildings. Mathematics and Interdisciplinary Research, 253–260. Speshilova, N. V., Rakhmatullin, R. R., & Shamkaeva, A. N. (2022). Digital solutions in the sphere of housing and communal services. Problems of Scientific Thought, 1(12), 30–36. Tarasova, E. V. (2020). Features of the sphere of housing and utility services as a business in the aspect of improving the quality of life of citizens. Krasnoyarsk Science, 9(2–4), 167–174. https://doi.org/10.12731/2070-7568-2020-2-4-4-167-174 Terelyansky, P. V., & Zyabkin, A. S. (2020). Digital technologies and development of new services based on the housing services company. E-Management, 3(1), 50–58. https://doi.org/10.26425/ 2658-3445-2020-1-50-58. (In Russ.).

Sustainable Development Financing as a Factor Affecting on Operational Efficiency of the Company Anna Rumyantseva

and Olga Tarutko

Introduction Modern economic conditions are characterized by the increasing influence of sustainable development trends. This influence affects all spheres and the business sector is probably exposed to it to the greater extent than other sectors. The efficiency and effectiveness of corporate activities, financial attractiveness and raising of external funding increasingly depend not only on following financial strategies and achieving financial performance goals, but also on the successful implementation of non-financial performance measures. For business, the capital adequacy matter, the importance of financial leverage and the raising of additional financing are extremely important and often become crucial in company’s life. There are certain financial instruments that have been known for many decades, are time-proven and can be classified as basic. Such financial instruments include the following: credit facilities, loans, bonds, etc. However, the market is constantly evolving and along with that, the main financing methods and new innovative financial instruments and products are emerging. Company’s financial attractiveness for investors is a combination of factors, including financial position of a company, which is an investment option, a level of its competitiveness, the implementation of innovations and many other factors. Over the years of financial management evolution, a large number of researchers have been engaged in the study of investment attractiveness, factors influencing its level, procedures for financial position analysis. Nevertheless, there are still differences in interpretations, identified features, factors of investment decision-making, and the proposed evaluation procedure.

A. Rumyantseva (✉) · O. Tarutko Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_6

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The analysis methodology for financial position of companies has existed in an almost unchanged form for several decades. In Grechenyuk et al. (2015), the authors presented an analysis of more than 20 fundamental Russian textbooks and identified a number of common and particular problems and limitations of the methodologies, covered in these books, such as the lack of case studies. In such conditions, the importance of specialized literature with a high citation index increases significantly. Thus, in Gabdullina et al. (2022) presented a financial position assessment optimization by defining normative values of indicators, taking into account the specifics, scale and stage of the business life cycle to ensure the objectivity of the results obtained during the evaluation process and the efficiency of management decisions. It should be kept in mind that the comprehensive assessment of financial position and investment attractiveness depends on which integral factors are taken into account in the financial analysis. In the specialized literature there are a variety of lists and classifications of factors. First of all, the authors divide the factors into internal and external, as a rule, classifying them depending on the scale. Various factors of companies’ performance are considered in the works (Nguyen & Tran, 2021; FWO Chartered Accountants, 2022; Yu et al., 2021; Lundholm, 1991; Bevan et al., 2019). There are also various specific factors of investment attractiveness, the variability of which depends, for example, on the object of investment activity or country affiliation. The authors Q. Vu, T. Hoang, T. Le (Vu et al., 2020) in their research identified a number of such specific factors to attract investment resources in industrial parks in Vietnam, as local advantages, infrastructure, human resources and local institutions. It should also not be forgotten that the behavioral factors influence the financial decisions of investors. The research of such factors on the case of the Egyptian stock market presented in Metawa et al. (2018) demonstrated that the level of education, age and gender of an investor can have a significant impact on investment decisionmaking, but experience, on the contrary, does not matter significantly when making a decision. A review of the economic literature showed that, despite the lack of a unified approach to the composition of investment attractiveness factors, all the authors, one way or another, allocate a group of financial and economic factors as one of the most significant, which leads to a more detailed research of the effectiveness of business processes. Boichenko K.S., Klymenko S.M., Terentieva O.V. and Kuznetsova N.B. in their research (Boichenko et al., 2020) formulated an approach to assessing and improving the efficiency of the integrated development of light industry enterprises, including modular diagnostics of enterprise activities. This approach involves summation of products of the four modules (innovative, informational, organizational and economic) by weighting coefficients. The proposed methodology is quite interesting, but that research does not explain the basis of which indicators the calculation of the above modules is carried out.

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Vinnikova I.S. and Kuznetsova E.A. researched integrated assessment of financial position. In the paper Vinnikova and Kuznetsova (2016) they suggested an integral index for assessment of industrial companies’ financial condition that is calculated as the sum of products of the factors selected by the weight of their expert estimate. I.S. Vinnikova and E.A. Kuznetsova suggested that private factors include cash ratio, quick ratio, equity to current asset ratio, equity ratio, solvency ratio, Altman Z-Score and product profitability. In Abdul-Azalova (2021), the author presented a diagrammatic model for a comprehensive assessment of business processes based on a selected set of data, and in Wanchai (2019) the author investigated the impact of implementing enterprise resource planning systems, as a factor of comprehensive efficiency, on its level in the long term. The aim of our research is to justify the need for financing innovative potential and sustainable development from the perspective of ensuring the efficiency of economic activity.

Materials and Methods The widespread use of innovations, both financial and technological, has a tremendous impact on all spheres, transforming the usual perception and existing processes from the perspective of changing the sets of factors that influence them. Determining the importance of sustainable development and the content of non-financial factors determines the need to take them into account when assessing the companies’ financial attractiveness. In this paper, the authors analyzed specialized literature with a high citation index devoted to the topic stated in the title. The research is based on dialectical system approach, as well as logical analysis, the use of general scientific methods and the use of methods of retrospective analysis. The authors used analytical materials and data from investment platform portals.

Results Problems in the field of climate change, the level of environmental pollution, the exhaustibility of natural resources, overpopulation, poverty, hunger, the importance of responsible consumption—all these are challenges for all mankind. Environmental and social problems are developing quite dynamically, and their aggravation causes the interest of countries in ESG-principles that allow to take into account the impact of companies’ activities on the environment, the climate and society (Potapova & Kargina, 2022). The interest of the scientific community in the study of financing for sustainable development in recent years has revealed a large number of controversial issues.

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As is well known, the achievement of the Sustainable Development Goals is aimed at eradicating poverty, conserving existing resources and ensuring well-being for all. Practically applying the economic model of corporate sustainability, SDGs can strengthen economic incentives to spend resources more efficiently or pursue safer alternatives. The entrepreneurial sector cannot thrive in a depressed society and the investment flow, aimed at achieving the SDGs, supports the fundamentals of a successful business, including: a transparent financial system, regulated markets, and non-corrupt and governable institutions (SDG Compass, 2015). The process of ensuring investment attractiveness and maintaining an acceptable financial position is a set of actions aimed at the establishment, formation, maintenance and prevention of decline in a target level of integral factors at all stages of business entity life cycle. The performance efficiency of a company depends on a large number of factors, a number of which act as integral. Financial position of a company is a complex financial performance indicator. Calculation of the integral indicator of financial position requires a fairly voluminous and cumbersome arithmetic, as well as access to a large amount of information. That is why the authors proposed to use the operational efficiency indicator in order to measure the integral indicator that characterizes the efficiency of economic activity. The operational efficiency indicator is the ratio of companies’ revenues from the sale of goods, works, services of the studied company to the costs of producing and selling goods, works, services (Voronov, 2015, p.27). The efficiency of economic activity can be identified as a complex indicator of success and, along with indicators of operational efficiency and strategic positioning, should take into account the influence of non-financial factors on financial success. According to the authors, the key non-financial factors should include factors of innovative potential and sustainable development of the company. Another indicator of great interest is a composite indicator of sustainable development of the industrial enterprise, that is measured as a geometric mean of economic, environmental, social and risk sustainability, proposed in Khomyachenkova (2010). A procedure for calculating the integral indicator of innovative potential, which includes intellectual property security coefficient, innovative products share index and innovative growth coefficient, is presented in Kunin et al. (2018). The aforementioned determines the increase in the efficiency of economic activity and financial attractiveness with an increase in indicators of sustainable development and innovation potential. And increased financial attractiveness, in turn, can have a positive impact on the ability of companies to raise additional financing. In other words, these indicators are interdependent and have mutual influence. A promising solution that is gaining popularity in the Russian Federation is the use of investment platforms. According to Central Bank of the Russian Federation (2022), the growth rate of the crowdfunding market in 2021 was higher than in the previous year, that is demonstrated by an almost twofold increase in the volume of funds raised (from 7 billion to 13.8 billion rubles), and that was achieved by borrowers’ inflow from small and medium-sized businesses.

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The increase in interest in investment platforms was demonstrated by representatives of small and medium-sized businesses and in the first quarter of 2022, the amount of funds raised by them amounted to 68.7% of the total amount of funds. This dynamics of interest in attracting investment using investment platforms is due, among other things, to the fact that the Ministry of Economic Development of the Russian Federation has launched a program to reimburse part of the costs of small and medium-sized businesses to provide access to platforms for collective investment by providing subsidies to operators of the investment platform. Despite a lot of positive aspects of fund raising by using financial innovations in the form of investment platforms, expanding the amount of capital of the company, there is also a significant possibility of negative consequences from making such decisions. This probability may be due, first of all, to the increasing risks associated with the lack of financial position assessment and, consequently, capabilities assessment. In the research Rumyantseva and Tarutko (2022a, 2022b), it is presented that before concluding an agreement with a potential participant, an investment platform operator must identify such participant in accordance with the Russian Federation legislation requirements on countering the legalization of illicit gains (money laundering) and terrorism financing, and also must receive a confirmation from the investor that he is aware of possible risks related to investment activities via investment platform. After the check out, the operator enters into an agreement with the participant of the investment platform. The requirements for persons attracting investments using investment platforms specified in the Federal Law of 02.08.2019 N 259-FZ “On attracting investments using investment platforms and on amendments to certain legislative acts of the Russian Federation” note that they must not undergo bankruptcy proceedings, have outstanding convictions or disqualifications. Also, this legislative act specifies the possibility for clarification, since the borrower must also meet the requirements established by the rules of the investment platform. Among the requirements for borrowers in (LLC “National Investment Platform”, 2021) the only significant factor, from the perspective of financial performance, is the absence of losses of the company in the last accounting period, which in some way mitigate the risks of the investment platform, but not the risks of the borrowing company. And in the case of (JSC “DRAGA”, 2021; JSC “Reestr”, 2022; Investment platform LLC “Registrar “Garant”, 2021; Investment platform “My Capital”, 2021) there are no such restrictions. Thus, a company that attracts investments using investment platforms should be aware of the fact that they are unprotected from the risks due to the requirements of the investment platform, which is determined by the desire to attract to the platform as many companies as possible, and the degree of responsibility for making investment decisions when placing investment proposals on the platform. A comprehensive assessment of the efficiency of economic activity should be carried out in order to prevent risk realization that are borne by both an investor and a company attracting investments, but not by the investment platform. Among the results obtained in the research are:

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– an analysis of the requirements for borrowers imposed by various investment platforms was carried out and the conclusion was made that there are no restrictions on them from the perspective of the effectiveness of companies’ financial activities in these requirements; – to ensure a comprehensiveness assessment it is proposed to use a set of integral factors of companies’ effectiveness, including the definition of operational efficiency, strategic positioning, innovation potential, as well as a composite index of sustainable development; – the need to assess the effectiveness of company’s economic activities, which attracts investment using investment platforms in order to eliminate the exposure to risks that is not limited by the requirements of the investment platform, is justified.

Discussion Currently, taking into account the adjustments made to the system of global SDG indicators after their approval in 2017, their number is 231 SDG indicators (Sustainable Development Goals in the Russian Federation, 2022, p.3). As noted in (Sustainable Development Goals in the Russian Federation, 2022, p.40), in the Russian Federation special attention is paid to employment and support for small and medium-sized businesses, including within the framework of national projects. This policy allows to demonstrate positive dynamics among various indicators, for example, at the end of 2021 the labor productivity index increased by more than 10% compared to 2015. The unemployment rate decreased by 2.5% over 12 years, while showing a steady downward trend (except for 2020, the unemployment rate was affected by the Covid-19 pandemic) [ibid, p.41]. The number of advanced manufacturing technologies developed, that are new to the Russian Federation, has grown by more than 150% over the past decade, and the number of socially important infrastructure facilities with Internet access has increased by 35.7% in the past year. The number of small and medium-sized companies with debts to credit institutions has decreased by almost 1% over the year. We would also like to focus on the need to transition to sustainable consumption and production, because indicators in this area have a special place among the SDGs for a number of reasons, namely: – the business sector practically occupies the entire market, with the exception of some government and social spheres; – companies following the path of the SDGs are able to immerse their staff in the ideas of sustainable consumption, motivate them to follow those ideas, popularize it and, as a result, increase the values of sustainable consumption indicators within households. In fact, responsible consumption and production in conditions of increasing demand and population growth are the key factors in increasing economic competitiveness.

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The number of ecological and educational facilities in nature reserves and national parks, aimed at popularizing the SDGs, has grown by a third over the decade [ibid., p.64]. However, by the end of 2021, the amount of disposed and neutralized production and consumption waste shows a negative trend—a decrease of almost 6% compared to this indicator in 2017. The number of companies voluntarily posting non-financial reporting in open sources has increased by 74% since 2010 and reached 101 units. The role of technology in the field of ecology, aimed at protecting the environment and conserving resources, is to promote long-term economic prosperity and growth. According to the “Requirements for Verification of Sustainable (Including Green) Development Projects in the Russian Federation,” approved by Russian Government Resolution No. 1587 dated September 21, 2021, financial instruments of sustainable development include green financial instruments aimed at financing explicitly green projects in terms of international taxonomies, and adaptation financial instruments aimed at financing projects outside the first group, but corresponding with Russia’s national priorities in the field of ecology and climate change (Potapova & Kargina, 2022). However, the analysis [ibid] of the international market has shown that in practice such instruments include many more, such as COVID-19 bonds; sustainable bonds; green credits and others. It is the absence of a formalized approach to determining whether financial instruments belong to the SDGs that complicates the analysis of the market for such instruments. In the formation and development of the enterprise, the satisfaction of the needs of the state, participants, employees, the most important role is given to the capital of the enterprise. The development of measures to improve the efficiency of the capital is listed among the primary tasks of financial management. Attracting additional financing aimed at the development of integral non-financial factors, in any case, is fraught with risks. Many authors note that most of the “green technologies” today are economically less profitable, and investments in them are riskier than in traditional “brown” technologies (Bigerna et al., 2019; Taghizadeh-Hesary & Yoshino, 2019).

Conclusion The main constraint on the entrepreneurial sector’s pursuit of sustainable development is the lack of standardized forms and an elaborate regulatory framework for the preparation and provision of non-financial reporting. Along with the lack of standards for providing information, the barriers to the dynamic ESG-transformation of the corporate sector include an insufficient degree of transparency of non-financial information, the subjectivity of assigned ratings, the low level of competence of Russian entrepreneurs in the field of ESG. Ensuring transparency and comparability of information can be achieved by developing standards for the provision of non-financial information on sustainable development and ESG indicators. Such initiatives exist in the global practice, among

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them we can single out the following: European Union Directive on the disclosure of non-financial and diversity information, Global Reporting Initiative, Sustainability Accounting Standards Board and a number of others. There are cases when a business voluntarily compiles reports in accordance with several standards. In other words, the market has formed a request for the creation of a single unified system of standards (Rumyantseva & Tarutko, 2022a, 2022b). The untimely reaction of a business entity to changes in the external environment can cause serious damage to its financial position. As stated in (Rumyantseva et al., 2020), company’s management should improve the corporate financial control in the direction of increasing flexibility and reducing the inertia of response to control actions, which can be facilitated not only by maintaining financial performance at an acceptable level, but also by phased investment in the development of non-financial integral factors. The development of innovative potential and following the path of sustainable development can create additional competitive advantages of business entities and consider future competitive opportunities associated with the level of innovativeness of the enterprise. The ability to successfully compete in the future with companies that actively implement innovations and SDCs in their activities, achieved through the development of the above-mentioned integral factors, determines the need to finance the development of innovative capacity and sustainable development of companies. Further research should focus on overcoming one of the primary problems limiting the development of sustainable development principles, namely the development of unified standards for the provision of non-financial reporting, as well as the adjustment of the generalized indicator of sustainable development of industrial enterprise to better adapt its application in the sphere of small and medium enterprises.

References Abdul-Azalova, M. Y. (2021). Integrated assessment of enterprise business processes: A fuzzymultiple approach. Academic Research in Educational Sciences, 2(9), 764–770. https://doi.org/ 10.24412/2181-1385-2021-9-764-770 Bevan, O., Freiman, M., Pasricha, K., Samandari, H., & White, O. (2019). Transforming risk efficiency and effectiveness. McKinsey. https://www.mckinsey.com/capabilities/risk-andresilience/our-insights/transforming-risk-efficiency-and-effectiveness Bigerna, S., Wen, X., Hagspiel, V., & Kort, P. M. (2019). Green electricity investments: Environmental target and the optimal subsidy. European Journal of Operational Research, 279(2), 635–644. https://doi.org/10.1016/j.ejor.2019.05.041 Boichenko, K. S., Klymenko, S. M., Terentieva, O. V., & Kuznetsova, N. B. (2020). Evaluation of integrated development of the enterprise. Bulletin of National Academy of Sciences of the Republic of Kazakhstan, 4, 140–148. https://doi.org/10.32014/2020.2518-1467.113 Central Bank of the Russian Federation. (2022). Overview of the crowdfunding market in Russia. Information and analytical material. https://cbr.ru/Collection/Collection/File/42097/ crowdfunding_market_01_2022.pdf (In Russ.)

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FWO Chartered Accountants. (2022). Understanding your efficiency factor. https://fwoca.com.au/ understanding-your-efficiency-factor/ Gabdullina, G., Gilmanov, M., Akhmetgareeva, A., Frolova, I., Yunusova, R., & Garaeva, R. (2022). Development of normative values of indicators for assessing the financial condition of enterprises in various industries. Transportation Research Procedia, 63, 1139–1146. https:// doi.org/10.1016/j.trpro.2022.06.117 Grechenyuk, A., Grechenyuk, O., & Polozhentseva, Y. (2015). The specificity of the problems of assessing the financial condition of Russian companies. Procedia Economics and Finance, 27, 230–234. https://doi.org/10.1016/S2212-5671(15)00995-8 Investment platform «My Capital». (2021). Investment platform rules. https://mycapital.ru/docs/v1/ rules-investment-platform.pdf (In Russ.) Investment platform LLC «Registrar «Garant». (2021). Rules of the investment platform LLC «Registrar «Garant». https://www.reggarant.ru/images/docs/invest-platforma/Rules_investplatform.pdf (In Russ.) JSC «Reestr». (2022). Investment platform rules. https://www.aoreestr.ru/upload/invest_platforma/ pravila_invest_platform.pdf (In Russ.) JSC «DRAGA». (2021). Rules of the investment platform JSC «DRAGA». https://draga.ru/wpcontent/uploads/2021/03/pravila_ip_iskra.pdf (In Russ.) Khomyachenkova, N. A. (2010). Modern aspects of monitoring the sustainable development of an industrial enterprise: Methodology and practice. Economic Research, 2. Kunin, V., Rumyantseva, A., & Tarutko, O. (2018). Conceptual framework for managing the competitiveness of the entrepreneurial structures. In MATEC Web of Conferences (Vol. 193, p. 05071). EDP Sciences. https://doi.org/10.1051/matecconf/201819305071 LLC «National Investment Platform». (2021). Rules of the investment platform «National investment platform». https://xn%2D%2Dh1ajh.xn%2D%2Dp1ai/app/assets/docs/pravila_ investicionnoi_platformy.pdf (In Russ.) Lundholm, R. J. (1991). What affects the efficiency of a market? Some answers from the laboratory. Accounting Review, 486–515. Metawa, N., Hassan, M. K., Metawa, S., & Safa, M. F. (2018). Impact of behavioral factors on investors’ financial decisions: Case of the Egyptian stock market. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/IMEFM-122017-0333 Nguyen, N. M., & Tran, K. T. (2021). Factors influencing business efficiency of steel firms: Evidence from Vietnam. The Journal of Asian Finance, Economics and Business, 8(1), 295–304. https://doi.org/10.13106/JAFEB.2021.VOL8.NO1.295 Potapova, E. A., & Kargina, E. V. (2022). The analysis of the Russian market of instruments of sustainable development financing and factors limiting its development. Science Vector of Togliatti State University. Series: Economics and Management, 1, 25–31. https://doi.org/10. 18323/2221-5689-2022-1-25-31. (In Russ.). Rumyantseva, A., Sintsova, E., Tarutko, O., & Vaganov, V. (2020, April). Corporate financial control transformation in the conditions of digitalization. In III International Scientific and Practical Conference “Digital Economy and Finances” (ISPC-DEF 2020) (pp. 157–160). Atlantis Press. https://doi.org/10.2991/aebmr.k.200423.034 Rumyantseva, A., & Tarutko, O. (2022a). Impact of the ESG principles on the corporate financial strategy. In Challenges and solutions in the digital economy and finance (pp. 309–318). Springer. https://doi.org/10.1007/978-3-031-14410-3_32 Rumyantseva, A. Y. U., & Tarutko, O. A. (2022b). Investment platforms and their role in the development of financial innovations. Economics and Management, 28(9), 912–922. SDG Compass. (2015). The guide for business action on the SDGs. https://sdgcompass.org/wpcontent/uploads/2015/12/019104_SDG_Compass_Guide_2015.pdf Sustainable Development Goals in the Russian Federation. (2022). Brief statistical compilation (87 p.). https://rosstat.gov.ru/storage/mediabank/SGD_2022_RUS.pdf (In Russ.)

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Taghizadeh-Hesary, F., & Yoshino, N. (2019). The way to induce private participation in green finance and investment. Finance Research Letters, 31, 98–103. https://doi.org/10.1016/j.frl. 2019.04.016 Vinnikova, I. S., & Kuznetsova, E. A. (2016). Features integrated evaluation of financial condition of the industrial companies in the current economic conditions. International Journal of Applied and Basic Research, 5–2, 302–305. https://s.applied-research.ru/pdf/2016/5-2/9243.pdf (In Russ.) Voronov, D. S. (2015). Evaluation of competitiveness of several enterprises. Izvestiya of the Ural Federal University. Series: Economics and Management, 2(2), 24–40. https://doi.org/10.15826/ vestnik.2015.14.2.013 Vu, Q., Hoang, T., & Le, T. (2020). The effect of different factors on investment decision of enterprises in industrial parts. Accounting, 6(4), 589–596. https://doi.org/10.5267/j.ac.2020. 4.001 Wanchai, P. (2019). An integrated approach to performance evaluation of enterprise resource planning (ERP) system implementation. Journal of Electronic Commerce in Organizations (JECO), 17(3), 1–15. https://doi.org/10.4018/JECO.2019070101 Yu, H., Zhao, Y., Liu, W., & Gao, L. (2021). Research on the investment efficiency based on grey correlation-DEA model. Annals of Operations Research, 1–20. https://doi.org/10.1007/s10479021-04341-4

Features of Financing the Green-Digital Way in Russia Elena Vitsko, Elena Sintsova

, and Mikhail Makarov

Introduction In Russia the transition to a green economy in connection with integration and globalization into the global digital economic system, as well as in accordance with the goals of sustainable economic development is simply inevitable (Novoselov et al., 2022; Orlov et al., 2021). In addition, according to the draft strategy for low-carbon development of Russia, a significant reduction in emissions should be achieved by 2050—by 79% from the current level and by 89% from the level of the 1990s; and by 2060 the country should achieve carbon neutrality. At the same time, the transformation from the “traditional” one is complicated by a number of reasons, and the main one is financing of the oil and gas industries transformation and, accordingly, the loss of part of the income of Russian producers of these resources as the world’s largest suppliers of hydrocarbons. According to the Economic Expert Group, last year changes in oil and gas revenues amounted to more than 70% in nominal terms and about 60% in real terms in “Federal budget revenues by main types of inflows”. Therefore, in modern realities, complicated by the sociopolitical and global financial crisis, it will be extremely necessary to preserve the “traditional” way for some time and transit fairly smooth to green-digital technologies aimed at diversifying business processes and developing new indigenous industries, for example, hydrogen, steam reforming and petrochemicals, with a reduced carbon component of the baseline, as well as gas projects with a low carbon intensity. In addition, Russian industry should be focused not just on the production of hydrocarbon raw materials, but on the creation of material resources and finished

E. Vitsko · E. Sintsova (✉) · M. Makarov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_7

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products with a wide range of processing industries (Antonizzi & Smuts, 2020; Makarov et al., 2020). Therefore, the introduction and development of the green-digital way in Russian economy seems to be a very relevant topic for research, and the assessment of the influence of factors for expanding the practice of its application is timely and necessary.

Materials and Methods The study uses an integrated approach to assessment of the green-digital way development and its financing in Russia. The authors use general scientific methods of cognition: analysis, synthesis of theoretical material and experimental data, detailing, systematization, classification, grouping, comparative analysis; economic and statistical methods, as well as the laws and principles of formal logic. The studies and recommendations were carried out on the basis of statistical data from Rosstat, the Ministry of Construction of Russia, the Regional Public Center for Internet Technologies, SKOLKOVO Moscow School of Management, etc. The econometric modeling tools that are used to assess the relationship between the Cities’ IQ Digitalization Index and environmental expenditures are the methodological basis to identify the characteristics and features of expanding the practice of the green-digital way.

Results The green economy within the framework of sustainable development has ac-quired not a terminological connotation, but a paradigm of the global economy development, where the main emphasis is on renewable natural resources and their smart use. In Russia, during the transition to a sustainable development model, special attention is paid to the introduction and development of a national model of a green economy, taking into account digital technologies. Thus, the digital and green economies should form a single “green-digital way”. Russian and international companies Gazprom Neft, Lukoil and NOVATEK, BP and Shell are examples of companies transformed into integrated energy ones, which seek to completely switch over or significantly reduce the use of oil and gas components in the technological process. In addition, such companies use BigData that allow automatic processing of large volumes of data, analyze and predict bottlenecks, create digital deposits, etc. (Chanias et al., 2019; Matt et al., 2015). In addition, Russia has the world’s first DAOIPCI blockchain ecosystem, where the main asset is a purchased carbon unit. The main goal of the ecosystem is to attract financial resources to innovative environmental projects and store information about their results, taking into account the use of the best available technologies. Alike

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system can be used to attract debt financing, for example, green bonds “placement”, environmental safety improvement, etc. Besides the main elements, financial institutions are also actively integrating into the green-digital way: at the ESG-(P)Evolution congress held in Moscow on October 14, 2021, it was stated that “green-digital” projects, for example, stations, built on renewable energy sources, receive financing on preferential terms. Corporate “green” banking in Russia has an “active” trend that is evidenced by the fact that in the first half of 2021 Russian financial institutions issued ESG loans for 400 billion rubles. In addition, the UNEP FI Principles of Responsible Banking operates in Russia. Sberbank, Gazprombank, Moscow Credit Bank, Home Credit Bank, Sovcombank, Tinkoff Group, Center-Invest Bank are guided by the principles of this program, built on “responsible financing” and “responsible banking”. In Russia less than 10 local banks have joined the UNEP FI Principles of Responsible Banking—mainly large federal and regional financial and credit organizations. Globally, the program includes almost 450 members of the “financial community”—more than 220 banks, insurance companies and investors, designed to mobilize private sector finance to solve global environmental problems. Thus, it is possible to conclude that it is necessary to gradually introduce ESG principles into the work of companies, both at the financial and industrial economic levels, especially for the energy industries. Although the results of the ESG Banking in Russia study conducted by the Association of Banks in 2021 showed that 80% of enterprises in the real sector of the economy do not consider introducing such practices in their activities in the near future. As for the financial sector, there has been a relevance of support from the state and the Bank of Russia to promote ESG banking. According to Expert JSC, 57% of financial and credit institutions consider the most necessary measures of state support to be the benefits for reservations and the reduction of risk weights for ESG loans, 30%—the availability of state subsidies for lending to such projects; in addition, tax incentives are mentioned, etc. Assessing the work of in-country banking, it is possible to point out that in local financial institutions there is a clear trend towards the introduction of electronic paperflow—it is typical for Sberbank PJSC, Moscow Credit Bank, Home Credit Bank, etc. As for the latter, the annual economic effect from such a transition is more than 1 million sheets of paper saved. At the same time, the analysis of the documentation is carried out by the Electronic Office, and the intra-bank client payment transactions are processed by the robot. With this kind of implementation, there was an acceleration of settlement and payment transactions and a reduction in paper carriers of the corresponding transaction registers. In addition, Russian banks use not only “green-digital” settlement and payment transactions, but also settlement and payment means. For example, back in 2018, the same Home Credit Bank issued a “Green Benefit” card made of biodegradable plastic. Using this card its holders receive an increased cashback if they buy “green” products.

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In Russia as a whole over the past year, approximately 30% of the turnover of debit cards and more than 20% of the turnover of credit cards were tokenized, i.e. their application is carried out without their physical presentation. According to the Central Bank forecasts, in the near future more than half of the cards will be digital ones. In the current situation, of course, the basis is the digital development of the local ecosystem, but an important role is played by internal and external social risks that affected the macro-, meso- and micro-levels of functioning and development of the economy in the healthcare sector (Sintsova & Vitsko, 2020; Zhang et al., 2016).

Discussion According to Rosstat and British Petroleum, in 2021 China, the USA, India, Russia and Japan are among the top five in electricity generation, dominated by oil, gas and coal, and this position has been maintained for several years in a row (see Fig. 1). Therefore, the gradual transition and development of the “green-digital” way will require significant additional funding and the transformation of the existing “traditional” way. As it was mentioned above, the green-digital way development is impossible without a financial component, so it is extremely necessary to analyze the relationship and interaction of environmental spending and the main elements of the green-digital economy in the analysis of this issue (Litvinov et al., 2019; Levina et al., 2015). Considering factors—indices for combining digitalization, greening and financial costs, the authors came to the conclusion that the Cities’ IQ Digitalization Index will be the most comprehensive. The Index is calculated for 203 Russian cities participating in the Smart City project and includes 10 areas of sub-indices, namely, innovations for the urban environment, intelligent systems for public and environmental safety, intelligent systems for social services, etc. with an assessment of 47 indicators. Thus, this Index includes digital and environmental components. Of course, it is possible to consider the Business Digitalization Index that characterizes the speed of business entities adaptation to digital transformation. It includes Information security as four private index, but environmental security is not included in this Index, although this Index is more in line with the green-digital way. In addition to this Index, the authors also consider the Digital Russia index

Fig. 1 World leaders in electricity generation, (dominated by oil, gas and coal, %)

China - 29.0% USA - 16.0% India - 5.8 % Russia - 4.0% Japan - 3.7% Other contries - 41.5%

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Table 1 Dynamics of the Business Digitalization Index and Digital Literacy Index of Citizens of the Russian Federation Year Business Digitalization Index, % Digital Literacy Index, points

2015 – 4.79

2016 – 5.42

2017 28 5.99

2018 31 5.41

2019 45 7.15

2020 50 7.25

2021 51 6.9

Source: According to SKOLKOVO Moscow School of Management and RPCIT

Business Digitazation Index, %

Business Digitalization Index 70 60 50 40 Line 1

30

y = 0.5x2 + 5.5x + 21 R² = 0.9413

20

Polinomial (Line1)

10 0 0

2

4

6

Year Fig. 2 Dynamics of the Business Digitalization Index and forecast values in 2021

developed with the participation of SKOLKOVO Moscow School of Management, calculated for 85 constituent entities of the Russian Federation, taking into account seven sub-indices within the additive model, including, by analogy with the previous five sub-index, Information security, but not the environmental one. Analyzing one of the most generalizing indices—the Digital Literacy Index of Citizens of the Russian Federation, developed by the Regional Public Center for Internet Technologies (RPCIT), that is a three-component model formed on the basis of 20 key indicators, it is possible to come to the same conclusion as considering the previous Index. The sub-index of digital consumption, the sub-index of digital competencies and the sub-index of digital security as factors do not provide for the inclusion of an environmental safety indicator. At the same time, this Index considers the general level of society digitalization. According to the dynamics of the Business Digitalization Index and Digital Literacy Index of Citizens of the Russian Federation, given in Table 1, it is possible to make the corresponding graphic illustrations. An analysis of graphic illustrations of the dynamics of the Business Digitalization Index and Digital Literacy Index of Citizens of the Russian Federation (see Figs. 2 and 3) showed that the coefficient of determination in both Indices has the highest value according to the polynomial trend. As for the forecast value obtained according to the formed trend, it amounted to just over 60% for the Business Digitalization Index and 8 points for the Digital Literacy Index of Citizens of the

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Digital Literacy Index of Citizens of the Russian Federation, points

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Digital Literacy Index of Citizens of the Russian Federation 9 8 7 6 5 Line 4 y = 0.0363x2 + 0.2294x + 4.649 3 R² = 0.8213 Polinomial 2 (Line1) 1 0 0 2 4 6 8 Year

Fig. 3 Dynamics of the Digital Literacy Index of Citizens of the Russian Federation and forecast values in 2021

Russian Federation. At the same time, in 2021, according to the results of a study with the participation of SKOLKOVO Moscow School of Management and others, the actual value of the Business Digitalization Index was 51%; and according to the Regional Public Center for Internet Technologies, the value of the Digital Literacy Index was fixed at 6.9 points. The decline in both Indices occurred including due to reducing the digital security sub-index, with the only difference being that in the first case it applies to the population, and in the second case to the companies that do not use any means of information protection, the share of which increased by 11% over the year and amounted to about 28% and those business entities that do not have an approved information security policy—their share has increased from 60% to 67%. At the same time, it should be pointed out that active steps are being taken in Russia to create infrastructure and increase the digital literacy of the population, from the implemented training programs to the development of functional structures—financial and credit, housing and utility, etc. (Dai et al., 2015; Perelet, 2019), and this, in turn, should lead to the transformation of their consumption, especially in the housing and utility sector when handling solid household waste. Thus, developing business digitalization coefficients, the authors consider it necessary to take into account the presence of an environmental indicator within regional clusters, for example, as part of the safety factor formation. Further research of the authors concerns making the connection between the Cities’ IQ Digitalization Index and environmental spending. Table 2 presents data that can be used to make connection alike. The non-linear regression model of the parabolic function, obtained on the basis of the data in the table using the least squares method, is a polynomial of the second degree (because the values of the determination coefficients are slightly lower in the linear, logarithmic, exponential and degree trends than in the considered one). It has the following form: ŷ = 1.62 × 2-100.4x + 2264, the coefficient of determination

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Table 2 Data to make the connection between Cities’ IQ Digitalization Index and environmental spending Year 2018 2019 2020 2021

Cities’ IQ Digitalization Index, points 33.12 40.73 44.17 46.12

Environmental spending, RUB bn 720.91 871.99 996.14 1091.53

Source: According to Rosstat and the Ministry of Construction of Russia

(R2) is over 0.9, and the calculated value of Fisher’s F-criterion of 499.5 is more than the critical one of 199.5 (when α = 0.05), which indicates the significance of the factors included into the model. Even in view of the small sample, the Cities’ IQ Digitalization Index has been calculated since 2018, the average approximation error was less than 1%, namely 0.89%, which means that the constructed regression equation is highly adequate. In addition, evaluating the development by the coefficient a2 = 1.62 (ŷ = a0 + a1x + a2x2), it is possible to indicate that there is an acceleration in the development of the studied processes. Thus, the impact of information and communication technologies on greening, taking into account the corresponding costs for environmental protection, will only increase as these resources penetrate, but at the same time, the Cities’ IQ Digitalization Index under consideration is aimed at developing urban infrastructure, and not industry as a whole. The analysis showed that Center for Scientific and Technical Information of Lomonosov Moscow State University is developing the National Index for the Digital Economy Development (the index of the same name was developed by Rosatom State Corporation and was included in the Digital Economy National Project). The developers of the “new” Index indicate that, in addition to the regional digital transformation, it also takes into account the financial component: the public and banking sectors. The authors believe that in its formation it is extremely necessary to take into account the ecological transformation, in the light of technogenic and natural-climatic factors. As it has been already seen in Russia, spending on environmental protection had a certain tendency to increase. According to the “Strategy for the Digital Transformation of the Ecology and Nature Management Industry”, resource provision within the framework of the federal budget and extra-budgetary funds increased by 6338.5 billion rubles in 2022. At the same time, in 2023, compared to the previous period, funding will be reduced by 16.7%, and in 2024, also compared to the previous year, funding will decrease by two times. In addition, the problem of waste management is currently acute (Girard & Gravagnuolo, 2017; Ozili, 2021; Tagaeva & Kazantseva, 2021; Saarinen & Aarikka-Stenroos, 2022). The State Environmental Protection Program is functioning in Russia, in the context of which the Ecology Project is being implemented. It aimed at efficient waste management, elimination of unauthorized dumps in cities

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and reduction of air and water pollution, organization of specially protected natural areas, etc. National Project covers a number of areas, such as: Waste, Water, Air, Biodiversity and Technologies. The Project finances investments in the construction of processing facilities, but it also tends to be reduced; last year, compared to the previous one, funding decreased by 12 billion rubles, this year it is planned to reduce it by 17 billion rubles compared to the previous year. Therefore, the authors come to the conclusion that the presence of private investment capital and the creation of a favorable environment for its functioning in the current situation is extremely necessary. Considering such engagement for specific economic entities, for example, for Citymatic-Yugra LLC and Commercial Real Estate JSC of Garant-Invest Financial and Industrial Corporation—issuance of “green” bonds, as well as for Russian Railways—issuance of “green Eurobonds”, corresponding to the principles of green bonds (GBP) of the International Capital Markets Association (ICMA), the authors register a certain trend in the presence of “specific” players in the market, for whom the principles of ecology and social responsibility are quite relevant. At the same time, a slight increase in the number of these “players” can also be registered, as at the end of August last year, 103 Eurobonds were traded on the Moscow Exchange, 86 of them were corporate and 17 sovereign ones; at the end of 2020 there were 70 securities alike, 54 of them were corporate and 16 sovereign ones. As mentioned above, green-digital projects require certain costs and often do not guarantee high returns, so investors are wary of such securities. All of the above indicates that the state needs to stimulate the activity of business entities, as well as to form the “transparency” of the environment for their functioning. Decree of the Government of the Russian Federation dated April 30, 2019 No. 541 “On Approval of the Rules for Providing Subsidies from the Federal Budget to Russian Organizations to Reimburse the Costs of Paying Coupon Yield on Bonds Issued as Part of the Implementation of Investment Projects for the Implementation of the Best Available Technologies” confirms the expansion of the practice of using “green” debt instruments in the economy. Certain steps for the development of the financial market infrastructure are also being taken by its institutional entities. Thus, the Moscow Exchange and the Russian Union of Industrialists and Entrepreneurs have developed the following Indices: Responsibility and Openness and Vector of Sustainable Development that are interconnected. The calculation base for the latter includes shares of companies that demonstrate the best dynamics of indicators in the field of sustainable development and corporate social responsibility in the current situation of information disclosure, namely, enterprises in the following sectors of the economy: Metallurgy and Mining, Oil and Gas, Power Industry, Communications and Data Transmission, Banking and Finance, Chemistry and Petrochemistry, etc. The weight in the Index is determined by market capitalization, taking into account free-float, currency of payment is rubles. According to the authors, the index has been very volatile over the past 3 years: in 2019 its annual average value was 0.19, in 2020—0.33, and in 2021—0.28. This situation has developed due to the presence of social and financial crises in modern economic realities, given their global scale.

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Assessing the situation on the “green” debt market, its main issuers selling issues on the Moscow Exchange (MOEX) should be emphasized: Center-Invest PJSC CB, Garant-Invest FPC, SFO RUSol1 LLC, with a declared minimum yield of instruments from 8.00% to maximum 16.02% per annum, for example, the yield of instruments on the London Stock Exchange (LSE) varies from 0.00 to 15.00%, as well as issuers of the non-financial sector, represented by companies: Norilsk Nickel MMC, Russian Railways JSC, Gazprom PJSC, RusHydro PJSC, etc.

Conclusion In the above study, the authors conclude that in Russia there are all the necessary infrastructure elements for the ESG banking development, there is a potential for sustainable financing, but there is a lack of methodological inventions for assessing key indicators of interaction and interdependence of the financial and real sectors, especially the energy sector, as well as a lack of unified approaches to the formation and disclosure of non-financial information. In addition, digitalization and greening are closely related to each other, and the influence of information and communication technologies is only increasing as they penetrate into all spheres of society, and environmental spending contributes to the expansion of the introduction of the “green-digital” way. The article examines the relationship between the above factors and concludes on the development of elements of digitalization, greening and financing within a single result. The analysis showed that local “green” projects are financed through bonds, taking into account sustainable development indicators based on the Russian taxonomy with a wide list of criteria important for the Russian carbon-intensive economy. Thus, the authors conclude that the sector of “green” debt instruments has certain opportunities for development, provided that incentives for the active use of the best available technologies (BAT) are strengthened and the intensive expansion of environmentally friendly industries.

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Innovative Transformations Management in Organizations in the Context of Its Sustainable Development Under Digital Transformation of the Economy Vladimir A. Kunin and Alexey A. Pestrikov

Introduction The current stage of economic development is characterized by the need to meet the triad of requirements of the modern market: – reduction of decision-making time (T2D); – reduction of decision execution time (T2E); – fast product launch to the market (T2M). The implementation of these requirements is impossible without innovative transformations, which in conditions of rapid changes, high market volatility and uncertainty are associated with high risks. The mentioned external factors create barriers to the harmonious provision of the economic, environmental and social components of the concept of sustainable development and create a threat of loss of financial stability of the organization. In this regard, the support of innovative transformations of the organization by monitoring key indicators of the result and efficiency of entrepreneurial activity and the adequate use of modern digital services and tools for the successful implementation of the principles of the concept of sustainable development is of particular relevance. The objective of this research is to develop recommendations on the formation of index system for effective innovative transformations management in organizations and the practical application of modern digital technologies to ensure the implementation of Sustainable development principles. Studies of performance indicators conducted earlier and, for example, outlined in (Maltz et al., 2003; Spitzer, 2007) contain quite exhaustive information about the methodology of forming a system of indicators and evaluating the

V. A. Kunin · A. A. Pestrikov (✉) Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_8

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effectiveness of the organization, but they do not allow us to evaluate the use of the latest knowledge, the volume of which doubles every 10–15 years in the modern world. In particular, this applies to knowledge in the fields of knowledge-intensive and innovative management areas, the latest hardware for management initiatives, as well as geopolitical and economic trends. To achieve this goal, the following tasks were solved in the article: identify and systematize key indicators of the result and efficiency of entrepreneurial activity that require monitoring in the implementation of innovative transformations of the organization; identify the most promising areas of application of digital services and tools for the implementation of the principles of the concept of sustainable development; to formalize the advantages and disadvantages of using cryptocurrencies and to give recommendations on the energy efficient organization of the mining process; to give recommendations on the practical application of recurrent neural networks for solving problems of forecasting commodity—cash flows and accounts receivable management.

Materials and Methods In this article the methods of a systematic approach, comparative, factorial and logical analysis, synthesis, are applied in order to identify and systematize key Sustainable Development Indicators and to reveal the most advanced digital technologies that are aimed at achieving Sustainable Development Goals and reaching synergies of the joint application of the sustainable development methodology and these technologies. To solve the tasks set in the article, the data provided in the Russian and foreign scientific literature, including publications from the Scopus database, are used. This article uses methods of a systematic approach, comparative, factorial and logical analysis, synthesis, on the basis of which key indicators of sustainable development are identified and systematized and the most promising digital technologies aimed at achieving the goals of sustainable development and the synergetic effect of the joint application of the methodology of sustainable development and these technologies are identified. To solve the tasks set in the article, the data provided in the Russian and foreign scientific literature, including publications from the Scopus database, are used. The formation of a system of key indicators and the most promising digital technologies is carried out on the basis of a reductionist approach, which provides for the solution of these tasks for each of the four selected components of the organization. In addition, the authors apply an adaptive approach to the formation of a business model of sustainable development of the organization, based on the identification and systematization of trends in the development of the modern VUCA world, characterized by high variability and uncertainty.

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Results The current conditions of economic and business development in Russia and in the world dictate the need to radically revise the approach to the operational management of the organization and methods of strategic planning, in order to ensure its competitiveness and achieve sustainable development goals. Business models focused on the “race for the leader” are untenable in modern conditions. Following such business models only aggravates the lag behind leading organizations that actively implement and apply innovative approaches and technologies in their economic activities. The essence of innovative transformations in the organization is the use of either new (not previously used) methods of influencing the administrative, economic and socio-cultural sectors Innovative transformations of an organization have a significant, and in many situations, decisive impact on key indicators of results and efficiency of entrepreneurial activity and, as a result, on the competitiveness of the organization. Moreover, this impact in the short, medium and long term may be different. In particular, the implementation of investment projects aimed at innovative transformation of the organization usually requires the involvement of large credit resources. Servicing the debt that arises in this case can lead in the short and medium term to a temporary subsidence of key profit and profitability indicators that characterize the results and efficiency of entrepreneurial activity. At the same time, in the long term, the use of these resources is a factor in the growth of these indicators and, as a consequence, a factor in ensuring the competitive development of the organization. The issues of forming a system of indicators of the result and efficiency of entrepreneurial activity are considered in many works of Russian and foreign researchers. Based on the generalization of these results, it is possible to identify key indicators that require monitoring in order to implement the principles of sustainable development. The selected indicators are summarized in Table 1. The following designations are used in Table 1 and below: RN—revenue–net; GR—revenue–gross; TCP—technological cost; MCE—amount of management and commercial expenses; BOEI—balance of other income and expenses; IT—income tax; DP—dividend payments; VC—variable costs; DP—interest payable; DC— depreciation charges; RNP—reinvested net profit; EC —the average amount of equity for the period of profit; A—the average amount of assets for the period of profit; BC—the average amount of borrowed capital for the period of profit; N — average number of employees. In order to ensure the implementation of the principles of sustainable development, it is advisable to supplement the above system of indicators with key indicators of risk factors for loss of financial stability. Based on the analysis of financial security factors and the specifics of the impact of operational and financial leverage, given in Kunin (2015), we can distinguish these indicators, which are summarized in Table 2. The following designations are used in Table 2: RN—revenue, RBEP—revenue– net at the break-even point; FC—fixed costs; TC—total costs.

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Table 1 Key indicators of the result and efficiency of entrepreneurial activity Result indicators Name and designation Gross profit CP

Evaluation formula EP = RN - TCP

EFS Sales Profit

EFS = CP - MCE

Profit before tax EBT

EBT = EFS + BOIE

NP net profit

NP = PBT - IT

AP Retained earnings

AP = NP - DP

Margin profit

MP = TC - VC

Earnings before interest and taxes EBIT Earnings before interest, taxes and amortization EBITDA

EBIT = EBT + DP

Performance indicators Name and Evaluation designation formula SGI Sustainable SGI = RNP EC Growth Ratio NP Return on equity PFS = EC ROE Return on assets ROA = NP A ROA NP ROS return on ROS = RN sales EP Profitability of ROP = TCP production ROP Net profit per NPW = NP N employee NPW

EBITDA = EBIT + DC

Table 2 Key indicators of risk factors for loss of financial stability Key indicators of risk factors for loss of financial stability Name and designation Evaluation formula Safety factor SF SF = RN -RNRBEP
100

Operating Leverage ratio OLR Financial leverage ratio (financial leverage) FLR

OLR =

FC TC

FLR =

BC EC

Note Shows how many percent an organization can reduce revenue and remain in the profit zone at the same time It is determined by the share of fixed costs in the total costs of the organization It is determined by the amount of borrowed capital per unit of the organization’s own capital

Particular attention should be paid to indicators of the impact of operational and financial levers when managing the risk of loss of financial stability. The joint action of levers during innovative transformations of an organization in conditions of uncertainty and increased exposure to external risks can lead to a loss of financial stability. Among the most dangerous external risks, it is necessary to highlight the risk of deterioration of market conditions and the risk of an increase in the cost of credit resources. As you know, the attraction and use of credit resources necessary to finance innovative transformations of the organization is associated with a change in financial profitability. This change is determined by the effect of financial leverage, estimated by the formula 1:

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Table 3 Key indicators of principles of sustainable development implementation Class of indicators Indicators of technological development

Indicators Coefficient of renewal of fixed assets Kufa Power utilization factor Kpu

Performance indicators of strategic initiatives

Human resources management performance indicators Indicators of efficiency and effectiveness of management

Technological automation coefficient Kta Coefficient of implementation of strategic initiatives Kst Frequency of iterations related to feedback from clients and team ƒ The cost of attracting one client or user CAC Employee Net Loyalty Index eNPS Staff turnover rate Kt Management effectiveness coefficient Kmr Efficiency coefficient of the organizational structure Ko Management cost ratio Ke

E fl = ð1- TRP Þ
ðER- Rc Þ


BC EC

Evaluation formula K ufa = K pu =

Cp C ep

K ta =

Pu PΣ Na NΣ

K si =

N si N rsi

f=

Na T

CAC =

E NCA


100

eNPS = P - D Kt =

Nd N

K mr = 1 Km =

PΣ Pm

Ke =

EΣ Em

Qv
L F t
EOF

ð1Þ

The sign of this effect is determined by the sign of the differential and in the case when under the influence of external negative factors the effect becomes negative, it means that from a financial point of view, the attraction and use of credit resources was counterproductive, since it reduced the amount of profit per unit of equity of the organization. The combined impact of the risks of market deterioration and the rise in the cost of credit resources reduces the economic profitability of the organization in terms of net operating profit and increases the interest rate of credit. This can cause a sharp change in the sign of the financial leverage effect and lead to a loss of financial stability if the negative value of the effect in absolute terms exceeds the value of financial profitability before attracting and using borrowed capital. Along with the key indicators of the result and efficiency of entrepreneurial activity and the risk of loss of financial stability, the level of implementation of the principles of sustainable development, according to the authors, is characterized by the following classes of indicators: indicators of technological development, indicators of the effectiveness of strategic initiatives, indicators of the effectiveness of personnel management and indicators of efficiency and effectiveness of management, given in Table 3. The following designations are used in Table 3: Cp—the cost of fixed assets purchased during the reporting period; Cbp—the cost of fixed assets at the end of the reporting period; Pu—the capacity of the fixed assets used; P—the total capacity of

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Organization X Economics/Technology 25,0%

Ecology/Sociology 25,0%

Strategy/Business Idea 25,0%

Management/Tactics 25,0%

Fig. 1 Graphic illustration of the components of the organization

fixed assets; Na—the number of production equipment with automation of installation and removal processes; N—total number of production equipment facilities; Nrsi—number of implemented strategic initiatives; Nsi—the total number of strategic initiatives; Na—the number of iterations associated with feedback from customers and the team for a given period of time; TE—the cost of attracting new customers or users for a given period of time; NCA—the number of new customers or users attracted for a given period of time; P—the percentage of employees loyal to the organization; D—the percentage of employees who are critical of the organization; Nd—the number of employees dismissed during this period; N—the average number of employees; Qv—costs per period per manager; Ls—the proportion of managers in the total staff; Ft—capital ratio; EOF—capital return. Wvd—the number of works with broken deadlines, W—the total number of completed works; E—total personnel costs; Em—management personnel costs. Thus, as a result of the analysis of indicators reflecting various aspects of the economic activity and functioning of the organization, the key indicators that most fully reflect the sustainability of its condition and require monitoring are identified and systematized in the context of the implementation of the principles of sustainable development in the process of its innovative transformations. Socio-economic systems, to which organizations belong, are complex multifactorial systems subject to random external influences. To determine the criteria for the stability of such systems, it is necessary to identify their essence and specifics. With regard to organizations, the authors propose to adhere to the principle of reductionism, focused on conducting research on the components of the system, followed by the dissemination of the research result to the system as a whole. In this context, it is proposed to present a modern organization as a set of equilibrium components, each of which can have a significant impact on the indicators of sustainable development. A graphic illustration of the individual components of the organization is shown in Fig. 1. The correspondence of key indicators of sustainable development to individual components of the organization is presented in Table 4.

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Table 4 Compliance of key indicators of sustainable development with individual components of the organization Component of the organization Economics/ technology

Strategy/business idea Ecology/sociology Management/ tactics

Class of indicators of sustainable development Key indicators of the result and efficiency of entrepreneurial activity Key indicators of risk factors for loss of financial stability Key indicators of technological development Key performance indicators of strategic initiatives Key performance indicators of personnel management Key indicators of efficiency and effectiveness of management

Note The indicators of this class are given in Table 1 The indicators of this class are given in Table 2 The indicators of this class are given in Table 3 The indicators of this class are given in Table 3 The indicators of this class are given in Table 3 The indicators of this class are given in Table 3

When managing the innovative development of an organization, it is important to identify the most promising digital technologies, the use of which is most appropriate for achieving sustainable development goals. A number of publications in the scientific literature and, in particular, such works as Makarov et al. (2020), Nadkarni and Prügl (2021), Tashenova et al. (2019), Vite and Morbiducci (2021), Wysokinska (2021), etc. are devoted to the problem of the study of promising digital technologies in relation to solving various industrial and economic tasks. However, these and other publications do not focus on the most promising technologies for solving sustainable development problems, although this issue has its own specifics and requires separate research. In the article, in relation to the implementation of the Sustainable Development Goals, the authors identify the four most promising digital technologies in their opinion: – – – –

blockchain machine learning cloud technologies 3D printing

In the context of achieving the Sustainable Development Goals, we will identify and explore promising areas of application of these technologies for the components of the organization.

Economics/Technology In the context of strong changes in economic and financial relations, and active entry into the financial markets of cryptocurrencies, there is a need to explore the

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advantages and disadvantages of their use using blockchain technology in the context of implementing the principles of the concept of sustainable development. Firstly, the blockchain technology underlying the functioning of cryptocurrencies allows you to exchange payment information and make transfers (Laurent et al., 2022), bypassing SWIFT, providing an acceptable level of reliability and reliability while avoiding external risks of disconnection from the payment system. with the ability to operate with various special tools and further convert them into national currencies. Secondly, the undoubted advantage of settlements in cryptocurrency is the absence of the need to pay for intermediary operations of the banking system, which allows to increase the profitability of settlement operations. To date, there are many sellers (Mayer, 2018) who accept various cryptocurrencies as official settlements for large supplies of raw materials and materials. the low volume of indirect costs and high marginality can increase the value of the ROE indicator by tens of percent. It follows from the above that cryptocurrencies can be considered as a tool for investment diversification and inclusion in the investment portfolio. However, cryptocurrencies have very high volatility, which makes them a high-risk (Sinyavsky, 2019). In addition, the use of various hardware for cryptocurrency mining is associated with high energy consumption and the allocation of thermal capacity. Artificial neural networks are an important innovative tool that can be effectively used to achieve the goals of sustainable development of an organization. They can, in particular, be used to solve problems of forecasting, classification, clustering, regression and a number of others. Thus, when evaluating the effectiveness of investment projects for the development of an organization, it is extremely important to ensure the reliability of forecasting the expected cash flows from the implementation of the project. Estimates of the performance indicators of investment projects are characterized by a high sensitivity of performance indicators and, above all, net present income to errors in forecasting cash flows. A certain improvement in the quality of forecasting can be achieved by using machine learning technology using artificial neural networks or neural network committees. Another possible aspect of the application of artificial neural networks is their use. to predict the terms of repayment, the probability of timely repayment and repayment of receivables in general, for which multi-factor models are traditionally used. To solve these problems, according to the authors, the use of neural networks with multiple nonlinear feedbacks between layers of neural-like elements and the ability of networks to implement machine learning methods involving the formation of an algorithm for the functioning of the network itself is promising. The authors propose to include in the neural network data a learning module that allows analyzing the data obtained based on the actual results of hypothesis testing. The use of high-precision methods of forecasting the reliability of counterparties and the probabilities of accumulation of accounts receivable can allow an organization to reduce the actual duration of the period of accounts receivable and increase business activity and profitability.

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Strategy/Business Idea The most important factor in the innovative transformation of an organization is the transformation of strategic approaches and way of thinking aimed at the competitive formation and development of the organization. One of the most well-known models of strategic planning and management is the Balanced Scorecard (von Leipzig et al., 2017), which is used to provide management with a quick but thorough overview of the company’s activities at the strategic level. The strategic models of the Business Model Canvas enterprise can be considered innovative for many industries in which attempts have been made to replace the classic long-term development strategy with them. We highlight two main advantages of these models: the simplified nature of the Business Model Canvas worksheet and the orientation of model users on the main idea of the company aimed at its competitive sustainable development. However, in our opinion, these models do not have sufficient flexibility necessary to ensure sustainable development in the modern VUCA world, characterized by high variability and uncertainty. In this paper, the use of an adaptive approach to the formation of a business model is proposed. In the conditions of the VUCA world, in the presence of a constantly changing internal and external environment, the formation of a rigid business strategy and its corresponding business model becomes counterproductive. In this regard, within the framework of the adaptive business model, the formation and approval of key blocks denoting the concept of the product and its main innovative properties are proposed. Other components of a business strategy should be initially defined as variable components, the choice of which is not predetermined, but allowed as an alternative hypothesis. Verification of these hypotheses can be carried out in advance when creating and using digital counterparts of the main business processes Using digital modeling of various business and social situations with different parameters of input and output data allows you to test hypotheses at the stage of business model formation and provide for different outcomes of business strategy implementation in most cases, with the exception of technological singularity. The use of an adaptive business model, with implemented hypothesis tests, can significantly increase the parameters of the organization’s stability in terms of CAC. In our opinion, achieving high values of this coefficient is significantly simplified due to the fact that attracting new customers is directly dependent on the implementation of various scenarios of user behavior and the response of the organization to them, including the adaptation of the business strategy. An important factor in increasing the flexibility and efficiency of management is the organization of fractal business processes, characterized by a greater degree of freedom of decision–making than with conventional procedures for solving problems. At the same time, for large organizations, according to the authors, fractal business processes should be allocated to outsourcing enterprises, working out the allocation process using digital twins (Kunin & Lugert, 2022), the use of which will

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guarantee the quality of goods/services supplied and will contribute to the rapid launch of an outsourcing enterprise (Gault, 2019).

Ecology/Sociology For a modern organization, an important direction of innovative transformations is the development of a social internal structure, an ecosystem in which employees of different generations and worldviews are involved. Young specialists in a modern organization representing generation Z, especially if they are highly qualified and in-demand applicants, are sufficiently independent of financial remuneration, working location, social guarantees and other traditional corporate values. For such specialists, comfortable working conditions, high technical and resource support, as well as interesting and developing tasks are important. In this regard, qualified “talent management” comes to the fore for the organization. In this article, we propose to use a talent management system in a business strategy and implement it. into everyday processes. The recruitment and retention of employees cannot be assigned exclusively to the HR department, rather it should be practiced at all levels of the organization. The business strategy should include the responsibilities of line managers to develop the skills of their direct subordinates. In this regard, an important aspect of the company’s development should be the organization of informing employees about the goals and mission of the company and involving all employees in a team of like-minded people focused on achieving these goals. The talent management strategy can be supported by technologies such as HRIS (HR Management Information Systems) or HRMS (HR Management Systems). These systems provide a database in which complete records of all employee data are stored, which begin with the first point of contact with the employee and include reports on them to their management (Esangbedo et al., 2021). HRMS (Human Resource Information Systems) software helps HR department employees to perform a variety of talent management operations: from employee data management to payroll, recruitment, benefits management, training, HR process management, employee engagement and attendance control. However, due to the difficulties in acquiring and using imported specialized software and the need to pay for expensive accounts, many companies cannot afford to carry out productive personnel management. In this article, it is proposed to use universal cloud services and ecosystems, such as Google docs, yandex documents, etc., for effective personnel management. These services are widespread and most often free. Their use for personnel management purposes makes it possible for almost any employee of the HR department to set up and maintain information systems with mass or limited access. You can also attract middle-level programmers who are ready to develop an affordable, workable and effective HRIS for an affordable fee.

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The environmental component is also extremely important in the work of modern organizations, because along with reducing environmental risks, it affects the loyalty of staff and consumers to the brand. According to the authors, due to the introduction of modern digital technologies and, in particular, 3D printing technologies, a significant breakthrough can be achieved in solving the problem of waste recycling and the transition to a circular economy.

Management/Tactics As you know, a sustainable entrepreneurial ecosystem is an ecosystem that is focused on sustainable development (Aliabadi et al., 2022), which is possible when analyzing, filtering and, if necessary, correcting all incoming data. As noted above, the most important requirement of the modern market is the speed of decision-making. If a business generates a large amount of data, then a significant factor in increasing the speed of decision-making is the introduction of a CRM system with artificial intelligence elements aimed at processing large arrays of unstructured data for decision-making purposes and optimizing the company’s business processes. In modern conditions, not only the process of obtaining and analyzing information is important for a manager, but also its security. Therefore, in addition to monitoring the decision-making speed coefficient, for the effective use of data analysis systems, in our opinion, it is necessary to monitor the information security coefficient, which takes into account the amount of information generated, the number of local storage locations used and the frequency of updating backups. In the paradigm of the modern world and the high intensity of cybercrime, at least three main methods should be used: backup to physical media according to a schedule via a secure channel, backup to a cloud disk of a well-known IT operator and physical backup to a removable disk with disconnection from the local network.

Discussion The identification of key indicators of the result and efficiency of entrepreneurial activity, the use of which is recommended in this paper in order to implement the principles of sustainable development, is based on the following principles proposed by the authors: – unambiguity of interpretation of the selected indicators; – use of indicators in approved financial statements and generally accepted management accounting methods; – availability of standard indicator assessment software;

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– an end-to-end hierarchical structure of the allocated indicators, which allows to trace and take into account factor relationships between indicators of different levels of the hierarchy; The implementation of the latter principle is extremely important for managing the effectiveness of entrepreneurial activity on a multidimensional vector of non-orthogonal efficiency factors. The system of key indicators of risk factors for loss of financial stability includes indicators that determine the strength of the joint impact of operational and financial leverage and have a determining effect on the risk of loss of financial stability. In addition, the authors have included a safety factor in this system of indicators, which characterizes the financial strength of an organization with a deterioration in market conditions and a decrease in profitability indicators that determine the sign of financial leverage and, as a consequence, the impact of borrowed capital on the financial stability of the organization. The selected indicators of technological development in the article include a triad of indicators characterizing the levels of renewal, automation and use of technological capacities, which, according to the authors, most fully characterizes the technological development of the organization. The class of indicators of the effectiveness of the implementation of strategic initiatives includes indicators that characterize the degree and effectiveness of the implementation of strategic initiatives, as well as the attitude of customers to the results of this implementation. The class of indicators of the effectiveness of personnel management in the article includes indicators that characterize employee loyalty and staff turnover, which, according to the authors, most succinctly reflects the effectiveness of personnel management from the standpoint of minimizing personnel risks and ensuring the sustainable development of the organization. The system of indicators of efficiency and effectiveness of management includes a triad of indicators of management effectiveness, efficiency of organizational structure and management costs, which allows you to correlate the quality of management with the level of management costs. The practical application of modern digital technologies in combination with the organization’s focus on solving sustainable development problems gives a synergistic effect, manifested in a potential increase in the efficiency of economic activity and the organization’s resistance to the negative impact of increased external risks. At the same time, digital technologies require solving a number of problematic issues that hinder their implementation, and in some situations, compliance with the principles of the concept of sustainable development. Thus, high energy consumption in mining cryptocurrencies from the point of view of solving problems of energy, environmental and climate security is a negative factor, on the other hand, contributes to the development and implementation of innovations aimed at reducing the negative consequences of mining. In particular, BiXBiT has developed a solution that not only makes mining more comfortable, but also allows efficient use of heat based on the use of a so-called dielectric (immersion) liquid, which accumulates the

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heat generated and can be used to heat rooms. The average device that produces cryptocurrency mining consumes electricity and emits heat of at least 2000 W, which is comparable to the power of a heater used for heating 20 m2 of a building. A certain barrier to the practical application of machine learning methods using artificial neural networks to solve sustainable development problems is the rather high cost of developing and implementing problem–oriented neural networks and other tools for analyzing large amounts of data. In most situations, this makes these tools available only to fairly small businesses. However, further development of modern digital technologies and, in particular, affordable digital “low code” platforms will make the use of these tools more accessible. The problem of many companies today is that huge efforts are being made to attract employees to their company, but not enough attention is paid to the retention and development of talents. The use of open cloud solutions, coupled with the high practical efficiency of personnel and talent management information systems, allows the company to significantly (up to 30%) increase the eNPS coefficient, especially if it is a young innovative organization. For example, we can give OOO “Light”, with a matrix organizational structure. A 12-month retrospective analysis showed: – significant deviations in the effectiveness of the team with insufficient awareness on the part of the project manager – different efficiency and power of the team when working as a product owner – different resource costs of different teams when performing similar projects – lack of timely feedback and information about the work of other teams and the profits received. – staff turnover in the company due to low awareness and unclear tasks The information system of effective personnel management, created only by the head of the company and the HR manager without the involvement of third-party specialists based on google sheets, has become an important factor in improving the efficiency of the company’s business activities and increasing earnings before interest and taxes EBIT by 19.5 times. Based on the above, it can be concluded that in modern personnel-dependent organizations, where the main item of expenditure is remuneration, resource provision of personnel and the cost of attracting them, the most important factor for sustainable development is the creation of its own HRMS system. The use of 3D printing for waste recycling (in particular, plastic) allows the company not only to reduce disposal costs, but also to receive additional financial benefits from the sale of secondary raw materials. Due to the profit from the sale of useful waste, it is possible to significantly reduce the company’s costs for waste management services, develop the social component of its activities and also use the funds received to increase customer loyalty. For example, the company makes as a public offer information about the ability of customers to deliver containers from the products used and in return receive a 10% discount on the company’s goods. In turn, the company undertakes to recycle used packaging and help restore the environment. As a result, the company receives an increase in CAC and CRR indicators of customer loyalty. In addition, the

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company gets the opportunity to carry out paid waste disposal or independently recycle returnable containers. Introduction of domestic CRM—information collection and analysis systems (Bitrix 24, 1c) allows you to maintain information security and minimize the risks of losing access to the system in case of sanctions pressure, as well as reduce the indicators of the specific number of managers in the state Foreign experience in implementing solutions using artificial intelligence in Microsoft Dynamics 365 and a number of other CRM systems allows businesses to automate routine operations, reduce risks due to the possibility of processing large arrays of multidimensional information with subsequent visualization of the results obtained and increase the efficiency of economic activity. It is possible to fully assess the economic efficiency and feasibility of applying innovative transformations through classical methods of evaluating the effectiveness of investment projects based on discounted estimates. However, special attention should be paid to the accuracy and reliability of estimates of expected cash flows from the implementation of the project and taking into account the synergetic effect associated with the introduction of innovations. In the conditions of rapid changes characteristic of the modern stage of business and society development, the introduction of innovations is of key importance for the effective competitive development of organizations. The determining factors of competitive development of organizations are strategic positioning, operational efficiency and innovative potential. Ensuring competitive innovation potential requires constant innovation when using a flexible business strategy for sustainable development of the organization, modern innovative approaches to retaining and stimulating talented promising employees, constant attention to the social sphere and environmental friendliness of economic activity. At the same time, it should be borne in mind that the introduction of modern innovative production technologies, systems for storing and analyzing large amounts of data, machine learning methods using artificial neural networks and other innovative tools in many cases requires significant investment costs, which in conditions of uncertainty and economic instability is associated with increased risks of loss of financial stability. These risks are the highest for organizations characterized by a high level of structural risk due to the specifics of their activities, i.e. the risk of non-compliance of the cost structure with the market conditions. In this regard, a preventive assessment of the compliance of an increase in the level of fixed costs in the implementation of revenue growth strategies with the maximum allowable value of this increase, estimated by the formula (Kunin, 2015), is of particular importance. k crit =

bc - ðc- 1Þ, f

where kcrit—the critical value of the fixed cost growth coefficient; b—revenue growth rate;

ð2Þ

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c—the starting position determined by the ratio of revenue to the value of revenue at the break-even point; f—is a parameter determined by the change in the share of variable costs in revenue, and equal to the ratio of marginal profits before and after the change in revenue as a result of innovation. If the fixed cost growth coefficient exceeds the maximum allowable value, the considered revenue growth strategy should be considered counterproductive and adjusted, bringing the planned costs in line with the expected market conditions. Failure to comply with this recommendation may entail an unacceptably high level of structural risk and, as a result, the risk of loss of financial stability. In addition, attention should be paid to the importance of adequate forecasting of expected cash flows from the implementation of innovation and investment projects, which also requires the use of modern digital services and data analysis tools.

Conclusion To improve the process of managing innovative transformations of an organization, the article suggests a reductionist approach involving the representation of an organization by a set of four equilibrium components: “Economics/Technology”, “Strategy/business idea”, “Ecology/Sociology”, “Management/Tactics”. The application of this approach made it possible to build a system of key indicators of the effectiveness and efficiency of the organization’s sustainable development process and identify the most promising technologies for achieving sustainable development goals in the context of digital transformation of the economy, which the authors include blockchain, machine learning, cloud technologies and 3D printing. The article identifies and examines the advantages and disadvantages of these technologies, and the barriers preventing their wider dissemination. Based on the results of the research conducted in the article, recommendations are proposed aimed at the practical application of the proposed digital technologies in conditions of uncertainty and focused on reducing the risk of loss of financial stability in unstable environmental conditions.

References Aliabadi, V., Ataei, P., & Gholamrezai, S. (2022). Identification of the relationships among the indicators of sustainable entrepreneurial ecosystems in agricultural startups. Journal of Innovation & Knowledge, 7(4), 100245. https://doi.org/10.1016/j.jik.2022.100245 Esangbedo, M. O., Bai, S., Mirjalili, S., & Wang, Z. (2021). Evaluation of human resource information systems using grey ordinal pairwise comparison MCDM methods. Expert Systems with Applications, 182, 115151. https://doi.org/10.1016/j.eswa.2021.115151

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Gault, F. (2019). User innovation in the digital economy. Foresight and STI Governance, 13(3), 6–12. https://doi.org/10.17323/2500-2597.2019.3.6.12 Kunin, V. A. (2015). Managing the efficiency of entrepreneurial activity in conditions of economic instability. Uch. zap. International. banks. in-ta, 11, 87–97. (In Russ.). Kunin, V., & Lugert, N. (2022). Innovative approach to starting of outsourcing company. In Challenges and solutions in the digital economy and finance (pp. 37–45). Springer. https:// doi.org/10.1007/978-3-031-14410-3_5 Laurent, A., Brotcorne, L., & Fortz, B. (2022). Transactions fees optimization in the Ethereum blockchain. Blockchain: Research and Applications, 100074. Maltz, A. C., Shenhar, A. J., & Reilly, R. R. (2003). Beyond the balanced scorecard: Refining the search for organizational success measures. Long Range Planning, 36(2), 187–204. https://doi. org/10.1016/S0024-6301(02)00165-6 Mayer, M. M. L. (2018). Cryptocurrencies as an alternative asset class. Junior Management Science, 3(4), 1–29. https://doi.org/10.5282/jums/v3i4pp1-29 Makarov, M., Ivleva, E., Shashina, N., & Shashina, E. (2020, April). Transforming entrepreneurship factors and technologies in the digital economy. In III International Scientific and Practical Conference “Digital Economy and Finances” (ISPC-DEF 2020) (pp. 22–25). Atlantis Press. https://doi.org/10.2991/aebmr.k.200423.005 Nadkarni, S., & Prügl, R. (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71(2), 233–341. https://doi.org/10.1007/ s11301-020-00185-7 Sinyavsky, N. N. (2019). Cryptocurrency as an alternative investment tool. Interactive Science, 5(39), 56–58. https://doi.org/10.21661/r-496802. (In Russ.). Spitzer, D. R. (2007). Transforming performance measurement: Rethinking the way we measure and drive organizational success. Amacom Books. Tashenova, L. V., Babkin, A. V., & Mamrayeva, D. G. (2019). Digital transformation of industrial production in the context of Industry 4.0. Bulletin of Karaganda University. Economy Series, 96(4), 154–162. von Leipzig, T., Gamp, M., Manz, D., Schöttle, K., Ohlhausen, P., Oosthuizen, G., et al. (2017). Initialising customer-orientated digital transformation in enterprises. Procedia Manufacturing, 8, 517–524. https://doi.org/10.1016/j.promfg.2017.02.066 Vite, C., & Morbiducci, R. (2021). Optimizing the sustainable aspects of the design process through building information modeling. Sustainability, 13(6), 3041. https://doi.org/10.3390/ su13063041 Wysokińska, Z. (2021). A review of the impact of the digital transformation on the global and European economy. Comparative Economic Research. Central and Eastern Europe, 24(3), 75–92. https://doi.org/10.18778/1508-2008.24.22

International Legal and Economic Aspects of Ensuring Energy and Climate Safety in Modern Conditions Yuriy V. Mishalchenko, Timofey N. Dovbush and Maria Yu. Mishalchenko

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Introduction The need to ensure climate safety has become one of the priority tasks facing humanity in the twenty-first century. Global warming carries risks for humanity associated with the flooding of a significant number of coastal areas, changes in the conditions for agricultural production, aggravation of problems in the field of food supply, an increase in the scale of climate migration of people and the aggravation of local conflicts for access to natural resources and sources of drinking water. The efforts of one state are not enough to solve these problems; coordinated activity of the entire world community is required. In recent years, a number of important documents in the field of climate safety have been adopted at the international level, including the United Nations Framework Convention on Climate Change and the Paris Agreement. This UN Convention was, in fact, one of the first international acts aimed at the legal regulation of climate safety. Within the framework of this Convention it was supposed to fix greenhouse gas emissions at a safe level in order to provide a sufficient period for the natural adaptation of the environment to climate change and maintain sustainable economic development (Bardin et al., 2021). This international act reflected the specific obligations of a number of national states to ensure long-term climate safety, including financial obligations towards developing countries in the field of sustainable climate development.

Y. V. Mishalchenko · T. N. Dovbush (✉) Saint-Petersburg Institute (branch) of the All-Russian State University of Justice (RPA of the Ministry of Justice of Russia), St. Petersburg, Russian Federation M. Yu. Mishalchenko Saint-Petersburg State Marine Technical University, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_9

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In the future, to develop the provisions of this Convention, the Kyoto Protocol was adopted, within the framework of which an attempt to create a mechanism for rationing greenhouse gas emissions and a system of international reporting on the fulfillment of obligations in the climate sphere was made at the international level. Under the Kyoto Protocol, the participating countries have committed themselves to achieve by 2012 a reduction in greenhouse gas emissions by 5.2% compared to the 1990 level (Figures et al., 2021). At the same time, each state determined its obligations to reduce emissions, in particular, the Russian Federation undertook to maintain greenhouse gas emissions at the 1990 level. The Kyoto Protocol to the above Сonvention provided for economic mechanisms to encourage countries to green their production processes through international greenhouse gas emissions trading, mechanisms for joint clean development. Essentially, the Kyoto Protocol laid the foundation for the functioning of the international greenhouse gas market. This Protocol also created a legal basis for the implementation of projects to reduce greenhouse gas emissions in developing countries through investments from developed countries. During the 7th UN Conference on Climate Change, held in November 2001 in Marrakech, the countries participating in the UN Convention on Climate Change regulated a number of technical issues related to the implementation of the provisions of the Kyoto Protocol, in particular, the need to create national systems for estimating greenhouse emissions in countries and national registers for recording greenhouse gas emissions. Within the framework of this Conference, issues related to the transfer of technologies in the implementation of clean development mechanisms were also resolved, under which developed countries invest funds or transfer technologies to another state in order to reduce carbon emissions, and in return receive the right to additional emissions in their country in the amount of emission reductions in the host state. The Russian Federation ratified the Kyoto Protocol in 2004, and this legal act entered into force for the country in 2005. However, in 2012, when the first stage of the said Protocol expired, the Russian Federation, as well as Canada and Japan, refused to extend the validity of this international act for their countries for another 8 years. The main reason that prompted the Russian Federation to withdraw from the Kyoto Protocol was that the United States did not ratify this protocol, China also did not assume any obligations under this international act. At the same time, the United States and China jointly accounted for more than 40% of global greenhouse gas emissions in 2012. Thus, without the participation of these countries, emission restrictions among other states had little effect on the rate of global warming. In addition, Russia’s alignment with the Kyoto Protocol until 2012 was not burdensome for the country’s industry, since it was necessary to maintain emissions at the 1990 level that was not difficult given the decline in industrial production in the country in 1990–2000. As part of the second stage of the Kyoto Protocol, intended to last until 2020, the countries of the European Union, Australia, Belarus, Ukraine and a number of other states assumed obligations to further reduce carbon emissions.

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In 2015, the United Nations announced that the states that made commitments under the Kyoto Protocol were able to reduce greenhouse gas emissions by more than 20% and that this document proved that the international community can jointly solve global problems. In the winter of 2015 a new international climate agreement that replaced the Kyoto Protocol was approved as part of the 21st UN Conference on Climate Change in Paris. For the first time, the Paris Agreement brought together the efforts of the international community to restrain adverse climate change. The main goal of the Paris Agreement is to intensify the efforts of the international community to implement the UN Framework Convention on Climate Change in order to keep the increase in the average temperature on the planet this century within 2 °C and to find means to keep this average temperature within 1.5 °C (Bashmakov et al., 2021). This Agreement provides for the adoption of obligations to reduce carbon emissions by each associating state, joint activities to ensure climate safety and provide assistance to developing countries to mitigate the negative consequences for them caused by climate change and the implementation of climate goals by these countries. Emerging economies are initially given the right to determine the extent of their participation in ensuring global climate safety, but in stages these countries will need to use targets to limit carbon emissions in their territory. At the same time, all parties to the Agreement must maintain coherent reporting confirming the reduction of carbon emissions at the national level within the framework of their obligations. Within the framework of this Agreement, it is envisaged that every 5 years the parties to the Agreement increase the extent of their participation in ensuring global climate safety. According to the participants of this Agreement, the increase of participation extent of each party may allow to achieve the main goal of keeping the average temperature within the stated limits. The Russian Federation ratified the Paris Agreement in September 2019, the United States ratified this agreement in September 2016, but in the summer of 2017 announced the country’s withdrawal from this document because the implementation of its provisions could lead to the loss of more than 2.7 million jobs by 2025. The U.S. withdrawal from the Paris Agreement was officially completed in November 2020. Meanwhile, the Paris Agreement did not establish coercive mechanisms for ensuring the obligations assumed by the parties or the possibility of imposing sanctions in the event that any of the participants fails to fulfill the stated goals. Within the framework of this Agreement, it is only possible to verify the information provided by national authorities on their achievements on the issue of reducing carbon emissions that required the international community to develop other documents that could globally affect climate change. However, in the territory of the Russian Federation, the rate of global warming is 2.5 times higher than the global indicators (Bardin et al., 2021). At the same time, in addition to the adverse effects caused by climate change, the Russian economy may be negatively affected by international climate restrictions. Thus, the European

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Union’s fight against greenhouse gas emissions will lead to losses in the real sector of the Russian economy in the amount of about US$2 billion per year (Figures et al., 2021; Bashmakov et al., 2021). That is why Russia is interested in resolving climate safety issues at the international level.

Materials and Methods It should be noted that the causes of ongoing climate change do not have an unambiguous interpretation. A number of scientists convincingly prove that these reasons are provoked by natural causes, others, on the contrary, put human activity at the forefront. Regardless of the causes of climate change, these processes are of an objective nature that requires taking into account climate change data in the implementation of various programs for the development of national economies. The methodological basis for the research was the dialectical method of studying social and legal phenomena. In addition to the above, functional, logical and system methods, as well as the modeling method, were used in the framework of this study. Moreover, a comparative legal method was used to analyze national legal acts regulating various issues of climate safety. Thus, in the Russian Federation there is a comprehensive federal law “On Environmental Protection” that resolves issues related to the preservation of the natural environment, the protection of natural objects from negative anthropogenic impacts and the protection of human health. This law combines economic interests related to the development of various industries and ensuring the environmental rights of Russian citizens by limiting the economic impact of man on nature in order to ensure a favorable state of the environment. In addition to the named legal act in Russia, there are other regulatory legal acts aimed at preserving the environment. For example, there is a federal law “On the Protection of Atmospheric Air” that established legal criteria for the protection of atmospheric air. The Federal Law “On Production and Consumption Wastes” determines the procedure for processing industrial and other wastes in order to prevent their harmful effects on human health and the environment, as well as the use of such wastes in economic circulation. In order to protect the rights of citizens to a favorable environment, the Federal Law “On Ecological Expertise” was adopted that provides for the assessment of environmental risks from the planned economic activity. In the United States a number of legislative acts, including the Endangered Species Act, the Safe Drinking Water Act and others, have developed state mechanisms to protect the environment from negative anthropogenic impacts. The European Union countries successfully apply the European system of greenhouse gas emissions trading. The essence of this system boils down to the fact that first, at the EU level, the annual volume of emissions that is distributed among various sectors of European industry is determined. If the enterprise does not have

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enough allocated quota, it can get the required volume on arm’s length terms (Boute, 2013). At the same time, until similar measures to reduce carbon emissions are applied at enterprises located outside the European Union, the efforts of the EU countries to struggle against global warming will not be sufficiently effective. Theoretically, this problem should be solved by the mechanism of cross-border carbon regulation proposed by European states that creates equal conditions for both manufacturers operating in the territory of the EU countries and enterprises of other countries, ensuring in these countries a gradual transition to new environmental production methods and building modern management models (Shalkov et al., 2021). Thus, this mechanism will be a global instrument of European environmental policy to reduce greenhouse gas emissions and improve the environmental situation that will ensure non-discriminatory access to European markets for products manufactured in different countries (Lazard & Youngs, 2021). A comparative analysis of the above regulations allowed the authors to formulate proposals for ensuring energy and climate safety at the global level.

Results In the Russian Federation, as in many other countries, increased attention was paid to reducing greenhouse gas emissions as part of countering climate change. It was within the framework of this strategy that the Russian Federation and the countries of the European Union consistently participated in the Kyoto Protocol and the Paris Agreement. At the same time, given the seriousness of the threat from the climate change consequences, it must be recognized that the efforts of individual states or regional unions will be insufficient. It is necessary to create an independent supranational global climate management system within which the issues of reducing greenhouse gas emissions and energy safety will be comprehensively solved. This climate management system should have a clear hierarchical structure, headed by a special international body created within the UN. The powers of this body should be determined on the basis of international law. Carrying out its activities, the specified management body should rely on the national structures in the field of climate safety created in each state. Undoubtedly, for the effective work of the said international body, it is necessary to empower it with supranational powers in the field of ensuring climate safety. The obligations of national states to fulfill the imperative commands of the said international body should be organically implemented in the national legisla-tion. Taking into account the complexity and variety of solutions to issues in the field of climate safety, this body should use a project-oriented management system in its activities. Within the framework of this management system, it is necessary to comprehensively tackle three major issues:

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1. Ensure energy safety 2. Reduce greenhouse gases 3. Adapt to climate change. In view of the significant threats from climate change for the national economies of various states, the international community should not be limited to national programs that partially solve environmental problems at the national or regional level, but should develop a universally binding global climate management system aimed at technical innovations development in all countries leading to a reduction in greenhouse gases emissions.

Discussion To solve the above problems, it seems reasonable to initially focus on energy safety issues. At present, the lack of a unified global strategy for the use of energy resources leads to a shortage of certain types of energy resources and, as a result, an increase in prices for this energy resource, and nullifies previously reached international agreements on the phase-out of fossil fuels. In this regard, the above-mentioned international body in the field of climate safety needs to develop a mandatory system for the redistribution of energy resources. Within the framework of this system, the leading countries of the world must sign the World Energy Pact that in the long term guarantees the supply of certain natural resources (gas, electricity) in fixed volumes from the countries supplying these resources to the countries consuming them. At the same time, the size of market trade in these resources should be limited and carried out on over-limit obligations. In fact, it is possible to talk about the formation of the World Energy Union within which the distribution of the natural resources of the planet will be carried out. Long-term fixed contracts will be of interest to both producers of natural resources and their consumers. With the stabilization of prices for these resources, it is possible to develop long-term programs to reduce the use of fossil fuels and the transition to renewable energy sources. The surplus not covered by the limit obligations can be sold on the free international market. Undoubtedly, this union must have a supranational organizational mechanism of governance that limits national sovereignty in the energy sector. As part of solving the problem of reducing greenhouse gases, it is necessary to form a global market for the distribution of labor results on the basis of the successfully functioning above-mentioned system of distribution of energy resources, taking into account climatic and other socio-economic factors. Within the framework of this market, an interdependent system of labor results sale and exchange with elements of directive global management functions. For example, the Russian Federation supplies steel products, petrochemical products, and so on to the specified global market, and receives automotive products, machine tools, microelectronics, etc. This system, operating on a global scale, will ensure the rational use

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of natural resources, the distribution of labor resources and the solution of environmental problems, since a number of production capacities can be eliminated that will positively affect the ecology of the planet. The interdependence of suppliers from each other will allow this system to work efficiently and avoid escalation between individual countries. For the right to operate in this market, nation states will be forced to accept global international trade rules and partially limit their sovereignty for the unhindered movement of goods and services. As part of solving the third problem, it seems expedient to develop a concept for the human resources use based on scientific forecasts of climate change. In particular, it is possible to ensure in advance phased resettlement of the population from territories that will suffer from climate change to more favorable areas, to ensure the training of the most demanded specialists taking into account the needs of the economy in labor resources and to plan in advance the necessary expenses of national states for the social welfare of people who will be unclaimed by the created global economy. Unfortunately, now we see only attempts by the European Union countries and a number of other states to solve emerging climate problems at the level of national or regional legislation (Bauen, 2006). At a meeting held on July 9–10, 2021 in Venice, G-20 finance ministers agreed on the need for international cooperation to manage greenhouse gas emissions and struggle against climate change. The decision on the phased introduction of the International Carbon Regulation Mechanism will provide the principle of legal certainty for companies outside the EU and give time for these organizations to prepare for the corresponding payments (Proedrou, 2018). As the Cross-Border Carbon Regulation Mechanism enters into force, there will be a phased reduction in the free allowances that are currently allocated to a number of industries until they are completely eliminated by 2035. At this stage, the Cross-Border Carbon Regulation Mechanism will only regulate direct greenhouse gas emissions that occur in the production of relevant goods. As the transition period ends, the European Commission will decide whether to extend the scope of the mechanism to more goods and services. To ensure the correctness of the information provided on carbon emissions, manufacturers from third countries will provide the required information to EU-registered importers, and if this information is not available, importers will use standard greenhouse gas emission values to determine the amount of purchased certificates. At the moment, the European Green Deal provides for the allocation of more than 1.8 trillion euros to create a highly efficient and competitive economy in the EU countries capable of ensuring the absence of direct greenhouse gas emissions by 2050. The authors believe that the solution of climate safety issues at the level of regional state associations is unproductive, since it is necessary to develop and implement global standards.

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Since climate change is a global problem of mankind, it is necessary to pursue a unified environmental policy not only in the EU countries, but also in states that are not members of the European Union. Otherwise, there is a risk that carbon-intensive production will be shifted outside the European Union, or goods made in the EU will become less competitive compared to goods made in countries with lower environmental requirements. At the same time, it should be taken into account that energy safety is achieved by ensuring the redundancy of energy supply sources that, accordingly, within the framework of the Carbon Mechanism, will stimulate a decrease in the use of fossil fuels, which will make it possible to influence climate change (Khlopov, 2021). In particular, in the first quarter of 2020, global energy demand decreased by 3.8%, which clearly demonstrates that the economic demand for various energy sources is declining unevenly (IEA, 2020). In November 2021, the work of the International Conference on Climate Change in Glasgow (UK) ended. Within the framework of this Conference the national delegations of many states outlined a common strategy to overcome the climate crisis on the planet. This Сonference ended with the Glasgow Climate Pact adoption, within which a decision was made to gradually reduce carbon dioxide emissions on the planet by 45% by 2030 relative to the levels of emissions that were in 2010 and to achieve carbon neutrality by 2050 (Cohen et al., 2022). In addition to this main document, the participants of the Сlimate Сonference in Glasgow adopted an agreement to reduce methane emissions by 30% by 2030, an agreement to reduce the use of coal, under which developed countries plan to abandon coal energy by 2030, developing countries by 2040. A number of countries have set shorter deadlines for phasing out coal, in particular the UK, which plans to phase out coal by 2024 (Van Den Berg et al., 2022). Also, the most important document signed, including by the Russian Federation, is an agreement on the protection of forests, within the framework of which it is planned to allocate US$12 billion for the protection and restoration of forests. In general, the international agreements fixed in Glasgow can keep the processes of global warming within the limits of up to 2 °C (Meinshausen et al., 2022).

Conclusion As it can be clearly seen, unresolved issues related to ensuring climate safety have a significant impact on the world economy and require the adoption of comprehensive urgent measures for legal and economic regulation and restructuring of global international institutions at the international level (Engelbrekt, 2016). As a solution to these problems, it seems appropriate to create a special international body in the field of climate safety under the UN, whose main task is to develop a comprehensive international treaty to ensure global environmental safety. At the

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same time, it seems necessary to strengthen the role of the UN Security Council (Dröge, 2020). The authors’ model for ensuring energy and climate safety at the supranational level involves the creation of a specialized international body whose activities will be aimed at ensuring climate safety by issuing binding directives in the field of energy resources distribution at the global level, distribution of orders in the manufacturing sector in different countries depending on the environmental situation in these states and their place in the created global system of labor division. Taking into account the volume of powers transferred to the specified body, it is necessary to ensure control over its activities by the UN Security Council that could cancel or change the decision of this body in disputable situations. All countries that sign an international agreement obliging them to comply with the directives of this body can participate in the work of this body. As the number of countries joining this agreement expends, the role of this body will rise that will increase its authority and capabilities in global climate safety. Over time, countries that do not participate in the work of this body will seek to join its work on any terms, since they will receive both guaranteed orders for their industry and energy resources at fixed prices established by this body. The activities of this international body in the future may lead to the creation of an international ecological union that will contribute to the economic prosperity of the participants in this association. Within the framework of this association, it is possible to develop uniform regulatory standards that will take into account the interests of the parties as much as possible. In the context of the complication of international economic conditions, relevant mechanisms between the states to prevent and promptly ensure global climate safety will inevitably be created. The creation in the future of supranational integration associations in the climate sphere will make it possible to create a legal international mechanism that ensures the participation of all states in the preservation of the planet and ensuring carbon neutrality already in this century.

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Conditions for the Formation of Sustainable Energy in Kazakhstan Zoya Gelmanova, Anastassiya Mezentseva, Ylia Valeeva and Asem Aldabaeva

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Introduction Most of the electricity generated in the world is produced by fossil fuel power plants. These energy resources are generally expensive, scarce, exhaustible, polluting and unreliable because not all countries are endowed with primary resources, which is a source of energy instability, while the burning of fossil fuels generates greenhouse gases such as carbon dioxide, sulfur dioxide, nitrous oxide, which are the main causes of global warming, threatening the very existence of mankind. This concern is the main motivation for the transition to sustainable energy, through increased use of renewable and low-carbon clean energy sources, especially solar, wind, biomass, hydro and nuclear power. These renewable and low-carbon sources improve and expand energy supply, improve long-term access and utility in energy production, reduce dependence on fossil fuels, and reduce greenhouse gas emissions. There are two challenges on the path to a sustainable energy future: access to energy and mitigation of global warming by controlling greenhouse gas emissions (Rathor & Saxena, 2020; Nguyen et al., 2020). For energy sources and systems to contribute to sustainable development, they must have the following characteristics: energy resources and systems are sustainable if they are renewable or permanent in nature; a sustainable energy system should not be wasteful, but should be efficiently produced and used with a minimum waste of resources; sustainable energy and energy systems must be economically and financially viable; energy is sustainable if its source is safe and diverse; sustainable energy and energy systems should be equitable or easily accessible, accessible and affordable; sustainable energy

Z. Gelmanova · A. Mezentseva · A. Aldabaeva Karaganda Industrial University, Temirtau, Kazakhstan Y. Valeeva (✉) Kazan State Power Engineering University, Kazan, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_10

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development should have positive social impacts; sustainable energy should be associated with minimal environmental impact (Kolagar et al., 2020). Sustainable energy refers to the generation and supply of electricity in a manner that does not compromise the ability of future generations to meet their own energy or electricity needs (Hollaway, 2013). It can also be defined as sources of energy that do not deplete during the time relevant to humanity, and therefore contribute to the sustainability of all species (Lund, 2010). Sustainable energy, like sustainable development, requires significant changes in how things are done and in what we do that affects industrial, manufacturing, social infrastructure and value systems. The development of clean energy will solve many problems of sustainable development (Kabeyi & Oludolapo, 2020; Kabeyi & Olanrewaju, 2021, 2022). Sustainability today is of great concern as a direct result of serious concerns about climate change, of which electricity generation is an important factor (Vine, 2019). Electricity is a critical product necessary for sustaining life, prosperity and global sustainable development (Berga, 2016). Currently, humanity faces a serious challenge to implement the new Sustainable Development Goals (SDGs) by 2030 (Berga, 2016; Kabeyi & Olanrewaju, 2020). Sustainable development and its relationship with energy became a major global issue and an issue at the World Summit on Sustainable Development in Johannesburg in 2002 (CS-UNIDO, 2008). Determining the most suitable energy systems in the electricity mix is considered a strategic approach to the implementation of sustainable development (Kabeyi & Olanrewaju, 2020; Ebrahimi & Rahmani, 2019). Power generation systems can be assessed using a five-dimensional approach, including environmental, economic, social, technical and political sustainability, as a reliable indicator of energy sustainability (Ebrahimi & Rahmani, 2019). Thus, sustainability in energy development is aimed at achieving technical sustainability, political sustainability, social sustainability, environmental sustainability and economic sustainability, which is largely realized through the development and use of renewable energy sources (Kabeyi et al., 2020). The technical sustainability of electricity generation refers to the ability to safely and efficiently meet current and future demand using clean energy sources and technologies (Kabeyi et al., 2020). Environmental sustainability is related to the integrity of the natural environment and its ability to remain sustainable and productive in support of humanity (Kolagar et al., 2020). Environmental sustainability is also related to the integrity and carrying capacity of the natural environment to sustain humanity as a waste sink and source of raw materials (Mensah, 2019). Thus, the environment or ecological dimension of sustainability is related to the preservation of the environment and habitats, especially from the impact of waste disposal, overconsumption of the Earth’s resources and greenhouse gas emissions. The economic dimension of energy sustainability is related to the viability of individuals and organizations, products and services in energy or electricity production and consumption, distribution and interaction. Economic sustainability aims to maintain operational stability in terms of liquidity and cash flows and provide fair or reasonable returns and benefits to investors and other stakeholders in energy systems (Dyllick & Hockerts, 2002).

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Social sustainability is associated with the rights of the community, measured by the level of social recognition and access of people to energy resources and systems (Iddrisu & Bhattacharyya, 2015). Social sustainability is the ability to maintain desirable social values, institutions, traditions and social characteristics of a society before and after a project or intervention. It also deals with social justice and therefore touches on aspects such as labor practices, differences in production standards and the promotion of justice among all people (Kabeyi, 2018, 2019a, 2019c). The purpose of the study is to provide researchers with a theoretical overview that identifies the steps needed to create a sustainable energy environment in Kazakhstan. The political dimension of energy sustainability is related to the management and transformation of sustainable energy at all levels. This is achieved through the development and implementation of policies and regulations involving various political institutions influencing management choices (Kuzemko et al., 2016). This means that the political dimension of energy sustainability is related to the strategic planning and definition of the energy system and its associated systems and processes. Thus, political stability issues relate to the future structure and indicate some problems with the political stability and foreign policy of the energy system (Kabeyi, 2020). The scientific novelty lies in the development of a methodology for the conditions for the formation of sustainable energy based on the principles and criteria for the selection and priority development of renewable energy sources, based on: theoretical and practical implementation of the provisions of sustainable energy.

Materials and Methods This article uses the methods of systematic literary review and analysis, general scientific methods, such as systematization, generalization, concretization, synthesis, analysis. The study adopted a secondary method of data collection and analysis based on recent primary and secondary data found in initial study results and reports from peer-reviewed sources. For this study, the term “primary data” refers to data obtained and conducted and presented in the form of peer-reviewed academic and professional articles (Kabeyi, 2019b, 2019c; Krzywda et al., 2021). The study is structured in a sustainable energy transition shaping solution that combines scenario modeling with policy development that is characterized by core and external parameters.

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Results On the way to a sustainable energy future, there are two challenges: access to energy and mitigation of the effects of global warming by controlling greenhouse gas emissions (Kaygusuz, 2012). Energy is at the center of several Sustainable Development Goals. These include expanding access to electricity, improving clean cooking fuels, limiting pollution, and reducing wasteful energy subsidies. Goal 7, also known as SDG 7, aims to ensure access to reliable, affordable and modern energy sources for all by the end of the next decade (IEA, 2018). The global adoption of specific sustainable development goals in the field of energy has become an important milestone towards a more sustainable and equitable society. While energy should be at the center of efforts to put the world on a more sustainable path, current and planned policies fall far short of achieving the critical energy-related sustainable development goals. On a positive note, huge progress has been made towards universal access to electricity (SDG 7.1.1) for Asia and parts of sub-Saharan Africa (IEA, 2018). The Republic of Kazakhstan has a real chance to use its competitive advantage, significant export and transit potential in the construction of the Kazakhstan Smart Energy System with a deep analysis of integration solutions (Gelmanova et al., 2015). The results of numerical modeling of the scenario of Kazakhstan’s confident entry into the top 30 most developed countries with the simultaneous fulfillment of international requirements and requirements for the implementation of the Concept for the transition of the Republic of Kazakhstan to a “green economy” are presented in Table 1 (Strategy 2050, 2013). The key aspect is that a significant increase in generating capacity should be carried out at the expense of clean and safe energy, which imposes significant obligations on the preparation of relevant projects. For these purposes, a master plan for the development of the electric power industry until 2030 has been developed, which offers real measures to respond to all global challenges (USAID

Table 1 Numerical simulation of the confident entry scenario Kazakhstan among the 30 most developed countries

Year 2014 2017 2020 2030 2040 2045 2050

GDP/ person (thousand $) 14.84 17.67 20.46 33.33 49.33 55.82 63.15

Nase leniya (mln. pers.) 17.33 17.83 18.34 20.16 22.50 23.76 25.10

GDP (billion $) 257.22 315.17 375.35 672.03 1109.78 1326.20 1584.8

Energycapacity GDP (million t. AD) 76.30 76.16 71.26 102.76 124.67 125.19 123.64

Consumed electroenergy (billion kWh) 97.34 107.65 113.63 182.59 258.11 283.11 307.57

Enough-och. power generation (GW) 19.82 21.92 23.14 37.18 52.63 57.65 62.63

You throws CO2 (t/person) 12.46 9.69 7.89 4.166 3.86 3.86 3.86

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Table 2 Target indicators of Kazakhstan Share alternative sources energy (with taking into account wind, solar, hydro and atomic energy) Gasification regions

Reduction level choice owls greenhouse gases

2020 Sunny and windmill—not less 3% Akmola and Karaganda region

2030 30% (where 10% share RES) Northern and Eastern regions

2050 50%

15% reduction from 1990 level

Regional Energy of the Future Program, 2020). The main idea of strategic decisions is the position of N.A. Nazarbayev, set out in the book “Global energy—ecological strategy for sustainable development in the 21st century”: in search of “the optimal solution to energy-ecological problems, all methods should be used, starting from consumption optimization and increasing the efficiency of energy saving, through innovative development renewable and alternative energy sources to the creation of fundamentally new energy technologies” (Nazarbayev, 2011). The Green Economy Concept (2013) sets specific targets for the energy sector in Kazakhstan. Fulfillment of obligations under the Paris Climate Agreement sets tasks for additional goals aimed at reducing greenhouse gas emissions, which are presented in Table 2 (USAID Regional Energy of the Future Program, 2020). Plans to expand the gas network. The assumptions were made on the basis of the Concept for the Development of the Gas Sector until 2030 and the Feasibility Study for the Sary-Arka Gas Pipeline Construction Project. Estimated terms of gasification by regions: Almolinsk region—2024; Karaganda region—2024; North Kazakhstan—2026; Pavlodar region—2032; In the East Kazakhstan region, it is not planned until 2024. The limitation of gas for the energy sector is 7.2 billion m3 until 2030. Annual increase in gas consumption by 2.2% from 2031. The International Energy Agency states that the share of natural gas has increased from 16.2% of consumption in 1973 to 23.1%. In 2019 the share of nuclear power increased from 0.9% to 5%, while the share of hydropower increased from 1.8 to 2.5% of the total primary energy consumption (IEA, 2021). Three strategic sites were proposed for the construction of the NPP: Ulken—a site near Lake Balkhash, availability of water supply, necessary infrastructure for laying the foundation of the NPP; Kurchatov—a good location in terms of connection with Russia, the Irtysh River also flows nearby; Aktau is a site close to a water supply, but located in the western part of the country, which is currently isolated from the rest of the EAC zones. The transformation of the structure of generating capacities in 2013, 2030, as well as the structure of strategically safe and satisfying the conditions of sustainable energy installed capacities in 2050 is shown in Table 3 (Strategy 2050, 2013). According to the data presented in Table 3, the development of thermal power plants will be carried out on the basis of a gradual transition to environmentally friendly coal technologies (according to the National Program for the Development of Coal Energy), the development of hydropower will mainly be carried out on the

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Table 3 Structure of generating capacities in 2013, 2030 and 2050

Type of generating power HPPs, including small hydroelectric power station Thermal power plants standard Thermal power plants with application CCS—technologies Nuclear power plants or thermal power plants with application CCS technologies Wind power, total Photovoltaics and solar concentrators Bioenergy Geothermal energy and wind energy with taking into account thermal energy Total

Installed power in 2013 G., MW 2090

Installed power in 2030 G, MW 3700

Grade cost drip— nyh costs in period 2013i–2030 (billion $) ≈0.9

Installed power in 2050 G., MW 5200

16,910 0

10,520 13,060

0 ≈22.4

4000 17,000

0

2000

≈4.0

10,000

≤95 ≤95

4000 1000

≈7.0 ≈2.6

8000 3000

0 0

3000 500

≈9.1

7000 1000

19,180

37,280

≈46.6

52,200

basis of large and small hydroelectric power plants, wind energy will be develop in the following areas: large wind farms included in national energy networks; territorial wind farms included in regional networks; secluded low-power wind turbines for powering single objects. Solar energy is developing as a high-tech direction of sustainable energy with a wide range of applications both for generating electrical and thermal energy, and for creating devices for remote control of energy generation and use processes. The formation of bioenergy and the development of bioeconomy is carried out in conjunction with such problems as the production of organic fertilizers, the production of effective feed additives for animals through the use of cake after pressing oil for biofuel, and the cost-effective development of unused agricultural areas. Geothermal energy will be formed through a closed system of water use, hydrogen—through the creation of systems for generating hydrogen at thermal stations, the development of the production of fuel cells for use in complex power plants, the development of the use of hydrogen fuel for vehicles. The formation of nuclear energy is aimed at ensuring uninterrupted power supply to large consumers with the highest rates of economic development, replacing capacities during unstable periods when generating energy with renewable energy sources included in the NPG, forming a network of autonomous energy sources to ensure the supply of water for irrigation, creating a powerful generation system hydrogen. Nuclear power plants are being created with small and medium capacity, mainly in a closed cycle, with a gradual transition to uranium-thorium reactors. The sustainable energy scenario for Kazakhstan is given in Table 4 (Strategy 2050, 2013).

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Table 4 Macroeconomic scenario and development of sustainable energy Economy Energy

Energy— capacity

Ecology

2013–2017 2018–2023 2024–2030 2031–2040 2041–2050 Growth rate of GDP per capita not lower in % 6 6.4 6.4 4 2.5 By 2017 By 2022 By 2030 By 2040 By 2050 Productivity of generating capacities at the point of consumption up to the level enough to grow the economy to: 2022 2030 2040 2050 2060 At a rate not lower than % per year 6.4 4 2.5 By 2017 By 2020 By 2030 By 2040 By 2050 Decline energy intensity before level: 0.9 0.8 0.7 0.6 0.5 From 2012 level Decrease level CO2 emissions Middleup to 8.3 t/ on forecast not above not above world person 4.2 t/ 3.86 t/ 2.8 t/ person person person

Table 5 Range costs major funds new energy View power plants Hydroelectric power station Nuclear power station TPP (on corner) TPP (on coal with UHU—tech.) TPP (on gas) Wind turbine Sunny energy Small HPPs Mini CHP CHP Power station on biofuels

Cost 58 GW capacity (billion $) 29b-58 116 75 94–107 63.8 58–145 58–240 58–69.6 34.8 81.2–87 100–200

An analysis of investments in the economy of Kazakhstan shows that it is possible to focus on the criterion of the maximum possible costs for the formation of sustainable energy at the level of 1% of the gross product on a cumulative basis. The choice of an economically justified ratio between the capacities of certain types of electricity generation is calculated on the basis of current prices. The amount of financial resources for the complete replacement of 58 GW of power with a given type energy sources is presented in Table 5 (Strategy 2050, 2013). The following circumstances are fundamental: the cost of fixed assets of the new energy sector does not exceed the economic security limit of 299.7 billion dollars at the current price scale; broad prospects are opening up for the use of coal in an environmentally friendly mode, which is strategically important for Kazakhstan for

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reserving oil and gas for future generations; the service life of generating capacities is comparable to the implementation period. Strategies for sustainable energy until 2050, including: thermal power plants— the full designated life of the power unit and the main equipment included in it at the level of 40 years, nuclear power plants—up to 50 years without renovation, wind turbines—15–20 years without renovation, solar panels—35–40 years. If we take a limit of 1% as the target, then more than 100 billion US dollars will be generated for the implementation of such strategically important areas as: the development of industry in the field of sustainable energy formation, including export, the modernization of the basic transmission and distribution networks of electricity, the modernization and technological re-equipment of heat supply systems, renovation and renewal of fixed assets of new energy. The sustainable energy strategy of Kazakhstan is being implemented in two stages with control intermediate points (Strategy 2050, 2013). Stage I—2013–2030, milestones—2017 and 2023; Stage II 2031— 2050, checkpoint—2040. At checkpoints, in accordance with internal and external circumstances, the main parameters and target parameters of development of Kazakhstan external to the strategy are checked and analyzed in order to correct actions until the next time point. In the period up to 2030, the dynamics of structural transformations in the energy sector is determined by four circumstances: the readiness of the state and society for technological transformations in the energy sector; choice of “radical” or “moderate” scenarios; regional policy in the field of energy sufficiency; the pace at which the renewable energy production industry is being created; the volume of planned expenditures for transformations in the energy sector, including in the field of energy efficiency. The parameters at the end of the stages are given in Table 6 (Strategy 2050, 2013). In order for the Strategy to become a nationwide reality, a Sustainable Energy Roadmap of Kazakhstan is needed, as a visual representation of a step-by-step scenario for the formation and development of an environmentally safe and economically attractive energy sector. In order to consolidate the Kazakh society and foreign partners, the Roadmap should reflect the principles and mechanisms for their practical implementation, which are presented in Table 7 (Strategy 2050, 2013). The national practice of the Industrialization Roadmap is fully adequate to the project approach. The contours of the images of the gradual transformation of the energy, economic, environmental and social future of Kazakhstan at a qualitative level should become the first main component of the Sustainable Energy Roadmap. Fossil fuels accounted for 61% of global electricity production in 2020, while nuclear, wind and solar power accounted for 35% of global electricity production this year. Solar energy also surpassed oil in global electricity production in 2020, where solar energy accounted for 3.2% compared to oil, which accounted for 2.8% of global electricity production in 2020 (World Energy Data, 2022). Solar energy is cheap because the cost of solar energy is usually negligible beyond the initial cost. The operating costs of solar energy are also significantly lower than those of conventional power plants. Solar energy is an important source of energy security because it is available locally. The energy security provided by solar power makes a country less susceptible to external disruptions or events that could affect supply or

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Table 6 Main and external target parameters sustainable energy strategies of Kazakhstan Main parameters Volume consumed electricity Power major funds energy Share renewable sources in consumption energy, including hydropower CO2 emissions on soul population

In 2030 200 ± 5 bln. kWh 37 ± 2 GW Over 33%

Volume reservations oil for future generations

Volume capital investment, total Term sufficiency on current energy for realizations 10 summer plans development Kazakhstan and him regions Growth tariffs behind check formation sustainable energy

External parameters Growth gross product on soul population Attitude energy intensity units gross product in 2050 G. to relevant meaning in 2012 G. Growth population

In 2050 300 ± 5 bln. kWh 55 ± 5 GW Over 51%

Not above 7.5 ton Not above 3.9 tons people per year per people in year 2 billion tons 2 billion tons Probable reserves recoverable on the basis of available and predicted technologies 47 billion $ 300 billion $ in 2012 prices in 2012 prices Subsequent 10 years after acceptance everyone 10 year old plan AT average not more how on 21$ in month in recalculation on soul population in prices 2012 G with selective politics on specific payments 2.8 times 0.65

5.3 times 0.5

Up to 20 million human

Up to 25 million human

Table 7 Principles and mechanisms of implementation sustainable energy strategies Principle Principle energy sufficiency Principle motivation

Principle publicity measures

Principle project foot approach Principle clear and public accounting and reservations for future generation at relatives energy resources

Mechanism implementation Reasonable and public tariff politician. Practice formation open for participation National industrial—innovative clusters “wind power”, “Sunny energy”, «Bienergetics and bioeconomics» and further extension practices creation national, regional and international clusters in energy-ecological sphere. Platform G—Global and publication registry successfully past energy and environmental expertise programs and projects. Turning on projects in Road cards industrialization Kazakhstan and him regions. Implementation energy-ecological expertise balance primary energy resources needed for internal use and needs external consumers on period before 2030 G. and on perspective before 2050 G.

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cost. Socially and economically, the production of solar energy creates employment opportunities, for example, in 2018. The solar photovoltaic industry has provided more than 3.6 million jobs worldwide (Solarin et al., 2021). The main problem faced by solar energy is the inconstancy and interruptions in the supply of electricity, as well as the relatively low efficiency of electricity conversion.

Discussion The main environmental advantage of nuclear power is that greenhouse gas emissions during the life cycle, including emissions from uranium mining and processing, are close to emissions from renewable energy sources (IPCC, 2014). In addition, its land requirement per unit of power output is less than that of mainstream renewables, and it does not pollute the local environment. Although uranium ore is a non-renewable resource, available quantities of it could provide electricity for hundreds and thousands of years to come. Thus, the wider use of nuclear energy will reduce emissions and the associated impact on the environment (IPCC, 2014) (Table 8). As part of the implementation of the innovative development program of Kazakhstan, the modernization program of the electric power complex of the Republic of Kazakhstan and the Green Village international project, which is supervised by the United Nations, in the Almaty region (in the village of Sarybulak, Almaty region) at the end of June 2012, a solar power plant was put into operation. The object, worth 580 thousand dollars, has been built since 2010 under an agreement between Kazakhstan and the Republic of Korea on grant funds from foreign partners (Statista, 2022). The construction was organized by the akimat of the Almaty region, Dostyk— energo JSC, the South Korean corporation Daisung energy and the KIOCA energy Table 8 Total system costs under baseline scenarios without NPP and with NPP, as part of the development of the energy industry (USAID Regional Energy of the Future Program, 2020) General system ic costs $ million TPP CAPEX RES CAPEX TES fix. OPEX RES fix. OPEX TPP OPEX variables RES OPEX variables (hydro) Price fuel Expenses on CAPEX lines Total

Base scenario Base scenario without nuclear power plant 8.110 9.455 20.489 7.254 5.176 571 10.009 1.214 62.278

Base nuclear power scenario 18.752 5.358 21.559 5.457 5.268 571 8.828 1.486 67.279

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agency. The power plant consists of six 20-m solar panels that store solar energy. The solar power plant covers an area of 1 ha. The design capacity of the alternative generating company exceeds 52 kWh of electricity. Only two people, local residents, operate the installation who have been trained in Korea. Thanks to the appearance of a solar power plant in the village, it became possible to drill wells in order to obtain artesian water. Today, drinking water comes from a depth of 130 m. According to the inhabitants of the village, their well-being and consumer level have recently increased markedly. The local population began to actively purchase refrigerators, televisions and other household appliances. At present, the commissioning of solar installations with a total capacity of 91 MW is envisaged, mainly in the Almaty region. At the same time, practical measures are being taken in Kazakhstan aimed at creating a production base that produces silicon and photovoltaic cells necessary for the development of solar energy. The basis for the implementation of the KAZPV project—on the creation and development of silicon solar energy in Kazakhstan is the presence in the bowels of Kazakhstan of huge reserves of high-purity quartz. From the French side, the development and implementation of the project was entrusted to the Commissariat for Atomic Energy and Alternative Energy Sources, from the Kazakh side—to Kazatomprom. In solar energy, the main material is pure silicon, from which solar cells are made. A big shift in recent years can also be called the growth of use in solar panels, mainly in the production of polycrystalline silicon (polysilicon). The share of this sector in consumption has grown from 3% of global demand for silicon in the mid-2000s to 12%. Continued strong growth in the use of silicon in solar panels is expected to lead to growth of the silicon market by more than 10% per year. The amount of silicon used in solar PV modules is expected to approach the amount of silicon consumed in traditional silicon markets within a few years. Project scope: Plant for the production of photovoltaic panels in Astana and Ust-Kamenogorsk, with a capacity of 60 MW with the possibility of increasing up to 100 MW based on quartz from the Sarykolskoye deposit. All products manufactured by the enterprise are planned to be exported. The quality of technical silicon fully complies with the requirements of GOST 2169-95, which is used at the enterprise (Information on the KazPV project). An analysis of the world market for technical silicon and silicon products shows that there is a significant demand for silicon products and their further processing. Reaching the design capacity of the existing Kazakh enterprise will contribute to the formation of a high-tech silicon cluster in the country, which will accordingly affect the growth of production and exports of manufacturing products, employment of the population and improvement of its standard of living both in the context of the region and throughout the country. The main types of raw materials and materials at the enterprise include quartz, coal and charcoal, special coke, birch chips and carbon or graphite electrodes, Table 9 (Business plan of «TauKen LLP Temir», 2014). Kazakhstan has huge reserves of deposits of quartz raw materials. According to the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, there are 12 quartzite deposits, 20 rock crystal and optical quartz deposits on the state

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Table 9 The security of the enterprise for the main types of raw materials and materials, taking into account the operation of 1 furnace View raw materials Electroenergy Woody coal Electrodes coal

Volume purchases etc. By request 6320 1488

Wood chips birch Quartz

13,020

Special cox Stone coal

36,000

Provider LLP «Ekibastuz GRES – one them. B. Nurzhanov» LLP «PromTechProgress» Company «Energoprom Novosibirsk electrode plant» LLP «Uglezhozh»

A country supplier Kazakhstan Kazakhstan Russia

Conditions supplies On constant basis Semiannual contracts with the possibility prolongation

Kazakhstan

3360

LLP «Mining-Industrial transport company» LLP «Komyr – Kuat»

Kazakhstan Kazakhstan

9360

Prommetz LLP

Kazakhstan

balance, in terms of purity and reserves of which Kazakhstan is second only to Brazil and Madagascar (recognized leaders in the supply of quartz to the silicon market). Of the 20 quartz deposits, 17 are located in Central Kazakhstan, in the UlytauZhezkazgan region. According to preliminary estimates of domestic experts, the balance of the Republic currently has about 65 million tons of high-quality quartz and 267 million tons of quartzites used for silicon production. The raw material base of the Karaganda metallurgical plant for the production of silicon is represented by deposits of veined quartz Aktas and Akshoky-3, located in the Karaganda region. The Aktas field is located in the Zhezdinsky district of the Zhezkazgan region, 60 km west of the Zhezdy railway station. Opened in 1950. In terms of morphostructural features and productivity, the Northern flank, Central part and Southern flank are distinguished in the field. The scope of the project is regional. The implementation of the project will create conditions for the development of the country’s silicon industry by attracting direct investment in the sub-sector and facilitating the export of products to the world market.

Conclusion Thus, sustainable energy is socially justified; gradually turns the energy sector into a type of systemic activity inscribed in the socio-economic development of the country. The strategic guidelines for development, the main requirements for sustainable energy, for the confident entry of Kazakhstan into the ranks of the 30 most developed countries have been determined. The formation of sustainable energy will

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significantly increase the competitiveness of the economy of Kazakhstan, the quality of life of people and improve the environmental and resource situation in the country. Specific energy projects affect the economic, social and environmental aspects of the sustainable development of a country or region. Renewable energy projects use local rural labor, businesses, local materials and businesses, local investors and other services. Thus, renewable energy revenues are invested back into local communities in the form of taxes, payments for materials and labor, and returns for investors that leave more economic benefits than imported fossil fuels or imported electricity. Sustainable development cannot be achieved without sustainable energy that promotes sustainable electricity generation. While sustainable development can be analyzed along three dimensions representing the three pillars of sustainable development, namely economic, social and environmental dimensions, sustainable energy is best analyzed along five dimensions, namely environmental, economic, social, technical and political sustainability, which can be used to develop and analyze energy sustainability measures.

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AgeTech Innovations as an Instrument for Older Population Inclusion Natalia N. Shestakova , Mikhail G. Djanelidze and Margarita B. Skvortsova

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Introduction The share of older people in the global population is steadily growing. According to WHO forecasts, by 2030, 1.4 billion people aged 60 and older will live in the world, and by 2050–2.1 billion (which is twice as much as in 2017) (World Health Organization, 2022a). This huge increase in the number of elderly people creates an urgent problem of creating a favorable environment for them based on the development of retirement, medical and social security, care systems, transportation, housing and urban planning (World Health Organization, 2022b). In March 2021, the World Economic Forum published a report entitled “Ageing: Looming Crisis or Booming Opportunity?” (World Economic Forum, 2021). Indeed, an aging society faces, on the one hand, a number of economic problems associated with an increase in social and dependent burdens, but on the other hand, a new growing market of products and services is emerging for the aging population and those who serve it with a potentially high return on investment in it.

Materials and Methods Silver economy is the system of production, distribution and consumption of goods and services aimed at using the purchasing potential of older and ageing people and satisfying their consumption, living and health needs. Current article discusses the

N. N. Shestakova (✉) · M. G. Djanelidze · M. B. Skvortsova Institute for Regional Economic Studies Russian Academy of Science, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_11

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issue of silver economy with particular focus on investigating the potential social and economic value of AgeTech promotion. The research purpose was to comprehensively study the theoretical and practical possibilities of increasing the inclusiveness of the economy for older people through the development of AgeTech innovations. The authors attempted to analyze the role and prospects for the development of AgeTech innovations as an element and stage of the formation of the silver economy. The objectives of the study included: identification, justification and clarification of opportunities and prospects for increasing the inclusiveness of the economy through the development of the AgeTech innovation sector. The methodological basis of the study was the scientific approaches of institutional and evolutionary economics, methods of comparative and sociological analysis, historical and systemic approaches. The institutional approach made it possible to identify the directions and targets for the development of an inclusive economy, and the evolutionary approach and comparative analysis to outline the prospects and directions for increasing the inclusiveness of the economy based on AgeTech innovations. The theoretical foundation of the article is silver economy conception, based on Russian and foreign researcher’s studies (for example Shestakova et al., 2022). A set of theoretical and practical methods was used in the study, in particular: literature review, data collection, development of theoretical foundations and economic analysis of the prospects for the development of the AgeTech segment of the silver economy for the Russian Federation. Economic and social analyses made by authors, utilize the achievements of sociological and economic studies and based both on existing science literatures and the statistical data. With the help of general scientific analytical and synthetic methods, domestic and foreign scientific publications, as well as statistical and Internet sources, the theoretical and practice-oriented aspects of the stated problem were studied. The use of scientific publications and statistical materials ensures the reliability of the conducted research.

Results The term AgeTech refers to goods, technologies and services created for the elderly population and optimized for use by the people over 60–65 years old since the need for funds related to the AgeTech category increases sharply at this age stage. But, in addition, the development of assistive innovative technologies (AgeTech) is a new instrument for better inclusion of the older citizens in the life of society. There is a widespread perception that technologies created for an aging population are only such specific products as LifeAlert (“Help! I fell and I can’t get up”) or electric stair lifts. In fact, the range of AgeTech products is much more diverse—it includes a wide range of technologies, goods and services for the increasingly differentiated needs of the elderly population. AgeTech products specially designed

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for the elderly include tablets, smartphones, computers, banking interfaces, medical monitoring and notification systems, etc. There are numerous economic, social and psychological problems associated with the situation of older people in society, which urgently require the search for measures to solve them. In economic and social aspects, they are caused by: • • • • • • • • •

social isolation, insufficient pension and financial security, ageist ideas about aging and the elderly, age discrimination in the labor market, ageism in the professional sphere, quality of medical care, availability of social assistance, an environment of vital activity that contributes to the preservation of activity, lack of goods and services adapted for them.

Various tools developed by AgeTech contribute to solving many of them. Accordingly, according to the authors, the entire range of goods and services provided to the elderly population can be divided according to at least three criteria. AgeTechMarkets/Macro Industries of AgeTech: • technologies (goods and services) for the elderly themselves, • technologies for their caregivers, • biotechnological/pharmaceutical products. Spheres of life of the elderly population: • • • • • •

the sphere of work; sphere of communication; the sphere of leisure; the sphere of medical care, disease prevention and rehabilitation; the sphere of social protection and assistance/support; banking and financial sphere.

AgeTech development areas: • • • • •

medicine, bionics, electronics, info-communication technologies, design, etc.

Let’s consider the prospects for the development of AgeTech in some of the designated spheres of life. AgeTech innovations in the field of labor have great potential in terms of lengthening the working period of a person, both through automation/robotization processes that reduce the requirements for human physical capabilities, and through the use of technologies that provide sensory and cognitive support. This is an important factor, because, according to the international consulting company

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BCG, by 2050 the share of 50+ workers among the working-age population will be 30% (in 2010 this figure did not exceed 10%). And according to forecasts, in the next 10 years, 65+ employees will account for slightly more than half (52%) of the increase in labor resources. The expansion of the older peopledigital activities, educational programs and courses for the older population in various areas (including its online formats), platform employment open up new opportunities for their professional selfrealization in old age and can potentially become an additional source of labor and, accordingly, economic growth. As noted in the report of the European Parliament, the main area that will flourish in a world full of the elderly is medicine. Eric Spiegel, President and CEO of Siemens USA, believes that the aging of the population increases interest in health-related innovations. “As the population gets older, we should invest more in the prevention, early detection and treatment of all serious diseases, such as diabetes, dementia and Alzheimer’s disease, cardiac diseases or cancer” (Wolfe, 2014). Accordingly, most of AgeTechproducts are related to healthcare. And this is natural—after all, people aged 55 and older account for more than half of the total health care costs (Ortaliza et al., 2021).—therefore, technologies created for this population group necessarily include medical products and services. The increasing coverage of the elderly population by info-communication technologies and the growth of their digital literacy provides new opportunities both in terms of their service and bridging the digital divide by creating applications adapted for them. But despite the narrowing of the digital divide, the number of digital products specifically designed for the elderly remains small. Karen Etkin, in her book “The AgeTech Revolution”, writes that most of the currently available technologies are not aimed at older people as users, despite the fact that they have great purchasing potential (in the USA—approx. authors) (Etkin, 2022). In general, as the digital divide narrows and people’s dependence on technology increases, companies that develop products and services tailored to the needs of older people are getting good opportunities for growth. New types of financial products and investment strategies for pensioners are emerging. In developed countries, special fintech products for the elderly are becoming widespread, including new types of savings accounts, specialized pension plans and financial counseling. Unfortunately, these directions will not be relevant for the majority of Russian pensioners yet. Since the share of older generations in the population is getting larger, and the elderly themselves are becoming more proficient in modern digital technologies, the demand for AgeTech products is growing, and the market is still not enough products and services designed for them, then we can talk about the presence of a set of conditions for the growth of this sector of the silver economy. AgeTech is a rapidly growing field, and there is no sign that its growth will slow down as demand will grow both in the coming years and in more distant periods. The analysis of AgeTech clearly distinguishes between industries related to the daily life of the elderly today and biotechnological industries, research in which is

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related to the study of the fundamental mechanisms of aging and attempts to develop innovative technologies to influence them in the future. Currently, in the field of biotechnology, there is an active search for means that can slow down the aging process: attempts are being made to create new medicines and/or combinations of them to combat aging. Potentially, these areas are associated with the possibility of a radical change in the mechanisms of aging and, it is possible to assume with a high degree of probability that breakthrough technologies will appear there in the future. The prospects for the development of biotechnologies are grandiose, but more distant in time. And since today the volume of venture investments in the field of AgeTech devices, computer and Internet and media applications is significantly higher than investments in biotechnology, it is AgeTech that still retains the palm both in its social significance and from an economic point of view. The practical results of the rapid development of AgeTech are already evident today and our article is dedicated to them.

Discussion There are many innovative developments in the world, focused both on the needs of the aging population and facilitating the care of the part of it that needs it. Already today, there are many products, services and solutions aimed at an aging population. The number of startups working in this direction is constantly increasing; AgeTech industries are also showing active and steady growth. Thus, according to experts, the volume of the global market of AgeTech products (goods and services) will increase to reach $2 trillion in the near future (Newman, 2019). According to other estimates, the global technology market for older ages has grown by 21% annually and will reach $2.7 trillion by 2025 (Colangelo, 2019). And according to the estimates of Generator Ventures (a venture company specializing in investments in AgeTech startups aimed at creating innovative technological products designed for elderly population), the “longevity economy”, defined by them as the sum of all economic activity serving the needs of Americans over 50, currently amounts to $7.1 trillion, and by 2032 its volume will exceed $13.5 trillion. Despite the differences in estimates associated with differences in methodological approaches and age gradations of the population taken into account, nevertheless, both forecasts indicate the prospects and potential growth rates of the market of goods and services for the older population. It should be noted that this growth is due to several jointly acting trends: • steady and continuing to increase aging of society (in three aspects: an increase in life expectancy; a decrease in the birth rate in countries that have gone through a demographic transition; an increase in the proportion of the elderly population in the population); • the intensification of social and economic problems associated with aging and growth in this regard, the need to solve them;

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• rapid development of innovative AgeTech technologies; • high level of investment in research, development and implementation of AgeTech technologies; • expanding the spectrum of AgeTech development, in particular, the allocation of such areas as: – the formation of an accessible environment at the micro- (“smart home”), meso- (urban—urbanism) and macro—(transport, travel, recreation, hospitality industry) levels; – technical support of “aging in place”. It is obvious that the parties interested in promoting AgeTech are not only the elderly themselves, but also caregivers, representatives of social services and healthcare organizations, manufacturers of goods and service providers, investors, entrepreneurs, insurers and other actors. Currently, AgeTech’s dominant industry is healthcare, but specialized technologies for the elderly are gradually coming to the real estate, finance, fitness, online communities, entertainment and many others. And the stratum of elderly people is heterogeneous—their needs and preferences are different. It should also be noted that the progress of digitalization provides huge opportunities for combining various technologies, increasing their functionality through integration and generating new types of AgeTech products and industries. Accordingly, we can talk about such a trend in the development of AgeTech as the integration on a platform basis of various sectors and disparate systems related to the lives of older people. Digital technologies allow integrating information about a person, the situation in which he is and his condition. The use of AgeTech technologies using computers, smartphones, and wearable gadgets allows remote monitoring of a person’s condition (his location, body position, health), providing interaction with the healthcare system in real time in the future. Platform solutions are also being developed that combine offers of a full range of offers for the elderly and care services. Let’s define two target aspects of AgeTech development: • improving the quality of life of the aging population, • solving economic and social problems related to the aging of society. However, the current existence of two independent directions of AgeTech development—technologies adapted to the needs of the active part of the aging population, and tools to improve social and medical care for people in need of it— determines the division of the modern AgeTech market into two different segments: • segment focused directly on the needs of the older population; • segment of goods and services related to the care of the elderly. At the same time, the second direction is connected with the development of platforms that allow collecting and analyzing medical information and other data that give an idea of the location, position and condition of elderly clients. This provides opportunities for monitoring both their condition (monitoring medical indicators) and assessing their daily activity (nutrition, body position, physical activity, etc.).

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Such AgeTech monitoring is one of the promising directions for the development of personalized medicine—the collection of individual medical data based on the use of web applications and wearable medical gadgets in real time expands the possibilities of not only treatment, but also prevention (and also, and this is the main preference for older ages—it allows you to dramatically increase the efficiency of medical care in emergency conditions). Such monitoring data can be provided to both doctors and emergency services, as well as family members, as well as persons caring for an elderly person in real time. The World Health Organization operates with the concept of “aging in place”. According to the WHO definition, aging in place means the ability to lead a safe, independent and comfortable lifestyle in your home and community, regardless of age, income or level of viability (World Health Organization, 2016). Generator Ventures notes that according to the survey results, 92% of older people would prefer to grow old on the spot. And the mission of AgeTech development is to improve the quality of life of the aging population, allowing elderly people to safely age in their own chosen conditions, while maintaining cognitive, emotional and physical well-being. Therefore, housing is one of the most important areas of application of AgeTech innovations in terms of implementing the concept of a “smart home” – expanding its functions based on high-tech support for an aging person. The defining criterion of healthy aging (the concepts of “active aging”, “independent aging”, “successful aging” are almost synonymous with it) is the preservation of independence by an elderly person, allowing aging on the spot. At the same time, innovations and technologies are increasingly seen as key areas for creating an environment of healthy aging—aging on the spot is increasingly associated with digital technologies to ensure the safety and independence of elderly people living alone and independently at home. In an article by Dalmer et al., it is noted that aging in place is a social, economic and political goal, with the achievement of which a person continues to live in his home and postpones moving to a care facility for as long as possible. It also emphasizes that “with changing demographics and geographically dispersed families, technologies in the home are being promoted as providing greater autonomy and security for ‘at-risk’ elderly people as they age” (Dalmer et al., 2022). In this context, AgeTech acts not only as a new technology developed specifically for the elderly, but as a factor in the formation of an environment that expands the possibilities of independent aging. Today, the demand for smart homes for the elderly is increasing in the world. Smart homes, using AgeTech products and services, allow people to grow old on the spot, staying in their own homes, even when they need help and care—and these opportunities are expanding every year. The Internet of Things has connected the physical and digital worlds, and one of the direct by-products of this has been the emergence of wearable devices. As connectivity between the physical and digital worlds expands, opportunities in the field of wearables will only increase, especially in the field of AgeTech.

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Smart home technologies are a set of monitoring sensors and digital information exchange devices that monitor daily activities, noting deviations from the norm. Unlike 50-year-old emergency call devices, modern on-site aging technologies use artificial intelligence to detect abnormalities in activity, body position, behavior and vital signs. The use of wearable sensors and cloud technologies allows you to provide real-time feedback on a person’s condition, activity, heart rate, breathing and body movements. This information is shared with adult children of the elderly and/or care providers and emergency services. Let’s take a short tour of the modern Russian segment of AgeTech, since Russia is one of the countries that have undergone a demographic transition, and its population structure is also characterized by a steadily growing proportion of the population of older age groups. This demographic shift reinforces the existing and creates new problems for national social, pension and health care systems - from ensuring economic sustainability in the face of increasing dependency burden to increasing health care costs and the need to provide assistance to an aging population with a shortage of caregivers. At the same time, the largest increase in labor resources in the Russian labor market is expected precisely at the expense of a group of older workers, which is one of the consequences of the “demographic pit” generation entering the labor market. And in this situation, the expansion of digital activity of older people not only expands the field for their employment, but also opens up new opportunities for their professional self-realization with age. In this regard, it can be noted that in our country there is a positive trend in the proportion of the population of older age groups with digital skills that allow, among other things, to perform their work functions in a remote format. Thus, according to the HSE, the daily Internet audience is expanding mainly at the expense of older people: if among people aged 35–44 years, the share of daily users in 2019 was 85.7% (+20.3 percentage points by 2018), at the age of 45–54 years—74.7% (+27.3 percentage points), then at the age of 55–64 years—49.9% (+23.8 percentage points), at the age of 65–74 years—22.9% (+13.1 percentage points) (Abdrakhmanova et al., 2021). However, according to experts, the segment of domestic AgeTech products in the field of info-communication technologies turns out to be practically empty—specialized products for older ages are practically absent, and existing devices and applications are not focused on the needs of the elderly and are not adapted for use by them. At the same time, in the field of social protection and assistance/support for older citizens of the Russian Federation, service platforms based on AgeTech products have appeared and are functioning. These include: successfully functioning mobile application “Social Navigator” (launched in 2018 by the Social Insurance Fund of the Russian Federation), the transfer of a number of functions of the Ministry of Labor and Social Protection of the Russian Federation, the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, as well as institutions of medical and

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social expertise and employment services and services provided by them to the population in an online format, implementation within the framework of the Concept of digital and functional transformation of the social sphere (2021) of a set of projects “Strategic direction in the field of digital transformation of the social sphere”, including the following subprojects: “Unified centralized digital platform in the social sphere”, “Unified Contact Center for interaction with citizens”, “Electronic personnel document management” and “Modernization of the civil service employment of the population”) (Government of the Russian Federation, 2021). launch of virtual assistants for public and city services platforms; the transition to the “Social Treasury” model (completion of the project is planned in 2024) on the basis of a single digital platform that includes information systems and databases of the Pension Fund, the Ministry of Labor, the Social Insurance Fund and institutions of medical and social expertise. Subsequently, it is planned to gradually transfer the assignments of all social support measures to this platform. The federal State Information system (EGISSO) is supposed to be connected to the platform as part of a unified digital platform. It should be noted that interest in digital social services is shown not only by government agencies, but also by private business. So, currently there are 22.5 thousand digital startups in the database of the Internet Initiatives Development Fund (IIDF), and an increasing number of them are focused on providing social services (for example, the Life Button project, created for emergency communication with the elderly and children (supports 40,000 clients), the Surdo Online project—sign language translation for the deaf using video communication). Experts identify the following promising market niches in the Russian AgeTech segment (Goryunov, 2021): • IT solutions and services for finding nurses, nurses, cleaners, es-corts. It is advisable to create platforms for the organization of cohabitation; • IT solutions for the comfort and safety of the elderly (robot assistants, voice reminders, security buttons, emergency video sensors, location detection, information support services, etc.); • health monitoring technologies (portable cardiocomplexes, devices for laboratory diagnostics (measurement of sugar, saturation), evaluation of other indicators with the ability to send information to a doctor, relatives, call for medical care at critical values); • gadgets and software for the elderly (smartphones, tablets, programs with a simplified interface and minimal required functionality, large font, one-button communication, voice control); • adaptive and bio-responsive, smart clothes and shoes, among other things using high-tech technologies and built-in gadgets. • online education services, organization of events and leisure activities that allow the elderly to master a wide range of new competencies and contribute to overcoming social isolation.

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Considering the silver economy more broadly—as a whole set of industries focused on the older consumers (Presidential Grants Fund, 2018), it is possible to predict the formation of a significant number of new intensively growing economic sectors. So, judging by the analytical forecasts of the EU, it can be expected that these areas will include: • connected healthcare, which is a variety of smartphone-based devices and mobile healthcare services (for obtaining online prescriptions and health-related software applications); • robotics based on artificial intelligence helps aging people to be independent in their daily lives (while implemented at the level of developing applications for smartphones and games), is a potential way to improve the social life of the elderly; • integrated care combining ICT solutions for monitoring and maintaining the health of elderly people in their homes and apartments (there is a strong industrial base in this sector in European countries); • smart home technology that provides comfort and convenience to the elderly. Home automation, including home robotics (domotica), complemented by connected healthcare as part of an integrated care model. It is focused on lengthening the period of independence; • wearable technologies (smart watches, fitness trackers, smart clothes and glasses, medical devices and infotainment gadgets) that also contribute to the active and healthy lifestyle of the older population; • self-driving cars (fully or partially autonomous vehicles) that implement autonomous vehicle technologies and assistive technologies. Make it easier to drive a car for the elderly; • interactive platforms, which allows to form communication plat-forms for interaction on the provision of services/assistance to young and elderly citizens in problematic areas; • communication technologies; • digital investment tools (including pension); • digital banking. Obviously, all the above positions relate to the AgeTech sector of the economy. At the same time, assessing the future development of the AgeTech market, it is important to understand and take into account the current trend of transition from a perspective focused on healthcare and social services to a demographic perspective—the formation of an adequate response to the current and expected needs of the elderly.

Conclusion Thus, the above allows us to draw the following conclusions.

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One of the options (vectors) for anticipating the negative consequences of aging is the development and implementation of high technologies in the interests of citizens of older age groups. This thesis fully fits into the conclusion reached by the experts of the international non-governmental organization HelpAgeInternational. Policy measures “to meet the needs of older people should be complemented by active efforts to adapt society to the demographic transition and build a society for all ages, as stipulated in the MIPAA (UN, 2002). Persistent measures throughout the life cycle and measures to unite generations should provide a proactive direction in the policy on aging. A proactive approach is necessary to reduce the negative effects of population aging and to use the potential of a mature society. The world must be provided with a clear vision and practical tools to adapt to the demographic transition. In fact, the policy of aging should be replaced by a policy of longevity” (Sidorenko, 2022). The results of comparative analysis of the AgeTech silver economy segment development in countries with a socially oriented economy allowed us to determine the conditions for its promotion in the Russian Federation. The directions of further research are related to the search for opportunities and development of mechanisms to increase the economy inclusiveness based on AgeTech innovations. The analysis of the stages of the formation of the silver economy and the prerequisites for the emergence of the AgeTech innovation segment allows us to outline the prospects for its development. According to our research it is possible to predict further differentiation of this segment, connected both with the processes of digitalization of the economy and with the emergence of new assistive technologies in the AgeTech segment. Another area of further research is the assessment of the impact of digital transformation as a tool for increasing the inclusiveness of the economy. Also promising from both the theoretical and practice-oriented side is the study of the potential impact of AgeTech innovations not only on the inclusiveness of the economy, but also on increasing its sustainability.

References Abdrakhmanova, G. I., Vishnevsky, K. O., Gokhberg, L. M., Demidkina, O. V., & Demyanova A. V., et al. (2021). Digital economy: 2021. Short statistical compendium/. https://doi.org/10. 17323/978-5-7598-2345-2 (In Russ.) Colangelo, M. (2019). AI is central to the longevity financial industry. Forbes. Retrieved from: https://www.forbes.com/sites/cognitiveworld/2019/12/13/new-financial-institutions-optimizedfor-people-60/?sh=6b4692b35c9e Dalmer, N., Ellison, K., Katz, S., & Marshall, B. (2022). Ageing, embodiment and datafication: Dynamics of power in digital health and care technologies. International Journal of Ageing and Later Life, 15(2), 77–101. https://doi.org/10.3384/ijal.1652-8670.3499 Etkin, K. (2022). The AgeTech revolution: A book about the intersection of aging and technology. 216 p. New Degree Press.

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Goryunov, M. (2021). “Silver” startups: How new projects improve the quality of life of the elderly. Retrieved from: https://vc.ru/services/230222-serebryanye-startapy-kak-novye-proektypovyshayut-kachestvo-zhizni-pozhilyh (In Russ.) Government of the Russian Federation. (2021). Strategic direction in the field of digital transformation of the social sphere, related to the field of activity of the Ministry of Labor and Social Protection of the Russian Federation. Order of the Government of the Russian Federation 6.11.2021 №3144-p. Retrieved from: http://static.government.ru/media/files/Rlc3 5PPvCP7TZlA968CdCPuk916nh8WX.pdf (In Russ.) Newman, P. (2019). Agetech market slated to double from $1 to $2 trillion. Longevity. Technology. Retrieved from: https://longevity.technology/news/agetech-market-slated-to-double-from-1-to2-trillion/ Ortaliza, J. Wager, E., & Amin, K. (2021). How do health expenditures vary across the population? Peterson-KFF health system tracker. Retrieved from: https://www.healthsystemtracker.org/ chart-collection/health-expenditures-vary-across-population/#Average%20adult%20out-ofpock-et%20health%20spending%20based%20on%20diagnosis%20status,%202019%C2%A0 Presidential Grants Fund. Agency for Strategic Initiatives. (2018). The silver economy in the world. Companies for all ages. Retrieved from: https://drive.google.com/file/d/1tDYeByGmdSPBvtVI_-qyn4aKOa5G92i/view Shestakova, N. N., Djanelidze, M. G., & Skvortsova, M. B. (2022). Prospects for silver economy development in the Russian megapolis. Advance in Gerontology, 36(6), 939–947. https://doi. org/10.34922/AE.2022.35.6.017 Sidorenko, A. (2022). A celebration, a regular date, or an admission of failure? 20 years of the Madrid international plan of action on ageing. HelpAge International. Retrieved from: https:// www.helpage.org/newsroom/latest-news/celebration-observation-or-recognition-of-failure-20years-on-fromthe-madrid-international-plan-of-action-on-ageing/?keywords=Sidorenko UN. (2002). Madrid International Plan of Action on Ageing, 2002. Retrieved from: https://www. un.org/ru/documents/decl_conv/declarations/ageing_program.shtml (In Russ.) Wolfe, I. S. (2014). 11 Signs we’re entering a “Demograpylypse”. Retrieved from: https://www. huffpost.com/entry/11-signs-were-entering-a_b_4577641 World Economic Forum. (2021). Ageing: Looming crisis or booming opportunity? Retrieved from: www.weforum.org/agenda/2021/03/ageing-looming-crisis-or-booming-opportunity/ World Health Organization (2016). World report on ageing and health. Retrieved from: https:// apps.who.int/iris/bitstream/handle/10665/186463/9789244565049_rus.pdf (In Russ.) World Health Organization. (2022a). Ageing and health. Retrieved from: www.who.int/newsroom/fact-sheets/detail/ageing-and-health World Health Organization. (2022b). UN decade of healthy ageing: 2021-2030. Retrieved from: www.who.int/initiatives/decade-of-healthy-ageing

ESG Concept of Growth in the Outlines of Real and Financial Institutions Elena Ivleva

, Elena Sintsova

, and Nina Shashina

Introduction 1. The institutional outlines of environmental concepts are constantly changing and are the subject of research in many scientific papers (Baikov et al., 2020; Burgonov et al., 2020; Evmenov et al., 2019; Morunova et al., 2018; Okrepilov et al., 2020; Ritman et al., 2017). The fundamentalism of the sustainable development concept determines the global nature of the tasks to be solved within the framework of social, economic and environmental transformations. The level of transformation processes determines the assessment of the result in summarizing indicators of the gross, regional, environmentally adapted product (Vlasova et al., 2016, Kuzmina et al., 2019, Okrepilov et al., 2019a, b). The theory finds further refinement in the concept of smart, sustainable and inclusive growth, when institutional and mental factors additionally fall into the task area. Like the concept of sustainable development, the concept of smart, sustainable and inclusive growth is not the result of research from a particular school of thought, representing a practical document of EU action in 2020. The level of transformation processes and assessment of eco-efficiency is macro- and mega economic. However, it should be emphasized that the concept also includes some nanoeconomic aspects of economic, environmental and institutional human formation. It is the assessment of the transformation qualitative parameters that confirms the problem of simultaneously solving economic, social and

E. Ivleva · E. Sintsova (✉) Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation N. Shashina Saint-Petersburg Electrotechnical University “LETI”, St. Petersburg, Russian Federation e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_12

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environmental tasks. New opportunities to achieve balance in the social, ecological and economic sphere are represented by digitalization factors (Okrepilov et al., 2019a, b; Sintsova & Vitsko, 2020), innovation factors, and the knowledge factor (Kuzmina et al., 2019; Okrepilov et al., 2021). Within the framework of the Economic Safety Institute, ESG development factors are considered at the micro, meso, macro and mega levels of economic research (Zaytsev et al., 2021; Ivleva et al., 2016, Burgonov et al., 2019). The ESG growth concept makes it possible to evaluate the effectiveness of government actions, the effectiveness of specific management decisions at all levels of the economy, including nano, micro, meso, macro and mega levels. The level of eco-efficiency is connected with the ESG transformation of financial markets, banks, insurance companies, other financial institutions, the redistribution of financial flows in the interests of companies with an ESG policy, and the development of ESG risk management system. Green bonds, social bonds, sustainable development bonds, loans linked to sustainable development goals, loans for green projects become ESG transformation tools. ESG derivatives can be climate-linked, such as in agriculture or logging. The instruments of ESG ratings are interesting, but there are limitations. They are the low coverage of ESG ratings, as in the Russian Federation there are no more than 100 companies. In addition, the methodology of rating agencies differs, there is no unity of approaches. ESG ratings are not enough to assess the risks of business projects. In this case, a financial adviser’s report is required. From the point of view of the economic theory, there are sources of ESG risks throughout the entire value chain. The circular economy model clarifies the direction of production efficiency within the full and repeated use of raw materials and residuals of the production process, and to a lesser extent, the compensation of accumulated damage. Circulation tools and strategies are changing towards expansion, from 3R (reduce, reuse, recycle) to 6R (reduce, reuse, recycle, recover, redesign, remanufacture) and 9R (reduce, reuse, recycle, recover, refurbish, remanufacture, repurpose, repair, rethink, refuse). The level of problem research is outlined by micro and macro research. The instrument system development should take into account not only the sectors of secondary raw materials processing, by-products production and waste disposal. In this case, the processes of land reclamation and lost forest restoration fall out of the in-depth analysis. The 3R, 6R and 9R instrument system does not include development tools for the institute of recooperators. There are about 181 recooperators in the Russian Federation, five of them work in the “red zone”. The so-called “hybrid instruments” of green finance in this case include the development of the institute of recooperators and financial intermediation and a change in the ratio of debt and equity financing of green projects. 2. All studies are of interest not so much in terms of quantitative assessment of economic growth as in assessing changes in its quality (Barajas et al., 2017; Okrepilov et al., 2019a, b, 2021; Okrepilov & Gagulina, 2021a, b). In the system of economic growth indicators it is the quantitative parameters of economic growth rates, the level of economic development, and the standard of living

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that are most applicable. However, ecological adaptation and focusing on ESG criteria is identified in the system of indicators of quality of life. The ecosystem quality of financial and non-financial services is growing as part of such changes, which the authors consider in the focus of ESG changes. An example is banking services that include waste reduction, waste recycling, energy savings, ESG loans, ESG risks, ESG ratings. Within the securities market, it is the formation of a green financing sector, ESG bonds, exchange-traded funds that comply with ESG principles.

Materials and Methods The study is carried out using methods of analysis and systematization. The authors apply the content analysis method to identify problems and discussion points related to the formation and development of the ESG growth concept. Within the content analysis, the references do not include the papers of the authors of the article in full. At the same time, publications in specialized economic journals containing different approaches within the framework of the research problem are included.

Results The study allows to lay down the following results: • analysis of modern recurrent publications allows to state the formation and development of the ESG growth model in the family of environmental concepts, to fix controversial approaches in determining the role of economic, environmental and social factors in the concept of sustainable development and ESG factors in the ESG growth concept; • the institutional outlines of the ESG growth concept are defined by the transformational processes of the real and financial markets and are connected with the emergence of institutions of recooperators, green banking, green insurance, green financing; • transformational processes in the real market are connected with the functioning of technological entrepreneurship and the implementation of energy transition tools, including green ones. In the long term, financial flows in the financial market are redistributed in favor of companies with an ESG strategy.

Discussion The study made it possible to pose two debatable problems:

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• at present, it is impossible to define the ESG growth concept as a mature, independent model. It develops on the basis of the sustainable development theory, within its institutional outlines and problems, which explains the similarity of research approaches and interpretations; • rare papers are devoted to the formation of a new ecosystem quality of the ESG growth concept. Most of the studies are carried out in the framework of sustainable development using indicators of the quality of life system.

Conclusion Summing up, the authors make several conclusions: 1. The ESG growth concept has been formed and is developing along with the wellknown environmental concepts: sustainable development, smart, sustainable and inclusive growth, the circular economy. 2. The outlines of the ESG growth concept are defined by assessing the levels of research into the problem of social, ecological and economic balance (nano, micro, macro, meso, mega). In addition, the authors evaluate the system of factors that determine ESG development: economic, social, environmental, institutional, mental, knowledge factor, digitalization factor and others. The authors also identify the levels of eco-efficiency, fixing the use of general or specific, quantitative and qualitative, financial and non-financial indicators. 3. Transformation processes are changing the institutions of the market and entrepreneurship in two directions: improving the institutional infrastructure and ESG focusing within the established institutions. The result of institutional changes is the emergence and development of the institution of green entrepreneurship, green banking, green investment, green financing, etc.

References Baikov, E. A., Enikeeva, L. A., Bulochnikov, P. A., & Kuzmina, S. N. (2020, March). Organizational and economic mechanism for managing the development of the cultural sphere of the Russian regions in the digital economy. In Proceedings of the III international scientific and practical conference (pp. 1–4). doi:https://doi.org/10.1145/3388984.3390627. Barajas, A., Shakina, E., & Fernández-Jardón, C. (2017). Acceleration effect of intangibles in the recovery of corporate performance after-crisis. Research in International Business and Finance, 42, 1115–1122. https://doi.org/10.1016/j.ribaf.2017.07.046 Burgonov, O., Kruglov, D., & Ivleva, E. (2019, October). Features of industrial management in the field of ecology. In IOP Conference series: Materials science and engineering (Vol. 618, No. 1, 012073). IOP Publishing. doi:https://doi.org/10.1088/1757-899X/618/1/012073. Burgonov, O., Golubetskaya, N., Ushakova, E., & Chirkova, T. (2020). The architecture of strategic management of innovative development of companies in the digital economy. In E3S web of conferences (Vol. 157, p. 04017). EDP Sciences. https://doi.org/10.1051/e3sconf/ 202015704017

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Evmenov, A., Blagova, I., Sorvina, T., & Kuzmina, S. (2019). Innovative development of the sociocultural sphere of the region. In E3S web of conferences (Vol. 110, p. 02060). EDP Sciences. https://doi.org/10.1051/e3sconf/201911002060 Ivleva, E., Pak, K. S., & Nagornaya, K. (2016). Regional indicators of the safety development of the entrepreneurship economy. In MATEC web of conferences (Vol. 73, p. 07019). EDP Sciences. https://doi.org/10.1051/matecconf/20167307019 Kuzmina, S., Morozova, N., Pimenova, A., & Agafonova, A. (2019). Sustainable architecture: Trends in higher professional architectures’ education. In MATEC web of conferences (Vol. 265, p. 07017). EDP Sciences. https://doi.org/10.1051/matecconf/201926507017 Morunova, G., Gorbushina, S., Okrepilov, V., & Kuzmina, S. (2018). Sustainable development of municipalities: Financial assurance infrastructure. In MATEC web of conferences (Vol. 239, p. 08005). EDP Sciences. https://doi.org/10.1051/matecconf/201823908005 Okrepilov, V., & Gagulina, N. (2021a). Structural transformations of innovative development and quality of life in modern environment. In E3S web of conferences (Vol. 258, p. 06008). EDP Sciences. https://doi.org/10.1051/e3sconf/202125806008 Okrepilov, V., & Gagulina, N. (2021b). Methodology of quality economy in the knowledge space. In E. Popov, V. Barkhatov, V. D. Pham, & D. Pletnev (Eds.), Competitiveness and the development of socio-economic systems, vol 105. European proceedings of social and Behavioural sciences (pp. 270–278). European Publisher. https://doi.org/10.15405/epsbs. 2021.04.29 Okrepilov, V., Kuzmina, S., & Lebedeva, T. (2019a). Service industries and construction: Trends and view at a quality assessment. In MATEC web of conferences (Vol. 265, p. 07016). EDP Sciences. https://doi.org/10.1051/matecconf/201926507016 Okrepilov, V., Kuzmina, S., & Kuznetsov, S. (2019b, March). Tools of quality economics: Sustainable development of a ‘smart city’ under conditions of digital transformation of the economy. In IOP conference series: Materials science and engineering (Vol. 497, No. 1, 012134). IOP Publishing. doi:https://doi.org/10.1088/1757-899X/497/1/012134. Okrepilov, V., Gagulina, N., & Getmanova, G. (2020). Factors of innovative development of regions in the concept of quality economics. In European proceedings of social and behavioural sciences EpSBS (pp. 409–418). https://doi.org/10.15405/epsbs.2020.10.03.46 Okrepilov, V. V., Glukhov, V. V., & Gorin, E. A. (2021). Improving the quality of education - A strategic framework for sustainable development. In I. V. Kovalev, A. A. Voroshilova, & A. S. Budagov (Eds.), Economic and social trends for sustainability of modern society (ICEST-II 2021), vol 116. European proceedings of social and behavioural sciences (pp. 2099–2105). European Publisher. https://doi.org/10.15405/epsbs.2021.09.02.236 Ritman, N., Pimenova, A., Kuzmina, S., & Baranova, A. (2017, October). Strategic factors of development of the enterprises. In IOP conference series: Earth and environmental science (Vol. 90, No. 1, 012092). IOP Publishing. doi:https://doi.org/10.1088/1755-1315/90/1/012092. Sintsova, E., & Vitsko, E. (2020, November). Assessment and recommendations on resource provision for the agricultural sector of the Leningrad Region. In Proceedings of the international scientific conference-digital transformation on manufacturing, infrastructure and service (pp. 1–7). doi:https://doi.org/10.1145/3446434.3446436. Vlasova, M., Pimenova, A., Kuzmina, S., & Morozova, N. (2016). Tools for company’s sustainable economic growth. Procedia Engineering, 165, 1118–1124. https://doi.org/10.1016/j.proeng. 2016.11.828 Zaytsev, A., Sun, P. K., Elkina, O., Tarasova, T., & Dmitriev, N. (2021). Economic security and innovative component of a region: A comprehensive assessment. Sustainable Development and Engineering Economics, 2, 58–78. https://doi.org/10.48554/SDEE.2021.2.4

Non-standard Green Buildings and Smart Houses as Way to Get Additional Financial Resources Nataly Sergievskaya

Introduction The relevance of this work. Nowadays some people prefer to live in extra-ordinary houses that are highly comfortable and environmentally friendly. “Green” buildings and “smart” houses meet such requirements. Another reason for some people to choose these buildings is to reduce their cost of living. The smart houses and green buildings can be preferable because they help to reduce utility costs by saving water and electricity. People get tired of monotony psychologically. Thus, their interest in non-standard, extra-ordinary, comfortable and healthy housing grows. Investors and developers try to meet the needs of potential buyers and prefer to invest in building of such houses. In recent decades non-standard buildings and structures start to attract more attention of the people all over the world. Green construction makes housing environmentally friendly. Smart houses create comfort. The article reviews two hypothetical premium class hotels that contain components of “green” buildings and “smart” houses. Before that, however, we would like to present some definitions of these terms proposed by researchers in various countries. Construction of “green” buildings is “aimed at increase the efficiency of utilization of resources (energy, water and materials). “Green” construction also reduces the impact of buildings on human health and the environment during life cycles of the buildings thanks to better choice of location, design, construction, operation,

N. Sergievskaya (✉) Moscow State University of Civil Engineering (National Research University), Moscow, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_13

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maintenance. It is necessary to design and operate “green” buildings to reduce the overall impact of construction on the environment” (Abdullah et al., 2020). Drew Liming in his article “Careers in Green Construction” notes that “green construction is the practice of erecting buildings and applying environmentally friendly and resource-efficient processes” (Liming, 2011). “Smart” houses include an automation system that controls household appliances, lighting, temperature and security, access control and alarm systems, etc. A “smart” house requires a connection to Internet (Larsson & Hatzigeorgiou, 2022). “A “smart” house is a group of devices connected to the Internet that can be controlled using a smartphone or computer remotely” (Albany et al., 2022).

Materials and Methods Theoretical analysis, comparison and generalization of data are used in the article. Nowadays much attention is paid to the environmental challenges in many countries, because they may adversely affect life and health of the people, their capability to work, such as environmental challenges caused by air pollution, etc. Below are the points of view of some researchers on the matter: 1. Prabhat Kumar Rai, Prashant Kumar Rai in their article “Environmental and socio-economic impacts of global climate change: An overview on mitigation approaches” state that nowadays the amount of natural resources and the quality of the world environment has changed significantly due to the rapid pace of industrialization and urbanization. . . . There may “increase of emissions and accumulations such as of carbon dioxide (CO2), nitrogen (N20), methane (CH4) and chlorofluorocarbons (CFCs) in the atmosphere. They are considered the main greenhouse gases (GHGs)” (Rai & Rai, 2013). 2. Stefan Ambec and Jessica Coria write in their article “Policy spillovers in the regulation of multiple pollutants” that “many air pollutants and greenhouse gases (GHGs) have common sources. Cars and coal-fired power plants are cited as examples. They emit nitrogen oxides (NOx) and carbon dioxide (CO2), which have a negative impact on air quality and climate” (Ambec & Coria, 2018). 3. Shanjun Lia, Yanyan Liuc, Avralt-Od Purevjav, Lin Yan in their article “Does subway expansion improve air quality?” informs that “traffic congestion and air pollution cause serious problems in cities in many developing countries. . . . East and South Asia countries (such as Bangladesh, China, India and others) experienced the highest levels of PM2.5 in 2015. PM2.5 is the main environmental factor of mortality.” (Li et al., 2019). 4. Lutz Sager writes in his article “Estimating the effect of air pollution on road safety using atmospheric temperature inversions” that “Air pollution can cause serious negative health effects, including respiratory disease and cardiovascular disease. In addition, it can have negative impact on the behavior and labor

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productivity of city residents . . .”. There is “data that shows a link between air pollution and increased aggressiveness, more impatience, etc.” (Sager, 2019). The Organization of Economic Cooperation and Development declares that nowadays there is a serious risk of losing flora and fauna from 61% to 72% by 2050 because of high level of consumption and production (Ivanova & Levchenko, 2017). In the modern world, the construction of environmentally friendly houses contributes to the protection of nature and the improvement of ecological situation. Energy consumption for heating is reduced in “green” houses thanks to using of internal heat sources of energy-saving and heat-insulating materials. These houses are practically harmless from the point of view of ecology (Kablukova & Ismagilova, 2016). The concept of “green construction” was proposed at the United Nations Conference on Environment and Development (UNCED) (Rio de Janeiro, 1992). It was noted that buildings should provide comfortable conditions for residents and the buildings must also save energy and reduce possible negative impact on the environment (Rai & Rai, 2013). Powell, Jennifer Baumert state in his article “Green Building Services” that services of “green” construction include construction, architecture, engineering and accompanying events which aim to form sustainable structures by means of using of environmentally friendly technologies, processes and materials (Larsson & Hatzigeorgiou, 2022). Sheina S.G. and Minenko E.N. in their article “Green building as the basis of sustainable development of urban areas” emphasize that nowadays “green” construction is considered as: • practices of construction and operation of buildings having lowest consumption of energy and material resources during their entire life cycle, and • “a new philosophy for the formation of comfortable internal (buildings) and external (urban) environment” (Sheina & Minenko, 2015). In modern world, an important task is to use the latest energy-saving and environmentally friendly technologies. “Green” houses contribute to solving this problem. Planting of greenery of facades and roofs is carried out for this. It is believed that planting of greenery contributes to the absorption of dust, noise reduction, etc. (Kornienko, 2017). Goals of “green construction” in Fig. 1. In Table 1 are the following examples. Important competitive advantages of the “green” buildings are: certification based on green standards and considerable increase of energy efficiency (Sharipova & Demina, 2016). “Green value is the net value added of a building that is seen as “green” and more attractive to a potential consumer. It is also believed that investing in “green” buildings is very profitable, because it leads to quite serious financial return” (Abdullah et al., 2020). This statement can be illustrated by an example based on Moscow region in Russia shown in Fig. 2.

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Saving electricity and other resources during the life cycle of the buildings Maintaining quality of buildings

Minimising adverse impact of buildings on humab health

Goals of green houses Minimising adverse impact on the environment

Higher quality of buildings

Improved comfort inside the buildings Fig. 1 Goals of “green construction” (Sharipova & Demina, 2016) Table 1 Advantages of “green” buildings (Sharipova & Demina, 2016) Name Business center “Dukat place III” Project FREEDOM

Terrain Moscow Moscow region

Advantages The energy consumption of the green building has been reduced by approximately 35%. The estimated level of energy consumption of the green buildings is 35 kWh/m2 per year, which is 5 times less than standard rate for Russia.

Average Annual Maintanance Cost by Building Type

1620 USD/m2 240 USD/m2 Traditional

"Green"

Fig. 2 Comparison of average annual maintenance costs of the traditional and “green” buildings (Kablukova & Ismagilova, 2016)

Figure 2 shows that operating and maintenance costs of a “green” building are much lower than those of the traditional building. The difference in our example is equivalent to US$ 1380 per m2. Comparative advantages of “green” buildings can be clearly seen in Fig. 3. The application of “green” building standards stimulates: • innovative technologies, • quality of life of the people, • environmental situation in cities and towns, etc.

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improvement of environmental situation longer life cycle of the buildings less water and energy consumption lower maintenance costs

Advantages of green buildings

"green" business development development of innovative environmentally friendly technologies development of environmentally friendly economy improvement of quality of life of the people and society better air quality in the buldings better environmental conditions in the offices and other facilities cleaner buildings better maintenance higher quality of the internal environment less exposure to allergens less pollutants improved health Fig. 3 Advantages of “green” buildings (Allen et al., 2015; Khodadadzadeh, 2016; Sharipova & Demina, 2016)

In many studies reviewed by us researchers agree that “green” buildings contribute to more comfortable life of people in terms of ecology and energy efficiency. These buildings have beneficial effect on health of the people and improve environmental situation in cities and towns. There are elements that contribute to saving water or reducing energy consumption in “green” buildings. Thanks to it, savings are made by landlords and tenants (savings on utilities) (Kornienko, 2017). Thus, the “green” construction helps to improve quality of life of the people by improving the quality of “green” buildings and reducing consumption of energy resources. “Green” construction contributes to the development of innovative technologies (Khodadadzadeh, 2016).

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Fig. 4 Key Functions of a “smart” house

Lighting control

Clinate control

Sound and video

Smart houses Control of kitchen and household appliances

Communic ation and internet Technical protection

Now let us move on to “smart” houses. “Smart house is an automatic system that manages and controls all engineering networks in the house (electricity, heating, ventilation and air conditioning, water supply, security).” It saves time and money of inhabitants of such houses. The main advantage is energy saving. Thanks to a “smart house”, it is possible to considerably save water and electricity resources (Akulinushkina & Zaripova, 2019). Thanks to “smart” houses, time for housekeeping can also be reduced, for example smart dishwashers or robotic vacuum cleaners can be used. They prevent wasting electricity, for example, “smart” lightbulbs turn off automatically if there is no one in the room (Larsson & Hatzigeorgiou, 2022). “Smart” houses can be managed by connecting the controlled equipment to the special type of central device. The mechanisms are controlled through an interface, which is usually use a wall terminal, computer, tablet, smartphone, etc.” (Larsson & Hatzigeorgiou, 2022). Key functions of a “smart” house are presented in Fig. 4. Another advantage of “smart” houses is resistance to stresses. A person may start to panic in a stressful situation that may be dangerous to health or even life of such person. He will not be able to make reasonable decisions and control the situation. While the “smart” technology is able to control the emergency situation. For example, if there is a fire in a house, the fire extinguisher will automatically turn on and fire fighters will be called. However, there are also some disadvantages. For instance, fraudsters may enter the house by hacking the “smart” house system in case it is not adequately secured.

Non-standard Green Buildings and Smart Houses as Way to Get. . . Fig. 5 Economic benefits from a “smart” house (Akulinushkina & Zaripova, 2019)

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Smart house benefits

Cost saving

Tine saving

Table 2 Comparative advantages of smart houses and green buildings Advantages “Smart” houses Time saving Cost saving

“Green” buildings Longer life cycle Less technical maintenance Improvement of the environmental situation Less water and energy consumption Development of innovative technologies Better indoor air quality Better maintenance Better quality of the indoor environment Less exposure to allergens Health improvement Less environmental pollutants

Apart from other the advantages of a “smart” house it is necessary to mention the following benefits shown in Fig. 5. Below is a comparison of advantages of “smart” houses and “green” buildings (Table 2). The above benefits may synergize by providing even higher advantages to the users. For example, longer life cycle and/or less maintenance requirements help to save time and costs. We would like to demonstrate below the outcomes of several surveys conducted by various companies with respect to smart houses and environmental issues in Russia, Saudi Arabia and USA. 1. The project Hi-Tech design conducted a survey among 4620 Russian users under the Hi-Tech project Mail.ru in July 2019 (Fig. 6). 2. Delta, the leading provider of comprehensive security services for real estate, property and vehicles conducted a survey among respondents aged 20–65 years in 6 federal districts of the Russian Federation (Fig. 7). 3. Survey conducted in Saudi Arabia: 270 “smart” homeowners were interviewed (Albany et al., 2022) (Fig. 8). Based on the outcomes of the above surveys it can be seen that majority of respondents are aware of “smart” houses and some of them would like to have them. However, most respondents preferred not to exceed their financial limits. A relatively small proportion of respondents are willing to pay higher prices for obtaining smart houses (24% in one survey and 18% in another survey). Only

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Smart House Survey Results Conducted by High-Tech Project ready to pay for additional comfort much more

0.24

ready to pay for additional comfort within their budget

0.57

would like to have a smart house

0.69

use smart houses technologies

0.27

aware about smart houses

0.88 0

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

1

Fig. 6 Smart houses survey conducted by Hi-Tech in Russia

Smart House Survey Results Conducted by Delta consider smart houses to be unsafe

5%

consider smart houses as unnecessary luxury

6%

Have elements of the smart house

14%

Want to have a smart house regardless of the price

18%

Prefer to have a smart home

57% 0%

10% 20% 30% 40% 50% 60%

Fig. 7 Smart houses survey conducted by Delta in Russia

27% of respondents of the first survey use “smart” house technologies, and 14% of respondents of the second survey have “smart” house elements. It may be assumed that such a small percentage of respondents use “smart” house elements because the people believe that it is very expensive. In addition, some people are wary and even negative about “smart” houses. They consider “smart” houses as an unnecessary luxury (6%) and believe that they are not safe (5%). There may be some truth in this point of view and the third survey conducted in Saudi Arabia demonstrates that. Many people are unaware of how their confidential information is stored and managed in the cloud. “Smart” houses have their pros and cons and each person should decide whether to use “smart” houses technologies or not. 4. The survey carried out by the NAFI Analytical Center in Russia in April–May 2019 was devoted to environmental situation in the cities, small towns and

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Smart Building Disadvantages Survey Results Respondents are not aware how their confidential information is stored and managed in the cloud

41%

Respondents do not trust the Cloud

72%

0% 10% 20% 30% 40% 50% 60% 70% 80% Fig. 8 Disadvantages of “smart” houses according to survey in Saudi Arabia (Albany et al., 2022)

Environmental Situation unfavourable environmental situation in big cities

71%

positive envirinmental situation in towns and settlements Environmental situtation is unfavourable Environmental situation is favourable

62% 48% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80%

Fig. 9 Environmental situation

settlements. According to opinion of most respondents (71%) environmental situation in the cities is not favorable, while in small towns and settlements is seems to be better (62%). It may be expected, therefore, that the demand for environmentally friendly green building and smart houses will grow faster in big cities than in the small towns and settlements (Fig. 9). 5. The publication The Environmental Leader wrote about a survey conducted by real estate company AMLI Residential. The company interviewed 2812 people aged 25–34 in USA in various hotels located in Chicago, Dallas, Southeast Florida, Atlanta, Seattle and others. The survey showed the following (Fig. 10): All the above surveys show that the people living in various countries are interested in having “green” and “smart” houses and some of them would like to live in such houses.

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Environmental Expectations Importance of envirinmentally clean houses for health

85%

Importance of envirinmentally clean houses for life

84%

Respondents agree to pay some more for environmentally friendly house

64% 0% 10%20% 30% 40% 50% 60%70% 80% 90%

Fig. 10 Environmental expectations of the respondents

Results The scientific novelty is the following: the author proposes to combine features of non-standard “green” buildings and “smart” houses in one hypothetical hotel and to show the benefit of such combination not only for entrepreneurs, but also for the region, and for the country. The author also proposes to use his own formulas both for calculating the payback of hotels based on hypothetical costs the rooms, and for estimation of the approximate cost of “smart” hotel elements. As mentioned above, many people prefer non-standard, environmentally friendly and comfortable houses. Advantages of their construction for the people, region and the country is demonstrated on Fig. 11. From our point of view, there is an interaction between the non-standard buildings’ concepts (“green” buildings, extraordinary buildings and “smart” houses) on the country level, regional level and on the level of the people. They are related to each other and interconnected. “Green” buildings, “smart” houses and “extraordinary” buildings always arouse the interest of the people in many countries. Extraordinary buildings are a great way to attract tourists from all over the world. Accordingly, this provides an additional inflow of capital and improve the image of the country. “Smart” houses attract people by simplifying their routine activities and rising living standards and comfort. They also help to save energy, save time and money. “Green” houses contribute to improving the environmental situation and, therefore, improvement of the health of the people. The population is becoming healthier, which has positive effect on the region and the country. In addition, “green” houses also contribute to saving of energy and other resources. Below we would like to present our hypothetical combination of the above non-standard buildings in one house: “green”, “extraordinary” buildings and “smart” houses, prepared for the purpose of this article.

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Construction Of Non-Standard Buildings Green Buildings Extraordibary Buildings Smart Houses

Improvement of Peoples' Health

Improvement of Environmental Situation

Improved Health

Government Improvement of Country's Image

Region Attraction of Tourists

People Higher Standards And Image

Improvement of Living Standards

Improvement of Living Standards

Energy Saving and Comfort

Fig. 11 Advantages of non-standard buildings Table 3 Comparison of two types of non-standard mini hotels Option 1. Hotel for families with children The hotel may be a fairy-tale house focused on families with children. Everyone dreamed of staying in a little fairy-tale house in childhood at least one time. With a properly conducted advertising campaign interested families with children may be attracted and the construction costs may be recouped relatively quickly.

Option 2. Extraordinary hotel It can be an extraordinary building for people who are tired of the standard environment. People who are not interested in traditional hotels any longer and prefer something unusual, extraordinary. Specially designed tours and excursions may be offered focuses on the interests of the tourists. The hotel may attract a certain category of people and may be profitable. However, it will also require a specially designed advertising campaign.

Below is a comparative analysis of two options of hypothetical non-standard mini hotels with 10 rooms. Option 1—a fairy-tale hotel for families with children to be built based on the standard design. Option II—an extraordinary hotel to be built on a specially developed unique design (Table 3). Option 1. Hotel for families with children may have family rooms with standard hotel furnishings. In addition to the usual cafes and restaurants, there may be cafeteria for children and teenagers focusing on their needs and interests. There may also be a playground and a children’s entertainment center where parents can leave their children under the supervision of specially trained employees who will watch and entertain them. The parents themselves may also stay with their children and take part in various games.

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The hotel may be located on a picturesque ecologically clean area, with a field, forest and a river or lake. There may be a garden on the territory of the hotel, duplicating fairy-tale gardens and nature, so that any person arriving at the hotel could feel like a small child coming to a fairy tale of his dreams. The fairy-tale hotel may also resemble Russian fairy tale “teremok”. This will be a great place for children and adults who will make their childhood dream come true. Moreover, the hotel would combine the advantages of a “smart” house and “green” building. It can be assumed, therefore, that the house will pay off within approximately 4 years. Our very preliminary estimations are provided below. Option 2. Extraordinary hotel. It will be an unusual, picturesque building that attracts attention, something like an upside-down house in Novosibirsk or Dubai, or another extraordinary building. It may be preferable to conduct a survey among potential customers prior to design and construction. Potential customers may be asked what kind of extraordinary building they would prefer. The comfort and services provided in such hotel may be adequate to high standard hotels. The building will also combine a “smart” house, an “unusual” and “green” buildings. An advertising campaign need to be focused on individual needs and preferences of the potential customers. It may be emphasized that special services will be provided to those customers who are tired of the routine, monotony and standard environment and services. Everything is supposed to be unusual and non-standard here. Particular attention may be paid to the non-standard extraordinary environment within comfortable living conditions. So to say: “familiar comfort in an unusual setting”.

Discussion Below is an approximate estimation of how soon such hotel buildings can be paid off. The daily rate for rent may will be, for example, about $95 for a single room, $170 for a double room and $200 for a family room. We would like to propose the following formula: PP =

CHC ðRPN x NR x NDÞ x 12

Where: PP—payback period СHC—Cost of hotel’s construction RPN—Rate of hotel’s room per night NR—Number of hotel’s rooms ND—Number of days in a month, 12 months (Table 4)

ð1Þ

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Table 4 Payback period of mini hotels Family friendly hotel Non-standard hotel 8 family and 2 single rooms (approximately) 7 single and 3 double rooms (approximately). Single room Family room Single room Double room • From about $170 • From about $95 • From about $200 • From about $95 (3 hotel’s room per (7 hotel’s room per (8 hotel’s room per (2 hotel’s room per day) × 3 = $510 × day) × 7 = $665 × day) × 8 = $1600 × day) × 2 = $190 × 30 = $15,300 (per 30 = $19,950 (per 30 = $48,000 (per 30 = $5700 (per month) month) month) month) • 19,950 × • $48,000 × • $15,300 × • $5700 × 12 = 239,400 (per 12 = $576,000 (per 12 = $183,600 (per 12 = $68,400 (per year) year) year) year) Construction of the hotel will cost approximately $930,000 $68,400 + $576,000 = $644,400 (per year) $239,400 + $183,600 = $423,000 (per year) $930,000/$644,400 = 1.4 years $930,000/$423,000 = 2.2 years Conclusion: The hotel will pay off in 4 or Conclusion: The hotel will pay off in 4 years. We indicate specially a longer period, because 5 years. We indicate specially a longer period, because hotel’s rooms may be empty for hotel’s rooms may be empty for some time. some time.

Price of smart house elements purchased per one room can be estimated based on the following formulas below. Pse = Pss þ Pls þ P sd þ Psb þ Ptm þ Paqc þ Pgs þ Pab þ Poe,

ð2Þ

Where: Pse—the price of smart house elements Pss—the price of a smart speaker with voice assistant for management Pls—the price of emergency leakage sensors Psd—the price of emergency smoke detectors Psb—the price of one smart block (it includes up to 8 devices: water, gas, electricity, heat meters, leakage sensors, electric ball valves, etc.) Ptm—the price of management of household appliances and electrical appliances Paqc—the price of air quality control Pgs—the price of glass break sensor Pab—the price of an alarm button Poe—the price of other smart” house elements. The cost of all smart house elements per room in total is approximately equivalent to US $ 483. P = Pse þ ðNlb × PlbÞ þ ðNss × PssÞ, Where:

ð3Þ

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Table 5 Cost of smart hotel elements, USD Family Friendly Hotel and “Non-Standard” Hotel 8 family rooms and 2 single rooms or 7 single and 3 double rooms Single room Family room 24 lightbulbs, 10 sockets (approximately) 12 lightbulbs, 5 sockets (approximately) $715—price of all smart room elements $980—the price of all smart room elements $715 × 2 rooms = $1430 $980 × 8 rooms = $7840 $1430 + $7840 = $9270 (per 10 years in 10 rooms) $11,000 is the cost for maintenance of offices and common areas per year (including cost of sensors in all rooms) approximately.

P—the price of smart house elements per year in one hotel’s room Pse—the sum of the prices of smart house elements Nlb—the number of smart lightbulbs in a hotel’s room Plb—the price of smart lightbulbs Pss—the number of smart sockets in a hotel’s room Nss—the price of smart sockets Based on the above, the expenses to upgrade a single room with smart elements will be $715. The expenses for double and family room will be $980 (Table 5). The total amount spent for 10 years is: $9270 + $11,000 = $20,270, and the cost per year is $2027. The payback of hotels will be relatively fast for both types of the hotels. The cost of smart sensors and their installation is subtracted from the amount of rent received for the hotel’s rooms (see the calculation above). The reduction the energy consumption of “green” buildings is considerable, see Fig. 2. Hotels equipped with smart technologies will bring more profit to their owners after being paid off. Such hotels will accordingly pay a bigger amount of local taxes. If the experience of building such hotels will be successful, it will be possible to build such hotels in different areas of the country. Then it could be helpful to conduct a survey among potential customers to decide if they would like the same type of hotels in different areas. Depending on the outcomes of surveys it may be possible to duplicate various “fairy tales” hotels and to design and build “extraordinary” buildings. It will attract more tourists. If the hotels are popular, it may be possible to arrange special tours to visit these sites and buildings. Hotels could have a small museum—souvenir shops where staff will tell unusual little-known facts about the life of the cities and regions. They also may provide useful information about local points of interest. The staff will distribute calendars with local attractions, interesting historical facts and advertise other tourist businesses with phone numbers and addresses of places that people can visit. The hotels may also work with travel agencies to increase their competitiveness. It is possible to offer educational and/or entertainment tours for children and their families. It is possible to offer tours for extraordinary hotels, such as tours related to

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the life of famous people, book tours, gastronomic tours, eco tours, extreme tours, etc. If there are more such hotels and the flow of tourists is increased, then this will attract more funds to the city, the region and the country through the amount of tax received from hotels.

Conclusion Both hotel options may attract the attention of potential customers because they serve their interests. As mentioned above, all people come from their childhood, and everyone wants to visit the dream of their childhood, especially with their young children. This may be the case for the Option 1 hotels. For Option 2 hotels, it is possible to attract additional tourists who want to try something new, something different from usual, standard. A well-conducted advertising campaign can play a significant role in this. There is a good chance of fast payback of the initial costs for the purchase and installation of smart sensors. It may be possible because smart equipment will considerably recoup the costs for construction and/or upgrading. The estimations were made in general terms and do not consider some pluses and minuses of “extraordinary”, “green” buildings and smart houses that should be also taking into account. Moreover, “extraordinary” and “green” buildings may attract attention of tourists from many countries, with their additional financial resources that will benefit a city, a region and a country. “Green” buildings may improve environmental situation and they attract wealthy tourists who care about their health and the tourists and agree to pay more for “green” buildings compared with the ordinary hotels. Smart houses may contribute to energy saving and they also may create additional comfort for tourists.

References Abdullah, L., Mohd, T., Pin, S. F. C., & Ahmad, N. (2020). Green building valuation; From a valuers’ perspective. In AIP Conference proceedings (Vol. 2020, no. 1, p. 020064). AIP Publishing LLC. doi:https://doi.org/10.1063/1.5062690. Akulinushkina, T. E. & Zaripova, I. R. (2019). “Smart house” for the development of housing and communal services in a region. Young Scientist(18), 105–109. Retrieved from: https://moluch. ru/archive/256/58586/. Albany, M., Alsahafi, E., Alruwili, I., & Elkhediri, S. (2022). A review: Secure internet of thing system for smart houses. Procedia Computer Science, 201, 437–444. https://doi.org/10.1016/j. procs.2022.03.057 Allen, J. G., MacNaughton, P., Laurent, J. G. C., Flanigan, S. S., Eitland, E. S., & Spengler, J. D. (2015). Green buildings and health. Current Environmental Health Reports, 2, 250–258. https:// doi.org/10.1007/s40572-015-0063-y

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Ambec, S., & Coria, J. (2018). Policy spillovers in the regulation of multiple pollutants. Journal of Environmental Economics and Management, 87, 114–134. https://doi.org/10.1016/j.jeem.2017. 05.011 Ivanova, N. I., & Levchenko, L. V. (2017). Green economy: Essence, principles and prospects. Bulletin of the Omsk University, 3(58), 19–28. Retrieved from: https://cyberleninka.ru/article/n/ zelenaya-ekonomika-suschnost-printsipy-i-perspektivy/viewer (in Russ.) Kablukova, O. D., & Ismagilova, A. V. (2016). The cost of building a “green house”. Young Scientist, 9(1), 40–42. Retrieved from: https://moluch.ru/archive/113/28977/ (in Russ.) Khodadadzadeh, T. (2016). Green building project management: Obstacles and solutions for sustainable development. Journal of Project Management, 1(1), 21–26. https://doi.org/10. 5267/j.jpm.2017.1.003 Kornienko, S. V. (2017). «Green» construction is an innovative and socially significant element of increasing environmental sustainability. Sustainable Building Technologies, 3, 60–80. Retrieved from: http://zvt.abok.ru/upload/pdf_articles/447.pdf (in Russ.) Larsson, A., & Hatzigeorgiou, A. (2022). Designing smart and resilient cities for a post-pandemic world: Metropandemic revolution. Taylor & Francis. https://doi.org/10.4324/9781003222583-6 Li, S., Liu, Y., Purevjav, A. O., & Yang, L. (2019). Does subway expansion improve air quality? Journal of Environmental Economics and Management, 96, 213–235. https://doi.org/10.1016/j. jeem.2019.05.005 Liming, D. (2011). Careers in green construction. US Bereau of Labor Statistic. Rai, P. K. & Rai, P. K. (2013). Environmental and socio-economic impacts of global climate change: An overview on mitigation approaches. Environmental Skeptics and Critics, 2(4), 126. Retrieved from: https://www.researchgate.net/publication/274832058_Environmental_and_ socio-economic_impacts_of_global_climate_change_An_overview_on_mitigation_ approaches. Sager, L. (2019). Estimating the effect of air pollution on road safety using atmospheric temperature inversions. Journal of Environmental Economics and Management, 98, 102250. https://doi.org/ 10.1016/j.jeem.2019.102250 Sharipova, S. G., & Demina, Y. O. (2016). Green building in the Russian Federation. Young Scientist, 9(1), 62–64. Retrieved from: https://moluch.ru/archive/113/29062/ (in Russ.) Sheina, S. G., & Minenko, E. N. (2015). Green construction as a basis for sustainable development of urban areas. Nedvizhimost’: Ekonomika, upravlenie, 2 (in Russ.)

Product Quality Management Through the Prism of Consumption in Modern Society Nataly Sergievskaya

Introduction Product quality management and quality control play important role in modern society. Product quality requirements may vary depending on various conditions of internal and external environment in different countries. Quality of products, however, remains very important. It influences the health and life of people and, ultimately, the well-being of the countries. Quality control strives to assure the optimum level of quality in according to market expectations (Baltag & Morariu, 2022). Quality and safety of products is monitored by the government bodies of many countries. National standard of the Russian Federation GOST R ISO 9000-2015 “Quality management systems. Fundamentals and vocabulary” proposes the following definition: “Quality is the degree to which the set of inherent characteristics of an object meets the requirements.” GOST 15467-79 of the Russian Federation “Product quality management. Basic concepts. Terms and definitions” considers the quality of products as a set of product properties that determine its suitability to satisfy certain needs in accordance with its purpose (Panova, 2010). International Standard ISO 8402-86 considers quality as a set of properties and characteristics of a product or service that give the ability to satisfy determined or supposed needs. Quality can be considered in three aspects: quality in product; quality in process; quality in system. The concept of quality has become global phenomenon thanks to the emergence of ISO 9001 (Krivokapić & Stefanović, 2020). The International

N. Sergievskaya (✉) Moscow State University of Civil Engineering (National Research University), Moscow, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_14

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Organization for Standardization ISO proposes the following definition “Quality is a degree to which the set of inherent characteristics meets requirements.” The ICH Q9 standard considers quality as a degree to which the set of inherent properties of a product, system or process meet requirements (Alasas, 2018). The American Society for Quality (AS”) has proposed two options for defining “quality”: 1. Quality is considered as a characteristic of a product or service that makes it possible to satisfy explicit and implicit requirements (needs) of customers. 2. Quality is a product or service that has no flaws (de Las Casas & Alecchi, 2020). The purpose of our article is to propose and consider a conceptual model of quality management in three blocks, i.e., from the side of the state, enterprises and consumers and to understand how they are interrelated.

Materials and Methods Comparative analysis is considered as a method. It is proposed to use theoretical methods of analysis as the main methods of research on this issue. The author uses the methods of comparison, generalization, an integrated approach, and multilevel analysis. The use of these methods is justified because this article discusses concepts that relate to product quality management, and they are the subject of this study. Let us consider factors that influence on consumer behavior. Factors influence on consumer behavior: • desire for personal comfort; • the availability of technical means of communication and the influence of the media; • strengthening the information impact on the population; • active transition on a commercial basis in most areas of activity in urban life and its rationalization; • increasing importance of leisure in cities; • the impact of international trends; • metropolitan infrastructure, etc. (Head, 2011). Internal factors affect the quality of enterprises’ products. They include following factors: • • • •

production and technological; socio-psychological; economic; organizational (Mizanbekova et al., 2017).

Quality management systems (QMS) are needed in all industrial sectors. They can ensure that customers receive safe and quality products.

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Many enterprises use QMS to make their products more competitive in the international arena. The most important quality management systems are in the food industry: Global Food Safety Initiative (GFSI), International Food Standard (IFS), British Retail Consortium (BRC), Safe Quality Food (SQF) 2000 and International Organization for Standardization—ISO 22000: 2005 (Bojkovska et al., 2014). The quality management system can face various problems like any indicator. These include: • • • • • • •

wrong choice of efficiency evaluation criteria low level of responsiveness to customer requirements low level of control formal approach low qualifications no motivation for quality incompetence of staff, etc. (Bocharova et al. 2018).

The functions of product quality management systems include the following: • • • • • •

macro functions, general functions private functions strategic, tactical and operational management; functions of decision-making, control actions, analysis and accounting; information and control functions (Kupriyanova, 2015).

There is the list the most popular quality management systems: 1. 2. 3. 4. 5. 6. 7.

ISO 9000 TQM (Total Quality Management) Premium Quality 6 sigm Lean manufacturing Kaizen Best practices (Mohammad & Rassokha, 2017).

The existence of quality systems plays an important role from the competitiveness point of view. «TQM (Total Quality Management) is a quality management system based on the way of thinking of the entire company staff» (Ratter & Nader, 2022) TQM draws attention because it promotes efficiency and effectiveness. It makes it possible to achieve sustainable competitive advantage and increase business efficiency (Antunes et al., 2020). European standards are adopted by one of the 3 European standardisation organisations (ESOs): CEN, Cenelec and ETSI. National standardisation bodies withdraw any conflicting national standards. Let us briefly consider several national standards organizations (Table 1):

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Table 1 National Standardization organizations (Kupriyanova, 2015a) N 1

Country Russia

2 3 4 5 6

Japan Germany USA England France

Standardization organizations Committee of the Russian Federation for Standardization, Metrology and Certification Japan Industrial Standards Committee (JISC) German Standards Institute (DIN) National Institute of Standards and Technology (NIST) British Standards Institute (BSI) PERINORM French Association for Standardization (AFNOR)

1. Russia. Committee of the Russian Federation for Standardization, Metrology and Certification. It introduces norms, rules, characteristics of standardization and it adopts GOST RF. 2. Germany. German Standards Institute (DIN). It protects the interests of the citizens and the environment. It eliminates technical problems in commerce and resolves many other issues related to standardization. 3. USA. American National Institute of Standards and Technology (NIST). Its main task is to help solve nationwide problems, for example, the security of the public, environmental protection, etc. In the US, there is a non-profit and non-governmental organization NIST (Kupriyanova, 2015a). 4. The Japan Industrial Standards Committee (JISC) is a government-authorized organization. There exist general quality standards, but emphasis is placed on additional items in each country. Everywhere special attention is paid to environmental protection. The Japan Industrial Standards Committee (JISC) is responsible for creating new industrial standards and product labeling. The American National Institute of Standards and Technology (NIST) promotes industry competitiveness and innovation. Thus, each state pays great attention to quality issues, because the quality of products is one of the main issue when people purchase goods. The table of standardization organizations is in some countries is below (Kupriyanova, 2015a). Each country has its own standardization organizations., it is customary to create institutions (in Germany, etc.), associations (in France, etc.), committees (in Japan, etc.), standardization for them abroad (Kupriyanova, 2015a). These organizations are an essential part of the technical infrastructure of each country. They are also the most important representatives of their countries’ stakeholders regarding standardization on the world stage. We decided to take two countries as an example: Japan and China. These countries play an important role in the international arena. The Japanese quality management system is considered the best in the world and regarded as fundamental. Its implementation is based on highly qualified personnel. This is also facilitated by the combination of high level of competence and technological discipline. In

Product Quality Management Through the Prism of Consumption in Modern Society Fig. 1 Quality management model for small businesses in Japan (Kovtunova 2012)

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Philosophy

Process

Quality Control Model

Employees and Partners

Problem solving

addition, groups of employees (quality-control circles, QCC) were created where problems of production and quality were discussed. These QCC contributed to the great economic effect and success in reducing defective work and improving product quality (Kupriyanova, 2015). Quality management is one of the main bases for the competitiveness of Japanese enterprises. Attention is paid to the following in this model: (Fig. 1). 1. Philosophy establishes the values, beliefs and principles on which it is going to function. 2. Process. It is important to maintain high quality in the design, planning, production of products and services, their use and in the management of the company itself. 3. Employees and partners. It is believed that the production of quality products depends on the company’s employees. 4. Solution of problems. Many companies use fact-based decision making (Kovtunova 2012). Japanese consumer tastes are oriented towards local produce. That’s why a number of products and services do not attract consumers. Although, these products may be in demand in other countries. Another feature is that until recently, consumers were restrained in their desires. This is in keeping with Confucian culture. She disapproves of excessive consumption. It is believed that only what is necessary should be used (Synodinos, 2001).

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Table 2 Laws in China (Nyrova, 2007) N 1

Provisions in Laws Consumer’s right to product safety

2 3

Compliance formation product quality requirements of the contract Civil liability for low-quality goods

4 5

Administrative responsibility Criminal Liability

Laws in China Art. 7 of the Law of the People’s Republic of China “On Protection of Consumer Rights” dated 31.10.93 Laws in China “On the contract” from 15.03.99 Laws in China “on the contract” Law of the People’s Republic of China “On Product Quality” Laws in China “On Product Quality” Criminal Law

Now let’s look at China. China is the largest trading partner for over 130 countries. The country is also the largest exporter and it is the second largest importer in the world (Delux & Vannak, 2018). Product quality is a major factor in customer satisfaction. The demand for products depends on the quality that the manufacturer provides to the consumers. China passed the Product Quality Law in 1993. The articles appeared in the Criminal Law which provide for criminal liability for a number of violations of product quality in 1997. One can see a table on the provisions regarding product quality in the laws of the PRC below (Table 2). The law “On the Protection of Consumer Rights” states that products must be safe for human health and their property. It is written in the law of the People’s Republic of China “On the contract” that the quality of the products should be as in the terms of the contract. If this is not clearly stated, then there is proposed a sequence of solving this problem. For example, one should first negotiate and one make additions to the contract, etc. The Law of the People’s Republic of China “On Product Quality” states that if an entrepreneur sells a product that does not meet state or industry standards, etc., then he will face administrative responsibility. If he harms the health of buyers deliberately, for example, he passes off fake products for real ones, or it is an expired product, etc., then this will already be a criminal liability (Nyrova, 2007). Thus, if one compare laws, one can see that the state controls the activities of entrepreneurs in order to ensure the quality of products in a high level. Nowadays China is a growing economic power. The country exports its industrial products all over the world (Khan & Ahmed, 2016). Today, China is the leader in the production of cars, computers, mobile phones, etc. China has significant part of the production orders of Apple, Dell, Hewlett Packard, Sony, Nintendo, Microsoft, Motorola and others (Kulneva, 2012). Table 2 shows some of the laws of the People’s Republic of China regarding product quality. Table 2 presents a number of laws of the People’s Republic of China. They contribute to the more responsible attitude of entrepreneurs to the quality of their products. Any product must be safe for people and property (“On Protection of Consumer Rights”). The quality of the goods must comply with the terms of the contract. It is stipulated what should be done if the parties have not defined quality

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requirements (“About the contract”). Administrative or criminal liability comes for what violations (Nyrova, 2007). So, quality control management systems are important for any business that manufactures products. Quality control is the process of ensuring that products and services meet certain standards, and it is critical for businesses to maintain a high level of quality in order to remain competitive and successful. In recent years, both Japan and China have developed their own quality control management systems. While both countries have adopted similar standards and practices, there are some important differences between the two systems. First, Japan has a more thorough and detailed system of quality control. It is divided into two distinct phases: pre-production and post-production inspection. During the pre-production stage, a series of tests are conducted to make sure that each component is of the correct quality. The Japanese system also requires that all parts come from certified suppliers, and that the suppliers meet strict quality standards. During the post-production stage, quality inspectors examine the final product to ensure that it meets the customer’s specifications. In contrast, China has a less rigorous system of quality control. Unlike Japan, the Chinese system does not require that all parts come from certified suppliers. Furthermore, during the pre-production stage, the quality control process is focused more on ensuring that the materials used are of the correct quality, rather than on ensuring that all parts come from certified suppliers. The quality control management systems of Japan and China have been studied for decades to assess their relative strengths and weaknesses. As two of the largest economies in the world, both countries have invested heavily in quality control management systems to ensure the highest quality of products and services. In Japan, the Total Quality Control (TQC) system has been in place for over 60 years. This system is based on the principles of Kaizen (continuous improvement) and focuses on the prevention of defects rather than their detection. It emphasizes rigorous process control, inspection, and testing to ensure that products are of the highest quality. Quality control processes in Japan are often extremely detailed and include multiple levels of checks and balances. This helps to ensure that the highest standards of quality are met. In contrast, China’s quality control management system is relatively new and is focused on the detection and correction of defects. This system is based on the principles of Statistical Process Control (SPC) and emphasizes the use of statistical methods to identify and address problems. Quality control processes in China are often less detailed than those in Japan and rely more on spot-checking and random testing. Overall, both Japan and China have invested heavily in quality control management systems to ensure the highest quality of products and services. However, Japan’s TQC system is more comprehensive and rigorous, while China’s SPC system is more focused on the detection and correction of defects. As such, Japan’s system is generally considered to be the more reliable of the two.

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Results Let us consider the model of “management of product quality” (Fig. 2). This model shows what can influence on a state, an enterprise and consumers. Each indicator implies the presence of other indicators in itself. Some indicators can influence on the state. They are the following: 1. It is external factors, for example, the image of the state. 2. It is internal factors, for example, legislation (standardization) and the health and life of citizens. Some indicators can influence on enterprises. They are the following: 1. It is manpower, for example, skilled workers and unskilled workers. 2. It is financial opportunities, for example, high and low. 3. It is management activities, for example, competent management and illiterate management. Some indicators can influence on consumers. They are the following: 1. It is income, for example, high and low. 2. It is needs, for example, security, spiritual values and material values. 3. It is the influence of the media, for example, positive influence and negative influence Let’s consider this model in more detail. The state plays a leading role everywhere and in everything. From the point of view of the state, internal and external factors can influence product quality

State External factors

Internal factors

Enterprises labor resources

financical opportunites

management activites

Consumers income Fig. 2 Model “product quality management”

needs

the influence of the mass media

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management and consumption. External factors include the image of the state according the quality of its products. In the modern world, the name of a country can already be a signal to all other countries. The goods are high quality. The goods are medium quality product. The goods are poor quality. Such perception of the goods of any country depends primarily on itself. It depends on how efficiently and responsibly the enterprises perform their work. However, one cannot exclude the mass media of various countries, which influence on the attitude of their consumers to the foreign goods. They can create both positive and negative impressions of the goods. The internal factors include legislation which plays the most important role. The state adheres to generally accepted norms in the world and it also issues its own normative and legal acts on product standardization, which do not violate generally accepted norms. The state controls that enterprises produce high quality products. The health and life of its citizens depends on it. Poor quality products can seriously harm people. In world practice, there have been cases when an ordinary product became extremely dangerous for people’s lives because proper control was not carried out over the quality of products at the enterprise. The state protects its citizens from any danger. A country can occupy a higher position in the world if the life expectancy of the population is higher than in other countries. Various internal and external factors is influenced on entrepreneurs. It can be personnel, financial opportunities, managers, sales opportunities of an enterprise, and much more. As for external factors, entrepreneurs are influenced on consumers, competitors, suppliers, political, economic, legislative, technological and other factors. Let us look at human resources, financial opportunities and management activities. As already mentioned above, enterprises are constantly influenced on many factors which are positive or negative. They can help enterprises to develop and strengthen themselves in the market or harm them. Labor resources. Skilled workers need to be paid high wages, but they provide high quality products. Unskilled workers can be paid little and even meager wages, but the quality of the goods will be low or completely substandard. Some shortsighted entrepreneurs hire unskilled workers to save money. It ends up serious financial losses. They can be much higher than the amount that entrepreneurs saved on salary. In some cases, enterprises may even be on the brink of collapse. It is especially actual if highly qualified specialists worked in enterprises before this changing and the goods are intended for wealthy people. They always make high demands on the quality of the goods. Financial opportunities. Each enterprise has its own financial opportunities. The issuance of quality products requires financial opportunities. As mentioned above, highly qualified specialists and workers are needed. It is necessary to purchase quality material for further production of the goods. Entrepreneurs must have such opportunities and the understanding that high-quality products are needed by everyone. It is needed not only by people, but it is also needed by entrepreneurs themselves. It will create a favorable image for their products. The goods will be in great demand and they bring entrepreneurs great profits.

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However, not all entrepreneurs understand it. Not everyone has the financial ability to hire highly qualified specialists and purchases high-quality expensive material. These entrepreneurs are starting to produce the goods for people with low incomes, because they do not demand on the high-quality goods. It may ultimately destroy the image of the enterprise, and the entrepreneurs can’t sell the goods to wealthy citizens, because these citizens will not want to buy poor quality products. Accordingly, all of it may negatively affect their profits. Management activities. The head of the enterprise must control that high quality product is produced and he manages this process. It is a serious laborious and multifaceted process. Only the head of the enterprise can manage this complex process. All power is in his hands. Everything depends on his opinion and ability to manage people and processes at the enterprise. In the case of competent management, the enterprise produces quality products. It improves its image and attracts more and more customers and it receives maximum profit. If the management is illiterate, it affects the quality of products and consumers may go to competitors and the company will suffer significant losses. Consumers. They can be psychologically influenced by the mass media. Its impact may be positive or negative. The opinion of a person may depend on what he read in newspapers, journals or what he heard on radio and television according to the quality of the goods of an enterprise. Personal income influence on the consumer himself very much. If consumers have a high income, they have increased requirements for product quality. They may allow themselves to purchase various highquality products. If consumers have a low income, then they do not always have the opportunity to buy the high-quality goods. First of all, they will pay attention to prices and only then to quality. As for needs, it is important for any consumer that the goods and services would not be dangerous to his health. As a maximum, they must meet his interests and expectations and they be useful for his health. As for spiritual values, they play an important role. They influence on preferences and interests of people. For example, someone prefer to read books and go to theaters. Other people like discos etc. So, people are interested in different services. Material values. Any product may meet the needs of consumers according to its quality or it may frustrate consumers. Let us consider this classification in the form of a table. You can consider the quality of products on it. Visibility will show the relationship of the three blocks and it helps to make the right decision in time. It will be able to avoid or reduce negative points. For example, “green” buildings. They improve the quality of life of the urban population (Table 3). “Green” buildings enhance the country’s image and reputation on the world stage. They have beneficial effect on the health of citizens. Certain laws have been issued for their construction. From the point of view of the enterprise, they require serious financial costs, but they will also bring large profits. The construction of such houses requires skilled workers and competent management. From the point of view of consumers, “green” buildings can buy people with high incomes and high requirements for the quality of houses. It is believed that “green” buildings improve

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Table 3 Factors which influence on the state, enterprises and consumers State

External factors Internal factors

Enterprise

Labor resources Financial opportunities Managerial activity

Consumers

Income Needs

Media influence

Image Reputation Legislation Health and life of citizens Skilled workers Unskilled workers High Low Competent management Illiterate management High Short Security Population Spiritual values Material values Positive Negative

+ + + + + + + + +

+ +

Fig. 3 The principle of circulation

enterprises

consumers

state

the ecological situation in cities. That’s why we can talk about the protection of the population from the point of view of ecology. The media also write mostly positive reviews about “green” houses. If we take a hypothetical situation that the media will actively oppose “green” houses. They will create an opinion that “green” houses are not useful. If people will believe in this, then they will refuse to buy these houses. It will not be profitable to build them, companies will begin to lose profits and less taxes will go to the state treasury. From above mentioned, we can conclude. All blocks are interconnected with each other and the principle of circulation is implemented (Fig. 3). The principle of circulation is the interconnection, interdependence of all blocks and it is a change in one of them can lead to a change in other blocks.

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The author proposed this principle and definition to show how all three blocks are closely connected with each other. The next section will consider this in more detail.

Discussion Let us consider the state, enterprises, consumers based on the above information. We will see how they are interrelated and what factors influence on them. 1. We consider how internal and external factors influence on a state and how the state influence on entrepreneurs, society and consumers. As mentioned above (Fig. 4), the state can be influenced by other countries, the political and economic situation in the world, the place of the state in the international arena, etc. There can be different economic, political and social conditions inside the country. Let us image that the general world requirements for product quality will change. For example, they will become stricter. Each country will have to bring its normative legal acts in accordance with generally accepted world requirements. All enterprises will have to reconsider their actions in accordance with the new requirements. Consumers will also need to consider the new rules (Fig.4). 2. We consider how internal and external factors influence on enterprises and how enterprises influence on society and the state as a whole. As already mentioned, the enterprise can be influenced by external and internal factors (Fig. 5). External factors include political, economic, legislative, technological, socio-cultural, moral and ethical factors, etc. Internal factors include production and technology; socio-psychological; economic; organizational factors (Mizanbekova et al., 2017). Changes occur at the enterprise under their influence. The enterprise starts to produce higher quality or lower quality products. This was described above. Accordingly, it is reflected in consumers. The quality of the product may meet their expectations and requests. Consumers may not be satisfied with the quality

factors influence on a state

the state

the state influence on society

Fig. 4 The relationship of factors that influence on a state and the state influence on society

factors influence on enterprises

enterprises

enterprises influence on society

Fig. 5 The relationship of factors that influence on enterprises and entrepreneurs influence on society

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factors influence on consumers behavior

consumers

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consumers influens on entrepreneurs

Fig. 6 The relationship of factors that influence on consumer behavior and consumers influence on entrepreneurs

of the goods. Then they will buy the goods from competitors. They will also buy the goods from other countries. If consumers are satisfied with the quality of the goods, then quantity products will increase and the goods would be bought abroad (Fig. 5). 3. We consider how internal and external factors influence on consumers and how consumers influence on entrepreneurs, society and the state as a whole. The consumer can be influenced on traditions, customs, mass media. The consumer can also be influenced on information pressure, a person’s place of residence (village or megalopolis), the consumer’s income, his marital status, age, style and way of life and much more (Fig. 6). Entrepreneurs influence on consumers in various ways because they want to get the maximum profit. Entrepreneurs create consumers’ desires. The mass media and advertising impose various desires by a person. Peter Miller and Nicholas Rose write in their writings that a consumer can be both an active seeker of pleasures and a victim of artificially imposed needs that can completely destroy him as a person. A powerful psychological influence is exerted on consumers (Dodd, 2000). The desires of consumers can be changed. It may concern as product quality as their worldview. After it, they want to purchase the new goods and services. Thus, consumers begin to influence on entrepreneurs because they demand to change products. Entrepreneurs will have to adapt to the changed desires of buyers (Fig. 6).

Conclusion If there are unresolved problems even in one of the blocks (the state, enterprises, buyers) they will negatively affect the whole picture. It doesn’t matter what level the problem is. It may be insufficient control by the state. It may be not fully thought-out policy of the company’s managers regarding product quality management. It may be employees who do not have the proper qualifications. All these can lead to a decrease in product quality. As a result, consumers will not purchase this product or service. The company will lose profits and it will pay less taxes to the treasury. It will, in turn, affect the population, which is assisted by the state from the country’s budget. Councils are created at some enterprises abroad, which include the heads of the enterprise, their deputies, and one representative from various departments. It

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becomes possible to quickly resolve emerging problems at the highest level in the event of problems in the workplace. The advantage is that there are no delays, because this group includes the director, the head of the department and a simple worker. In this case, there are no intermediate links that lengthen and delay the solution of the problem. The scientific novelty of the author’s model is the consideration of a multilevel study of quality management from the point of view of the state, enterprises and consumers. The author introduces of the concept of the “cycle principle”, i.e. it is comprehensive consideration of the problem of quality at different levels interconnected with each other. A change in one block causes a chain reaction in other blocks and it leads to a change in product quality in one direction or another (positive or negative). For example, in one of the countries, a number of enterprises began to produce low-quality products in their own country and even abroad. Consumers began to perceive the goods of this country as a low-quality product. This damaged the image of this country. Then the state adopted legislation toughening the punishment for low-quality goods. Over time, the quality of products has improved and the attitude of consumers has changed for the better towards it. They start to buy it. In another country, a major entrepreneur was able to change the attitude of buyers to product quality from negative to positive. His products have always been of high quality. That’s why the goods began to be considered as highquality abroad from this country. This improved greatly the country’s image on the world stage. Product quality management is one of the most important and responsible phenomena. Product quality influence directly on the health and life of citizens, the country’s image in the international arena.

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Regulation of ESG-Ecosystem: Context and Content Evolution: Energy Sector Study Nadezhda N. Pokrovskaia and Nataly Yu. Kuchieva

, Vitaly A. Mordovets

,

Introduction The harmonic development of human communities, sustainability and optimal wellbeing strategy of society were the core issues of discussion since the Hellenistic philosophers (Aristotle, 1912 [350 B.C.E.]; Plato, 1998 [375 B.C.E.]) and the Adam Smith economic treatise (Smith, 1776). The concept of the sustainability had been mentioned by forest owner and lumberjack Hans Carl von Carlowitz, who studied the trees’ natural reproduction rate to ensure the long-term survival of his enterprise (Carlowitz, 1713; Groschopf et al., 2021). This economic vision of the efficiency of sustainable approach is concentrated in the investment analysis to screen out the companies with high risks related to the environmental, social or governance concerns (ESG approach, formulated in the report of the United Nations Global Compact team) (UN, 2004).

N. N. Pokrovskaia (✉) Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation Saint-Petersburg Electrotechnical University “LETI”, St. Petersburg, Russian Federation Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation Herzen State Pedagogical University of Russia, St. Petersburg, Russian Federation Immanuel Kant Baltic Federal University, Kaliningrad, Russian Federation V. A. Mordovets Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation N. Yu. Kuchieva Federal Antimonopoly Service Administration for St. Petersburg, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_15

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The literature review on the historical genesis of conceptual approaches to ESG can include a narrow background (financial-economic contribution) and a broader investigation of the social embeddedness of private business. This article considers ESG approach as a new stage of the development of harmonized governance which represents a step in the whole society development through balancing interests of various stakeholders’ groups. The financial approach relates to the investment assessment to exclude the risky business from a portfolio according to the metrics with the ESG components (see Andersson et al., 2022; Amel-Zadeh & Serafeim, 2018; Riding, 2020; Nauman, 2019): • Environmental aspect focuses on preserving the natural environment, protecting biodiversity and the historically inherited natural landscapes, saving resources. Environmental issues addressed in the ESG-agenda include greenhouse gas emissions, resources and energy efficiency, deforestation, pollution of air and water, climate change. • Social aspect includes the cultural identity and diversity as well as collaboration and inclusion on the basis of the contribution of people to community wellbeing and development, as well as the human capital investment. Social aspect focuses on people and relationships include working to support diversity, gender and age equity, non-discrimination of racist, agist, ethnic, religious criteria, and inclusion movements. • Corporate governance orients the activities and initiatives towards efficient ways to create added value, in the form of profit for owners and investors. Governance focuses on the efficiency, cybersecurity practices, structure, compensation, preventing corruption. The metrics to measure the risks of the potential investments in companies are influenced with the financial practices (WEF, 2020) and the global trends (Adams & Abhayawansa, 2022; Afolabi et al., 2022): “combined impacts of climate change, COVID-19 and economic inequality contribute to the urgency for businesses to embrace long-term, sustainable value creation” (Big4, 2020). According to the broader point of view, ESG-concept is considered as a balanced approach to the management of the private business companies taking into account the interests of the community under the regulation of the authorities (Van Duuren et al., 2016). ESG stands for Environmental, Social and corporate Governance issues as a whole approach. It represents a paradigm to balance the interests of the private business and society—that are contradictory in the field of the profit’ distribution and external effects’ attribution, but that are common in the sustainability of the growth and well-being progress in long-term horizon. The institutional realization of the ESG investment metrics is supported by the chief executives of private business, who intend to follow the requirements of the ESG, e.g., presented in the BRT statement (Business roundtable) signed by the CEOs of two hundreds of US leading companies (representing 37 mln jobs in US, accounting for 24% of US GDP) (Business Roundtable, 2019).

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The national State regulatory systems differ and reflect the whole economic, environmental and social situation of the countries. The geography, climate, abundance or scarcity of natural resources (water, minerals, etc.) influence the choice of strategies for economic growth and prosperity in the regions; socio-cultural diversity determines the divergence of national approaches to the priorities in values and goals of sustainable development. From the social-economic and managerial points of view, the ESG represents the conceptual approach of profit-driven business to seek the best ways to obtain the whole outcome of the enterprise as a value creation chain. The value chain consists of nexus of satisfied needs for customers, networking with fair remuneration and reward for private business employees, free-lancers, gig executors and sub-contractors. This systemic complexity of the added value as a source of business profit is now rationalized and articulated by private and public organizations, but, in fact, the homo oeconomicus of Adam Smith had been conceived as a person with moral principles and religious grounds, and the invisible hand of market had been led by the conscience and responsibility of people as a national society citizens and as a local community members (see both the treaties on Moral Sentiment and on Wealth of nations—Smith 1759, 1761, 1776). An idea to preserve nature is mentioned by Frederic Winslow Taylor in his Principles of Scientific Management (1911), he starts the book with the words: “President Roosevelt in his address to the Governors at the White House, prophetically remarked that “The conservation of our national resources is only preliminary to the larger question of national efficiency.”” (Taylor, 1911). The business has been understood as a distinctive subsystem of the societal life, and A. Smith demonstrated the community roots of economic behavior. Later, the further researchers investigated the social embeddedness of the economic decision making and corporate choices (Granovetter, 1973, 1985, 2005), including the levels of the national society and the local community networking (Rank, 2014). The social responsibility can have various coverage—according to M. Friedman concept of the differentiated functions, business has only the responsibility toward the shareholders, and it consists in maximizing dividends (Friedman, 1970). The construction of a balanced methodology and systemic approach to rule enterprises leads to the fostering of an ESG-ecosystem that includes the institutions and infrastructure helping business to reply to the up-to-date expectations of the local community, of the national society, of the global humanity. The regulation of the ESG implementation takes into account the dynamic of the context, the geopolitical shifts and global supply chains evolving, which determines regulatory interests to point out various aspects of the content to rule. These issues are studied in the article on the basis of the factual material from energy sector, which represents the fundamental real economy industry and at the same time reflects the new understanding of the balance of long-term planning and of short- and middle-term anticipations to build forecasts and to construct efficient networking. The energy sector demonstrates the dramatic case of the evolution of the

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context. The new socio-economic space requires the change of the substantial regulative principles and mechanisms. This paper deals with the essential components of the social-economic analysis, the core concepts of the research are regulation and ESG-ecosystem. The regulating actors include the public administrations (government, authorities) and corporate top-managers. The examined factors relate to the dynamics of the conditions— geoeconomic, geopolitical, national social context,—that provoked the evolution of the content of the ESG-systems, which are transforming into ESG-ecosystems, this transformation required the evolution of their regulation.

Materials and Methods The methodology includes the theoretical and empirical components. The theories involved include the economy of the external effects and public goods, the digital economy, innovation growth and digital transformation; the conceptual analysis is based on the examination of evolution of the notions and terms used to describe social-ecological issues as concerns of the private business companies and of the State interests, public initiatives and governmental regulations, including the construction of ESG-ecosystems. The theoretical analysis is fulfilled on the basis of the historical and analytical publications, especially, the reporting of intergovernmental organizations, such as OECD and UN. The empirical methodology is based on the analysis of statistics, on the desk review of national regulative approaches and on the case study of corporate choice in the field of ESG. The research examined statistical data in field of the global ecological outcome, including production and consumption emissions data during previous 60 years since 1960 till 2020, according to the report on Global Carbon Budget 2021. The investigation of the best practices of the energy sector companies (such as BP, Shell, Exxon Mobil) and of the regulations introduced by national States (with examples of France, China, USA) and supranational governmental bodies (European Commission, European Council), of strategy choices and measures, that are subjects of the desk review and case study methodology. This paper represents the desk review of the historical elements of the energy market regulation in the EU, of the ESG issues regulation in energy sector by the governmental bodies of China (current situation), of the neutral carbon impact regulation in Russia. The article reflects the study of the four units of analysis: the sustainability approach of the national monopoly EDF (France) and of three Russian companies: Gazprom (energy sector), InterRos group (mining) and Severstal (metallurgy and mining). The chosen companies are the leading producers (Gazprom in gas exploration and transport) and the significant energy consumers (Severstal produces metals and neon, that requires important volumes of electricity). The study questions include the analysis of the differentiation of the global and local regulation in the field of the ESG with respect to the regional context; the

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examination of CO2 impact attributed to different countries; the investigation of the ESG-balance in corporate governance and social and environmental concerns. The case study also intends to describe the preliminary hypotheses to analyze the new substantial basis of industrial rationality (EDF case with insufficient planning and Gazprom reaction to the external impact of the aggression on NorthStream). The regulation of ESG-ecosystem is the main subject of the research gap for this article, where the following propositions are posed: • to describe the social and economic context that provokes the raising of ecological issues as private business concerns; • to find out the influence of the historical period, economic model (balance between market and planned economy models), geographical and socio-cultural (civilization) factors’ impact; • to examine the regulation introduced by authorities at different hierarchy levels (local community, national State, supranational integration); • to examine the most pertinent regulations of the ESG-ecosystem. The significant limitation of the research represents the necessity to investigate the long-term causality, but the outcome of the regulations implemented in the field of the ESG-ecosystem construction requires decades of the data collecting and experience accumulating. Nevertheless, despite this dramatic limitation, the researchers made the attempt to analyze the existing experience and practices and to propose the suggestions on the basis of the anticipations based on the cases investigated.

Results The regulation of the private and collective interests, of their balance in short- and long-term horizons, of the fruitful co-living conditions is based on the coordinated policies between societal subsystems. Regulation and social embeddedness of economic subsystem. Historical and socio-cultural background for the sustainable growth implementation The historical forms of the societal functioning of the economic activities include paradoxes such as inventions that advanced the societal forms (steam machine and concrete were invented before the new era, but not used in the slave labor based society with the war as the main tool to get the slaves). The societal functioning demonstrates a high efficiency of the differentiation of functions (labor division, specialization and cooperation), but the separate development of the society subsystems produces the external effects, the tragedy of commons and tragedy of anticommons, these effects are to be regulated under the notion of the ecosystem. The term of ecosystem is introduced into social sciences from the biological research and with the development of the systemic approach. All these trends led to the appearance of the ESG-agenda as a balanced conceptual framework for the social and economic analysis of the society wellbeing.

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The social responsibility issues appeared with the change of the societal organization: the modern industrial society (“modernity”) obtained its efficiency due to the division of labor and specialization, this societal feature includes also a high differentiation of societal functions, when the economic activity is divided from the whole societal deployment and became a “separate” sector to organize human beings’ efforts to satisfy people needs in the most efficient way. The charity plays a significant role to cope with social inequalities and to fight against community problems, such as alcohol or drug addiction or home violence. The history of the charity includes the primal customs to share food and clothes, and with the differentiation of the society and the deployment of the industrial economy the philanthropy became a considerable parameter to evaluate a person’s contribution to the social progress, and for the most successful citizens and society members the social activity served an efficient tool to obtain and maintain their social position as respected people with endorsed wealth, to increase the social capital of the person (Bourdieu, 1986; Coleman, 1988). The widest understanding of the business purpose as societal subsystem represents the distribution of all the profits made among the local community, national society or global mankind (Freeman, 2004), especially, in the diverse forms of charity. Among Russian industrial and commercial leaders (producers and merchants) we can enumerate many benefactors, such as Savva Ivanovich Mamontov (who built railroads), Timofey Savvich Morozov (who maintained schools, hostels and hospitals for workers of his manufactories), Pavel Mikhailovich Tretyakov (who directed funds from his flax factory and textile sales to maintain a school for deaf-mute children and donated an art gallery to Moscow) (Molodkova et al. 2022). This glorious history left the footprints until our today life, the Tretyakov gallery in Moscow is today the famous museum and a center of the art development and exhibitions. Historically, problems of protecting nature and the environment have arisen since antiquity, in connection with fires of man-made origin (fires in Rome are most famous, but they were typical of all cities until the end of the Middle Ages). With the beginning of mass industrial production and the saturation of markets, the scale of disasters increased dramatically: depletion of the natural environment (deforestation, extinction of rare animal species), accidents in mines, dam failures, explosions and poisonings with toxic reagents. Discharge of oil products into sea bays and urban rivers led to their ignition. The burning of dry grasses as a traditional method of soil reclamation led to devastating fires, thus, since 1917 in the Altai province for 3 years in a row the authorities could not cope with fires and on an order was issued “to kill the forest arsonists caught on the spot”, which reduced the area of forest and steppe fires. The preserving of the environment underlines the human beings’ life conditions. From 1960 to the 2020s, environmental protection underwent a complex trajectory of development:

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• The twentieth century was marked by an increase in man-made disasters and a multitude of investigations that received publicity in the form of rumors and/or were widely reported in the media, which led to a gradual politicization of the “green” agenda. This period was marked with accidental interest towards nature in the first half of the century and with the marketing communication and promotion use of the green issues to enhance the sales of goods and products, closer to the end of the century; • By the beginning of the third millennium, environmental protection processes were becoming increasingly complex, sophisticated, integrated with a host of extra-biological issues and embedded in the social fabric, including above all political and economic relations over resources availability; • The second decade of the twenty-first century has led to a search for a balance between the corporate interest (governance) and the public interest (social), and to an understanding of a single set of principles for sustainable development based on resource conservation and environmental protection, within the concept of ESG. The systemic analysis of the social responsibility studies demonstrates the attempts of isolation of the social concerns from the corporate management business issues until the post-modernity—M. Friedman had limited the business to the aim of satisfying needs of customers with the maximal efficiency, the profit as a single and the main measuring tool to evaluate the efficiency. The profit-driven business, nevertheless, appeared less efficient if it does not take into accounts the preferences of the customers about the ecological behavior of the company, that became an important criterion of choice on the saturated markets. M. Friedman limiting approach is sufficient in the economies of survival, where the satisfaction of the basic organic needs of the biological survival of populations plays the primordial role (Friedman, 1970). But, on the saturated markets with a wide range of goods and services, where the essential pressing questions of the people surviving are on a large scale solved, where the multiple factors have impact on the sales funnel and customer journey, the business companies are forced to take into account the diversity of the preferences of their clients—forced with a de-personalized market pressure, but also forced by the citizens’ initiative activities, such as manifestations of ecologists who block the roads and gates to an enterprise to protest against its pollution, natural resources depletion or discrimination of employees. The economic process of the broader social engagement of business relates to the transition of the “simple reproduction” of the labor force (in Marxist terms) toward the “enriched” labor and “enlarged reproduction” of human resource, to the investment in human and social capital (Putnam 2001). This systemic vision required the new analytical approach to better construct the societal functioning of the private business companies according to the regular principles, that appeared in the form of the conceptual models of sustainable growth, human capital development and economy of knowledge. The ecological issues were examined from the point of view of the further planning of the economy

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development—as an environment to foster businesses in future, to attract human resources as employees and to obtain available air and water in further decades and centuries. If corporate social responsibility of private business is aimed at the priority of public interests over the interests of companies, the ESG concept purpose is to balance the interests of different groups of actors and their needs: on the one hand, social and environmental objectives, ensuring the quality of the natural and sociocultural environment at a certain achieved level of civilization development, on the other hand, economic and technological development determines the level of needs satisfaction, in hierarchy of the claims and preferences of the customers the new groups are privileged, including harmony with nature and with personal growth.

Global and Local Regulation Market economic behavior allows us to separate the subjectivity of behavior (action) and control (sanction): • The actor who decides to make a choice of behavior model, performing the action, translates the choice made into reality in the framework of its activity strategy and tactics, • society (community, collective institution, neighbors, colleagues) and specific structures, public organizations and establishments exercise social (unformal and legal) control and sanctioning (encouragement or condemnation of the chosen behavior model up to fines and other forms of punishment within the social order, such as social isolation, exclusion and ostracism) (Pokrovskaia, 2017). In the Hellenistic conception of a person, an individual and a citizen as a member of the society (especially, of the city community) are not separated, so the responsibility for the consequences of one’s actions depends to a small extent on external praise or condemnation. Such an idealistic picture of the world was based on the idea of communism as a society in which educated people with intellectual power would live, which, as the USSR experience showed, failed half a century after the introduction of universal secondary education: it was found that secondary education had little help in forming a person with rational thinking, at the zoo-population level this is explained by the mutational diversity necessary for evolution (Pokrovskaia, 2022). Sociological knowledge studies regulation as a form of behavioral control in both forms—internal, interiorized, based on value-meaning priorities (allows the individual to postpone momentary satisfaction of a need for the sake of a long-term goal), and external control, forcing the individual to choose a desirable behavior model for society (this compulsion is considered by the individual in advance in choosing a model within risk management, which avoids potentially unwanted sanctions in assessing the probability of their occurrence) (Pokrovskaia & Garin, 2022). To effectively optimize behavioral choices, the individual relies on a 3-component model of choice criteria: rational, emotional, and behavioral factors

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are influenced through different cognitive tools. For example, for environmental issues, the “green” agenda reflects the emotional, affective aspect (social advertising uses heartbreaking photos of bloody animals, etc.), environmental planning embodies the rational aspect (to minimize all kinds of harm it is necessary to consider all possible consequences of the decision and assess the probabilities of their occurrence), demonstrating examples, creating infrastructure and institutionalizing behavioral choices reflects the conative component (separate waste collection is easier to master). Thus, although in socio-economic studies we can often see the division into individualism and collectivism as forms of domination of private interests over group interests or group interests over individual and private interests, but in the social fabric in the course of activity these interests are closely intertwined, which allows for the purposes of the study only conditionally to separate macroeconomic and microeconomic approach to ESG, considering, for example, practices of lobbying, containment and delocalization (Vertakova & Plotnikov, 2017). Nevertheless, both company-level regulatory practices and intergovernmental agreements can be considered. For organizations, especially private profit-oriented companies, along with rational sustainability goals and emotional public pressure (e.g., people handcuffing themselves to factory gates), a code of conduct for corporations and for investors must also be proposed. Two regulators have offered perspectives on the behavior of business entities: a supranational body of the UN and national bodies that regulate reporting and securities markets. The UN developed the Global Compact in 2000. Global compact reflects 10 business principles, including the social and ecological element. Among Russian companies, Severstal signed the UN Global Compact. Further, to develop the agenda and to take into account the complex networking system of the global activities in the twenty-first century, UN adopted the Millennium Development Goals, which in 2015 were replaced by the Sustainable Development Goals (SDGs), reflecting 17 benchmarks for business and public administration action. The Social Responsibility Goals were declared at the state level and promoted more informally, with the exception of pollution control measures, for which enforcement primarily includes fines imposed on companies, which directly affect their profits and indirectly affect their stock price and investor interest. In 2019, the goals of balanced social, environmental and corporate governance were articulated in the UK Stewardship Code 2020 as “creating long-term value for clients and beneficiaries, leading to sustainable benefits for the economy, the environment and society” (UK Financial Reporting Council: UK Stewardship Code 2020, p. 4). If at the microeconomic level ESG reflects the factors of choice of models of corporate behavior aimed at social responsibility and resource saving in the broad sense (including resources of the external environment and external effects of the activities of enterprises), the study of cross-country differences in the socioenvironmental sphere shows the difference between absolute and relative indicators. For example, between 2010 and 2020, China was the leader in terms of the total

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amount of socio-environmental resources. China led in total carbon dioxide emissions, U.S. businesses emitted about half as much CO2, while when assessing per capita emissions, these positions are reversed exactly, and per capita emissions in the U.S. are more than twice as high as those in China (Fig. 1). At the same time, it is necessary to take into account not only the production volumes of carbon dioxide emissions, so in the 2020s the data began to be published not only about the emissions during the production by countries-producers (territorial), but also about the volumes of consumption of products made with carbonintensive technologies, in particular in countries-importers of carbon-intensive goods (shown by dashed line) (Fig. 2): The comparison of the two Global Carbon Budgets 2018 and 2021 show that the economic and socio-environmental well-being of the inhabitants of developed countries, the United States and the European Union Member States (in the 2018 Budget the EU still included the UK) is to a significant extent provided by the delocalization of “dirty” carbon-intensive industries in such countries as China, India, included in the “periphery countries” and often considered part of the BRICS (Brazil, Russia India, China and South Africa).

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Analyzing the data in Figs. 1 and 2 and looking at carbon dioxide emissions per capita for 1960–2021, we can find that the United States is the leader in emissions, exceeding China by more than 2 times and without taking into account consumption. The 2021 budget is different in that it estimates not only production emissions, but also consumption (dashed line), so the graphs in Fig. 2 show that the EU (27 countries) and the U.S. imports goods, the production and transportation of which emitted carbon dioxide, i.e. In other words, the delocalization of production shifts pollution from the territory of importing countries to exporting countries, and taking into account imports, the per capita estimate of CO2 emissions in the EU is markedly higher than per capita CO2 emissions in China. The long-term industrial reasoning revealed as relevant since 1996–2003, when European Commission adopted the Directives on the Liberalization of the Energy market in the fields of electricity (1996) and whole energy sector (2003, further, 2009) (Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity; Directive 2003/54/EC concerning common rules for the internal market in electricity and repealing Directive 96/92/EC; Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC; Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC). It is worth to be noted, that the first agreement that had been a root of the actual European union, was exactly about the energy resources—European Coal and Steel community and EurAtom were the first components of the future European Economic Community (EEC), transformed to the European Union (EU) according to the Maastricht Treaty of 1992. Nevertheless, the France and Germany resisted to the implementation of the 1996 and 2003 Directives (the detailed analysis is presented in Buchan 2012), and by 2018, “in only 4 Member States more than 50% of households have switched to a non-incumbent electricity supplier: Portugal, The Netherlands, Great Britain and Belgium” (Pepermans, 2019).

Discussion In the postwar years the documents reflected the understanding of a unified approach to the formation of a new urbanized environment, which was reflected terminologically in the concept of environmental protection, to which were added, along with elements of nature, and aspects of civilization, anthropogenic, cultural character, such as the value of the landscape as an object of human aesthetic perception along with the perception of green spaces as a source of oxygen: the biological greening promotes the recycling of carbon dioxide and purification. Ecological science studies the patterns of development of the natural environment and its impact on humans, primarily from a biological point of view, and is part of

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the “green” agenda as a whole. At the same time, the concept of environmental has long been used in emerging countries as ecological because of the context of industrial economy and re-industrialization. At the same time, attention should be paid to the terminologically different trajectories of this concept: while environmental refers primarily to improving the physical conditions of human life, the term “ecological” is broader and refers to the actors taking responsibility for all consequences of their behavior choices (in this meaning the term was also used in the Russian Presidential Address of April 2021) and, in particular, for the potential harm caused by their actions to specific people or an indefinite number of persons in closely intertwined ties in society (Pokrovskaia, 2022). In the scientific literature, environmentally oriented behavior is studied in the following aspects: • in the first sense, as behavior that causes minimal harm to the environment, focusing on the types of risks, the dangers of specific actions, materials, etc., up to the problems of cybersecurity and digital ecology; • as the behavior of individual actors, in particular buyers (consumer research, behavioral psychology, social psychology, social regulation of behavior in the organization and in the market), as well as collective (not always institutional) actors—enterprises, communities, societies and civilizations; • as public opinion, an argument in journalistic work, a tool in political struggle, fashion, a trend of people’s involvement in electoral or consumer social movements, including issues of threats to “freedom, security and well-being”; • as a tool of rigid pressure on private business, carried out both by public initiative groups in the political and socio-economic interests of society as a whole or the local community, and by competing companies in the market, up to cross-country competition (the introduction of a cross-border carbon tax Carbon Border Adjustment Mechanism); • as a phase of sociodynamics—the reaction of postmodern humanization to the consumer society (from industrial rationality to the person, the meaning of life, motivation and sharing economy as a model of rejection of possession for the sake of use). Forms of economic activity aimed at sustainable development, resource-saving in production and consumption, maximization of use of created goods (regardless of distribution of ownership rights to them) are part of the rational aspect of responsible behavior. To summarize, we note that economic factors for behavioral strategy selection still carry significant weight in a complex multicriteria selection model. Reducing the number of parameters in the multi-criteria model to 3 groups within the ESG concept (social, environmental, managerial) allows private businesses to more effectively build communication strategies in the market. At the same time, considering the weight of each group of factors in this model, it is necessary to recognize that the social agenda performs both the role of criteria and the communication

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argument during the construction of relationships with consumers with market partners, including investors. For economic actors in both production and consumer behavior, the key factors in choosing a behavioral model are price. For business, interest in the environmental agenda reflects the regulation of investment and demand pressure. The consumer seeks an indulgence for the satisfaction of needs in the form of the purchase of “green” products (which is expressed in the advertising communication of corporations) and declares concern for the environment, while the real action or inaction of the population reflects spontaneous momentary factors of non-systemic nature and the price of the issue (in large measure, established by the State). In the second half of the twentieth century economic research revealed that ecology as a factor of pressure on business can be used to improve the life of society or to drive competitors out of the market. The emergence of the concepts of “responsible consumption” and resource conservation continued the trajectory of the market economy, while the ideology of distributed consumption largely reflected the planned communist idea and was based on the idea of separating property rights as the right to own and the right to use goods, which one may not own by right of ownership (sharing).

Digital Economy Impact of the ESG-Balance and the ESG-Concerns in Energy Sector The preservation of a comfortable natural environment for humans, which have evolved over the past decades as a “green agenda”, as well as an analysis of the main economic and socio-institutional factors on the formation of a balanced ESG business approach, including the socio-psychological and political influence of the media and marketing tools, especially, within digital economy. The service economy, the digital transformation of business and sharing models of economic relationship with conscious consumption represent the concepts that are often considered as possibilities to avoid the pressure of the real physical economy on the self-actualization of persons and on the socio-cultural development of the societies and communities. But, the digital tools and online economic models are based on the electricity, and the personal growth is possible only when the person is alive and has necessary resources (air to breath, water to drink, food to eat, house to be covered from rain, snow and cold), that is why the energy and food security play the considerable role in political negotiations. The XXth century added also the issue of the technological sovereignty due to the deployment of the digital economy of knowledge and innovation as the main factor of growth. Energy is used to produce any other good or service, the bitcoin mining impact on the environment is studied since 2012, when the volume of the electricity spent to mining begun to overwhelm the national annual electricity consumption of some countries (in 2019–2022 the crypto-currency mining surpassed the Finland,

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Argentina, United Arab Emirates, Netherlands or Belgium annual electric power consumption) (Criddle, 2021; Hinsdale, 2022; LaToya, 2021). The energy resources used to produce the electricity include the exhaustible (hydrocarbon) and renewable sources of energy (solar, wind, etc.). The depletion of the hydrocarbon energy sources raise concerns about sustainable growth of economy for the further generations. This example demonstrates the basic character of the energy sector even in the digital economy. The ESG-ecosystems as an infrastructure to regulate the ESG-realization are constructed today by the national States and supranational integrations, such as European Union or Eurasian economic union, to support the citizens and private business initiatives in the field of the balanced social-ecological agenda with the global growth. The energy sector gives the diverse examples of construction of balanced systems as well as of disequilibrated strategical decisions. The energy production is necessary to the whole development of any activity in the economy. Nevertheless, the interests of the strategic Energy infrastructure are often opposite to the ESG-agenda, especially, if it is perceived as simple declarations. Energy produces waste (contradicts to the E), the corporate governance of a profit-driven business often is opposite to the collective absorption of external effects (pollution and exhausted landscape as well as distribution of income to modernize equipment instead of paying taxes, the robotization of routine operations and decrease of human resources risks contradict to S), and long-term sustainable strategic infrastructure is a national State interest (which is often opposite to G). The ESG approach is based on the socio-cultural and geographic determination, and the regions have various priorities in the fields of Environment and Society, and diversity of the national States interests determines the diversity of the choices in the ESG implementation. Therefore, this project aims to collect data on the digital strategies of energy companies around the world, in order to make a comparative analysis to better distinguish their similarities and differences, with the aim of developing strategies to help companies effectively implement ESG development. Proven ESG credentials are going to be an important driver for energy industry stakeholders, lenders, insurers, shareholders, regulators and even employees and consumers. The transition to a low carbon economy is a transformation in the making and companies must ensure their business is aligned with the new landscape. That means a fundamental appraisal to climate risk, to achieve an ESG rating that will enable them to attract and maintain the support of the all the stakeholders critical to their businesses. Understanding that the energy industry plays a crucial role in reducing the environmental impact of its operations is critical. Therefore, industry leaders must strive to align their business models with social and environmental responsibility best practices. By adopting an effective ESG model, industrial operators can ensure they minimize harm to the natural environment while striving to optimize their productivity. The summer 2021 demonstrated the readiness of many companies to decrease the oil and gas extraction: in July 2021, Exxon Mobil cut back 26% worldwide production forecast on 202; Shell expected output to decline 1–2% a year, planned to cut its production of traditional fuels such as diesel and gasoline by 55% in the next decade;

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BP also announced the decline of the oil and gas: a 40% cut by 2030 (Zettler, 2021). The expected consequences of these decisions were the increase of oil price and of the companies’ profits, and the 2022 results demonstrated this corporate outcome, which is logical according to the rules of the market economy. The Chinese regulation, in fact, is oriented much more to the incentives that should motivate the autonomous actors’ making decision towards a more ecological (less harmful) behavior. Chinese policy includes the financial and institutional measures as well as the direct organization of the electric infrastructure: • the People’s Bank of China has launched several concessional including concessional funding for banks to increase the number of emissions reduction projects, as well as a lending program for clean coal projects; • there are no general requirements for mandatory ESG reporting in China, but since June 2022 a set of voluntary guidelines for Chinese companies went into effect on reporting environmental, social and governance performance; • the first document regulating the scope of green bond issuance was issued in China in 2015, in 2021 it was finalized in accordance with international standards and National Bank is working to create a transition funding taxonomy for some of the most carbon-intensive sectors such as thermal energy, steel and cement production as well as agriculture; • China is investing in clean transportation, two-thirds of new subway lines in the world and almost 90% of new high-speed rail lines are functioning on the basis of a clean energy; in many cities in China, most city buses are already electric; electric cars are projected to account for 40% of all of all car sales in the country. These examples demonstrate the complex and elaborated approach that is more efficient than declarative approach and simple prohibition, or zero tolerance to the fuel and energy development.

Case: Severstal As mentioned above, the global seller of metals, Severstal had to implement the highest sustainability standards, from Global compact to the Measuring Stakeholder Capitalism Initiative of the World Economic Forum (Severstal joined it in early 2022). The company follows the GRI 102–13 and participates in the international initiatives: The Women in Mining Russia Association; The Association of European Businesses; The Belgian-Luxembourg Chamber of Commerce; The World Steel Association; The ResponsibleSteel; The German-Russian Forum; The Northern Dimension Business Council; The Eurasian Economic Commission; The Measuring Stakeholder Capitalism Initiative of the World Economic Forum; The National Network of the UN Global Compact in Russia; The German-Russian Chamber of Commerce. The mission of the company is “to be the leader in value creation”, but the losses in 2022 were important due to the blocked assets in foreign warehouses and income

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from the Western purchases. Nevertheless, Severstal continues the construction of the digital open ecosystem and has developed Russia’s first digital platform for the sale of rolled metal products PlatFerrum.ru, that, among others, ensures the ESG-compliance of the participants.

Case: InterRos The interesting example of the real activity of Russian entrepreneurs in the field of the balanced ESG-approach took place in March 2022, when a part of the Russian State assets in several countries was blocked and the options to block some Western business and assets in Russia were discussed. V.O. Potanin, the owner of the holding group InterRos, was many times declaring his position to prevent the nationalization of the foreign corporate assets. 29 May 2020 there was a leak of 21,000 tons of diesel fuel from an electricity station belonging to InterRos, it was the largest incident in the Russian Arctic, Vladimir Putin has declared a state of emergency on a federal scale. The accident occurred due to errors in the design and construction of piles of the fuel tank. Criminal cases were opened against the employees of the thermal power plant and the mayor of Norilsk. The authorities estimated environmental damage at 147.7 billion rubles, Greenpeace estimated the damage at 6 billion rubles. As of September 2020, the company spent 11.5 billion rubles on the elimination of the state of emergency. In August 2021, the Ministry of Emergency Situations announced the complete elimination of the fuel spill. In July 2022, the company agreed on a peaceful settlement of the dispute—the company promised to release juvenile fish into the affected rivers for 17 years in advance and finance scientific work (according to the media, this was the last unresolved issue in connection with the accident). Since the first digital bank in Russia TCS (Tinkoff credit systems) was under question, V.O. Potanin decided to integrate the banking institution into the group and saved one of the Russian strategic banks.

Case: Gazprom The giant gas producer Gazprom has a balanced social policy, reflects the ESG principles in the reporting (GRI 102–32; GRI 102–40; GRI 102–42). In 2021, an online survey of stakeholder groups was conducted with automatic processing of the results. 1766 respondents (10 stakeholder groups, excluding foreign energy market regulators) took part in the online survey. Each topic was asked to rate in order of importance on a three-point scale. Working Group assessed the degree of actual influence of the Gazprom Group on possible material topics using the method of expert assessments. The assessment was attended by 24 members of the Working Group. The results of the survey and assessment became the basis for building a map

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of material topics. The topics located in the upper right quadrant of the matrix were recognized as priority and mandatory for disclosure. The most significant topics included Industrial safety in the Gazprom Group (GRI 403); Compliance with socioeconomic, environmental requirements of the legislation (GRI 307, GRI 419); Emission management in the Gazprom Group (GRI 305); Economic performance of the Gazprom Group (GRI 201, GRI 207); Compliance with human rights (GRI 406); Waste management in Gazprom Group (GRI 306, OG 7). The group Gazprom faced a dramatic pressure from the Western restrictions during the 2022. On 26 September 2022 3 of the 4 pipes of the Nord Stream underwater gas pipeline in Baltic sea were exploded, with the leaks of about 400,000 tons of methane. The financial losses of Gazprom related to the explosion include the cost of the erupted gas, the potential income which could be obtained by the group if the pipes were used at their complete capacities, and the cost of the pipeline engineering and building. Nevertheless, the group Gazprom supports its commitment to the ESG agenda. Now, Gazprom bases its ESG-ecosystem on the goal of carbon neutrality and on the criterion of industrial efficiency more than on the profitability issues.

Case: France Nuclear Plants The another example of France demonstrated in the summer 2022, that the clear prohibition and the declaration of will is not sufficient to develop in real world: in France, the monopoly EDF had been working to close the nuclear plants since several years, by the August 2022 many reactors are stopped, and the lack of energy and, especially, the increase of price for the electricity provoked the request from the government to re-open the stations, that requires now several years to educate and train the specialists—the EDF has closed 2 stations and was preparing to stop 12 others, when the France realized that the electric power became more expensive, and the company professionals “were training to close stations and not to maintain them” (see the interview of the EDF President Jean-Bernard Levy on 29 Aug 2022, Levy 2022). This example demonstrates the inefficient way of regulation of the energy sector that requires long-term planning with various scenarios.

Conclusion The cases of the energy sector demonstrate the diverse approaches implemented by companies and authorities to the regulation of the ESG-ecosystem on the local, national and regional levels. The article deals with the regulatory cases which led to the development or decrease to non-optimal strategies chosen by governments and by communities. The investigation of regulatory decisions with positive and negative effects permits to conclude on the shift of the substantial content in the

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ESG-ecosystem regulation. The theoretical analysis showed the key concerns about the tools of regulation, the diversity of the regulative mechanisms to apply to the economic behavior, and the impact of the socio-cultural and regional components for the efficiency of the regulation of the ESG-ecosystem. The examined examples of the regulative approaches applied by companies and by local and national communities to the ESG system functioning allow researchers to formulate several statements, which require the further research and verification: • the social and political ESG-regulation takes into account the specific needs of the industries. The field of real economy sectors such as energy industries (and related issues of the energy security) determines the preponderance of longterm strategic reasoning and shifts in the context and content of the regulation in favor of the industrial rationality and strategic effectiveness rather than financial performance as a core criteria of assessment. The concept of the ecosystem as a sustainable system with diversity of participating stakeholders and with balanced strategies of development is coherent to describe the managerial vision of the ESG as a multi-criteria model of functioning. At least, for the energy sector, the notion of the ESG-ecosystem reflects a sustainable corporate governance model enrooted and embedded in the local community, regional environment and national socio-cultural background; • the socio-cultural and civilizational context is to be introduced in the ESG-planning and policy creation process, the regional features and local community requirements reflects the physical reality that is significant as well as the global interests. Nevertheless, the values hierarchical scale is enrooted in culture, the universal opinions always have specific priorities in a country, region, or civilization. The general guidelines for ESG metrics are helpful, but the concrete regulations should differentiate according to the local natural, economic, political and socio-cultural particularities; • the scientific research results depend on the wide spread opinions’ impact, the scientists follow the regional agenda and, sometimes, are not able (have no sufficient social, economic or political resources) to insist on and to defend the independent outcome of their research. The change of the researchers opinions reflect the change of the public opinion, nevertheless, the scientific knowledge is only one that can serve as the ground to construct the ESG-ecosystem regulation; • the industrial reasoning and long-term logic are to be privileged in the both in-dividual and collective making decision process on the level of the private profit-driven companies as well as of the national States and supra-national integrations; • the human activity has an influence on the environment, the goal of the ESG-ecosystem regulation is to compensate this impact instead of an idea to eliminate any footprint of human beings on the Earth. That means that ESG-ecosystem intends to assure the neutrality of the human activities impact and not to assure the zero impact; carbon neutrality as the aim of the ESG-ecosystem regulation is a good example of this shift in the local, regional, national or global goal-setting;

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• the organizational structures, institutions and establishments respect the rules when the incentives to choose a behavioral model are significant, the simple prohibitions require the very expensive controlling and administration, that means that the regulative mechanisms and measures to implement a ESG-policy should engage the actors who are motivated to respect the ESG-principles themselves, to self-control and to manage concrete tasks towards the general purpose. • The causal attribution analysis demonstrates the importance of the complex systemic approach to better understand the reasons of the private actors, and to better coordinate the individual and collective interests for the further development.

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Ecological and Humanitarian Approach to Assessing the Tourist and Recreational Attractiveness of Cultural Landscapes Drawing on the Example of the UNESCO World Heritage Site «Curonian Spit» Babek Asadov , Alexander Baranov and Inga Philippova

, Sofia Baranova,

Introduction There are some significant socio-economic changes that have been taking place in the world in recent decades. One important feature of them is the dynamic development of the territory through tourism. The formation of new tourist territories is a priority task at various levels: international, national, regional and local. The increased attention to the development of this process indicates that for many countries the problems and prospects of using tourist and recreational resources are being actualized, especially in rural areas, which potential is the basis for the development of cultural landscapes within the framework of tourism activities. At the same time, its impact on the natural environment as a result of human activity increases. Consequently, issues of harmonization of human interaction with the environment against this background become important. Therefore, to solve the problems of preserving cultural landscapes while increasing the level of their development, it is necessary to apply an integrated ecological and humanitarian approach.

B. Asadov Saint-Petersburg University of State Fire Service of EMERCOM of Russia, St. Petersburg, Russian Federation A. Baranov (✉) · S. Baranova Herzen State Pedagogical University of Russia, St. Petersburg, Russian Federation I. Philippova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_16

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Materials and Methods The cultural landscape as a developed humanitarian (social, national, historical) space is a part of the natural-territorial complex. In addition to natural resources, it includes the components of the cultural environment. These components are formed as a result of the natural historical interaction of society and the natural landscape. Like the other developed socio-cultural spaces, the cultural landscape of rural areas was also formed as a result of natural processes, phenomena and, most importantly, creative human activity over a long period of time. The whole cultural space that formed represents the basic ideas of the epoch about each historical period, then this is reflected in the preserved historical and cultural monuments, local cultural traditions, values, morals, etc., that in turn always have a certain influence on the formation of the appearance of human settlements, their way of life. This process, which has no clear boundaries, is very far from being completed at the present time. The effectiveness of the use of tourist and recreational resources of rural areas depends on various factors. Along with the most active issues of territory development, the adopted “Concept of sustainable development of rural territories for the period up to 2030”, is designed to ensure the preservation and restoration of such resources as natural landscapes, historical and cultural monuments, temples, which are important components of the process of tourist and recreational development of cultural landscapes (Asadov et al., 2017, p. 62). Today, the cultural landscape is increasingly being considered as a tool for solving a number of scientific, theoretical and socio-practical problems in the context of studying the problems of interaction between man and nature (Gumilev, 2008, p. 216). Despite the diversity of concepts and approaches in this field, there is generally no systematic integrative view of the problems of the development of cultural landscapes. Its component-based structure is also insufficiently clarified, so criteria for evaluating these components have not been developed yet. In order to determine the main components of the ecological and humanitarian approach in assessing the tourist and recreational attractiveness of cultural landscapes, it is necessary to identify the features of its tourist and recreational potential and to digest the existing definitions that characterize this process. Taking into account the complexity and versatility of the cultural landscape, which is based on both ecological and humanitarian essence, a method of expert assessments was proposed. Each expert (16 scientists) gave a score of individual areas in the range from 1 to 10. The collected information made it possible to create and visualize data in the form of a petal diagram.

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Results Rural tourism is the recreation of citizens in rural areas in guest houses created by a rural family on the basis of their own residential house and household plot, as well as on a plot of land allocated for farming. The main figure that provides an accommodation, meals and acquaintance with the sights of the countryside is a rural family (Krivosheyeva et al., 2014, p. 105). Such approaches are very common. They have roots deeply implanted in Western practice, as a result of a sharp change in the stereotype of behavior of rural residents. This happens due to the transition to mechanization of labor, increasing production efficiency, job cuts, an ever-increasing proportion of the urban population and the emergence of an acute desire to take a break from the stresses of large agglomerations. However, it is quite obvious that in the conditions of Russian reality, this process (tourist and recreational development of cultural landscapes of rural areas) has very significant differences. Firstly, historically, there has been a common form of suburban recreation in Russia with the conditional name “to the village to grandfather”. As a result, a significant part of the population has the opportunity to spend their free time (especially vacation time) in the village. There is a “village tourism”. Secondly, during the Soviet period especially, the practice of allocating land plots to citizens for recreation purposes and with the right to erect a residential structure was very widespread in Russia. VCIOM (VCIOM: Russia Public Opinion Research Center) estimates that at least 27% of Russians have a seasonal cottage. In this regard, it is fair to say that there is a specific “country tourism” (Asadov & Baranov, 2015, p. 172). Thirdly, amateur tourism (with elements of sports and romance) with tents, backpacks, guitars and other tourist accessories is very widely developed in Russia. It is enough to point out that tourist equipment stores are still focused mainly on the active amateur segment of consumption. In addition, the practice of quiet and active hunting and fishing has historically developed. Therefore, hunting, fishing, mushroom, berry, etc. tourism arises. Thus, it should be emphasized that the peculiarities of the process of tourist and recreational development of cultural landscapes of rural areas in Russia have their own specifics. They consist in the fact that a significant part of Russians fully participates in the process of tourist and recreational development of cultural landscapes of rural areas at the level of self-organization. However, in the understanding of tourist activity as a service sector tourism is not considered! In our opinion, in order to comprehend the phenomenon of tourist and recreational development of cultural landscapes of rural areas, it is necessary to rely, first of all, on the resources of the enclosing landscape. Since it is the presence of certain resources or functions of the cultural landscape that can determine the forms of tourist and recreational development of the territory. In this sense, dividing cultural landscapes into ecological (natural) and anthropogenic landscapes, among which it is possible to distinguish:

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UNESCO WORLD HERITAGE SITE

Fig. 1 Classifier of UNESCO World Heritage Sites

(a) monuments of agricultural landscapes (arable, irrigation, pasture, hay, garden, etc.); (b) monuments of forestry landscapes (forest-cultural, park, utility, water protection, etc.); (c) monuments of water management landscapes (pond, reservoir, canal, etc.); (d) monuments of industrial landscapes (quarry-dump, quarry, road construction, etc.); (e) monuments of military landscapes (landscapes of various types associated with the preparation and conduct of military operations) (Baranov, 2005, p.31). Each type of landscape has its own structural features determined by typological affiliation. There are no strict algorithms for describing cultural landscapes and their typological differences, and therefore there can be no consensus on the unity of the process of its tourist and recreational development. In addition, the landscape is considered as a territorial unit of ecologically balanced development, and in the light of modern trends in the protection of natural and cultural heritage, it is a model of sustainable development (Baranov & Fedorova, 2012, p. 27). Typological features identified using the classifier are group features (common to several World Heritage Sites (Baranov, 2017, p. 23), and unique features [specific to a particular object, for example, underwater heritage (Asadov et al., 2021)] can be identified by comparing different objects, Fig. 1.

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Discussion Thus, due to the lack of a unified scientific justification of this phenomenon and the blurring of the formulations of tourist and recreational development of cultural landscapes of rural areas, this leads to numerous discussions in the practical sphere about the content and orientation of such a concept as “rural tourism” (rural tourism) (Krivosheyeva et al., 2014, p. 106). Despite the fact that many scientific papers have been devoted to the abovementioned problem, it is obvious that no consensus has yet been formed on its definition (Grishin et al., 2014, p. 42). Moreover, in the literature one can also find such forms of development of the cultural landscape of rural areas as bucolic (Moser & Peterson, 1981), manor (Nyurenberger et al., 2020), country-style (Winkworth, 1991), rural (Wu et al., 2022), green (McBoyle, 1996), soft (Azevedo, 2021), sustainable (Tan & Law, 2016), agro (Karampela et al., 2021), farm (Nematpour & Khodadadi, 2021), gastronomic (wine, cheese, tobacco, coffee etc.) (Cheung, 2008), ethno (Dashkova & Ivushkina, 2021), geo (Özer & Mülayim, 2022), craft (Adom et al., 2021), countryside (Sievänen et al., 2007), cottage, rustic, amateur, sports, forest, hunting and fishing, local lore, medical and wellness, literary, etc., Fig. 2. The evaluation result is determined in the range from 1 to 10 according to the following criteria: 1. Missing. 2. Extremely low. 3. Low. 4. Below average. 5. Medium. 6. Above average. 7. Good. 8. High. 9. Very high. 10. Absolute. The existing international practice of tourist and recreational development of rural areas indicates the need to expand the discourse around new forms and methods of tourist and recreational development of rural areas. It is important to note that in this process, the ecological and humanitarian component of the tourist and recreational development of rural areas and its prospects for development in the context of dynamic changes in society, becomes a necessary factor in the regional development of the country. It is not surprising that the development of this process contributes to the emergence of socio-economic and environmental problems (Amelkina, 2020, p. 55). The analysis of modern problems of tourist and recreational development of rural areas indicates the insufficient use of ecological and humanitarian components in the development of this process. Despite the great importance of tourist and recreational resources, Russia is one of the few countries with a low level of development of organized tourism in rural areas, both in quantitative and qualitative indicators. Assessment of tourist and recreational potential is one of the most important tasks of modern recreational geography (Yavorska et al., 2019). As a practical study, the UNESCO World Heritage Site “Curonian Spit” was considered (Asadov et al., 2019). In the methodology proposed by the authors for assessing the tourist and recreational attractiveness of cultural landscapes, there is an integrated approach based on a systematic ecological and humanitarian analysis of the main components of nature—the geospheres of the Earth (atmosphere, hydrosphere, lithosphere and

Fig. 2 Methodology for evaluating the tourist and recreational potential of the territory by the main geospheres of the Earth and types of tourist space development

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Fig. 3 Visualization of the results of valuating of the tourist and recreational potential of the national Park “Curonian Spit”

biosphere) on the one hand, and the components of culture—the spheres of society (theosphere, politosphere, economosphere and sociosphere), on the other (Korneevets et al., 2018; Tsvey & Sokolov, 2014). Each of the listed spheres can be evaluated in the range from 1 to 10 points (Baranov & Baranova, 2021, p. 156). Visualization of the results of valuating the tourist and recreational potential of the national park “Curonian Spit” is shown in Fig. 3. Thus, the overall assessment of the tourist and recreational potential of the Curonian Spit National Park is 7.0 (out of ten possible). The ratio of natural spheres was 8.5 against 5.5 cultural. At the same time, this object is represented in the UNESCO World Heritage List by criterion v—cultural landscape (Baranov et al., 2020, p. 145). In general, the assessment is very high, but it gives an important signal to the local authorities that there are very significant opportunities to increase it by solving the identified problems in the social, political and economic spheres of society.

Conclusion Thus, the assessment of the tourist and recreational attractiveness of cultural landscapes, that is an important component of the sustainable development of the territory, using an ecological (lithosphere, atmosphere, hydrosphere and biosphere) and humanitarian (economosphere, sociosphere, politosphere and spiritosphere) approach becomes more accurate. In addition, the results obtained and analyzed in a petal diagram allow tourists to see the best and worst positions of different spheres

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and find the sites that they need, and the organizers of tourist activities to see the problem areas in their product and continue working on its improvement.

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Marketing Communications as a Tool for Sustainable Development for City-Forming Organizations Tatiana Afanasyeva

, Elena Torgunakova

, and Evgeniy Torgunakov

Introduction In 2015, the United Nations adopted a document of the world space transformation in the field of sustainable development until 2030. The basic concept of the idea of sustainable development is to balance the interests of the main areas of the world space: economy, ecology and society. In order to achieve and maintain a balance in the three opposing areas—nature, society, and the economy—17 major directions were selected. This is because the entire history of human evolution has been characterized by conflict in these three spheres. The aforementioned 17 sustainable development objectives include a variety of topics, including poverty eradication, gender equality, rational consumption and production, decent work, economic growth and others. (Afanasyeva et al., 2019). Of course, each country has its own top priorities for sustainable growth, and if we’re talking about Russia, then our country likewise has pressing issues that need more attention. Within the framework of the sustainable development program, the following are the important issues facing Russia that need to be discussed: 1. One of the problems is the extinction of monotowns. A monotown (city-forming enterprises) is a city/town whose economy is dominated by a single industry or company. The situation in many of Russia’s monotowns is highly problematic: they are entirely dependent on the competitiveness of a single company or factory. According to the research of the Center for Strategic Research Foundation, there are 321 single-industry towns in Russia (Fig. 1), which is 8.7% of the total population of the country (Center for Strategic Research Foundation, 2022).

T. Afanasyeva (✉) · E. Torgunakova · E. Torgunakov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_17

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Fig. 1 Industry structure of the city-forming enterprises of single-industry towns, according to the research of the Center for Strategic Research Foundation, 2022

Fig. 2 Dynamics of the Gini Index in Russia %, 1995–2020, according to the research of the HSE, 2022 (Mareeva & Slobodeniuk, 2022)

Thus, one of the most important sustainable development goals in Russia is goal 11—achieving the sustainability of cities and communities. 2. Another problem is high level of income inequality among the population. According to the research conducted by HSE, Russia has a high level of financial inequality as measured by the Gini index (distribution of income by the population as a whole) (Fig. 2) (Mareeva & Slobodeniuk, 2022). Thus, one of the most important sustainable development goals in Russia is goal 10—achieving the reduction of financial inequality. 3. The third issue is low life expectancy. According to the CIA World Factbook, the average life expectancy in Russia is 71 years. For instance, the highest life expectancy is in Monaco—89 years, and the lowest is the state of Chad—

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50.6 years. Russia is ranked 152 in the total list of nations by life expectancy, which has an impact on a number of sustainable development objectives, including: goal 3—to promote health and well-being and goal 4—Good employment and economic growth (CIA World Factbook, 2022). 4. Another problem is multiple educational reforms. If we look at the statistics of Russian universities in the TOP 300 world universities of the Times Higher Education rating, then in this rating you can see only 5 Russian universities (4). The issue is particularly acute in the school education system, the Federal Law “On Education in the Russian Federation” of 29.12.2012 N 273-FZ (last edition) (5), adopted in 2012, caused a large-scale discussion in which more than 600,000 people participated. Nevertheless, the final version of the 2012 law did not include almost any of the 40,000 proposals (Odegov & Garnov, 2019). Thus, the issue of quality education is especially relevant for our country, which corresponds to goal 4 of the sustainable development program (Mirzajonov, 2021). Based on the analysis, it can be concluded that the topic of sustainable development is highly relevant for Russia. The following challenges are particularly crucial for enhancing sustainable development in Russia: attaining economic growth, reducing financial inequality, obtaining health and well-being, and achieving sustainability of cities and communities.

Materials and Methods Sustainable development is extremely relevant for Russia, as was said in the introduction of the article. Goals 11—attaining sustainability of cities and communities, 10—achieving a reduction in financial inequality, 3—health and well-being, and 4—decent work and economic growth are particularly crucial for enhancing sustainable development in Russia. Increasing the socioeconomic standing of monotowns may be one strategy to address the major issues in Russia that must be resolved in order to accomplish the sustainable development goals. In turn, the solution of this problem may have an impact on: • • • •

sustainability of single-industry towns and society; improving the well-being of the residents of the regions; equalization of economic inequality; improving the quality and life expectancy of the Russian population (Kambur, 2021).

In order to achieve the major objectives of sustainable development in Russia, it is crucial to focus on the socioeconomic development of monotowns. As was already said, a monotown is a city whose economy is based mostly on one industry or company.

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In general, Russian companies have become more and more focused on sustainable development objectives, particularly those that impact social and environmental issues. For instance, the United Metallurgical Company presented a proposal to lessen carbon footprint and gross greenhouse gas emissions at its facility in Vyksa, Nizhny Novgorod region (Ageev, 2022). Monotowns form the socio-economic situation in the city, the well-being of the city’s population also depends on the level of their economic condition, therefore, an important role is played by increasing the profits of these enterprises. It is important to note that the company’s marketing strategy has a direct impact on the increase in revenue. A marketing strategy is a business development plan that covers the factors leading to an increase in profits. Since modern society is interested in preserving the environment and improving public welfare, enterprises of monotowns need to use a sustainable marketing strategy. A company should apply sustainability as a way to meet the needs of consumers and society today by utilizing market opportunities, internal resources, consumer communication, and the protection and development of environmental resources while keeping in mind the needs of future generation. In order to achieve the goals of a sustainable marketing strategy, businesses can use integrated marketing communications (IMC) to both draw in customers and inform them about the environmental benefits of products, their effects on human health, as well as their composition, use, and disposal. IMC is the process of integrating, coordinating and combining the various marketing and promotional elements to deliver the same and consistent marketing message to customers and channels. Consequently, marketing is an essential component of the business management system within the context of sustainable growth. Furthermore, IMC elements are crucial to a good sustainable business management system since they unify all marketing communication operations (Pickton & Broderick, 2005). The scientific community is aware of the problems that currently exist with the use of marketing communications, including the potential for businesses to employ different tactics to pursue sustainable development goals. The research was developed using the works of the following scientists and researchers: Bendas (2021), Borchard G. (2018), Bormane S. (2018), Mirzajonov A. (2021), Nazaykin A. (2020), and others. The study’s hypothesis is based on the idea that employing efficient marketing communications will positively affect the sales volumes of city-forming organizations, which will improve both their financial status and the socioeconomic situation of the region as a whole (Kitchen & Proctor, 2015). The purpose of the study was to search for effective marketing communications that will allow achieving sustainable development of the organization in new, crisis conditions. The study was conducted using the theoretical research and open-source analysis method for the period from September 2022 to October 2022. In this article, the following research questions were formed based on theoretical study and secondary data analysis in order to fulfill the article’s purpose:

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1. To study the socio-economic situation of Russia’s single-industry towns in 2022. 2. To study the Russian marketing communications industry in 2022. 3. To determine the marketing strategies that Russian businesses will utilize the most in 2022. 4. To identify which were the most effective channels of communication with consumers in 2022, in general for companies. Research methods used in this paper included the analysis of various documents and laws, as well as economic-mathematical and structural-logical methodologies.

Results The socioeconomic situation of towns with a single industry changed as a result of the pressure of sanctions on Russia in 2022. International sanctions posed unique hazards for Russian businesses that directly affect the socioeconomic status of single-industry communities. It should be noted that although some of the cityforming businesses were able to adjust to the current circumstances and showed resistance to the short-term constraints, businesses with a significant share of foreign capital were more vulnerable. The biggest unfavorable effects for city-forming organizations can be seen in the lay-off of employees, reduction of wages, and reduction of output, which leads to the closure of organizations if they can’t adapt to changing market conditions. Currently, a considerable number of industry support tools have been launched that are aimed at stabilizing the situation in the most affected industries, but keep in mind that one possible answer to this issue could be marketing communications. An organization’s growth is directly strongly associated with its customers, the effectiveness of its communication strategy, the channels of communication chosen, the target audience’s attributes, and whether the company’s information contains answers to questions from potential customers. Marketing communications are used to boost an organization’s sustainable development, promote its products, services, and works, and make it more competitive. Advertising, public relations, personal sales, and sales promotion tools are all examples of marketing communications. The association of Russian communication firms’ commission of specialists estimates that the market for marketing communications will be worth more than 578 billion rubles in 2021. The study found that 68% of consumers are very willing to purchase goods and services from companies that offer a convenient way of communication (Association of Communication Agencies of Russia, 2022). In 2022, Buman Media agency in cooperation with hh.ru conducted an annual study of the most frequently used marketing communications by Russian companies. More than 100 directors and communication specialists from companies in the corporate sector participated in the study.

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Fig. 3 The most effective communication channels, according to Buman Media research, 2022

Russian businesses were in a crisis in 2022, and in order to retain their viability, businesses had to find the best channels for reaching customers. The market for communication services has undergone substantial changes. For instance, because 37% of respondents were unable to connect with their customers through overseas social networks, 21% switched their SMM efforts to domestic social networks like Telegram and VKontakte. Figure 3 displays data and trends in the area of marketing communications (Fig. 3). Based on the results of the research, it can be said that Russian businesses would utilize mass media and Telegram channels the most frequently in 2022 for marketing purposes (58% of respondents mentioned these communication channels). In comparison with 2021, these indicators were at the level of 45%, the increase was 13%. Based on the Buman Media 2022 study, podcasts are among the least effective communication channels, according to respondents as only 5% of respondents use them as communication channels. In the course of the study, it was revealed that 37% of respondents, despite the large-scale transformation of the entire media market, did not reduce communication with consumers through the media, as seen by the information in Fig. 4. Thus, anti-crisis marketing communications must be used in order to ensure high organizational stability during the crisis, particularly to improve the competitiveness and effectiveness of the city-forming organizations of single-industry towns.

Discussion In the last year, there has been a general decrease in the stability of the work of cityforming organizations, while it is the single-industry towns, the largest players in the labor market, that determine the dynamics and stability of the overall

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Fig. 4 Methods of communication with Mass Media in crisis conditions, according to Buman Media research, 2022

Fig. 5 The impact of sanctions on city-forming enterprises, numbers of enterprises, according to the research of the Center for Strategic Research Foundation, 2022

socio-economic situation in most single-industry towns of the country. The sanctions pressure that intensified against Russia in 2022 inevitably affected the activities of the city-forming organizations. It is vital to adapt the current marketing tactics of businesses to the new environment in order to prevent potential risks, such as the layoff of workers in the most affected industries, lower wages, decreased output, and closure of organizations (Fig. 5). The purpose of the study was to identify sustainable marketing strategies that will enable organizations to develop sustainably in new, crisis conditions. The market for communication services has undergone a substantial transformation, making it impossible for Russian businesses to acquire effective pre-crisis marketing communications. As a result, anti-crisis communications are essential to ensuring

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organizations’ sustainable growth. One of the top concerns for businesses, particularly in the corporate sector, is to find the most effective communication channels. It should be emphasized that we must also keep in mind upgrading the content, modifying the marketing approach, and selecting the right communication style for the media. The Buman Media agency did research on which communication goals will increase the stability of business in a crisis phase, and the results were as follows: • • • •

search for effective crisis communications—78% of respondents, search for adaptive channels of communication with consumers—74%, increase in the quality of internal communications—56%, formation and promotion of alternative content formats—48%.

Conclusion Based on the conducted research, predictions about the communication industry were made: 1. The focus on the socio-economic development of single-industry towns will allow to cover the main goals of sustainable development in Russia. Since a monotown is a place where one firm dominates the economy, the socioeconomic structure of the city and the wellbeing of its residents are both influenced by the economic condition of the city-forming organizations. 2. Organizations view the usage of marketing communication tools for sustainable development as promoting social responsibility, environmental conservation, and economic growth. In order to achieve the goals of a sustainable marketing strategy, organizations can use marketing communications to both draw in customers and inform them about the environmental aspects of products, their impacts on human health, and their composition, use, and disposal. 3. According to the study, 68% of consumers are very willing to purchase goods and services from organizations that provide efficient communication channels. Therefore, it is clear that marketing communications have an impact on the number of sales for the company. 4. The key goals in the area of marketing communications during the crisis that will help achieve the Sustainable Development Goals include: the search for effective crisis communications, the search for adaptive channels of communication with consumers, the search for effective internal communications, and the development and promotion of alternative content formats for communication with consumers. 5. During the 2022 crisis, podcasts became the least effective means of communication for Russian businesses with their customers, while Telegram channels and the media became the most effective. The goal was attained and the research planned activities during the study were completed. The initial hypothesis that the use of effective marketing

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communications will have a positive impact on the sales volumes of city-forming enterprises is supported by theoretical and empirical studies. This will be advantageous for the enterprise’s financial situation as well as the socioeconomic situation of the region as a whole. Further steps in this study may be the analysis of new marketing tools and technologies to improve the efficiency of city-forming enterprises in conditions of sustainable development.

References Afanasyeva, T., Iljina, I., & Fetisova, G. (2019). Publicity of non-profit projects as an element of sustainable territorial development. Conference: MTSDT 2019 - Modern tools for sustainable development of territories. Special Topic: Project Management in the Regions of Russia. https:// doi.org/10.15405/epsbs.2019.12.05.70 Ageev, V. (2022). Decarbonization is part of sustainable development. Retrieved from https:// www.kommersant.ru/doc/5632423 (In Russ.) Association of Communication Agencies of Russia. (2022). Market volume of marketing communications in 2021. Retrieved from https://www.akarussia.ru/press_centre/news/id10012 (In Russ.) Bendas, D. (2021). Modern media resources in the communication system of an accordionist. National Academy of Managerial Staff of Culture and Arts Herald. https://doi.org/10.32461/ 2226-3209.4.2021.250247. Borchard, G. (2018). The press and the making of modern media. A narrative history of the American press (pp. 224–240). doi:https://doi.org/10.4324/9781315658667-15. Bormane, S. (2018). Integrated marketing communications in sustainable business. In Society. Integration. Education. Proceedings of the international scientific conference (Vol. 6, pp. 80–96). https://doi.org/10.17770/sie2018vol1.3405 Center for Strategic Research Foundation (2022) Risks: City-forming organizations and singleindustry towns. Retrieved from https://www.csr.ru/upload/iblock/14c/k88t2bqevutbs7f8bl3v0 6htho0s37jg.pdf (In Russ.) CIA World Factbook. (2022). Retrieved from https://www.cia.gov/the-world-factbook/ Kambur, E. (2021). Emotional intelligence or artificial intelligence: Emotional artificial intelligence. https://doi.org/10.17932/IAU.FCPE.2015.010/fcpe_v07i2004. Kitchen, P. J., & Proctor, T. (2015). Marketing communications in a post-modern world. Journal of Business Strategy, 36(5), 34–42. https://doi.org/10.1108/JBS-06-2014-0070 Mareeva, S. V., & Slobodeniuk, E. D. (2022). Inequality in Russia against the background of other countries: Income, wealth, opportunities: An analytical report. M.: NRU HSE. Retrieved from https://www.hse.ru/data/2022/01/30/1758504845/02_Mareeva_Inequality_in_Russia_NCMU_ Site_2022.pdf (In Russ.) Mirzajonov, A. (2021). The importance of discourse and media text in modern media. ACADEMICIA An International Multidisciplinary Research Journal, 11(2), 24–26. https:// doi.org/10.5958/2249-7137.2021.00317.7 Nazaykin, A. (2020). Online resources in modern media relations. Theoretical and Practical Issues of Journalism, 9(4), 660–672. https://doi.org/10.17150/2308-6203.2020.9(4).660-672. (In Russ.). Odegov, Y. G., & Garnov, A. P. (2019). Reform of Russian education: Problems, results, prospects. The Standard of Living of the Population of the Regions of Russia, 3, 36–51. Retrieved from https://cyberleninka.ru/article/n/reforma-rossiyskogo-obrazovaniya-problemy-rezultatyperspektivy/viewer (In Russ.) Pickton, D., & Broderick, A. (2005). Integrated marketing communications (2nd ed.). Pearson Education Limited.

Sustainable Development Policy and Environmental Sustainability in the Arctic Territories Elena A. Borkova , Vladimir A. Plotnikov and Elena V. Ushakova

, Oleg G. Smeshko,

Introduction Environmental problems and sustainable development, the transition to a green economy model in modern conditions are of great importance (Agrawal, 2001; Jänicke, 2012; Söderholm, 2020; UN, 2012; Stoenoiu, 2022; Szopik-Depczyńska et al., 2018; Vertakova & Plotnikov, 2017). This is due to the expansion of the scale of human economic activity to such limits that threaten the integrity and sustainability of the natural environment (Bodrunov, 2021; Jacobson, et al. 2019). The destruction of the environment adversely affects the socio-economic system. Therefore, vigorous measures are needed to prevent the degradation of the human environment (Vertakova et al., 2020; Zhang et al. 2020). The future of mankind depends on their effectiveness. Environmental protection and environmental management are global issues (Liu et al., 2022). At the same time, these problems are regionally specific (Anthonj, 2021; Borkova et al., 2019; Yameogo et al., 2021). This is due to the differentiation of territories in terms of economic, social, and environmental indicators, as well as differences in the political regimes of different countries and regions. This problem is especially significant in the Arctic regions, the nature of which is extremely fragile

E. A. Borkova Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation V. A. Plotnikov (✉) Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation O. G. Smeshko · E. V. Ushakova Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_18

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(Plotnikov et al., 2018). Therefore, its preservation is a priority. It is important to note the importance of the Arctic ecology in the active climate debate. The Arctic is the “kitchen of the weather”. The ecological state of the Arctic significantly affects the weather and climate of the entire planet (Steffen et al., 2018), especially the Northern Hemisphere of the Earth. There is a change in climatic conditions in the Arctic itself. For example, according to the UN (2019, p. 18), the decrease in Arctic Sea ice from 1981 to 2010 ranged from 5.2% (observations in March) to 27.5% (observations in September). This has led to numerous environmental changes. For example, on average for the period 2009–2018, compared to 1993, the total sea level rise was 60 mm (Ibid.). Russia is one of the largest Arctic powers. Therefore, environmental issues in the Arctic occupy a large place in the economic policy implemented in Russia at the national and regional levels (Agarkov et al., 2018; Carayannis et al., 2021; York et al., 2022). At the same time, over the past two centuries, there has been an active economic development of the Russian Arctic. This exacerbates social and environmental problems in this macro-region. Despite the steps taken to implement programs for the integrated and nature-saving development of the Arctic territories, a significant number of problems are manifested here that reduce the stability of the socio-ecological and economic system of the Russian Arctic. Their study is the subject of analysis in the author’s study.

Materials and Methods The author’s research methodology is based on the theory and concept of sustainable development. During the study, methods of processing statistical data, institutional analysis, literature review, case method, method of expert assessment of trends were used. The choice of these research methods is determined by a number of circumstances. First, there are relatively few systematic data on the sustainable development of the Arctic zone of the Russian Federation. Secondly, there is an opportunity to use the experience of other Arctic states in Russia. Thirdly, special tools of economic, environmental and social policy are used in the Arctic macro-region, which requires additional institutional analysis. Fourth, in achieving the Sustainable Development Goals in the Arctic, civil initiatives are of great importance. The essence of sustainable development is to ensure social and economic progress and the growth of the well-being of the present generation of people without compromising the quality of life of future generations. That is, stability is considered in a dynamic aspect. Achieving sustainability requires the harmonization of processes in the economic, social, and environmental spheres. This is reflected in the system of Sustainable Development Goals adopted by the United Nations. The goals of sustainable development are disclosed in a set of specific tasks that cover various components of the functioning of mankind, both socio-economic and natural. The situation with the solution of environmental problems in the framework of achieving the Sustainable Development Goals is quite controversial. According to

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the United Nations Environment Program (UNEP, 2019), only 23% of the environmental indicators of the Sustainable Development Goals show progress. There is insufficient data for 68% of the indicators, because missing statistical information. For 9% of the indicators there is no progress. This situation with the provision of statistical information to make estimates forces researchers to turn to empirical data and interpretation of the facts available for study. These facts and empirical data, as a rule, are not exclusively environmental in nature. They comprehensively characterize efforts to achieve the Sustainable Development Goals. Therefore, it is fair to talk about the need to achieve socio-ecological and economic sustainability. That is, sustainability has three main components, each of which is important separately. At the same time, all these elements have a significant influence on each other. The concept of sustainable development was first formally formulated in 1987 in the “Our Common Future” report (Brundtland Report) (UN, 1987). Since then, this concept has not changed significantly. At the same time, it is regularly updated and supplemented both at the official level and in scientific research (Khan et al., 2021; Moldavska & Welo, 2017; Mizutori, 2019; Porfiryev & Bobylev, 2018). Conceptually, sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their needs. The problem of sustainable development is closely related to the problem of intergenerational justice and the global responsibility of humankind. The state, as a central public institution, is the spokesman for national interests. Therefore, the solution of these problems should be entrusted to the state. This does not exclude active participation in solving the problems of sustainable development of business, local communities, civil society institutions, and active citizens. But without coordination of the efforts of these actors on the part of the state, these efforts may turn out to be ineffective.

Results The Arctic occupies a special place in the system of ensuring the strategic national interests of Russia in the field of economy, transport, environmental protection, innovation, defense, and geopolitics. This is confirmed by the presence of special normatively established norms of legal regulation in this macro-region. In particular, in recent years, Russia has adopted Decree of the President of the Russian Federation of March 5, 2020 No. 164 “On the Fundamentals of the State Policy of the Russian Federation in the Arctic for the period up to 2035” and Decree of the President of the Russian Federation of October 26, 2020 No. 645 “On Strategies for the Development of the Arctic Zone of the Russian Federation and Ensuring National Security for the Period up to 2035”. In these documents, special attention is paid to the issues of ecology and nature management. Thus, in the “Fundamentals of the State Policy of the Russian Federation in the Arctic for the period up to 2035”, among the main national interests of the Russian

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Table 1 Investments in fixed capital for environmental protection and rational use of natural resources in the Arctic zone of the Russian Federation (million rubles, in actual prices) Indicator Total investment Including for the protection Atmospheric air Water resources Lands

2017 25,962

2018 26,104

2019 34,714

2020 22,878

2021 99,352

18,873 2967 767

21,393 2046 395

23,042 4990 2650

16,457 3356 1216

71,236 7264 18,424

Source: Rosstat, https://rosstat.gov.ru/storage/mediabank/calendar1_2022.htm

Federation in the Arctic, “environmental protection in the Arctic” is named; among the main threats to national security in the Arctic is “unavailability of the environmental monitoring system, located in the Arctic zone of the Russian Federation, to environmental challenges”. In this regard, among the main directions of the implementation of the state policy of the Russian Federation in the Arctic, “environmental protection and ensuring environmental safety” are singled out. The implementation of this policy, as stated in the “Strategy for the development of the Arctic zone of the Russian Federation and ensuring national security for the period up to 2035”, should be carried out considering the characteristics of the Arctic zone. These include: “extreme natural and climatic conditions, high sensitivity of ecological systems to external influences, climate changes that contribute to the emergence of both new economic opportunities and risks for economic activity and the environment”. Increasing attention to environmental aspects in the Arctic zone of the Russian Federation is manifested in the implementation of major environmental projects in this macro-region. For example, until recently, Russia and Norway have been working together on projects to clean up the Arctic regions of the North-West of Russia from accumulated pollution (ROSATOM, 2020). Special facilities were built in the sea bays of Saida, Andreeva and Gremikha for the management of radioactive waste and spent nuclear fuel. As a result, the total radioactivity of waste stored, for example, in Andreeva Bay, has decreased by a third. It was expected that this work would be completed in 2023, but the aggravation of the political and economic confrontation between Russia and the “Western world” in 2022 may shift these dates. The implementation of these and many other projects requires large-scale funding. Specific environmental costs in the Arctic zone significantly exceed the average Russian indicators. According to the Federal State Statistics Service (Rosstat), the share of investments in fixed assets made for the protection and rational use of natural resources in total investments in fixed assets made in the Arctic zone of the Russian Federation, as of 2021, amounted to 5.3% with the Russian average is 1.7% (source: https://rosstat.gov.ru/storage/mediabank/calen dar2_2022.htm). Investments in fixed assets aimed at protecting the environment and rational use of natural resources in the Arctic zone of the Russian Federation are continuously increasing. This indicator is shown in Table 1. Table 1 shows that only in 2020 there

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Table 2 Indices of Gross Domestic Product per capita in the Russian Federation, % Indicator As a percentage of the previous year As a percentage of the base (2016) year

2017 101.7 101.7

2018 102.8 104.6

2019 102.2 106.9

2020 97.5 104.3

2021 105.2 109.7

Source: Rosstat, https://rosstat.gov.ru/statistics/accounts Table 3 The share of the value added of high-tech and knowledge-intensive sectors of the economy in the gross regional product of the territories of the Russian Federation, % Territory All regions of the Russian Federation Arctic zone of the Russian Federation

2016 19.7 7.5

2017 19.6 7.1

2018 18.5 6.8

2019 19.0 6.2

2020 20.7 8.7

Source: Rosstat, https://rosstat.gov.ru/storage/mediabank/calendar2_2022.htm

was a decrease in investment, which was due to the general decrease in the level and change in the structure of economic activity due to the crisis caused by the Covid-19 pandemic. The dynamics of Russia’s GDP is shown in Table 2. From the data in Table 2, in 2020 the Russian economy experienced a recession. This decline was driven by the impact of the Covid-19 pandemic. Also, fluctuations in investments in environmental protection and rational use of natural resources are because these investments are of a project nature. Therefore, they cannot be constant or grow at a constant rate. Their value depends on the implementation of specific environmental projects. Due to the peculiarities of the circulation of air masses in the Arctic, pollutants, gaseous and aerosol impurities accumulate in its atmosphere. The main environmental threats in the Arctic zone of the Russian Federation are associated with an increase in pollution and degradation of environmental components in the face of a growing anthropogenic load due to the active development of natural resources and the development of the infrastructure of the Northern Sea Route. Low transport accessibility leads to the accumulation of waste. In addition, an important environmental risk factor in the Russian Arctic is the relatively low technological level of production facilities located in this macro-region (Table 3). Therefore, the implementation of sustainable development policy in the Russian Arctic should be aimed not only at the construction of treatment facilities, elimination of pollution, etc., but also at increasing the level of manufacturability of production, stimulating innovative development. Innovations in the Arctic are not only economic, but also of great social and environmental importance. Unfortunately, they have not yet received enough attention. The share of domestic costs for research and development carried out in the Arctic zone of the Russian Federation in the all-Russian indicator in 2021 was only 0.5%; the same share of the Arctic zone in domestic research and development costs in Russia (source: https://rosstat.gov.ru/storage/mediabank/calendar2_2022.htm). At the same time, the share of the gross regional product of the territories of the Arctic zone in the all-Russian indicator is an order of magnitude higher (Table 4). This

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Table 4 The share of the Gross Regional Product produced in the Arctic zone of the Russian Federation in the total Gross Regional Product of the constituent entities of the Russian Federation, % 2014 5.0

2015 5.2

2016 5.4

2017 5.8

2018 5.9

2019 6.1

2020 6.0

Source: Rosstat, https://rosstat.gov.ru/storage/mediabank/calendar2_2022.htm

indicates the presence of significant reserves of innovative development in the territories of the Arctic zone of the Russian Federation.

Discussion The economy of the territories of the Arctic zone of the Russian Federation is largely based on the mining industry. The natural resources of the Arctic have not yet been sufficiently explored; nevertheless, their extraction and enrichment are not only of national, but also of global importance. The mining industry is a source of environmental harm. The key areas of environmental pollution during mining are pollution from accidental oil spills, emissions from the burning of associated petroleum gas, the alienation of large areas during the extraction of solid minerals, pollution of water bodies with waste, etc. These pollutions negatively affect the fragile Arctic ecosystem. For example, for many years, compounds of manganese, aluminum, nickel, iron, mercury, copper, molybdenum, etc. have been polluting elements in the waters of small rivers of the Kola Peninsula. The greatest negative impact on the quality of water in the reservoirs of the Murmansk region is produced by wastewater from the mining, mining, and metallurgical industries: the Belaya River and Lake Bolshoy Vudyavr are polluted by the Apatit production association, the Khauki-Lampi-Yoki River and the Nyuduay River are polluted by the Kola Mining and Metallurgical Company, etc. Thus, the Niuduay River is especially polluted with nickel and zinc compounds, the maximum number of cases of extremely high pollution—16 and high pollution—19 were detected in the Niuduay River with compounds of copper, sulfates, nickel, and mercury during monitoring in 2020. There is an obvious need to increase investment in the construction of treatment facilities, the introduction of more advanced technologies at the enterprises of the Arctic, as well as the launch of regional and national environmental programs to clean up territories and water bodies from various pollution. In addition, it is necessary to strengthen climate monitoring, including with the involvement of international resources. Permafrost is melting, releasing significant amounts of greenhouse gases. The melting of polar ice affects the climate not only in Russia, but also in Eurasia as a whole, and initiates global climate change. It is difficult to solve environmental problems by the efforts of only state institutions. World experience speaks of the need to involve active citizens and

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non-governmental organizations in this. For example, since 2010 the Russian Geographical Society has been supporting the project “Cleaning the Arctic”. As part of its implementation, only in 2011–2012 on the island of Alexandra Land, which is part of the Franz Josef Land archipelago, 47.5 thousand steel barrels with a total weight of 1892 tons were collected, cleaned, and pressed. 1744 tons of fuel and lubricants were drained and moved to temporary storage. Collected and processed 4119 tons of scrap metal and 4797 tons of other solid waste. As part of the Clean Arctic project, during 2022, over 3000 tons of waste were collected and disposed of by volunteers throughout the Arctic zone of the Russian Federation from Murmansk to Anadyr. This is double the figure for 2021. About 1500 volunteers participated in the project. The implementation of the project is supported by federal and regional authorities. At the same time, not only the goal of cleaning the Arctic territories and water areas from various pollution is achieved, but also a vast social stratum of people with an active life position, committed to the ideas of sustainable development, is being formed. The goal may be the creation of self-learning online communities of such civil activists. Environmental education and environmental education are also important tasks in achieving sustainable development. The issue of mandatory environmental education is debatable in Russia. The education standards established by the state for Russian schoolchildren do not contain the discipline “Ecology”. It was introduced in 1993, but 4 years later, in 1997, this academic discipline was excluded from the federal component of the curriculum. Today it is taught only in the senior (10–11) grades as an optional academic discipline. Despite the activity of enthusiasts in this matter, their efforts are not systematic. In the current edition of the Federal State Educational Standard for Basic General Education, among the results of mastering the main educational program, it is envisaged that “the formation of the foundations of ecological culture”. This formation should take place within the framework of the academic disciplines “Geography”, “Physics”, “Biology”, “Chemistry”, “Technology”, “Fundamentals of Life Safety”. The current version of the Federal State Educational Standard of Secondary General Education among the results of the development of the main educational program provides for “the formation of environmental thinking, understanding the impact of socio-economic processes on the state of the natural and social environment”. These results are expected to be obtained within a significant number of academic disciplines. The high importance of the environmentally responsible behavior of the population of the Arctic territories makes it expedient to introduce into the school educational programs special academic disciplines related to the achievement of the Sustainable Development Goals and environmental activities, considering the specifics of the Arctic. To solve this problem, as well as to intensify environmental education, it is advisable to attract the scientific and educational potential of universities and research institutes located in the Arctic zone of the Russian Federation.

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Conclusion The concept of sustainable development has been developed for a long time. It originates from the “Our Common Future” report (Brundtland Report), prepared for the UN in 1987. For its successful implementation and implementation in the implemented at various levels (international, national, regional, local) UN policy, the Sustainable Development Goals were developed. The sustainable development policy has national and regional specifics. While sustainable development involves balancing the economic, environmental, and social aspects of development, these aspects may have different situational priorities in specific contexts. The article analyzes the specifics of the sustainable development of the Arctic territories. Russia is one of the largest Arctic powers. Therefore, environmental issues in the Arctic occupy a large place in the economic policy implemented in Russia at the national and regional levels. “Fundamentals of the State Policy of the Russian Federation in the Arctic for the period up to 2035” and “Strategies for the Development of the Arctic Zone of the Russian Federation and Ensuring National Security for the Period up to 2035” are adopted in Russia. In these documents, special attention is paid to the issues of ecology and nature management. But there are significant problems with maintaining the ecological balance in the Russian Arctic. It is shown that the fragility of the northern nature and the high level of influence of the Arctic on the ecology of the Earth as a whole, on global climate change, leads to the situational priority of the ecological aspect. Measures were developed to achieve the environmental sustainability of the territories of the Russian Arctic, considering the peculiarities of the institutional regulation of the development of the Arctic zone of the Russian Federation. According to the results of the study, it was proved that it is necessary to synchronize this regulation at the levels: international, national, regional, local. This requires significant amounts of funding and other resources. Therefore, it is advisable to involve large corporations, such as ROSATOM or mining corporations, in solving these problems. Mining corporations are actively working in the Russian Arctic. They are interested in the sustainable development of this macro-region. Therefore, additional incentives should be created for investment in wastewater treatment plants and the introduction of innovative environmentally friendly technologies. The authorities and the public should monitor the climate and the environmental situation. Sustainable Development is of high social importance. Therefore, it is necessary to develop environmental movements and increase the civic activity of the population. Based on the results of the analysis, a lack of systematic statistical data on the Arctic zone of the Russian Federation was noted. It is proposed to organize monitoring and systematization of the available empirical data. The need to introduce innovative technologies in the industry of the Russian Arctic was highlighted as one of the priorities, and emphasis was also placed on the construction of treatment facilities and the implementation of initiatives to clean up the Arctic territories and waters from pollution. The condition for the implementation of the proposed

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measures is the activation of environmental education and enlightenment, as well as the involvement in environmental projects not only of official bodies and businesses, but also of civil society institutions and environmental activists.

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Principles of Ecological and Economic Management of Innovative Development of Heat Supply Valeriya V. Glazkova

Introduction Today’s trends in the world development clearly point to the need of transfer from technocentric to ecologically sustainable economy which requires serious revision of its priorities at both macro- and micro levels. The issues of “environmental business feasibility” were raised in the 1970s following the UN Conference in Helsinki (1972) due to endeavors of the World Commission on Environment and Development headed by Prime Minister Gro Harlem Brundtland of Norway (Brudtland Commission). Twenty years later the Chambers of Commerce and Industry (Business and Environment Program) initiated implementation in entrepreneurship its Sixteen Guidelines for Responsible Care in Environmental Protection and Safety. In a parallel track, the European Union developed the principle of “shared responsibility” which was also aimed at stimulating entrepreneurs to reduce their environmentally negative or adverse activities. All those initiatives had one essential commonality—they stimulate voluntary rather than enforced commitment of business to sustainable environmentally friendly activities. In fact, for environmentcaring organizations these initiatives appeared to be environmentally appropriate and economically cost-effective rather than charitable, thus, resulting in their ecological and economic sustainability in operating and development (Dyllik, 1994). The present study is focused on the operation efficiency of the unified heat supply enterprises or networks in Russia. According to Rosstat, by 2020 heat losses in the supply networks increased by 2.51 times compared to 1995, with the share of those requiring replacement amounted more than 30% of the total length of the country’s heat networks (Štreimikienė et al., 2020). It is obvious that measures aimed to reduce

V. V. Glazkova (✉) Moscow State University of Civil Engineering (National Research University), Moscow, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_19

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the wear and tear of the equipment and, thus, stimulate increase in the efficiency and energy security of the national heat supply industry require overall large-scale modernization of its production assets and infrastructure (Bezhan, 2020). By the federal law, modernization and innovative development of the heat supply networks in the assigned district or territory is the responsibility of the unified heat supply enterprises (UHSE) or district heating systems (DHS) (Astratova et al., 2021), therefore, this study is focused on the role of these entities in the sector transformations (Stennikov & Penkovskii, 2020). Providing that environmental safety of functioning and development being observed, the main priorities of the industry modernization and innovative development are better economic performance and reliability of heat supply (Štreimikienė et al., 2020). Therefore, economic benefits of interaction between ecological and entrepreneurial goals could be achieved through integrating environmental care with resource-saving methods of management, innovative technologies and products (Verstina et al., 2021). This research paper describes methodology and basic principles of environmental and economic management (EEM) which can be used by the unified heat supply enterprises or district heating systems for their innovative development.

Materials and Methods Fundamentally, transition of business to ecological and economic balance in operations is based on realizing the interdependence between commercial activities and care for natural environment as both an opportunity for and a threat to its economic growth. The latter is connected with the system of environmental restrictions resulting from the exhaustion of natural resources, low reproduction of renewable resources, and limited assimilation capacity of the environment, that is, its poor ability to neutralize the negative impact of economic activities leading to serious damaging changes and loss of sustainability. On the other hand, according to T.A. Akimova, A.P. Kuzmin, V.V. Khaskin, environmental restrictions can be used as an additional tool rather than a barrier for monitoring the production efficiency (Ilyicheva, 2010). In such a way, commitment of business to ecological and economic balance in functioning may result in its shift to ecological and economic development and, therefore, to managing this development (Borodin, 2007). Thereby, companies will get not only an effective method to evaluate environmental safety of their activities together with an opportunity to inform stakeholders about these priorities but also an additional competitive advantage demonstrating their commitment to the concept of sustainable development (Mayorova, 2019). According to A.I. Borodin, with environmental issues being considered, companies have to revise their traditional managerial techniques focused on economic results within existing environmental management framework in favor of a new

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integrated environmental and economic management approach which may result in reducing production costs due to less environmental damage (Borodin, 2005). Actually, there is no an unambiguous interpretation of ecologically oriented management in today’s studies on economy. Ecological orientation in business is connected either with the concept of EEM or with that of environmental management and environmental protection (P. Welford, A. Guldson, W. Hopfenberg, E. Schultz, etc.). Thus, it makes sense to distinguish between these concepts and their substantive characteristics, and state that the concepts of “ecological management”, “environmental management”, and “nature management” (used synonymously in Russia) should be considered within the framework of environmental governance, aimed to develop and implement principles of ecological management and environmental safety at all levels of governance. This state policy is implemented at the levels of public administration (federal and regional) and municipal management. In addition to the territorial level of environmental governance, there are also industry or sectoral levels, where requirements to eco-aims and programs are initiated by various groups of external stakeholders (legislative and executive authorities, representatives of counterparties, organizations, local communities) and by the interests of new generations. Thus, environmental management is defined by some researchers (T.A. Guseva, E.A. Khachaturov, S.V. Makarov, E.A. Zaika, M.V. Khotuleva) as “the activities of state bodies and economic entities mainly aimed at complying with the mandatory requirements of environmental legislation, and, therefore, at developing and implementing relevant goals, projects and programs” (Guseva et al., 1999). As a rule, business entities as objects of low or municipal level of management implement their ecological approach in compliance with the goals of municipal programs. However, environmental management, as noted above, is associated with the administrative impact on the objects at different levels, including existing restrictions and barriers to the interrelation. Because this study is aimed to find the most effective way for organizations to consider environmental issues in their operating activities, the term “ecological and economic management” would be more appropriate for use than such terms as “ecological management” or “environmental management”. Environmental management is aimed to control air emissions, the discharge of pollutants into water bodies, consumption of energy and raw materials and environmental consequences of production. Realized as control “at the output” these activities neutralize pollution at the last stage of the production cycle (at the “end of the pipe”). Ecological and economic management permeates all subsystems of enterprises and stimulates development and efficient flow of their resources to achieve economic goals interrelated with those of environmental management and sustainable environmental development. Therefore, according to A.I. Borodin, “ecological and economic management can be described as a comprehensive and long-term integration of environmental issues into economic policy” (Borodin, 2005).

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Results Summarizing various approaches to the content of ecological and economic management, it is advisable to highlight the subject area of this type of management, including considering it in the aspect of the object of this study—unified heat supply organizations (Table 1): The author’s classification of general and specific principles of ecological and economic management is presented in Fig. 1. It should be noted that the EEM principles listed in Fig. 1 are also valid for the unified heat supply enterprises or district heating systems in terms of their innovative development.

Discussion The systemacity principle considers interaction between all the internal organizational subsystems (elements) and the impact of the external factors. In Russia the idea of a systematic approach to management was formulated by A.A. Bogdanov in his work “Tectology: a general organizational science” at the beginning of the twentieth century. According to the author, when applied to the system study and analysis, organizational perspective allows researchers to understand the interconnection between its internal components as well as its interrelations with the external environment. Another researcher and the author of “General System Theory”, “Modern Theories of Development”, “Robots, Men, Minds”, etc. Ludwig von Bertalanffy is also recognized as one of the founders of general systems theory (GST). Having started with the study of biological organisms as separate systems the Austrian biologist transferred his systems theory to the social environment. The studies resulted in the development of a systemic approach basics according to which any system is composed of interrelated and interdependent elements. When interacting they form a unitary whole which exists according to certain laws and principles explaining the behavior and the functioning of various systems. The ideas of L. von Bertalanffy were further developed by Hans Peter Ulrich, Fredmund Malik and Anthony Stafford Beer, the researchers of the St. Gallen School of Management (Switzerland), who applied the systemic approach to management. Later the School follower Russell L. Ackoff contributed to the approach by developing his concept of purposeful systems and ideas on modelling such systems (Ovchinnikova & Artyomov, 2013). A systemic approach was enhanced due to the theoretical and practical studies organized by different groups of researchers and scientists from Russia and other countries—A.I. Berg, M.I. Setrov, V.G. Afanasyev, B.Z. Milner, Richard A. Johnson, Fremont E. Kast, James E. Rosenzweig, Jacqui Smith, John P. van Gigch, Peter Senge, Christopher Meyer, Stan Davis, Jamshid Gharajedaghi and others.

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Table 1 The subject area of ecological and economic management of the development of unified heat supply organizations (compiled by the author) EEM is the approach that implies creating, activating and mobilizing organizational resources to achieve their economic objectives interrelated with those of rational environmental management and protection. With regard to the development of unified heat supply organizations, it implies the formation and movement of resources such as personnel, knowledge, finance, information and technology to increase the competitiveness of a unified heat supply organization, increase the efficiency of its functioning, as well as integrated development in order to ensure high-quality and reliable heat supply in a fixed territory in the most economical and environmentally friendly way. Goal Coordination and integration of the ecological and economic component of a unified heat supply organization to increase the efficiency of its activities and ensure high-quality, reliable and environmentally safe heat supply in the assigned territory. Tasks 1. Development of ecologically oriented policy (objectives, principles of operating, rules of conduct/ behavior, etc.) in accordance with the desired organizational changes in operational activities and care for the environment. When forming the organizational structure of a unified heat supply organization, it is necessary to take into account the peculiarities of production processes in the field of heat supply: the simultaneity and continuity of the processes of production, transmission, distribution and consumption of heat, the impossibility of storing heat, which determines the dependence of its production in accordance with changes in consumption volumes during the year depending on climatic conditions, the impossibility of product rejection and withdrawal from consumption, what makes unified heat supply organizations responsible for the constant quality of heat supply in the assigned territory 2. Formation of methodological foundations and tools for ecological and economic management of a unified heat supply organization, including the development of an organizational and economic mechanism for ecological and economic management of unified heat supply organizations, as well as the formation of a system of administrative, economic, socio-psychological and ideological methods. 3. Development of a system of indicators and indicators reflecting the commitment of a unified heat supply organization to the principles of ecological and economic management, which include determining the level of environmental innovation in the organization, specific fuel consumption for released electrical and thermal energy, the coefficient of completeness of resource use, the amount of emissions of harmful substances into the environment, ensuring waste-free production through a closed technological cycle of resource processing and others. 4. The formation of a system for assessing and monitoring EEU risks by an organization represented by a consistent list of actions, starting from the identification of risk in a certain management situation, ending with the impact on risk and localization of its consequences. Object Unified heat supply organization Subject Production and economic activity of unified heat supply organizations Methodology A set of strategic, operational and tactical management methods of a single heat supply organization Planning of the strategy and policy of the functioning and development of the Functions organization, interconnected with the goals of environmental and sustainable development. A prerequisite should be the creation of a strategy for the development of a unified heat supply organization, which, firstly, should take into (continued)

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Table 1 (continued)

Key issues

account the principles of ecological and economic development, and secondly, integrate as the goals of ecological and economic management of the organization, positioning itself as an entity taking care of the environment and trying to minimize the negative impact on it during its operation and development, as well as the goals of the overall development of a single heat supply organization. Organization of production and economic activities of the organization, taking into account the reduction of the load on the environment. Coordination of subsystems of the organization with different goals and objectives within the framework of ecological and economic management of the organization Monitoring the achievement and implementation of indicators and indicators reflecting the organization’s commitment to the principles of environmental and economic management. Motivation of personnel related to the development of responsibility of employees engaged in environmental activities. The principle of environmental safety, which is laid down in the strategic goals of the development of a unified heat supply organization, should be shared, first of all, by the employees of the organization. This is expressed through the norms and patterns of behavior of the organization’s employees, which are formed due to its corporate culture. Ecological and economic management (EEM) • is considered as a comprehensive and long-term integration of environmental issues into the economic policy of the unified heat supply organization; • the environmental activity of a unified heat supply organization should be based on its own initiatives and go beyond the exclusive implementation of legislation; • is comprehensive in terms of organizational subsystems; • focuses on the environmental issues, public interests and market conditions.

The systemic or systems approach is based on the concept of a system. However, due to the specifics of the object under study its definition may require clarification in addition to the basic characteristics of a system. Despite the great diversity of views, all researchers agree that any system is a set of interrelated and interdependent parts (elements or processes) vitally important for the existence and functioning of the unified whole they produce. Further analysis of the efforts aimed to define a system allows to distinguish between the broad and narrow definition of a systemic approach. According to the former, the object is studied as a system of interconnected elements together with their interrelations and the links between the object and its external environment. According to the latter, a systemic approach presents “a method of scientific cognition and practical activity which is based on the study of an object as a complex holistic socio-economic system” (Ovchinnikova & Artyomov, 2013). As a universal methodology a systemic approach allows to scientifically substantiate the structure of natural objects, organizational and production systems, and the laws under which they function and develop. In management the systemic approach is applied to the study of an organization as a system. According to the systems management theory, an organization consists of multiple interrelated parts or components that work harmoniously and may function either as subsystems within the larger system of a higher order (external environment) or as a system for the smaller

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Specific EEM principles

systemacity

comprehensiveness and environmental soundness of ecological management decisions

strategic importance

functional integration

consistency

minimisation of negative environmental impact

responsibility

sustainable/ rational use of natural resources risk management

controllability cooperation with environmental stakeholders reliability environmental transparency lawfulness economic effectiveness and efficiency

ecological motivation and involvement preventability and timeliness

Fig. 1 Principles of ecological and economic management (compiled by the author)

subsystems of a lower order (internal environment). However, while interacting with and depending on the external environment organizations operate within their boundaries as open systems. Internally, close links between subsystems facilitate organizational cooperation and interaction, which results in positive synergies. Unfortunately, though useful scientifically in the studies on organizational management, a systemic approach cannot help in evaluating the contribution of various subsystems into the overall efficiency of management processes. Some researchers characterize this approach as poorly formalized and, therefore, as another way of thinking rather than as a new methodology which provides particular research tools and action algorithms (Altshuler et al., 2010). However, the system analysis that is used as a basis for a systemic approach may provide rules for organizing this new way of thinking in management. This analysis implies the study of objective laws of systems’ development and focuses on disclosing the integrity of the object. Thus, the systemic approach characterizes a new stage in developing methods of cognition, research and system construction, as well as a new way of describing and analyzing

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natural or artificially created objects, with systemacity being applied to innovative development as a general EEM principle. Another general EEM principle for innovative development based on the key role of goal-setting in organizational integrity (Peter Drucker and Chester Barnard) is strategic importance. On the one hand, as it was mentioned above, unified heat supply enterprises are involved in the long-term planning and innovative development of heat supply networks on the territory assigned. On the other hand, clear strategy and objectives of the EEM should be in compliance with the ecologically favorable economic development. In addition, strategic management prioritizes a timely response to changes in the external environment, which A.I. Borodin describes as development of the environmental portfolio with a set of environmental strategies, eco-activities and measures aimed to reduce the negative effects on the environment. According to Thomas Dyllick, the most essential eco-efficient strategies include reducing resource consumption, recycling, using environmentally friendly technologies, producing eco-effective products and services, avoiding, reducing or eliminating pollution due to environmental technologies, and searching for eco-friendly opportunities to satisfy consumers’ needs (Dyllik, 1994). It should be noted that coherence and efficiency of decision-making in short to long terms are ensured due to the specific EEM principle of comprehensiveness and environmental soundness of ecological management decisions. Any goal-setting system should always consider all the immediate and long-term effects of possible decisions and, thus, it requires prioritizing all the tasks to be solved. In this way, operation and development of UHSE or DHS is ensured by the compliance of the EEM with the principle of consistency. The principle of responsibility, formulated earlier by Fayol in his theory of administration, implies the building of a clear management structure and a system of subordination. With regard to еру EEM, this principle requires a balanced responsibility of organizations and employees towards the ecological dimension of their activities and development. Researchers define environmental spheres as a result of integrating the EEM into the company’s model of management. According to A.I. Borodin, when choosing between the basic management models, such as Management by Objectives, the Harzburg Management Model, Likert’s management systems, and the St. Gallen Management Model, the latest one is turned to be the most appropriate for integrating the EEM components, with both the economic efficiency and environmental care taken into account (Borodin, 2005). While the principle of responsibility implies that environment protection is given the highest priority within the system of business goals, the principle of controllability requires development of an appropriate management structure which ensures ecologically harmless business operation. Finally, integration of management by ecological objectives with the goals of organizational development is carried out in accordance with the EEM principle of functional integration. This integration means a close interaction and interpenetration of the organization’s management structure and the structure of its ecological and economic management, and the subordination of all the organizational processes and spheres of environmental activities to the goals of minimizing the negative impact on the environment (Borodin, 2005).

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The obvious discrepancy between the endless possibilities for the social wealth development and the limited compensatory potential of the biosphere might be solved if the society assumes its responsibility for ensuring the recovery nature’s capacity (Belik, 2013). In this context innovative development of the unified heat supply enterprises or district heating systems should be exercised in conformity with the principle of minimization of negative environmental impact and the principle of sustainable/rational use of resources as specific EEM principles. Under minimizing the negative impact on the environment most businesses understand “the purposeful, motivated and consistent, from year to year, changes in the gross and specific indicators of discharges and emissions of pollutants, industrial waste and resources used, and changes in product environmental performance, which are achieved through the use of a set of various innovative organizational, technological and technical methods and tools” (Subbotina, 2008). One of the functions of environmental and economic management is monitoring the performance and achievement of the indicators which confirm organizational commitment to the EEM principles. To ensure accuracy and prevent distortion of information in decision making the function is implemented in accordance with the EEM general principle of reliability. Though actual environmental activity traditionally depends only on the business initiatives and may go beyond the minimum requirements of ecological legislation, it is the EEM general principle of lawfulness which ensures that preventing negative impact on the environment is mandatory for operation and development of every company. It is reasonable to emphasize that the EEM is analyzed here as the approach which allows organizations to align their economic targets with the goals of rational environmental management and protection rather than the ecology led management. Application of the EEM general principle of economic efficiency is aimed to regulate this provision. The EEM specific principle of risk management allows to consider economic risks while ensuring innovative development of the UHSE or DHS, with entrepreneurial goals being prioritized. The EEM specific principle of sustainable/rational use of resources helps unified heat supply networks to achieve the most effective use of their limited resources through technological development and, therefore, less negative impact on the environment. Cooperation with environmental stakeholders as one of the EEM specific principles of innovative development is based on the understanding that economic entities with their individual targets are operating within their meso- and macro environment as essential, integrated rather than isolated, elements or as interdependent constituents of a complex system interrelating with each other and with the system environment. In this context, compliance of business with the EEM principle of environmental transparency gives chance to the stakeholders, whose interests should be taken into account, to gain not only economic, but also social and environmental benefits of the decisions made by the company management. Focus on motivational tools stimulating eco-friendly operation and development demonstrates organizational commitment to further environmentally harmless

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economic activities, which should be enshrined by the principle of ecological motivation and involvement. Irreversible character of ecological processes and, therefore, of environmental problems may discourage the integrating of environmental issues into innovative development of unified heat supply enterprises. The quicker organizations identify environmental concerns and respond to environmental challenges, the more effective and efficient they are in preventing the worst possible damage to the environment by minimizing their negative consequences. Consequently, the EEM of innovative development should be focused on preventing crisis in ecologically sensitive areas, and, thus, based on the principle of preventability and timeliness.

Conclusion With the practice of environmental and economic management gaining momentum in Russia, more active research and profound studies of its theoretical basics and methodological foundations are in great demand. In this paper the author describes the subject area of the EEM, as well as its principles and factors to be considered when managing innovative development of business. The implementing of the EEM principles implies that organizations transfer to strategically oriented operational management and intend to solve environmental problems by integrating or “weaving” eco aspects into production and decision-making. Thus, transformation of unified heat supply organizations requires building a concept of integrating the EEM elements into their management system which will result in changing this system.

References Altshuler, A. I., Yu, V., & Kuznetsova, Y. V. (2010). Special features of the system approach in the theory of organization. Journal “Economic Analysis: Theory and Practice”. 37(202). Retrieved from https://nnov.hse.ru/data/2010/10/23/1222828015/%D0%9E%D1%81%D0%BE%D0% B1%D0%B5%D0%BD%D0%BD%D0%BE%D1%81%D1%82%D0%B8%20%D1%81%D0 %B8%D1%81%D1%82%D0%B5%D0%BC%D0%BD%D0%BE%D0%B3%D0%BE%20% D0%BF%D0%BE%D0%B4%D1%85%D0%BE%D0%B4%D0%B0%20%D0%B2%20%D1 %82%D0%B5%D0%BE%D1%80%D0%B8%D0%B8%20%D0%BE%D1%80%D0%B3% D0%B0%D0%BD%D0%B8%D0%B7%D0%B0%D1%86%D0%B8%D0%B8.pdf. (In Russ.) Astratova, G. V., Rutkauskas, T. K., Rutkauskas, K. V., & Klimuk, V. V. (2021). Creating an environmentally safe and reliable heat supply system through the introduction of energy-saving technologies in housing and common utilities services. In E3S web of conferences (Vol. 265, p. 04020). EDP Sciences. https://doi.org/10.1051/e3sconf/202126504020 Belik, I. S. (2013). Ecological and economic security: Textbook. Ural Publishing House. un-ta. 224 p. ISBN 978-5-7996-1021-0.

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Bezhan, A. V. (2020, December). Heat supply efficiency improvement in the Arctic regions with an increased wind potency. In IOP conference series: Materials science and engineering (Vol. 976, No. 1, 012006). IOP Publishing. doi:https://doi.org/10.1088/1757-899X/976/1/012006. Borodin, A. I. (2005). The concept of ecological and economic management of the enterprise. Bulletin of the Orenburg State University, 8, 52–58. (In Russ.). Borodin, A. I. (2007). Ecological and economic management of an enterprise in an efficient economy. Bulletin of Moscow University. Series 6. Economics, 1, 88–113. (In Russ.). Dyllik, T. (1994). The concept of “environmentally conscious” enterprise management. Problems of Theory and Practice of Management, 4, 75–91. Guseva, T. V., Khachaturov, A. E., Makarov, S. V., Zaika, E. A., & Khotuleva, M. V. (1999). Voluntary ecological activity: Unused opportunities. Ilyicheva, E. V. (2010). Theory and methodology of environmental accounting in terms of environmental balance (Doctoral dissertation, Oryol State Technical University). Mayorova, T. V. (2019). Tools for evaluating ecological and economic balancing of industrial enterprises. Journal of Economy and Business: Theory and Practice, 11-2, 77–81. https://doi. org/10.24411/2411-0450-2019-11355. (In Russ.). Ovchinnikova, N. V., & Artyomov, O. Y. (2013). A look at management from the standpoint of a systematic approach: History and current state. Bulletin of the Russian State University for the Humanities. Series “Economics. Control. Law”, 6 (107), 9–21. Retrieved from https://www. rsuh.ru/upload/main/vestnik/eup/6_2013.pdf (In Russ.) Stennikov, V., & Penkovskii, A. (2020). Problems of Russian heat supply and ways of their solution. In E3S web of conferences (Vol. 219, p. 02003). EDP Sciences. https://doi.org/10. 1051/e3sconf/202021902003 Štreimikienė, D., Strielkowski, W., Lisin, E., & Kurdiukova, G. (2020). Pathways for sustainable development of urban heat supply systems. In E3S web of conferences (Vol. 208, p. 04001). EDP Sciences. https://doi.org/10.1051/e3sconf/202020804001 Subbotina, E. G. (2008). Ecological and economic innovations as a tool to minimize the negative impact of industrial production on the environment. Economic Bulletin of Rostov State University, 6(4–2), pp. 190–192. Retrieved from https://cyberleninka.ru/article/n/ekologoekonomicheskie-innovatsii-kak-instrument-minimizatsii-otritsatelnogo-vozdeystviyapromyshlennogo-proizvodstva-na (In Russ.) Verstina, N., Evseev, E., & Tsuverkalova, O. (2021). Strategic planning of construction and reconstruction of the facilities of the heat supply systems with the use of scenario approach. In E3S web of conferences (Vol. 263, p. 05028). EDP Sciences. https://doi.org/10.1051/e3sconf/ 202126305028

Dynamics of Food Security Factors in the Regions of the Arctic Zone of the Russian Federation Ludmila N. Babkina , Oksana V. Skotarenko and Elena S. Kuznetsova

,

Introduction The relevance of the study provided by the need to implement in the regions of the Arctic zone of the Russian Federation the National projects of the Russian Federation and their constituent federal projects and one comprehensive plan for the modernization and expansion of the trunk infrastructure until December 31, 2024. The main directions or complex events of this plan, directly related to the development of the territories of the Arctic zone, are such as Seaports of Russia, the Northern Sea Route, and transport and logistics centers. Consequently, the need for labor forces increases, and this, in turn, leads to a change in demand of food products, the need to meet this demand and study its dynamics. Therefore, the most important national projects for providing projects with human resources are such as: Demography; Health service; Ecology; Housing and urban environment (Passport). However, none of these national projects, especially the «Demography» and «Health service» projects, have federal projects for improving the food supply of the population, that is, supplying not only of healthy food products, but food in general, and none have projects for increasing the volume of the food system. Issues related to the development of strategic priorities and prospects for food security governance in

L. N. Babkina Saint-Petersburg State University of Civil Aviation named in honor of Air Chief Marshal A.A. Novikov, St. Petersburg, Russian Federation O. V. Skotarenko Murmansk Arctic State University, Murmansk, Russian Federation Military Educational Institution of Logistics Named After General of the Army A.V.Кhrulyov, St. Petersburg, Russian Federation E. S. Kuznetsova (✉) Murmansk State Technical University, Murmansk, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_20

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Russia are the subject of discussion in many scientific papers. A number of researchers believe that it is necessary to shift the concept of food security from external threats and hunger to internal threats that the population faces daily (Romashkina et al., 2020), others have justified households harvesting as a livelihood strategy embedded in the culture for food security governance in indigenous communities throughout the Arctic, wherefore, it is proposed to limit state intervention in harvesting (Berman, 2021). Particular attention is paid to the prospects for the development of animal husbandry in the Arctic zone of the Russian Federation (Rodnina, 2021). It is obvious that the problem of providing food products to the population can be solved by forming and implementing several variants of strategic directions of growth: increasing the import of food products from other regions of the Russian Federation and from abroad; creating the proper food system; the creation of a mixed food supply system that includes all three sources of supply— proper food system, food systems of other regions of the Russian Federation; foreign food systems. In order to choose a variant of the strategic direction of development, it became necessary to conduct a comparison study of the rates of change, firstly, of all factors in each region, and secondly, of each factor in all regions and to determine the ranks of the regions’ positions. The goal of this research is to determine the levels of food security in the regions of the Arctic zone of the Russian Federation and their dynamics based on analysis of the factors affecting the population’s demand for food products and the capacity of the consumer market. Research tasks: To determine the regions and the period of monitoring; To itemize the indicators from the annual State statistical reports of the Russian Federation—the main factors that affect the demand level of the food products; To determine the rates of change (increments or declining) of the selected indicators; To conduct a comparison study of the dynamics—rates of change of selected indicators in the regions of the Arctic zone of the Russian Federation in the three studied years; To determine the scope of variation of the rates of change of each indicator; To realize the grading of the positions of the regions of the Arctic zone of the Russian Federation according to the rates of change of indicators in the selected 3 years; To calculate the additive and final ranks of the positions of the regions and identify the dynamics of changes in the positions of the regions according to these ranks; To determine the levels of food security in the regions of the Arctic zone of the Russian Federation in each year and their dynamics; To create a list of tasks for further research.

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Materials and Methods The minimum required selection of indicators from the annual State statistical reporting includes the population, per capita monetary incomes of the population, customer prices for food products and the proportion (specific weight) of food purchases to assess the dynamic of change (growth or decline) of a group of indicators, or, in other words, factors determining the capacity of the food market in the regions of the Arctic Zone of the Russian Federation. The research is based on the application of the conceptual issues of the system, complex and qualimetric methodological approaches, statistical and index methods of regional qualimetry (Skotarenko & Babkina, 2013), methods of financial and economic analysis.

Results and Discussion The rates of change of major economic indicators over the 4 years of observations— in 2015, 2019, 2020 and 2021, which affect the volume of food consumption by the population of the regions of the Arctic zone of the Russian Federation, are presented in Table 1. The first very significant factor is the population in these territories. Part of this population is economically active and determines the potential of labor forces, which are necessary for the implementation of National and Federal projects and a comprehensive plan. However, for the last 5 years, the number of economically active population in the four regions of the Arctic zone differs in the dynamics, and it is shown in Table 1. Thus, in the Murmansk Region, a depopulation has been observed throughout the study period. This suggests that the negative growth of the population, starting in 2019, is increasing and leads to a similar rate of drawdown of demand level of food products, all other things being equal, and the eliminated influence of other factors. It should be noted that in In Yamalo-Nenets Autonomous Okrug there is a stable positive dynamics of the growth rate in the period of 2016–2018 years, and which composes 0.37% relatively to previous periods. In 2019, increase in population was 0.56% compared to 2018. In 2020–2021 years, the indicator value decreased slightly and amounted to 0.55%. From 2019 to 2021, the population growth in this region was +0.6%. The population of the Yamalo-Nenets Autonomous Okrug, for the entire period from 2015 to 2021, increased from 534,000 people to 547,000 people, that is, by 2.43%. In the Nenets Autonomous Okrug in 2015–2021, the population remained constant, equal to 44,000 people. Accordingly, the rates of population change remained equal to non-existent throughout the entire period. Consequently, the dynamic pattern of this factor in the Nenets region is completely absent and does not affect the rate of increment or decrease in demand for food products.

Region The Murmansk region Nenets autonomous area Yamalo-Nenets autonomous Okrug Chukotka autonomous area 24.49

-2.00

0.00

0.00 5.80

7.38

8.23

17.41

0.55

0.55

0.56

4.65

Per capita monetary income of the population per month 2019 vs 2020 vs 2021 vs 2015 2019 2020 13.11 6.43 4.79 8.88 3.17 3.83

Rate of increase, % Population dynamics of the regions of the Arctic zone of the Russian Federation 2019 vs 2020 vs 2021 vs 2018 2019 2020 -0.80 -0.94 -1,08 0.00 0.00 0.00

-9.27

-8.70

1.72

0.10

-3.66

4.36

Consumer price index for food products 2019 vs 2020 vs 2021 vs 2015 2019 2020 -6.52 -2.64 2.13 -11.6 3.92 0.68

23.27

25.27

-14.3

-23.0

-0.24

11.99

The specific weight of food purchases in the structure of household consumer spending 2019 vs 2020 vs 2021 vs 2015 2019 2020 -9.74 -0.72 1.45 0.61 -17.0 14.91

Table 1 The rates of increase of the factors determining the capacity of the food market in the regions of the Arctic Zone of the Russian Federation

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In the Chukotka Autonomous Area, the population remained stable from 2015 to 2020, equal to 50,000 people, and the rate of its changes was equal to non-existent. However, in 2021, the population decreased to 49,000 people or by 2%, respectively. Thus, the scope of variation of the rates of population change in the studied regions amounted to 1.03% in 2016. In 2018, this value decreased to 0.77%, and in 2019 it increased to 1.36%, then in 2020 to 1.49% and finally in 2021 it increased to 2.55%. According to the dynamic of changes in the number and demand for food products, all regions can be included into one of two groups. The first group includes the Nenets and Yamalo-Nenets Autonomous Okrugs, which are characterized by stable numbers and the absence of changes in recent years of observations. The second group includes the Murmansk Region with the downsize dynamics of population and the Chukotka Autonomous Area with the beginning of population decrease. The positions of the regions in 2019 according to the rate of population change received the following ranks. The first rank belongs to the Yamalo-Nenets Autonomous Okrug, the second—to the Nenets Autonomous Okrug and Chukotka Autonomous Area, the third—to the Murmansk Region. In 2020, the ranks obtained a year earlier were preserved. In 2021, the first rank remained to the Yamalo-Nenets Autonomous Okrug, the second—to the Nenets Autonomous Okrug, the third—to the Murmansk region, and the fourth—to the Chukotka Autonomous Area. In 2019, compared with 2015, the largest growth of the second indicator, the average per capita incomes of people (Table 1), was observed in the Chukotka Autonomous Area (24.49%), and this exceeds the smallest increase in the Nenets Autonomous Okrug (8.88%) by 2.76 times, the Murmansk Region (13.11%) by 1.87 times, Yamalo-Nenets Autonomous Okrug (17.41%) by 1.41 times. Let us use the direct scale of ranking the positions of regions according to the increment value per capita monetary incomes of people. We would consider that the first rank belongs to the region with the highest growth rate—the Chukotka Autonomous Area, the second rank—the Yamalo-Nenets Autonomous Okrug, the third rank—the Murmansk Region and the fourth rank—the Nenets Autonomous Okrug. In 2020, in relation to 2019, the rates of increase of this indicator decreased compared to the rates of 2019 to 2015 years in all regions. So, instead of the greatest value of 24.49% in 2019, such a large increase was 6.43% in the Murmansk region in 2020. We would assign the first rank for this position. The smallest value of the indicator is 3.17%, and it made up the difference with the largest value by factor of 2.03 and it was on the territory of the Nenets Autonomous Okrug, to which we will assign the fourth rank. Consequently, the scope of variation in rates of increase has slightly decreased. The second rank with a rate of increase of 5.8%, and it is differ from the highest value by factor of 1.11.We will assign it to the Chukotka Autonomous Area. The third rank belongs to the Yamalo-Nenets Autonomous Okrug with a rate of increase of 4.65%, which is 1.38 times less than in the Murmansk Region. In relation to 2020, in 2021 the rate of increase of per capita monetary incomes of the population slightly increased in all autonomous okrugs, compared to the

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previous year, and only in the Murmansk region decreased. The highest rate of increase was 8.23% in the Yamalo-Nenets Autonomous Okrug, which exceeds the previous value of the highest rates by 1.28 times. Therefore, the first rank belongs to this region. The fourth rank has an indicator value equal to 3.83% and it is 2.15 times less than the largest value of the Yamalo-Nenets Autonomous Okrug. This rank will be assigned to the Nenets Autonomous Okrug. Consequently, the range of variation of the value of the indicator slightly increased from 2.03 times to 2.15 times. We will assign the second rank to the Chukotka Autonomous Area (7.38%), the third rank to the Murmansk Region (4.79%), which is 1.12 times and 1.72 times less than the indicator in the Yamalo–Nenets Autonomous Okrug. Thus, it can be concluded that there is no tendency of increasing or decreasing of the growth rate of per capita monetary incomes of the population in the autonomous okrugs and only in the Murmansk region, there is a tendency of decreasing of the rates of increase of per capita incomes of the population. The third indicator, which affects the capacity of the consumer food market, is the consumer price indices for food products presented in Table 1. From the data of the State statistical reporting according to this indicator, it is possible to calculate the rates of positive or negative incremental prices for food products. Thus, in 2019, there was a decrease in the growth rate of the price index in relation to 2015 in all regions of the Arctic zone. The most noticeable negative increment was observed in the Nenets Autonomous Okrug (-11.55%), the smallest negative increment was in the Murmansk Region (-6.52%) which was 1.77 times less. With the help of the inverse ranking scale, we will assign the first and fourth ranks to these regions, respectively. The second and third ranks were given to the Chukotka Autonomous Area and Yamalo-Nenets Autonomous Okrug with the indicator values equal to -9.27% and -8.70%. These regions were behind the schedule of the leading region, the Nenets Autonomous Okrug, by 1.25 times and 1.33 times, respectively. The scope of variation in the growth of price indices was 5.03%. In 2020, in relation to 2019, the regions were divided into three groups. The first group included the Murmansk region, in which the decline in consumer price indices was continued (-2.64%), the second group included the Yamalo-Nenets Autonomous Okrug, in which prices stagnated with an increase of 0.1%. The third group included the Chukotka Autonomous Area and Nenets Autonomous Okrug with an increase in the value of the indicator by 1.72% and 3.92%, respectively. Thus, the ranks of the regions’ positions were distributed as follows: the first rank to the Murmansk Region, the second rank to the Yamalo-Nenets Autonomous Okrug, the third and the fourth ranks to the Chukotka Autonomous Area and Nenets Autonomous Okrug, respectively. The scope of variation of changes in the indicator slightly increased compared to the previous year and became equal to 6.54%. In 2021, there were also three groups of regions, but their composition has changed. The first group consisted of the Chukotka Autonomous Area with a downward change in the price index by 3.66%, the second group included the Nenets Autonomous Okrug, where was a stagnation of price indices with a slight increase of 0.68%. The third group included the Murmansk Region and the Yamalo-

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Nenets Autonomous Okrug with a corresponding increase in the price index by 2.13% and 4.36%. The distribution of the ranks of positions can be represented as a sequence. The first rank—the Chukotka Autonomous Okrug, the second rank— Nenets Autonomous Okrug, the third and the fourth—the Murmansk Region and Yamalo-Nenets Autonomous Okrug, respectively. The scope of variation of the studied indicator increased even more during the study period and amounted to 8.02%. In that way, firstly, it has not been identified rising tendency, decrease tendency or stagnation of the consumer price index for food products in any region; secondly, there was an even greater differentiation of regions according to this indicator, as judged by the found scope of variation. The fourth indicator is the rate of change in the proportion of (specific weight) food purchases in the structure of household consumer spending (Table 1). Thus, in 2019, compared to 2015, in the Yamalo-Nenets Autonomous Okrug and Chukotka Autonomous Area, there was an increase in the share of household expenses on food purchases by 25.27% and 23.27%, respectively. In the Nenets Autonomous Okrug there was a slight increase by less than 1% (0.61%) and only in the Murmansk Region there is a decrease in the share of food purchase expenses by 9.74%. The scope of variation of this indicator was an enormity of 35.01%. We will assign the corresponding ranks to the positions of the regions on the assumption that the rates of increase of the share of household expenses on food purchases have a positive effect on the increasing of the capacity of food market. The first rank to the Yamalo-Nenets Autonomous Okrug, the second rank to the Chukotka Autonomous Area, the third rank to the Nenets Autonomous Okrug and the fourth rank to the Murmansk Region. In relation to 2019, in 2020 the rates of increase changed to negative and showed a decrease of share of food expenses in all regions of the Arctic zone of the Russian Federation. The largest decrease by 23.05% occurred in the Yamalo-Nenets Autonomous Okrug, and the smallest by 0.72% was in the Murmansk Region. In the Chukotka Autonomous Area and Nenets Autonomous Okrug, such a decrease in rates was 14.32% and 16.92%, respectively. The scope of variation of the rates of drawdown of the share of expenses amounted to 22.33%. We would use the reverse ranking scale and assign the first rank to the region with the lowest rate of drawdown in the share of household expenses on food purchases—to the Murmansk region, the second rank to the Chukotka Autonomous Area, the third rank to the Nenets Autonomous Okrug and the fourth rank to the Yamalo-Nenets Autonomous Okrug. In 2021, compared to 2020, there was an increase in the rate of growth in the share of expenses by 14.91% and 11.99%, respectively in two regions—in the Nenets and Yamalo-Nenets Autonomous Okrugs. We will assign the first and the second ranks to these regions according to a direct ranking scale. The Murmansk Region has third rank with a slight increase of 1.45% and the Chukotka Autonomous Okrug has the fourth rank, on the territory of which there was a decrease of the share of expenses by 0.24%, and it can be considered as a stagnation of the process. The scope of variation can be determined by a value equal to 15.15%. Consequently, the scope of variation of the rates of change in the share of household expenses on food purchases decreases in length of time, which can be assessed as a convergence of the positions of the regions.

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The Murmansk region 150.0

113.1

112.5

106.4

104.8

100.0 30.8

50.0

27.8

28.0

27.6

0.0 2016

2019

2020

2021

Indices of per capita monetary incomes of the population, % Consumer price index for food products, % Food purchases in the structure of household consumer spending, % Fig. 1 Indices of per capita monetary incomes of the population, customer prices for food products and the specific weight of food purchases in the spending pattern of household, percentage in the Murmansk region Nenets Autonomous Area 150.0

108.9

107.7

103.8

103.2

100.0 33.1

32.9

50.0

31.6

27.5

0.0 2016

2019

2020

2021

Indices of per capita monetary incomes of the population, % Consumer price index for food products, % Food purchases in the structure of household consumer spending, %

Fig. 2 Indices of per capita monetary incomes of the population, customer prices for food products and the specific weight of food purchases in the spending pattern of household, percentage in the Nenets Autonomous Area

The dynamic of changes for each region can be represented on the Figs. 1, 2, 3, and 4 according to the second, third and fourth studied indicators: incomes of people per capita, customer prices on food products and the share (specific weight) of food purchases in the structure of households. Thus, it follows from Fig. 1 that in the Murmansk region in 2019, the best position has rank 3, it belonged to the growth rate of incomes of people per capita, and the region has the last position and the fourth rank according to the rates of change of two indicators: the consumer price index for food products and the share of food purchases in the structure of household consumer expenses. In 2019, the additive rank for this region for four indicators was equal to 11 and determined the worst state of the region in terms of the possibility of increasing the volume of the food market. In 2020, the region’s position improved greatly in all three indicators to the first rank and allowed it to establish itself as a leader with an

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Yamalo-Nenets Autonomous Okrug 200.0

117.4

109.0

100.0

108.2

104.6 34.7

27.7

29.9

26.7

0.0 2016

2019

2020

2021

Indices of per capita monetary incomes of the population, % Consumer price index for food products, % Food purchases in the structure of household consumer spending, %

Fig. 3 Indices of per capita monetary incomes of the population, customer prices for food products and the specific weight of food purchases in the spending pattern of household, percentage in the Yamalo-Nenets Autonomous Okrug

Chukotka Autonomous Area 200.0

124.5

105.6

100.0

107.4

105.8 48.2

39.1

41.3

41.2

0.0 2016

2019

2020

2021

Indices of per capita monetary incomes of the population, % Consumer price index for food products, % Food purchases in the structure of household consumer spending, % Fig. 4 Indices of per capita monetary incomes of the population, customer prices for food products and the specific weight of food purchases in the spending pattern of household, percentage in then Chukotka Autonomous Area

additive rank equal to 3. However, in 2021, this additive rank decreased to 9, because the region began to have a rank equal to 3 according to all indicators. Thus, we can say about unstable position of the region in comparison with others, which in 2019 was the worst, in 2020—the best, and in 2021 again plummet to the lowest. According to Fig. 2, in 2019 the Nenets Autonomous Okrug, had the best position in terms of the rates of change in the customer price index for food products, and the worst position in terms of the growth rate of incomes of people per capita. In terms of the share of food purchases, this region had the third rank. In 2019, the additive rank was estimated at 8 units. In 2020, the position of this region according to the best estimator deteriorated to the fourth rank, and according to the rest of the compared estimators, it stayed at the same positions, so the additive rank also changed by 3 units for the worse and amounted to 11 units. In 2021, according to the first indicator, the growth rate of incomes of people per capita, the position has not changed and stays the same with a rank equal to 4 units. However, the situation improved for each of the two indicators by 2 units and the additive rank

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changed by 4 units, respectively, and became equal to 7 units. According to the Nenets Autonomous Okrug, it can also be concluded that its general position on the dynamics of indicators, which affect the capacity of the consumer food market is unstable. The Yamalo-Nenets Autonomous Okrug differs from other regions according to the dynamic of changes in the studied indicators; the position was not maintained for any of the three indicators in the 3 years under study (Fig. 3). Thus, according to the rates of change of the incomes of people per capita, the position went down, and then improved. The opposite dynamics occurred according to the rates of change in the customer price index for food products, when it was noted the deterioration of the position after it’s improvement. The greatest wavering in the ranks, first for the worse (from rank 1 to rank 4), and then for the better (to rank 2), is noted according the rates of change in the share of customer expenses on food purchases. According to the additive rank, the Yamalo-Nenets Autonomous Okrug took the second place in 2019 (rank 6), the third place in 2020 (rank 9) and in 2021 again came out on top and received an additive rank equal to 7 units in addition to the positions of the Nenets Autonomous Okrug and Chukotka Autonomous Area. In 2019 the Chukotka Autonomous Area, according to Fig. 4 and the additive rank, had the best position (rank 5), but then, in 2020 the position dropped to second place (rank 6), but in 2021, with an increase in rank to 7 units, it rose to the first place. The Chukotka Autonomous Area occupied the most stable position in terms of the rates of change of incomes of people per capita, which received the first rank in the first year of observations, and then the second rank in the next 2 years. According to the third indicator, there is an opposite tendency, when after the stagnation in the first 2 years, estimated as a rank 2, there is a deterioration of the position to the last place among the regions, according to the fourth rank. According to the second indicator (the rates of change in the consumer price index) there is no stagnation, because the deterioration of the position to the third rank in 2020 compared to 2019 (rank 2) turns into an improvement to the first rank in 2021. It can be concluded that in 2021, the Murmansk Region occupied the worst position in relation to other studied regions according to the positive increment of factors, which affect the food consumption of population. All autonomous areas— Nenets Autonomous Okrug, Yamalo-Nenets Autonomous Okrug and Chukotka Autonomous Area were in an equal, comparable position, which was assessed by an additive rank equal to seven. The final ranks, taking into account the position of the regions, according to the rate of population change, can be presented in the following sequence. The Murmansk region received such ranks: in 2019–14 (3 + 11), in 2020–6 (3 + 3), in 2021–12 (3 + 9), respectively. In 2019, 2020 and 2021 the Nenets Autonomous Okrug received the corresponding ranks equal to 10 (2 + 8), 13 (2 + 11) and 9 (2 + 7). Yamalo-Nenets Autonomous Okrug was distinguished by such final ranks: in 2019–7 (1 + 6), in 2020–10 (1 + 9), in 2021–8 (1 + 7).

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In 2019 the Chukotka Autonomous Area had a rank of 7 (2 + 5), in 2020–9 (2 + 7), in 2021–11 (4 + 7). Consequently, the dynamic of the population does not affect the final positions of the three regions—the Murmansk Region, the Nenets and Yamalo-Nenets Autonomous Okrugs according to the rates of change. The population dynamic affects the rank of the position only in the Chukotka Autonomous Area in 2021, which was worsened. Thus, the additive rank of the positions of the regions of the Arctic zone of the Russian Federation shows a high level of food security in 2019 in the YamalNenets and Chukotka Autonomous Okrugs, an average level in the Nenets Autonomous Okrug and a low level in the Murmansk Region. In 2020 this indicator reached high level in the Murmansk region, in the Yamalo-Nenets and Chukotka Autonomous Okrugs it decreased to the average level, and in the Nenets Autonomous District became low. In 2021 a high level of food security was observed in the Yamalo-Nenets Autonomous Okrug, in the Nenets and Chukotka Autonomous Regions it was average, and again the Murmansk Region differed from the autonomous regions with low level of food security. In three regions (Murmansk region, the Nenets and Yamalo-Nenets Autonomous Okrugs), there was no steady upward or downward trend in food security. Only in Chukotka Autonomous Okrug during the observed period, a stable trend towards a decrease in the level of food security from high to medium was revealed. It should be noted that in this study we understand sustainable development not as a balanced development of three factors—economic, environmental and social, but as a stable trend towards changing factors, including the level of food security. The level of food security of the Arctic zone territories is characterized by significant unevenness. This situation is a result of different production and economic development of the territories as well as differences in their cultural, historical and climatic factors. Socio-economic conditions of the Arctic zone regions are not investigated widely. Meanwhile, average annual temperatures and precipitation, type of relief, proximity to the sea and ocean areas have a significant impact not only on the possibility of food production for the population, but also on the volume of food consumption and their diversity. Another problem is delivery of goods produced in the non-Arctic zone, as well as their cost. A typical result of these challenges is low level of economic development of the Arctic zone. At the same time, changing trends of socio-economic, environmental and technological development leads to the need for more active development of the Arctic territories. Meanwhile, it is necessary to follow all restrictions established by environmental legislation, as well as to take into consideration the interests of the indigenous population and the actual and potential capacity of the food market. If we comply with all these requirements, the economic development of the Arctic territories can be sustainable and efficient. Therefore, the important task of our research is to identify and analyze the factors of food security in the regions of the Arctic zone of the Russian Federation and determine scenarios for its increase. The strategy for the development of the Arctic zone of the Russian Federation and ensuring its food security as a part of national security strategy for the period up to 2030 should include the current level of food security analyzed with indicators that take into account the influence of various factors.

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Conclusion The conducted research has shown that: 1. The development of factors affecting the capacity of food market in the regions of the Arctic zone of the Russian Federation is uneven and doesn’t show any certain tendencies in increasing or decreasing the rate of the main indicators; 2. The current national and federal projects completed by December 31, 2024 may contribute to: the start of positive dynamics; the increasing level of labor resources attracted for implementation of the “Plan for the modernization and expansion of the main infrastructure for the development of seaports of the Northern Sea Route”; creation of transport and logistics centers in these territories; 3. The level of food security of the regions ensuring their sustainable development depends on the level of consumption and production of food. Further research is necessary in the following directions: The trends of the production rates for the main elements of the food system (agriculture, crop production and animal husbandry) in the regions of the Arctic zone; Determination of food production per capita in the main sectors of the food system in the regions of the Arctic zone of the Russian Federation; Evaluation of the basic food production and consumption forecasts in the regions of the Arctic zone of the Russian Federation. Acknowledgements The research was performed as part of a proactive R&D initiative (state registration number in Integrated National Information System R&D 122060900086-8).

References Berman, M. (2021). Household harvesting, state policy, and migration: Evidence from the survey of living conditions in the Arctic. Sustainability, 13(13), 7071. https://doi.org/10.3390/ su13137071 Rodnina, N. V. (2021, March). Agro-industrial complex of the Arctic of Yakutia: Features of development and prospects. In IOP conference series: Earth and environmental science (Vol. 666, No. 6, 062065). IOP Publishing. doi:https://doi.org/10.1088/1755-1315/666/6/062065. Romashkina, G. F., Davydenko, V. A., & Khuziakhmetov, R. R. (2020, September). Problems of food security in the Russian Arctic. In IOP conference series: Materials science and engineering (Vol. 940, No. 1, 012122). IOP Publishing. doi:https://doi.org/10.1088/1757-899X/940/1/ 012122. Skotarenko, O. V., & Babkina, L. N. (2013). Specifics of the qualimetric approach in regional studies. News of Science and Technology at Saint Petersburg State Polytechnic University. Economic Sciences, 5(180), 161–165.

ESG Rankings to Confirm the Commitment of Universities to the SDGs Svetlana A. Zhutiaeva , Alexander Yu. Usanov and Aleksandra V. Selezneva

,

Introduction In 2015, the countries of the world unanimously adopted the document «Transforming our world: the 2030 Agenda for Sustainable Development». The 17 Sustainable Development Goals (SDGs) and their 169 targets are at the center of the 2030 Agenda. The SDGs are a set of global priorities to address today’s most pressing climate change, poverty, inequality, health and conflict (ESG) challenges. The SDGs have aroused interest and response in most countries and individual areas of activity, many new initiatives and partnerships have appeared, all this proves the need and viability in the implementation of these goals. The United Nations has called on universities to be catalysts for the coming changes, as none of the SDGs can be achieved without the contribution of higher education through research, learning and community participation. Universities play a key role in the implementation of the SDGs given their enormous learning and teaching capacity (Bien & Klußmann, 2021). Universities are drivers of technological and social progress through scientificresearch activities, scientific discoveries and the creation of new knowledge. They S. A. Zhutiaeva (✉) Emperor Alexander I St. Petersburg State Transport University, St. Petersburg, Russian Federation Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation A. Yu. Usanov Financial University under the Government of the Russian Federation, Moscow, Russian Federation A. V. Selezneva Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_21

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attract and develop talents and stimulate creativity; Universities occupy a central position in regional and national innovation systems. University services are critical to help the global community understand the challenges, opportunities and interconnectedness of the SDGs in the process of designing and implementation new solutions, designing and evaluating new policies and trajectories of changes, and monitoring of progress. Universities occupy the position of neutral and respected parties in society. Therefore, they have the opportunity to take a leading role in the process of shaping the attitude of regional, national and international communities towards the 2030 Agenda through intersectoral dialogue and cooperation.

Methodology and Theory To measure and confirm the commitment of universities to the SDGs, there are various rankings. The ESG rating is an expert assessment that characterizes an organization’s focus on sustainable development in the environmental (E), social (S) and corporate (G) areas. On the one hand, the ESG rating allows you to evaluate the effectiveness of company management. On the other hand, the ESG rating allows to predict possible risks based on these key blocks. The ESG rating represents the opinion of analytical agencies on the extent to which the process of making key business decisions in the company is focused on sustainable development in the environmental, social and economic spheres, as well as an analysis of practical steps in this direction (Ahmad et al., 2021; Drempetic et al., 2020). ESG ratings vary markedly by rating agency, as each has a unique rating methodology for a particular company (Burritt & Schaltegger, 2010; Bice & Coates, 2016; Xu et al., 2020). KPMG estimates that there are 160 ESG ratings providers and information product providers worldwide. This includes both for-profit and non-profit companies to assess how corporate commitments, performance, business models and structures are in line with sustainable development goals (Jonsdottir et al., 2021). Despite this number of agencies, most companies and investment firms deal with the top five: ISS ESG, ISS ESG, a department of Institutional Shareholder Services, consulting firm; Moody’s, a respected ratings company; MSCI, which publishes hundreds of global investment market indices; S&P Global, a financial analytics company which is best known for its stock indexes; and Sustainalytics, a division of Morningstar that provides a wide range of investment research services. Among other noteworthy assessments we include Bloomberg ESG disclosure assessments, Fitch climate temperature vulnerability assessments, FTSE Russell ESG assessments, and climate assessments (De la Poza et al., 2021). The Russian market has also joined the ESG and sustainable finance initiatives by issuing the first green bonds, as well as creating a Sustainability section on the Moscow Exchange. The first ESG ratings assigned to Russian companies and banks appeared (National Rating Agency LLC, Expert RA, AK&M).

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In order to systematize information and understand the purpose of the results of these ESG ratings, we suggest using the following classification of rating types: Universal type (General-purpose type). This category includes rating agencies that collect and aggregate publicly available data and disseminate this data systematically to end users. Agencies do not have a rating methodology and do not provide overall ESG scores. Data users should determine the materiality of the data and develop their own methodology when building a portfolio. The main providers of such data, for example, are Refinitiv and Bloomberg. Regional type. These rating agencies use hundreds of different environmental, social and governance metrics and apply a well-established systematic methodology to determine a company’s overall ESG score, usually in a specific country. They also issue country and industry trend reports. The Sustainable Investment Research Institute (SIRIS) provides comprehensive data on the ESG ratings of companies in the Asia-Pacific region. BIK Ratings is a rating agency in the Republic of Belarus. The methodology for assigning ESG ratings developed by this agency can be applied both to a single organization, and to cities and regions. Specialized type. This category includes rating agencies that specialize in specific ESG issues such as environmental/carbon performance, corporate governance, human rights or gender diversity. Examples of such providers are TruCost (currently owned by S&P Global), the nonprofit Carbon Disclosure Project (CDP), and Equileap (gender equality data). QS Sustainability World University Rankings, dedicated to indicators of social and environmental sustainability in higher education. Ratings are a convenient way to bring together a lot of complex data into a single system of measurements, including the weighting of seemingly contradictory characteristics. Each rating organization has its own process and methodology for creating ratings, in general, this process includes three main areas of activity: – Data collection: collecting of information about the company from various sources. – Materiality: determining which metrics are relevant for a given company and sector. – Estimating: weighting and scoring data to create a ranking. The most commonly used sources of ESG information are: Annual Report, Sustainability Report; investor presentations, profit and loss reports; external data (publications about the company, information from government bodies, the media); press releases; analytical reports on research, the history of the organization’s relationship with contractors (de Villiers et al., 2021). The data used in the rankings is complex and covers hundreds of parameters, some of which are subjective. When companies do not provide the requested information, rating agencies often “guess” it, that is, fill in the gaps with data based on assumptions obtained from complex models they have built. In the ranking process, agencies use a special mechanism to adjust the company’s score depending on its industry. ESG ratings are created using both quantitative models and qualitative analysis and are accompanied by analyst reports explaining

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the ratings. Based on this, ratings may include an element of subjective judgment or opinion. The use of different methods and approaches leads to the fact that the same company will have a fairly high rating from one agency and a rather low rating from another. All this breeds user distrust in the functioning of the ratings market, and raises concerns about potential problems: 1. The lack of transparency in methodologies. Methodologies may differ in the amount of data, indicators or key performance indicators used to measure the problem (which can be in the hundreds or in some cases thousands) and, in the case of assessments and ratings, in the applied weightings between different groups (environmental, social and governance). At the same time, the methodologies are, as a rule, reviewed annually. Ratings may differ in their finality, focus on performance or risks, or take different approaches to materiality. 2. Lack of transparency in data sources. Rating agencies note the lack of ESG information in certain regions as a particular problem that can negatively affect the quality and coverage of data. One provider cited relatively lower ESG disclosures in emerging markets and Asia-Pacific region as an example of this issue. Rating agencies may request or receive ESG information from the organizations to which these ratings are assigned on a bilateral basis, and in this case, minimize the impact of a number of the above problems. However, where this occurs, there may be transparency, auditability and level playing field risks for both the rating agency and the organizations subject to these ratings (Elmassah et al., 2022). 3. Conflict of interests. Some rating agencies also provide advisory services to companies on ESG corporate strategy. In some cases, this may include, for example, an understanding of how ESG ratings are developed, or assistance with reporting that affects ESG ratings and information sources (for example, the review of responses to supplier questionnaires, recommendations for improving the quality of reporting). Some agencies offer regulatory reporting assistance to help companies and financial market participants comply with sustainability rules. This can lead to a conflict of interest where the consulting firm may provide information that would allow named company to gain an advantage in terms of obtaining a good ESG rating. 4. Unfair business practices. Assessors may not adhere to their methodologies, policies and procedures, apply ESG factors consistently, disclose appropriate information about the use of ESG factors applied in rating actions, or maintain effective internal control related to the use of ESG concerned with data from affiliates or non-affiliates in ratings third parties. 5. Companies tend to rank against their peers, not against all the world global companies. So, a high-performing oil and gas company could be just that: a fossil fuel, refining, transportation, and retail company that leads its sector in terms of environmental, social and governance risks. The availability and level of detail of ESG methodologies is still evolving, users of these data continue to express concerns about the consistency and reliability of such

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data, and industry specifics, which have a different impact on the bottom line, must be taken into account. Such lack of methods coordination is largely due to absence of a single legally fixed basis for assigning an ESG rating, the development of which should become a priority for the Government in the near future (Wong & Zhang, 2022). The higher education sector uses QS World University Rankings. This index is based only on environmental and social issues, with each of the two main categories receiving a 50% weighted score (Engelhardt et al., 2021). Environmental impacts reflect the external impact a university has when it comes to building a sustainable institution, participating in relevant and effective research, and incorporating sustainability into the curriculum. Social factors reflect how seriously universities take their role in creating a more fair and equitable society. Table 1 provides recommendations for evaluating the activities of universities in assigning the ESG rating. When choosing samples and benchmarks used in assessing compliance with standards and with the best practices in the field of sustainable development, we were guided by the following documents: Sustainable Development Goals, SDGs, Federal Laws, Presidential Executive Orders, Strategic Leadership Program “Priority 2030” and the results of expert analysis. Thus, the developed indicators and criteria for evaluating the activities of universities in assigning an ESG rating provide for the integration into their activities of the principles of sustainable development and assessment of the results of achieving goals.

Discussion The lack of standardization of ESG disclosures affects the quality and availability of information that rating agencies can use. There is an urgent necessity to improve the consistency, comparability and reliability of sustainability reporting. In terms of the directions of the regulator and the regulatory framework, we can recommend the formation of industrial ESG standards, the development of a regulatory framework for priority aspects of the ESG agenda, the formation of tools to ensure regular public dialogue between business representatives, non-profit organizations, the media, institutions in the field of science and education. To level out the potential problems associated with improving the transparency, clarity and fairness of the ranking results, more use should be made of data provided not by universities, but by reputation data, alumni lists and national statistics. Standardization in the disclosure of information on ESG factors will allow the usage of artificial intelligence and machine learning to improve the processes of collecting unstructured data, conducting research and indexing. These technologies will improve the timeliness and accuracy of data collection, analysis, and validation to deliver dynamic content.

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Table 1 Groups of indicators and criteria for evaluating the activities of universities in assigning an ESG rating (Han et al., 2016; KPMG, 2020; Minutolo et al., 2019) Е1. Environmental management Е1.1. The quality of university’s environmental management The university has a valid ISO 14001 certificate. Е1.2. Environmental policy The university has developed, approved and published on the site an environmental policy. Е1.3. Environmental requirements for contractors and suppliers Environmental requirements for suppliers are developed and published on the website. Е2. Lean use of resources Е2.1. Water consumption and energy intensity Specific consumption is the amount of water or energy consumption per student over the past three years showing a downward trend. Е3. Environmental impact Е3.1. Household Waste Collection Program A program for the separate collection of household waste for recycling (paper, glass, plastic, etc.) and a program for the replacement and disposal of mercury lamps, batteries and appliances have been developed and published on the website. Information about this is available on the university campus. Е3.2. Waste minimization program Waste minimization program developed and published on the website. Information about this is available on the university campus. Е4. Infrastructure (University campus = green campus = smart campus) Е4.1. Comfortable and safe spatial environment The volume of green spaces to the total area is not less than 60%. We allocate at least 30% of financial resources for the construction of educational and residential facilities. Transport accessibility to educational and residential buildings, training grounds is 100%. Е5. Educational and research activities related to sustainable development Е5.1. Educational environmental programs Every year, each department holds at least two events, with a minimum of 50 participants. The university has student societies focused on environmental sustainability. Е5.2. Research funding in the field of sustainability development 20% of all budgetary funds allocated for scientific projects are directed to the research of environmental programs. Extrabudgetary funding is 20% of state funding. Е5.3. Research and development work on environmental and environmental activities The university has determined the composition of the main social and environmental projects related to climate change. They are constantly being researched. Each department conducts at least one study each year. Е6. Social activity on the environmental agenda Е6.1. Activities to promote responsible consumption An item by the university (or its branches) in the media on the environmental agenda at least once a month. S1. Society S1.1 Social investments and development of regions of presence The university and all its branches participate in regional events at least once a month. (continued)

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Table 1 (continued) S1.2 Charity and volunteering The university has developed, approved and published on the website comprehensive programs of charity and volunteering. S2. Human capital S2.1 The average salary of teachers at the university is 200 percent of the average salary in the respective region. For other categories of employees, the wage fund has been growing for three years. A decile differentiation factor is performed. The decile differentiation factor is the ratio of the minimum wage of the highest paid 10% of workers to the maximum wage of the lowest paid 10% of workers. S2.2 The average monthly income of students is 35% or more The ratio of the average monthly income of students and PG students to the average salary in the economy of the region (only university payments are taken into account) S2.3 Availability of personnel development and employee training programs The university has a relevant department that has developed and published on the website training or advanced training programs for employees, and training subsidy programs. Employees participate at least one program per year. S2.4 The employee turnover rate is lower than the industry average. S2.5 Availability of a voluntary medical insurance program (VHI) and other forms of medical care for employees and students. S2.6 Availability of a financial support program, including in the field of housing for employees and students. S3. Human rights S3.1 Availability of a feedback mechanism and resolution of ethical issues for employees, students, contractors of the university The university has channels, including online, to solve problems in the field of human rights violations, corruption, labor violation, corporate ethics, conflict of interests. At the end of the year, unresolved disputes accounted for 10% of all applications. S3.2 Inclusivity The university has an employment and training program for workers with limited health capacities to reduce discrimination S3.3 Gender balance: proportion of women in leadership positions. Women in leadership positions are more than 30% S3.4 Age balance: proportion of young workers The proportion of employees under the age of 39 in the total number of teaching staff is 40% and above. S4. Students S4.1 Quality and safety of educational services The presence of internal documents regulating the quality standards of educational services, the presence of a unit responsible for the implementation and maintenance of quality standards for educational services in all divisions (for all faculties and branches). S4.2 Student self-governance The resource center for the coordination and development of youth policy has been established and is functioning. At least 3 youth non-profit organizations work at the university; at least 30 youth training projects are created annually. (continued)

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Table 1 (continued) S4.4 Employability and graduate opportunities The employment and promotion Center of the University calculates an integral indicator of employment outcomes = 1 * percentage of employed graduates + 1.5 * percentage of employed in the specialty + 2 * percentage of graduates with wages above the average for the region. The maximum score is 450.

Conclusion The ESG line is relatively new and continues to evolve nowadays, and there is still inconsistency in many aspects of assessing a company’s ESG profile and related risks. Ratings for the same company can vary significantly depending on the rating agency. Evaluation systems in the field of sustainable development (metrics, indices, ratings) should be developed, ESG objectives and indicators should be integrated into the activities of companies, as well as into the work of universities, since they occupy a unique position in society—they create and disseminate knowledge, none of the SDGs can be achieved without universities.

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Engelhardt, N., Ekkenga, J., & Posch, P. (2021). ESG ratings and stock performance during the COVID-19 crisis. Sustainability, 13(13), 7133. https://doi.org/10.3390/su13137133 Han, J. J., Kim, H. J., & Yu, J. (2016). Empirical study on relationship between corporate social responsibility and financial performance in Korea. Asian Journal of Sustainability and Social Responsibility, 1, 61–76. https://doi.org/10.1186/s41180-016-0002-3 Jonsdottir, G. E., Sigurjonsson, T. O., Alavi, A. R., & Mitchell, J. (2021). Applying responsible ownership to advance SDGs and the ESG framework, resulting in the issuance of green bonds. Sustainability, 13(13), 7331. https://doi.org/10.3390/su13137331 KPMG. (2020). Sustainable investing: Fast-forwarding its evolution. Retrieved from https://assets. kpmg/content/dam/kpmg/xx/pdf/2020/02/sustainable-investing.pdf Minutolo, M. C., Kristjanpoller, W. D., & Stakeley, J. (2019). Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance. Business Strategy and the Environment, 28(6), 1083–1095. https://doi.org/10.1002/bse.2303 Wong, J. B., & Zhang, Q. (2022). Stock market reactions to adverse ESG disclosure via media channels. The British Accounting Review, 54(1), 101045. https://doi.org/10.1016/j.bar.2021. 101045 Xu, Z., Chau, S. N., Chen, X., Zhang, J., Li, Y., Dietz, T., Wang, J., Winkler, J. A., Fan, F., Huang, B., Li, S., Wu, S., Herzberger, A., Tang, Y., Hong, D., Li, Y., & Liu, J. (2020). Assessing progress towards sustainable development over space and time. Nature, 577(7788), 74–78. https://doi.org/10.1038/s41586-019-1846-3

Concept of Taking Risk-Tolerant Financial Decisions Under Elevated Uncertainty Vladimir A. Kunin

and Stanislav I. Peshko

Introduction When the company’s management takes financial decisions under the conditions of economic turbulence described by increased volatility of market conditions, it faces a large number of alternatives which renders the analysis difficult and, as a consequence, may result in high-risk decisions under the conditions of time limitation. High-risk financial decisions taken under the conditions of economic turbulence and uncertainty create potential issues related to a sharp increase in the company’s private financial risks, including the risks of insolvency, loss of financial stability and bankruptcy. The growth of such risks in the conditions of economic turbulence is unacceptable for most companies. Thus, the study relevance is determined by the need to formalise the framework of taking complex financial decisions under the conditions of economic turbulence and, as a consequence, elevated uncertainty, that ensure the required limitation of private financial risks. As it is commonly known, the company’s financial decisions are aimed at deriving profit in the short and long term (Andreou et al., 2014; Nguyen et al., 2020; Kochhar, 1997). That said, good financial performance has a positive impact on the company value (Bhullar, 2017; Sudiyatno et al., 2012; Aryantinia & Jumono, 2021; Santoso, 2019; Mursalim et al., 2015) the increase of which is a key task of business management. It should be noted that the company’s management takes its financial decisions based on market information (Mathews, 2005), which is obtained and processed in the present-day financial practice under the uncertainty. Under the uncertainty typical for the present, there is a large confidence interval for evaluating indicators or parameters of the company’s operations that have a

V. A. Kunin · S. I. Peshko (✉) Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_22

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direct impact on the evaluation of possible losses caused by the occurrence of various and, in particular, financial risks (Kunin & Peshko, 2022) and the financial decision-making process. Elevated uncertainty encourages the management to postpone the decision making in anticipation of more accurate and full information which causes a decrease in the company’s sensitivity to changes in external factors (Aastveit et al., 2017). According to the study Bijsterbosch and Guérin (2013), elevated uncertainty is closely related to a consistent and significant decline in economic activity, lower inflation, higher unemployment, and lower bond yields and share prices. In the field of finance, the most important decisions include financial and investment ones. S.A. Belozerov distinguishes two core groups of financial decisions, i.e. decisions on formation of the following: (1) structure and amount of sources of income; (2) structure of deferred expenses. V.I. Solovyov offers a wider range of types of financial decisions that includes: (1) decisions on the distribution of funds for consumption and savings; (2) investment decisions; (3) debt financing decisions; (4) risk management decisions. At the same time, some researchers (e.g. Ross, 1973) classify decisions on working capital determination as financial management decisions as well. The study (Nguyen et al., 2022) shows that investment decisions have no effect on share capital risk, working capital decisions have a positive effect on share capital risk, while financial decisions have a negative effect on share capital risk. From our point of view, investment decisions are a separate class of decisions that is divided into subclasses of decisions on real and financial investment. In this article, we will focus on key financial decisions in the field of capital structure management and dividend policy shaping. Determining the capital structure is one of the most important decisions in the company’s operations, as it enables to find a balance among various sources of financing (Gul & Cho, 2019) and their cost which is determined by the trade-off theory of capital structure (Myers, 1984). The studies (Graham, 2000; Minton & Wruck, 2001; Frank & Goyal, 2003) arrived at results suggesting that companies are more likely to use a conservative debt financing strategy and prefer equity financing. Reinvestment of profits earned in investment projects can become decisive under the uncertainty, which is shown in the study (Cuevas-Vargas et al., 2022). Under the conditions of economic turbulence and, as a consequence, elevated uncertainty, an important aspect of taking financial decisions is their ability to confront a particular financial risk, i.e. risk tolerance. In the paper (Zubova, 2015), the risk tolerance of an economic entity is defined as tolerance to the impact of external risks, i.e. low sensitivity of the entrepreneurship effectiveness to the impact of risks through taking of adequate and effective decisions. In the paper (Kail, 2008), the risk tolerance of an enterprise is defined as a description of the corporation’s ability to effectively continue its long-term operations in chosen industry markets, regardless of the degree of impact of external and internal risk factors. From our point of view, the last definition is the most complete interpretation of a risk-tolerant decision, as it focuses not only on the risks confrontation, but also on the ability of long-term effective continuation of operations. In this article, we will propose a

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Fig. 1 Internal factors influencing company’s private financial risks. Source: Prepared by the authors

concept of taking risk-tolerant financial decisions and advise on its application in practice. The authors propose the following definition of the “risk-tolerant financial decision”. It is a decision to manage the raising and distribution of the company’s capital that is aimed at its effective competitive development, regardless of the degree of impact of external and internal risk factors and the level of uncertainty. In general, the decision-making process is as follows (McLaney, 2011; Orlov, 2022; Burlyaeva et al., 2007): 1. 2. 3. 4.

Generating the goal of implementing the decision; Determining a sufficient range of modes of action and their consequences; Gathering data related to decision making; Evaluating the data gathered and developing an action plan aimed at implementing the decision; 5. Analysis, evaluation, adjustment and refinement of the developed plan to implement the decision; 6. Implementation of and control over the concept of implementation of the decision taken; 7. Monitoring and evaluation of implementation results of the decision taken. In the process of implementing the stages of financial decision-making, one should rely on the factors of the internal and external environment influence on risk factors. Internal (micro-environment) and external (macro-environment) factors of financial risk are shown in Figs. 1 and 2, respectively. Structural risk may arise while managing the company’s costs and profits. This risk manifests itself in the damage caused by a discrepancy between the costs structure and the target market conditions. This type of financial risk is formed due to ineffective structuring of operating costs and depends on the share of fixed costs in the total costs of the corporation. Thus, a high level of fixed costs during sales

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Fig. 2 External factors influencing company’s private financial risks. Source: Prepared by the authors

slowdowns or a high level of variable costs during sales increases can significantly reduce the company’s earning power and even result in unprofitability of its core business and loss of financial stability. One of the indicators of risk of loss of financial stability can be the behaviour of the financial independence ratio and the comparison of this indicator with the industry average values in the region of operations. The financial independence ratio is determined as the ratio of equity to the total assets of the company and shows the share of assets generated by equity. Further, we will analyse the mechanism for applying the combined leverage effect (Degree of Combined Leverage, DCL) determined by results of the comprehensive evaluation of joint impact of the effects of financial (Degree of Financial Leverage, DFL) and operating (Degree of Operating Leverage, DOL) leverages and the choice of a dividend policy when taking risk-tolerant financial decisions. The analysis of scientific sources identified the following problematic elements in the process of taking financial decisions under the elevated uncertainty: 1. insufficient knowledge of the joint impact of operating and financial leverages on the risk of loss of the company’s financial stability; 2. insufficient formalisation of the maximum permissible value of the financial leverage arm the excess of which results in an unacceptable increase in the risk of financial stability;

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3. lack of methodologies and algorithms for taking risk-tolerant financial decisions in the capital structure management; 4. insufficient refining of advice on taking financial decisions under the uncertainty based on economic and mathematical methods and taking into account in an integrated manner the specific features of the market volatility, the costs structure and the effectiveness of the company’s entrepreneurship; 5. no formalised methods for evaluating the influence of a change in the dividend policy on the financial leverage arm and financial profitability of the company. In accordance with the identified problematic elements in the process of taking financial decisions, the purpose of this study is determined as follows: to develop the methodology for taking risk-tolerant financial decisions focused on streamlining the leverages on private financial risks of companies in the context of the most reasonable limitation of these risks under the elevated uncertainty, and to advise on the practical application of the methodology developed. To achieve this goal, the following objectives of this study were set: 1. to evaluate the joint impact of operating and financial leverages on the risk of loss of financial stability of the company and the maximum permissible value of the financial leverage arm above which the risk of loss of financial stability becomes unacceptable; 2. to develop the methodology and algorithm for taking risk-tolerant financial decisions to manage the capital structure; 3. to develop the concept for implementing financial decisions on management of the company’s debt capital and dividend policy under the uncertainty; 4. to evaluate the impact of a change in the dividend policy on the financial leverage arm and financial profitability of the company; 5. to advise on taking risk-tolerant financial decisions under the elevated uncertainty.

Materials and Methods The studies carried out in this article are based on studies by Russian and foreign authors published in the scientific economic literature and devoted to financial management issues, including the issues of financial risk management, capital structure management, shaping the dividend policy and taking risk-tolerant decisions. The study methodology is based on a dialectical systemic approach with application of logical, factor and comparative analyses, methods of probability theory and mathematical statistics, data synthesis and grouping with the use of the theoretical framework for analysing the impact of financial decisions on financial risks, financial standing and financial performance of the company. That said, special attention is paid to studies on the management of structural risk, risk of loss of financial stability and risk of bankruptcy. In this context, the article analyses in particular the materials

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of scientific studies on the principles and limitations of using the operating leverage and the impact of structural risk on the occurrence of risk of loss of financial stability. In addition, an analytical method was applied to formalise threshold levels to determine the maximum permissible values of the analysed indicators and the method of tabular structuring of results to present the developed advice for managing the capital structure and the dividend policy of the company.

Results To study and to evaluate the risk tolerance of financial decisions and the expediency of their taking, this article proposes to evaluate and monitor the joint impact of the operating and financial leverages which is determined by the combined leverage effect (DCL). The DCL is comprehensively evaluated using the following formula: DCL = DFL × DOL

ð1Þ

When managing the costs structure and the process of raising and using the debt capital, the company should take into account the joint impact of operating and financial leverages which, if taken into account in an unprofessional manner, can result in the loss of financial stability. When we evaluate the leverages, we will first assume for the sake of clarity that the balance of other income and expenses is equal to zero. Then the earnings before interest and tax (EBIT) are determined by operating factors only and are the same as the sales profit (operating profit). The DFL may be calculated from income statement figures and from balance sheet data. In financial practice, two concepts of understanding and evaluating the financial leverage are used, i.e. American and European ones. In accordance with the American concept, the financial leverage effect shows in percentage the change in the company’s net profit if the operating profit increases by 1%, and it is measured using the following formula: DFL =

EBIT , EBIT - IE

ð2Þ

where IE is interest expenses. In accordance with the European concept, the financial leverage effect shows in percentage the change in the return on equity (financial profitability) of the company due to raising and using additional debt capital, and it is measured using the following formula:

Concept of Taking Risk-Tolerant Financial Decisions Under Elevated Uncertainty

DFL = ð1- t Þ × ðROA- r Þ ×

D , E

251

ð3Þ

where t is a profit tax rate; ROA is return on assets determined by the ratio of earnings before interest and tax to the average value of assets; r—is a weighted average debt capital rate; D—is debt capital; E—is equity. In accordance with (3), the financial leverage effect is determined by the product of three factors: the 1 - t tax corrector, the ROA-r differential and the leverage arm determined by the D/E ratio. In this case, the tax corrector plays the role of a scaling factor that weakens the effect, while the stronger the higher the profit tax rate, the differential determines the effect sign and the leverage arm determines the strength of its impact, which can be both positive and negative subject to the differential sign. The operating leverage effect (DOL) shows in percentage the change in the sales profit (operating profit) if the revenue changes by 1%. It appears from the definition of operating leverage that in order to evaluate the joint impact of operating and financial leverages, it is convenient to use the American interpretation of the financial leverage. With this approach, the combined leverage shows in percentage the change in the company’s net profit if the revenue changes by 1%. If the revenue change is not accompanied by a change in fixed costs and a change in the share of variable costs in the revenue, the operating leverage effect is measured using the following formula: DOL =

EBIT þ FC EBIT

ð4Þ

where FC are fixed costs. The study (Donangelo et al. 2019) shows that companies with greater operating leverage are more exposed to economic shocks. Thus, under the elevated uncertainty, a low DOL value is more preferable, as it protects the company in the event of a negative change in the market conditions. As Kunin (2014) shows, the strength of the operating leverage effect is determined by two factors: the share of fixed costs in the company’s total costs and the share of total costs in the revenue. If the total costs are fixed, the company can pursue either aggressive, or balanced, or conservative policy in relation to DOL. The aggressive policy is related to a high share of fixed costs in the total costs and is coupled with a high level of structural risk. The balanced or neutral policy is related to a moderate share of fixed costs in the company’s total costs and is described by moderate structural risk, while the conservative policy is focused on minimising fixed costs and, as a consequence, minimising structural risk and chances of profit growth in case of favourable change in the market conditions. When raising the debt capital and, as a consequence, managing the DFL, it is possible to use either the aggressive policy related to a relatively large amount of

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debt financing, or the balanced or neutral policy related to a moderate level of debt financing, or the conservative policy of minimising debt financing. The authors believe that from the point of view of ensuring the company’s risk tolerance one should adhere to the principle of direct dependence of the level of conservatism of financial decisions taken on the level of uncertainty, even to the point of refusal to raise debt financing under the excessively high uncertainty. With this approach, when the uncertainty grows, the DFL indicator will tend to 1, which indicates that there is no additional risk to the company’s equity. Thus, structural risk remains to the equity only, which depends on the operating leverage. Let us consider the impact of the combined leverage on the company’s operations. Transforming formula (1) subject to formulas (2) and (4), we arrive at the following equation: DCL =

EBIT EBIT þ FC EBIT þ FC = × EBIT - IE EBIT EBIT - IE

ð5Þ

By normalizing the numerator and the denominator of expression (5) by EBIT, we will have: DCL =

FC 1 þ EBIT IE 1 - EBIT

ð6Þ

It appears from (6) that the DCL depends on two factors: the ratios of the share of fixed costs and interest expenses to EBIT. As shown in Kunin and Peshko (2022), there are 4 levels of uncertainty: low, below average, above average, high, with the boundaries of uncertainty levels that are in the ranges σT 2 ½0; σT - 2σ, σT 2 ðσT - 2σ; σT , σT 2 ðσT ; σT þ 2σ, σT 2 ðσT þ 2σ; þ1Þ, respectively, where σT is a level of volatility of the analysed indicator for the calculation period reduced to an annual expression, (σT ) is an average level of σT for the entire analysed period, σ is a root-mean-square deviation of the volatility level in the analysed period. Under the high uncertainty, in order to ensure the company’s risk tolerance, the DCL should tend to 0 thereby reducing the ratios of fixed costs and interest expenses for the debt capital to EBIT. Under the elevated uncertainty, the risk-tolerant financial decision should be described by the low DCL which enables to weaken the combined effect of the financial and operating leverages when the risks occur. With this in mind, in order to arrive at the best value of the combined leverage, we suggest using the following strategies described in Table 1. Thus, under the elevated uncertainty, when the company takes a financial decision subject to the combined leverage effect, it should rely on 3 basic scenarios with the most balanced ratio of debt financing and fixed expenses, i.e.:

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Table 1 Impact of debt financing and fixed costs on DCL Fixed expenses Borrowed funds Large amount of borrowed funds

Balanced (average) amount of borrowed funds Low or zero amount of borrowed funds

Large amount of fixed costs The DCL value tends to infinity, provided that EBIT>IE, which indicates high sensitivity of the business to the market conditions The DCL is above average, which is in line with a rather aggressive financial policy The indicator takes average values which is in line with a moderate, balanced financial policy

Balanced (average) amount of fixed costs The DCL is above average, which is in line with a rather aggressive financial policy

Low or zero amount of fixed costs The indicator takes average values which is in line with a moderate, balanced financial policy

The indicator takes average values which is in line with a moderate, balanced financial policy The DCL is below average which is in line with a conservative financial policy

The DCL is below average which is in line with a conservative financial policy The DCL value tends to 1 which is in line with a high level of financial policy conservatism that hinders the company development

Source: Prepared by the authors

1. large amount of borrowed funds and low fixed expenses; 2. average amount of borrowed funds and fixed expenses; 3. low amount of borrowed funds and high fixed expenses. Under the elevated uncertainty of market conditions due to the growth of structural risk, it seems logical to assume that a large amount of fixed expenses can result in large losses. Therefore, the risk to the company’s equity will constantly increase. During the 2020 pandemic, many companies were unable to continue their operations in a number of industries due to the high level of fixed expenses, as they faced inevitable cash gaps due to a decrease in cash flows from their core business. Furthermore, under the elevated uncertainty, the payment of debt financing becomes quite challenging, which increases the risk of loss of financial stability in aggregate. When deciding on the expediency of raising additional debt capital on these conditions, the key issue is determining the maximum permissible value of the financial dependence coefficient (the financial leverage arm) and, as a consequence, the maximum permissible amount of debt capital, above which the risk of loss of financial stability becomes unacceptably high. The authors believe that in order to solve this task one should rely on the European concept of financial leverage. In this case, it is necessary to take into account potential changes in the market conditions which are typical of the elevated uncertainty, and, as a consequence, a decrease in the revenue and economic profitability. The methodology proposed by the authors for determining the maximum permissible amount of additional debt capital under the

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elevated uncertainty consists of the following stages containing the analytical estimates obtained by the authors: 1. Estimate of the maximum permissible relative decrease in the revenue above which the risk of loss of financial stability occurs δRlim = 1 -

TC , R

ð7Þ

where TC R is a share of total costs in the revenue. 2. Estimate of earnings before interest and tax with the maximum permissible decrease in the revenue EBIT lim = Δ,

ð8Þ

where Δ is a balance of other income and expenses. 3. Estimate of the minimum permissible level of economic profitability below which the risk of loss of financial stability occurs ROAmin =

EBIT lim A - R  δR

ð9Þ

4. Estimate of the maximum permissible value of the financial dependence coefficient and the maximum permissible amount of debt capital by the formulas D E

=max

ROE 0 , ð1 - t Þ × ðROAmin - r Þ

ð10Þ

where ROE0 is return on equity (financial profitability) before raising debt capital. The application of the proposed methodology is aimed at increasing the risk tolerance of the financial decisions taken to raise additional debt capital and to mitigate the risks of loss of financial stability, which is especially important under the elevated uncertainty and economic turbulence. The block diagram of implementation of the algorithm for taking risk-tolerant financial decisions to raise debt capital is shown in Fig. 3. It should be noted that the monitoring whether an actual decrease in the revenue is permissible in the event that the market conditions deteriorate may be carried out based on results of comparing this decrease with the maximum permissible decrease evaluated using formula (7). The optimal structure of sources of financing may be determined also using WACC (Weighted Average Cost of Capital) which is defined as an average interest

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Fig. 3 Block diagram of the algorithm for taking a risk-tolerant financial decision to raise debt capital. Source: Prepared by the authors

rate for all sources of financing, subject to their share in the structure of the company’s liabilities. If the WACC < ROE condition is met, this indicates a positive impact on the total value of the company’s liabilities and a possibility to raise additional debt financing. In this case, one should consider that under the conditions of turbulence, each new loan is highly likely to be issued at a higher interest rate which is related to the growing risk, so the above condition shall be met to minimise potential risks. An important factor in increasing the company’s financial stability under the elevated uncertainty is taking of risk-tolerant financial decisions in the area of a dividend policy. Under the elevated uncertainty, a risk-oriented dividend policy enables to reduce the company’s dependence on debt capital and thereby to increase its financial stability. Let us denote the relative change in net profit reinvested in business development in case of a change in the dividend policy as δNPI. Then the relative change in the financial leverage arm in case of a change in the dividend policy is determined by the equation δFLA = -

δNPI  ROE 0 1 þ δNPI  ROE 0

ð11Þ

It appears from (3) that the relative change in the financial leverage effect under the impact of a change in the dividend policy corresponds to the relative change in the leverage arm and the following equation is satisfied δDFL = δFLA

ð12Þ

In our opinion, the implementation of the dividend policy under the elevated uncertainty should be based on the following basic provisions: 1. The dividend policy should be focused on preventing the occurrence of risks of loss of financial stability and bankruptcy;

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2. When implementing the dividend policy, sufficient financing for operating and investment activities should be ensured by the criterion of ensuring the required pace of business development; 3. The dividend policy should not be implemented to the detriment of founders’ and shareholders’ interests and should flexibly ensure, subject to the stage of the company’s life cycle and external conditions, a balance of interests related both to keeping the company’s stable functioning and ensuring its competitive development and to satisfying their personal needs. Adhering to these basic provisions enables to increase the risk tolerance of financial decisions in the area of a dividend policy and, as a consequence, the sensitivity of the company’s operating and investment performance to the impact of risks and the level of uncertainty.

Discussion Discussion of the Conditions for Applicability of Analytical Estimates of Operating, Financial and Combined Leverages The above formulas for evaluating the financial, operating and combined leverages are based on the assumption that the value of Δ, i.e. the balance of operating income and expenses, is equal to zero. If Δ≠0, the difference EBIT -Δ should be used instead of EBIT in formulas (2), (4), (5) and (6). An important aspect of the practical application of the above formulas (4) to (6) for evaluating the operating and combined leverages is the limitations on the applicable scope of those formulas. These known estimates are based on the assumption that a change in the revenue is not accompanied by a change in the level of fixed costs and the share of variable costs in the revenue. These assumptions are met in case the revenue decreases as the market conditions deteriorate and the company’s management does not take any control actions to restructure the costs and increase the revenue. If the deterioration in the market conditions is accompanied by such control actions, the effect of operating leverage should be evaluated using the formula developed in Kunin (2014), which is below: DOL =

bc - kF  f - f  ðc - 1Þ , ð b - 1Þ  ð c - 1 Þ

ð13Þ

where b—is a coefficient of change in revenue; с—is a “starting position” of the company determined by the ratio of revenue to revenue at the break-even point before its change and application of control actions; kF—is a coefficient of change of fixed costs under the influence of control actions;

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f—is a coefficient describing the change in the share of variable costs in the revenue due to the influence of external factors and control actions and determined by the ratio of marginal profits before and after the change in revenue and application of control actions. Accordingly, when evaluating the combined leverage in case the control actions are taken, one should substitute in (2) the evaluation of the operating leverage by formula (13). As shown in Kunin (2014), formula (4) is a particular case of formula (13) in case there are no control actions and the balance of other income and expenses is equal to 0.

Discussion of the Evaluation of Impact of a Change in the Dividend Policy on the Financial Leverage Arm It should be noted as regards the evaluation of the impact of a change in the dividend policy on the financial leverage arm, that the degree of this impact will depend on the return on equity before the change in this policy. Indeed, the following passages to the limit appear from formula (10): ROE 0 → 0 ) δFLA ) 0

ð14Þ

and ROE 0 → 1 ) δFLA → -

δNPI 1 þ NPI

ð15Þ

It appears from expressions (14) and (15) that the tightening of the dividend policy is an effective tool for influencing the arm and the financial leverage effect for highly profitable companies only. As the return on equity decreases, the impact of tightening the dividend policy on the capital structure declines.

Discussion of Advice on Taking Risk-Tolerant Financial Decisions Under the Elevated and High Uncertainty Under the elevated and high uncertainty, it is especially important to take risktolerant financial decisions that will enable the company to increase the confrontation against such financial risks as risks of loss of financial stability, insolvency and loss of liquidity and, as a consequence, risk of bankruptcy. Based on the material provided in this article, we can propose the following matrix for taking risk-tolerant

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Table 2 Advice on streamlining the DCL and shaping the dividend policy under the uncertainty Level of uncertainty Fixed expenses Borrowed funds

Dividend Policy

Above average Decreasing fixed expenses, increasing the share of variable expenses in the total costs structure Pursuing a moderately conservative policy for raising borrowed funds which should be manifested in: 1. Minimisation of additional short-term borrowed funds in order to minimise the interest amount and to mitigate the risk of non-payment; 2. Minimisation of interest payments in case of debt financing of the investment activities by streamlining the structure of sources of financing with the raising of modern bond financing facilities; 3. Transfer of existing medium-term borrowed funds to long-term ones, provided that the interest rate decreases, in order to release additional funds; 4. Exploring whether the operations may be financed through a more stringent dividend policy aimed at reducing financial dependence and mitigating risk of loss of financial stability. Pursuing a more stringent dividend policy, among other things: 1. Setting dividend payout limits by the criterion of ensuring a permissible value of the financial leverage arm; 2. Preventing the dividend payout ratio and the dividend payout fund from exceeding the maximum permissible values.

High Minimising fixed expenses, maximizing the share of variable expenses to streamline the DCL Pursuing an ultra-conservative policy of raising borrowed funds which manifests itself in: 1. Cessation of increasing the share of borrowed funds in the structure of the company’s liabilities; 2. Refusal to raise new credit facilities to finance short-term projects or current assets; 3. Minimisation of loan payments and interest rates for existing loans in order to release funds.

Implementing the dividend minimisation policy in order to reduce financial dependence and to mitigate the risk of loss of financial stability

Source: Prepared by the authors

financial decisions on raising borrowed funds and determining the dividend policy under the elevated uncertainty as presented in Table 2 below. The obtained results can be used to determine risk-tolerant financial decisions under the above average and high levels of uncertainty. Adhering to the concept of taking risk-tolerant financial decisions is the key to the company’s stable functioning under the elevated uncertainty as it decreases the impact of potential risks on its financial performance.

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Conclusion This article analyses the essence of risk tolerance of a corporation and defines the concept of a risk-tolerant financial decision. Based on the proposed concept focused on evaluating and monitoring the impact of the combined leverage that combines the effects of operating and financial leverages, the methodology was developed and the algorithm was proposed for taking risk-tolerant financial decisions on the capital structure management. Analytical estimates of the maximum permissible financial leverage arm were obtained, and advice was given on the application of these analytical results in case of raising debt capital and financial monitoring. With respect to ensuring that risk-tolerant financial decisions are taken on the dividend policy, the article evaluates the impact of tightening the dividend policy on the financial leverage arm and examines the dependence of the effectiveness of the dividend policy tightening on return on equity. Based on the results of the studies in the article, advice is given on taking risk-tolerant financial decisions at different levels of uncertainty. Corporations operating in the real economy may be interested in the use of the results obtained in order to determine the optimal capital structure and dividend policy to keep the required balance between various sources of financing for the purpose of avoiding the growth of risks of loss of financial stability. The authors believe that potential areas for further study may be development of an algorithm for taking financial decisions on managing the debt capital structure based on metrics that are not limited solely to financial and operating leverages. In this case, the impact of a change in the dividend policy may also be evaluated by other methods that are not described herein.

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Reflection of the Sustainable Development Goals in Citizen Science Projects Natalia Vasilenko

and Anna Rumyantseva

Introduction To achieve the Sustainable Development Goals (SDGs) formulated in 2015, the UN General Assembly adopted the document titled “Transforming our world: the 2030 Agenda for Sustainable Development”, which implies that the international community, nations, businesses, and individual citizens will focus on transforming the ways of life to support the planet’s population by balancing economic, social, and environmental interests within the framework of a triune approach (Starikova, 2017). Despite the fact that the SDGs are universal, complement each other, and shape a complex system, each country designs an individual SDG pathway that factors in the current state of the national economy (Tolstykh & Kondratieva, 2021). In 2017, the Russian Federation included 90 indicators from the global list in its Federal State Statistics Service monitoring plan. In 2020, a study was conducted on the integration of the SDGs into the public administration system, which covered the issues of providing the necessary data and technologies (Molyavko, 2021). In order to solve problems associated with the rational use of limited natural resources, preserving biodiversity, ensuring decent working conditions and pay, and providing opportunities for the holistic development of each person, it is necessary to advance scientific knowledge with a focus on its practical application (Sokolova, 2020; Swanson et al., 2016). However, achieving the SDGs not only requires that research results be of practical feasibility and high social significance; it also takes a lot of resources, including workforce (Kosmala et al., 2016), and necessitates that the resulting knowledge and competencies become part of social and economic processes and practices.

N. Vasilenko (✉) · A. Rumyantseva Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_23

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In this respect, citizen science seems to be a promising tool, as it is a form of scientific communication based on the integration of the efforts made by professional researchers and volunteers wishing to take part in scientific projects. The purpose of the study is to identify the possibilities of using citizen science in SDG achievement.

Materials and Methods The research methodology is based on the following assumptions. Approaches to achieving sustainable development, which implies keeping the balance between a developing object and its environment, originated in the 1980s. They are designed by means of decomposing the global economy into national, regional (Starikova, 2017), and corporate levels, with the latter incorporating ESG principles (Sokolova & Teymurov, 2021). For their functioning, economic systems require development; development requires change, and change, in turn, requires transitioning to a new state of equilibrium of the economic system, which is assessed through a balance between multidirectional environmental, economic, and social interests (Guzey, 2021). This decomposition contributes to the involvement of an increasing number of stakeholders (participants with different social characteristics and statuses) in solving sustainable development problems. This happens, for instance, in citizen science, which can be viewed as a new cognitive paradigm in the context of digitalization and digital transformation of various aspects of social and economic life (Linders, 2020). To achieve the goal of the study, citizen science should be considered at two levels: – at the conceptual level, it is a specific form of cognition that takes place in the course of open scientific communication (Irwin, 1995) that is based mainly on horizontal transactions integrating the actions of professional researchers and volunteers (Gazoyan, 2020; Makhnach et al., 2019); – at the empirical level, it is a system of projects which aim to solve socially significant problems (Bonney & Dickinson, 2012), are implemented in accordance with procedures designed by professional scientists, and provide mainly non-monetary rewards to volunteers, who have different social characteristics (Muravyeva & Oleinikova, 2021). In our study, we used such tools as analysis, synthesis, comparison, and classification. We also applied knowledge-based (Pirozhkova, 2018; Surovieski, 2007), participatory (Jenkins, 2006; Mueller et al., 2022; Volkova, 2019), and network (or digital) approaches (Bonney & Dickinson, 2012; Mazumdar et al., 2017; Saraeva et al., 2021). The study used analytical materials and data from the Russian Association for Science Communication (AKSON, https://akson.science/), the Federal State Statistics Service of the Russian Federation (Rosstat, https://rosstat.gov.ru/), the European

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Citizen Science Association (ECSA, https://ecsa.citizen-science.net/), and such online citizen science platforms as Citizen Science Games (https:// citizensciencegames.com/), Experion (https://experion.citizen-science.ru/), Scistarter (https://scistarter.org/), Zooniverse (https://www.zooniverse.org/), and others.

Results In terms of SDG achievement, citizen science looks promising as it includes knowledge-based, technological, and participatory domains. The knowledge-based domain manifests itself in the SDGs’ becoming a measure of the relevance and social significance of research topics. The practical relevance of citizen science projects lies in using information produced by means of crowdsourcing in decision-making at national, regional, and corporate levels to achieve the SDGs. The technological domain is created by the digital environment, in which citizen scientists develop their communication and network skills in the course of collecting and interpreting data, including big data, to achieve the SDGs. The technological domain contributes to SDG achievement at two levels: – fostering scientific thinking, research skills, and digital skills to solve sustainable development problems; – using the network effect of the digital environment to increase the number of stakeholders in transforming the world in line with the SDGs. The participatory domain contributes to the dissemination of sustainable development norms and values by involving an increasing number of participants interested in SDG achievement and fostering their effective cooperation in the course of open scientific communication. The participatory domain grows in its importance as volunteers improve their competencies and move up the management ladder in the citizen science sector.

Discussion The Contribution of Citizen Science Projects to SDG Achievement: The Knowledge-Based Domain Most of the SDGs are complex in nature, and their achievement involves maintaining balances in various combinations of environmental, social, and economic aspects of the interaction between the population and the environment. Based on the key national indicators of the Russian Federation, Table 1 divides the SDGs

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Table 1 Reflection of the SDGs in the knowledge-based domain of citizen science projects

SDG SDGs 3, 6, 7, 9, 11, 17

Aspects of interaction between the population and the environment Ecology Society Economy + + +

SDGs 1, 2, 4, 5, 8, 10, 16

SDGs 12, 13, 14, 15

+

+

+

+

Research interests in citizen science projects Health of various population groups; the quality of drinking water and water-related ecosystems; Access to energy; the quality of social infrastructure; urban development; urban environment quality; personal security; corruption manifestations. Access to education, including such aspects as gender and inclusion; digital access; the development level of IT skills; gender equality in political and economic decision-making processes; working conditions and pay satisfaction; financial literacy. Consumption and production aspects in preventing natural disasters and pollution; waste management; carbon footprint measurement and reduction; marine and land biodiversity conservation.

Source: Compiled by the authors using data from https://www.un.org/sustainabledevelopment/ru/ sustainable-development-goals/ and https://rosstat.gov.ru/sdg/report/document/69771

into three groups depending on the balance they aim to achieve. Table 1 shows that each SDG group is reflected in the research areas covered by citizen science. However, as a rule, each citizen science project has a rather narrow focus, covering only a part of the parameters of a particular sustainable development goal. An analysis of online citizen science platforms in the context of a triune approach (Starikova, 2017) allows us to conclude that, to one degree or another, citizen science projects make meaningful contributions to achieving and keeping sustainable development balances (Table 2). Citizen science projects not only have value in terms of their contribution to SDG achievement, which may sound like an abstract goal. They have practical significance because their results, which are obtained by processing numerous data, can serve as a more objective basis for decision-making at national, regional, and corporate levels to build a better world for all the inhabitants of our planet.

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Table 2 Reflection of sustainable development balances in citizen science projects Online platforms Citizen science project topics Agriculture

Scistarter +

Climate science; hydrology; Earth science Physics; quantum computing; neuroscience, IT; mathematics Medicine; biomedicine; genetics Behavioral science; cognitive science Archeology; culture Arts; history; language; literature Social sciences Animals; birds; biodiversity Astronomy; space Biology; nature

Zooniverse

Citizen Science Games

Experion

+

+

+

+

+

+

Ecology—society— economy

+

Ecology—society— economy Ecology—society— economy Ecology—society— economy Society—economy Society—economy

+

+

+

+ + +

+

+

+ +

+ + +

+ +

+

+ +

Sustainable development balances achieved Ecology—society— economy Ecology—society— economy

+

Society—economy Ecology—economy

+ +

Ecology—economy Ecology—economy

Source: Compiled by the authors using data from https://scistarter.org/, https://www.zooniverse. org, https://citizensciencegames.com, https://experion.citizen-science.ru

The Contribution of Citizen Science Projects to SDG Achievement: The Technological Domain Most citizen science projects either depend on a digital environment or are mediated by it (Haklay et al., 2018; Maltsev & Maltseva, 2020). This is explained by the use of digital tools to perform the following tasks: – collecting data; storing observation results, including photographs; public surveys; providing information about personal health for research programs; – independent primary processing of information about the objects under study, including such operations as object recognition, comparison, and classification; – recovery of hidden or partially lost data; text processing and translation; – data analysis during simulation using various gaming platforms, etc. With the latest digital solutions, a volunteer in environmental projects can measure air temperature, sound volume, vibration intensity, and other parameters using smart devices and IoT and transmit measurement results in real time via mobile

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applications and wireless networks to the cloud storage. In addition, drones equipped with video cameras can help collect the necessary information in hard-to reach places, and geolocation services can check and confirm location and time metadata (Mazumdar et al., 2017). Image processing and recognition applications greatly facilitate biodiversity conservation projects. An example is the Penguin Watch project (https://www.zooniverse.org/projects/penguintom79/penguinwatch), which relies on satellite images to track adult penguins, their chicks and eggs. Citizen science projects using gamification to model the protein’s structure (Foldit; https:// fold.it) or brain activity (Mozak; https://www.mozak.science) can be enhanced with virtual or augmented reality tools. The results of many citizen science projects can be presented in the form of digital resources, including interactive ones. Examples include the Distribution of Invasive Plant Species website (https://ib.komisc.ru/add/rivr/), a map of light pollution (Globe at Night, https://www.globeatnight.org/), etc. The widespread use of online services and cloud technologies at the stage of data processing and storage improves metadata generation, updating, and correction and facilitates interaction between databases (Fataliev & Verdieva, 2021). All this automates observations and information processing, reducing the number of errors and contributing not only to the achievement of the project’s goals but also to the development of its participants’ digital skills (Aristeidou & Herodotou, 2020). The Internet is an environment that makes it possible to attract a wide range of citizens to participate in research projects both online and offline, which is limited only by levels of motivation and access to digital technologies. Citizen science projects create opportunities for solving the problem of inequality, which has many manifestations (Maltsev & Maltseva, 2020) ranging from limited access to education to gender inequality. Moreover, as the circle of participants aware of how citizen science projects contribute to SGD achievement becomes wider, it helps raise awareness of the SDGs by means of the network effect.

The Contribution of Citizen Science Projects to SDG Achievement: The Participatory Domain The involvement of non-professional volunteers in citizen science projects can be viewed as the implementation of the participation principle or the involvement of citizens in the process of making decisions in socially important areas. The extension of the principle of participation to the field of scientific research not only leads to the democratization of science but also promotes intercultural dialog, social integration based on respect for cultural diversity (Dokhkilgova, 2021), and awareness of the need to join forces to build a better future, along with sustainable development norms and values. These norms and values are shaped in the volunteering process, which happens at different participation levels (Haklay et al., 2018). At the lower level,

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non-professional volunteers collect and share their data, seeing only the surface of the research. Examples include the eBird project for bird tracking (https://ebird.org/) or the CrowdWater project for measuring water quality (https://crowdwater.ch/en/ aboutus/). At the next level of the so-called distributed intelligence, participants perform the primary analysis and basic interpretation of the data and become aware of a problem that reflects one or more of the SDGs. Examples include the Weather Rescue at Sea project devoted to climate change (https://www.zooniverse.org/ projects/p-teleti/weather-rescue-at-sea/) or the Old Weather project (https://www. oldweather.org/shipping_office.html). The next levels of research participation involve setting research objectives, choosing data processing methods, etc., up to volunteers interacting with scientists on almost equal terms during project implementation. These are the levels where an understanding comes of possible directions and ways to solve a particular problem in order to achieve the SDGs, which happens in the course of acquiring experience in reconciling public interests and responsibilities.

Conclusion The SDGs, along with national SDG pathways, foster countries to consolidate efforts to improve human lives and create conditions for development without causing irreversible damage to the environment. Countries strive to achieve the SDGs at different levels—national, regional, corporate, etc.—of economic systems. Citizen science, which is done in the form of projects, is another of these levels at which volunteers contribute to professional research. This level reflects the traditions of civic participation in research activities, which involve producing new results that have value for the field of sustainable development, including methods and tools for monitoring SDG achievement. The relationship between the SDGs and citizen science projects is manifested in the fact that the SDGs set a framework for the content of projects, guiding their participants to obtain results that can be applied in real life to achieve a balance between social, environmental, and economic aspects of society. Also, as a form of acquiring new knowledge, citizen science promotes the dissemination of sustainable development values, the development of intellectual and practical skills for solving social and environmental problems, gaining experience in cooperation, and personal growth. In addition, the data collected by citizen scientists contribute to raising awareness of various aspects of life and the current state of the environment, covering areas ranging from monitoring climate change to providing better access to medical care and quality education. This contributes to making better-informed decisions at various levels to achieve the SDGs. The authors believe that further research can be done into approaches to the integration of citizen science projects and sustainable development processes at the levels of content, tools, and values.

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Personnel Risks of Media Organizations: An Approach from the Standpoint of the ESG Concept Vladimir A. Plotnikov

and Olga A. Shamina

Introduction In modern conditions, the issues of balanced social, economic, and environmental development are of great importance. This is reflected in the Sustainable Development Concept, which is considered in numerous studies (Fedotova et al., 2021; Jänicke, 2012; Khan et al., 2021; Mizutori, 2019; Söderholm, 2020; Stoenoiu, 2022; Vertakova et al., 2020). The importance of this concept is so high that it has been enshrined at the international level in the system of the UN Sustainable Development Goals (Szopik-Depczyńska et al., 2018; UN, 1987, 2012, 2019; UNEP, 2019). Naturally, this has led to the incorporation of elements of sustainable development into public administration (Collins et al., 2022; Vertakova & Plotnikov 2017; York et al., 2022) in many countries and regions. The Russian Federation is no exception, which adopted: Decree of the President of the Russian Federation of 04/01/1996 No. 440 “On the Concept of the Russian Federation’s transition to sustainable development”, Decree of the President of the Russian Federation of 02/08/2021 No. 76 “On measures to implement the state scientific and technical policy in the field of environmental development of the Russian Federation and climate change”, Decree of the Government of the Russian Federation dated September 21, 2021 No. 1587 “On approval of the criteria for sustainable (including green) development projects in the Russian Federation and V. A. Plotnikov (✉) Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation O. A. Shamina Saint-Petersburg State University of Industrial Technologies and Design, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_24

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requirements for the verification system for projects of sustainable (including green) development in the Russian Federation”, and many other documents. Business is showing some caution in the active transition to business models based on the Sustainable Development Concept. This is due to the insufficient number of economic incentives for such a transition (Arslan et al., 2021; Treepongkaruna et al., 2022). It is traditionally believed that the main goal of the functioning of the company is profit maximization. The manifestation of environmental and social responsibility of business requires additional efforts and costs. As a result, responsible behavior of firms reduces their financial performance, which can be negatively perceived by investors and owners. Therefore, businesses, especially small and medium ones, do not deny the need for sustainable development, but approach the implementation of relevant projects with caution. Big business is very active in solving the problems of sustainable development. Large companies, firstly, have large resources, and secondly, they are more integrated with society and public authorities. To promote the ideas of sustainable development in the business environment, the ESG concept (Mansouri & Momtaz, 2022; Parrish, 2010; Volkmann et al., 2021) was developed. Its name is formed from the terms: Environmental + Social + Corporate Governance (ESG). This concept is focused on the management of the firm, which achieves its involvement in solving environmental, social, and managerial problems. Those. it is a mechanism for engaging business in sustainable development. The use of the ESG concept allows not only declaring the firm’s commitment to the principles of sustainable development, but also forming a system of indicators. These indicators (quantitative and qualitative) make it possible to assess the degree of compliance of the activities of a particular company with the Sustainable Development Concept.

Materials and Methods It is important to note, firstly, that the degree of significance of each of the ESG components in different industries and even in different types of economic activity of an individual company can be different. This requires the creation of individual systems of ESG indicators. Secondly, an analysis of the literature and practical cases shows that the focus in the implementation of the ESG concept is on two of the three components related to business responsibility (OECD, 2022). This is done by implementing the relevant principles: – Environmental principles determine how much a company cares about the environment and rational use of natural resources, what measures it takes to reduce damage to the natural environment. – Social principles form the relationship of the company with key stakeholders such as staff, suppliers, partners, consumers, the local community, and society, and other.

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– Governance principles affect the quality of company management. This quality can be assessed by many indicators: transparency of reporting, approaches to personnel management, anti-corruption measures, and many others. As a rule, the main attention in the implementation of the ESG concept is given to the Environmental and Social components. This is explained by the fact that it is their addition to traditional business management principles that demonstrates the transition to sustainable development. Without these components, a company cannot be considered sustainable. That is, some “bias” is formed in the perception of the ESG concept. Its presence, among other things, forces small companies to exercise caution in the transition to it. The Governance component is just as important. It is its more detailed study that underlies the author’s analysis and the results described in the article. To give the results a concrete character, we studied the business structures of an industry that is important for the digital transition era - media organizations. The Governance component of media organizations was considered through the prism of the quality of personnel risk management.

Results The transfer of business processes and communications to the online space testifies to the digital transformation of the economy, the main resource of which is information (data) (Peng & Tao, 2022; Plekhanov et al., 2022). The traditional sources of competitive advantage in the form of raw materials and capital are giving way to the intangible assets of companies. The fundamental basis of the strategic advantages of a business has become its human resources. Important are such characteristics of the staff as: attitude to work, motivation to achieve goals, professionalism, value system, ability to be creative, ability to change, etc. In modern conditions of a high degree of uncertainty and dynamism of the business environment, it becomes vital to consider the impact of personnel risks on achieving the goals of the functioning of media organizations. This is due to the high contribution of employees to damage companies. According to PwC (source: https://oilru.com/news/513068/), in 46% of cases, the perpetrators of economic crimes are their own employees. Only 33% are external violators. Most of the remaining cases involve collusion between internal and external parties. The process of improving the quality of the governance of a media organization is shifting to the area of personnel risk management. In these conditions, an effective personnel strategy is of great importance. The processes of formation and implementation of the personnel strategy are correlated with similar processes of the basic strategy, concretizing, and developing its provisions related to the field of personnel management. The goal of the personnel strategy is to find a balance between the number and competence of the workforce and the possibilities for their promotion and development, considering ESG

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principles. The process of developing and implementing a personnel strategy includes five stages: – At the first stage, an analysis of the external and internal environment is carried out, which affects the formation of the organization’s human resources potential. In this case, it is advisable to conduct a PEST analysis. This analysis considers the requirements of sustainable development, political restrictions, labor legislation, migration factor, demographic situation, unemployment rate, etc. The internal factors in the formation of personnel strategy include: the basic strategy of the organization; life cycle stage; corporate culture; availability of memorandums of commitment to the Sustainable Development Goals; organizational structure of the company; leadership style; key competencies of personnel, etc. – The second stage is devoted to defining the goals and objectives of the personnel strategy, that is, the desired result. The goals and objectives of the HR strategy must necessarily correlate with the goals and objectives of the basic strategy, as well as consider the commitment to ESG principles. – The third stage is the development of a plan of measures necessary to achieve the goals and objectives of the personnel strategy. Workforce planning is performed in accordance with the current and future needs of the organization. Based on this plan, standard procedures are carried out: selection of candidates for a vacant position; admission of the most suitable of the candidates; adaptation of new employees. During the adaptation, the newcomer not only gets acquainted with the organization and business processes, but also with the accepted rules of conduct and communication, which consider ESG principles. In the future, planning and regulation of personnel development processes are carried out. – At the fourth stage, information is prepared on the necessary financial and resource support for the personnel strategy. A system of indicators for evaluating its effectiveness is set. In modern conditions, an obligatory element of this system of indicators are ESG parameters. – The fifth stage is focused on monitoring and controlling the implementation of the personnel strategy. Monitoring and control are carried out over the implementation of all planned activities with fixing the reasons for their non-fulfillment or improper fulfillment for the subsequent adjustment of the personnel strategy itself. The influence of environmental factors, which are the main source of ESG risks, is reflected in the content of the company’s basic strategy. In the future, this is reflected in private strategies. The relationship between the basic and personnel strategies of media organizations is presented in Table 1. Managing the personnel of media organizations is fraught with risks. The classification of risks is their structuring according to special features. With the help of classification, effective methods of risk management are developed. This approach allows considering the specifics of specific risks. Table 2 shows the influence of the factors of the external environment of a media organization, and the personnel risks associated with this are identified.

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Table 1 The relationship between the basic and personnel strategies of a media organization General strategy Growth strategy (due to a unique offer, including in the field of innovative technologies).

HR strategy Management through the encouragement of enthusiasm and initiative, team building.

Consumer-focused strategy (concentration on a specific group of customers, as well as specialization in certain products).

Management through optimization and streamlining of the staff structure, narrow professional specialization.

Differentiation strategy (focusing the organization’s efforts on several priority areas).

Management through belonging to a team and development of internal competition.

Components of the HR strategy Recruitment, adaptation of personnel: search for young people who can be inspired by the idea, enterprising, contact, able to take risks, bring things to the end, executive specialists-innovators. Staff development: informal, leader-mentor oriented. Evaluation of personnel and working conditions: based on results, not too harsh. Staff remuneration: impartial, fixed, with the possibility of growth. Recruitment, adaptation of personnel: search for mature, responsible professionals. Personnel development: emphasis on high-quality professional growth. Assessment of personnel and working conditions: narrow, high-quality, result-oriented. Staff remuneration: fixed, based on merit and seniority, with a developed system of non-material incentives. Recruitment, adaptation of personnel: search for diversified, dedicated, ambitious specialists. Staff development: advanced training, career opportunities. Assessment of personnel and working conditions: based on clearly defined criteria. Remuneration of staff: based on merit and intraorganizational perceptions of fairness.

Source: Developed by the authors using the results of Izhbulatova (2008)

When assessing the degree of risk impact on the economic security of a media organization, the following scale was used: very low, low, medium, high, very high degree of impact. It should also be noted that the column “Environmental factors affecting the personnel management of media organizations (the degree of influence of the factor)” presents the results of our earlier study (Plotnikov et al., 2022).

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Table 2 Environmental factors and risks of the media organization Environmental factors affecting the personnel management of media organizations (the degree of influence of the factor) 1. Geopolitical factors 1.1. Future and current legislation governing the rules of the industry (2)

1.2. HR policy of competitors (2)

2. Economic factors 2.1. Unemployment rate (2) 2.2. Level and rate of change in average industry wages (3)

2.3. Sanctions pressure from unfriendly countries (2)

External risks affecting the personnel management of media organizations Risk of martial law in the country

Risk of significant labor improvements in competitor organizations

No significant risks identified Risk of an increase in average industry wages

Risk of “blacklists of media organizations”

The impact of external risks on personnel risks Staffing risks: no significant risks identified Risks of personnel use: risk of deterioration in the moral and psychological climate Staff layoff risks: risk of loss of human capital Staffing risks: no significant risks identified Risks of personnel use: no significant risks identified Staff layoff risks: risk of loss of human capital

Staffing risks: risk of forced staff reductions Risks of personnel use: no significant risks identified Staff layoff risks: no significant risks were identified Staffing risks: no significant risks identified Risks of personnel use: risk of losing training opportunities in hostile countries Staff layoff risks: no significant risks were identified

The degree of risk impact on the stability of a media organization

High

High

Low

Low

Low

(continued)

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Table 2 (continued) Environmental factors affecting the personnel management of media organizations (the degree of influence of the factor) 3. Socio-cultural factors 3.1. Attitude towards work, career, leisure, and retirement (1) 3.2. Public sentiment (1)

External risks affecting the personnel management of media organizations

The impact of external risks on personnel risks

The degree of risk impact on the stability of a media organization

No significant risks identified Risk of protests, rallies

3.3. Population growth rate (1)

Risk of population growth slowdown

3.4. Level of migration and emigration sentiment (2)

Risk of mass migration

3.5. Gender and age structure of the population and life expectancy (1)

Risk of a decrease in average life expectancy

3.6. Social stratification in society, increasing importance of minorities (1)

Risk of discrimination

Staffing risks: no significant risks identified Risks of personnel use: risk of deterioration in the moral and psychological climate Staff layoff risks: no significant risks were identified Staffing risks: no significant risks identified Risks of personnel use: no significant risks identified Staff layoff risks: no significant risks were identified Staffing risks: no significant risks identified Risks of personnel use: no significant risks identified Staff layoff risks: risk of loss of human capital Staffing risks: no significant risks identified Risks of personnel use: no significant risks identified Staff layoff risks: no significant risks were identified Staffing risks: no significant risks identified Risks of personnel use: risk of discrimination

Low

Low

Low

(continued)

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Table 2 (continued) Environmental factors affecting the personnel management of media organizations (the degree of influence of the factor)

External risks affecting the personnel management of media organizations

3.7. Situation in the labor market (2)

Risk of shortage of narrowly specialized specialists

3.8. Epidemic/pandemic (2)

4. Technological factors 4.1. Degree of development of innovations and technologies, cyberterrorism (2)

Risk of restrictions (wearing personal protective equipment, telecommuting, etc.)

Risk of intensification of cyber attacks

The impact of external risks on personnel risks Staff layoff risks: no significant risks were identified Staffing risks: risk of understaffing Risks of personnel use: risk of labor overload Staff layoff risks: no significant risks were identified Staffing risks: no significant risks identified Risks of personnel use: risk of decrease in labor efficiency Staff layoff risks: no significant risks were identified Staffing risks: no significant risks identified Risks of personnel use: risk of information leakage due to the actions of employees Staff layoff risks: no significant risks were identified

The degree of risk impact on the stability of a media organization

Medium Medium

Low

Medium

Source: Developed by the authors based on earlier results (Plotnikov et al., 2022)

Discussion The assessment of personnel risks should be carried out on the basis of continuous monitoring and analysis of key indicators that make it possible to draw a conclusion about the acceptability of personnel risks. Risk assessment is an essential component of risk management, representing the process of measuring them in a qualitative, quantitative, or mixed way. Risk assessment methods:

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1. Calculation and analytical methods (application of mathematical methods and the apparatus of probability theory): cost-effectiveness analysis, stochastic decisionmaking models, game decision-making models, RAROC, VAR methods. Most of the aspects related to human activity are heuristic and not always amenable to mathematical formalization. 2. Statistical methods (allow to analyze the frequency of occurrence of a risky situation and highlight the factors contributing to its implementation, as well as compare data from different periods): Bayesian analysis and Bayesian network, decision tree analysis, Monte Carlo method, Markov analysis. The disadvantage of the methods is the need for an impressive array of data, which makes it difficult to use them in assessing personnel risks. 3. Methods of expert assessments (based on the use of knowledge and experience of specialists in individual or collective assessment): brainstorming, checklists, the Delphi method, causal analysis. 4. Combined methods: risk indices, LOPA method (protection level analysis). As the analysis showed, the following external risks had the least impact on the sustainability of media organizations: the risk of significant labor improvements in competing organizations, including foreign agents; the risk of an increase in the average industry wage; the risk of blacklisting; the risk of protests, rallies; the risk of mass migration; the risk of discrimination; the risk of restrictions: personal protective equipment.

Conclusion The formation of new approaches to management in modern conditions is associated with the implementation of the ideas of sustainable development and the application of ESG principles. At the same time, the changes should spread to all areas of the ESG agenda: Environmental, Social, Corporate Governance. Unfortunately, the focus is usually on the Environmental and Social aspects. Aspects of Corporate Governance are studied in the context of sustainable development more rarely. The analysis showed that risk management methods (as a component of Corporate Governance), developed in the theory of risk management (Fertis et al., 2012; Masys, 2012; Vertakova et al., 2021), can and should be used in media organizations. But their specificity should be considered. It is also necessary to consider the features of a specific functional area of management (the article studies personnel risks). To minimize the risks of media organizations with a high and medium degree of influence, it is recommended to use the risk compensation method, which is a set of tools designed to prevent undesirable situations. Attention should be paid to the timely briefing of new employees of media organizations. This is an effective way to prevent personnel risks. As a rule, a newly arrived employee learns about the existing risks and methods of managing them

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either from his colleagues (the quality of such briefing is difficult to assess), or, after a certain time, from his own experience. We are convinced that it is expedient to streamline this process, namely, the need to introduce standards and requirements for risk briefings. Such briefings should become an element of effective ESG practices. At the same time, it must be considered that even the most advanced risk management system model is not capable of eliminating the risk. Risk and uncertainty are objectively inherent in economic and social processes. Therefore, the likelihood of a crisis in the organization remains even under the most favorable conditions. Therefore, it is necessary to further develop the theory and practice of risk management, which should be an element of the ESG approach to management.

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Analysis of the Estimation and Impact Methodology of Tax Evasion for Industrial Entities Nicu Șargu

, Ylia Valeeva

, Angela Timus

, and Evgeny Yelesin

Introduction The realization of fiscal policy objectives is based on instruments focused on fiscal levies, respectively financial categories, with the techniques related to the types of taxes, fees and mandatory contributions levied on public funds. Fiscal policy is primarily focused on taxes, duties and mandatory contributions. A central place in fiscal policy belongs to the options regarding the structure of the tax system and the importance of each tax, both in forming public financial resources and in influencing economic and social life. Of major interest is the design of the direct tax system and the indirect tax system, including the establishment of the technical modalities by which they are to be taken over at the disposal of the public authorities. In the economic literature, there are different methods of calculating the tax burden. According to the treatments presented in the specialized literature, fiscal pressure is most often expressed as the level of fiscal revenues accumulated during a financial year in relation to the gross domestic product, with fiscal revenues being understood as all taxes, fees and social contributions taken from the national public budget (Vintilă, 2006:258–261). In the works of contemporary researchers (Nuță & Nuță, 2020), the relationship between public spending and fiscal pressure is positive, N. Șargu Academy of Economic Studies of Moldova, Chișinău, Republic of Moldova Y. Valeeva (✉) Kazan State Power Engineering University, Kazan, Russian Federation A. Timus National Institute for Economic Research, Chișinău, Republic of Moldova E. Yelesin Kazan State Institute of Culture, Kazan, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_25

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as the decision to increase the level of public spending to stimulate demand (public or private) can be based either on tax increases, which have a direct impact on the pressure short-term fiscal, either on an increase in the public debt with a long-term fiscal impact. Obviously, in the current conditions (Gabriela & Felicia, 2011), the development of the economy is determined to a large extent by the structure of the tax system, by the way it performs its functions and ensures the collection of public resources (Molina-Morales et al., 2011). In this context, we mention the efforts of several renowned scholars such as the institutionalism Roy Bluff who contributed to the development of public policies starting from the middle of the previous century (Johnson, 2018). At the same time, the fiscal policy is considered limited and unable to solve certain problems at global, national or even entity level (Girón & Correa, 2021). The fiscal policy in the current period has become the dispute of political actions, a fact argued by the author of the article “Small Fiscal Multipliers Do Not Justify Austerity: A Macroeconomic Accounting Analysis of Public Debt-to-GDP Dynamics” (Garbellini, 2016), in which the author debates a dilemma concerning the establishment of multipliers depending on the nominal budget value. Researchers are increasingly concerned with the effects of fiscal budget policy and the factors that would stimulate the removal of fiscal pressure on economic units. In this context, we present the argument of the study developed by the researchers from China whose research reached the conclusion: “The results show that the reduction of the aggregate tax has a positive effect on real variables such as production and consumption; especially at the current stage, the stimulating effect of general tax cuts on economic growth is relatively strong, but the stimulating effect on prices is relatively weak. In addition, a tax structure in which the ratio of direct tax to total tax increases and the ratio of indirect tax to total tax decreases is more favorable to the growth of production and consumption and will not strongly stimulate the rise of the price level (Li et al., 2022). Another study carried out by a group of researchers from the EU states demonstrated that it is important to be able to manage the domestic fiscal policy to avoid more risks. Thus the study demonstrated that “over the years, during the worst crises, only a few economies have managed to maintain high levels of inclusive growth through properly implemented monetary, fiscal and governance policies.” These were: Denmark, Luxembourg, Sweden and Finland, the countries that follow restrictive fiscal policies to stimulate economic growth » (Stawska & Jabłońska, 2022) Obviously, fiscal policy represents one of the state’s jokers, and their correct management, obviously, implies well-being and performance. The authors’ concerns, however, are to identify the role of the fiscal pressure formed by the state’s fiscal policies on the performance of economic entities. Macroeconomic processes are directly dependent on elements, mechanisms and microeconomic circuits. Entities are the main suppliers of the budget, and their financial performance can be directly proportional to tax collection. Thus, the aim of the study is a theoretical-methodological substantiation focused on the indicator of fiscal pressure felt by the taxpayer.

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Materials and Methods The mathematical expression of fiscal pressure is given by the formula: FPg =

Vf × 100% GDP

ð1Þ

Where: FPg—fiscal pressure (or global taxation rate); Vf—the totality of fiscal revenues, respectively the totality of receipts made in a year from taxes, fees and contributions; GDP—gross domestic product. By means of the fiscal pressure, the state exercises its financial, economic and social role. At the same time, expressing this function, it must be taken into account that the fiscal pressure also expresses the yield of the collection system. Or, the fiscal pressure designates the part of income from production, which instead of being left at the disposal of free private initiative, goes through a process of compulsory and public redistribution. From the point of view of tax evasion, this understanding is important (Vintilă, 2006:235). The basic principle is that “ensuring the collection of taxes with a minimum of expenses and to be the least burdensome for the payers” (Vintilă, 2006:238). Noting that tax evasion can occur at the level of the taxpayer, it is essential to determine what the tax pressure is at the level of entity and physical person, in order to grasp the generally accepted level of taxation. In economic theory, the relationship established between the flow of fiscal receipts (tax revenues) and the taxation rate is shown through the Laffer Curve. The basic idea behind this Laffer curve was that changes in the tax rate can generate effects on tax revenue. These effects are (Trandafir & Brezeanu, 2011:1): – the arithmetic effect, which provides that when the taxation rate is decreasing, the tax revenues, which are expressed per taxable income unit, will decrease, and conversely, if the taxation rate increases, it will influence the increase in tax revenues; – the economic effect, it acts in the opposite way to the arithmetic one, thus the decrease in the tax rate of labor and production, i.e. of the tax base, will have a beneficial effect on the economy because participation in taxable activities will be rewarded by a lower tax, and the increase in the tax rate will have the effect of penalizing the participation in taxable activities.

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Results and Discussion Fiscal pressure represents the monetary amount of the fiscal obligation borne by the income at the individual (entity), sectorial, global (national economy level). The benchmarks used to determine the fiscal pressure in terms of flow are as follows: Individual tax pressure. Individual Tax Pressure The main way through which fiscal pressure is manifested at the level of the entity is the profit tax, since profit remains the main element of self-financing. The higher the profit tax rate, the less self-financing capacity (Dinga, 2008). In the Romanian literature, three methods are proposed for estimating the level of fiscal pressure at the entity level. 1. The first and simplest method of estimating the fiscal pressure is to compare the tax quotas established by legislation for certain economic branches, at certain periods of time. For example, comparing the rates of income tax, obtained from the activity of an entrepreneur, in the R.M. would be: 32% (1998), 28% (1999–2001), 25% (2002), 22% (2003), 20% (2004), 18% (2005), 15% (2006–2007), 0% (2008–2011), 12% (2012–2020). (Corina, 2019:34–35). The fiscal pressure can increase not only by increasing the rates, but also by increasing the taxable base, limiting some expenses, etc. 2. The second method consists in determining the fiscal pressure according to the following formula (Corina, 2019:69): FPI =

It × 100 VPI

ð2Þ

Where: FPI—individual fiscal pressure (at entity, company level); It—taxes and fees paid by the company; VPI—Total value of the firm/Equity of the firm This method of analysis is significant at the microeconomic level and is most often used by the entities of the Republic of Moldova. The indicator reflects the fiscal pressure felt by taxpayers—legal entities active in different fields. This indicator is also one of the most important for the economy, because the economic agents are the ones who form the gross domestic product, a macro-economic indicator of national and international importance, used to make comparisons between states. In general, research shows that the taxpayer considers the tax burden to be fair up to 30%, it is difficult to perceive the tax burden of 40%, and it is not accepted when it exceeds 50%. Similarly, in such an approach, the fiscal pressure can also be calculated by the following indicator

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FPI =

It × 100% Vprod

287

ð3Þ

Where, FPI—individual fiscal pressure (at entity, company level); It—taxes and fees paid by the company; Vprod—the value of the production/services produced by the entity during one year 3. The third method of estimating the tax pressure will be calculated according to the formula: FPI =

It × 100% VV

ð4Þ

Where, FPI—individual fiscal pressure (at entity, company level); It—taxes and fees paid by the company; VV—the volume of sales or turnover The sectorial fiscal pressure in terms of flow can be analyzed on the basis of three indicators: a) The flow of direct collections from the sector which is determined separately for: the non-financial company and quasi-company sector, the credit institutions sector, the insurance institutions sector; household sector; the public administration sector; sector that targets abroad.

b) The flow of direct collections from the household sector which reflects the amount of fiscal obligations levied directly on the incomes made by individuals and which directly influences the disposable income of the population, intended for consumption and saving.

c) The flow of indirect withdrawals on final consumption which refers to the amount of the fiscal obligation collected indirectly through prices and tariffs (the income used as final consumption, redistributed through indirect fiscal levies).

The flow of fiscal levies can be analyzed: at the level of the administration (for all administrations); by groups of taxes (total taxes); on types of taxes. All these indicators in terms of flow, reflect the part of the income achieved, accumulated and consumed in society, which is taken over by means of various tax levies to finance budgetary institutions. Global Fiscal Pressure in Terms of Flow, at a Country Level Currently, many countries, including the Republic of Moldova, when estimating the fiscal pressure at the macroeconomic level, use the method of calculating the net fiscal pressure, which allows providing the fiscal image from an accounting point of view (Corina, 2019:73, 79):

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I. General fiscal pressure FP =

I þ CAS þ CAM  100% GDP

ð5Þ

Where, FP is the fiscal pressure; I—the total amount of taxes and fees; CAM—medical insurance contributions; CAS—social security contributions; GDP—Gross Domestic Product II. Absolute fiscal pressure: FP =

I × 100% GDP

ð6Þ

Where, FP is the fiscal pressure; I—the total amount of taxes and fees; GDP—Gross Domestic Product III. Fiscal pressure of a tax or charge Ij × 100% GDP Ij FPj = × 100% I Ij × 100% FPj = B tax FPj =

ð7Þ ð8Þ ð9Þ

Where, FPj is the fiscal pressure of a tax or fee j considered; Ij—the considered tax or charge; Btax—considered taxable or chargeable base; IV. The fiscal pressure at the level of the national economy can be expressed as follows: n

FP =

j=1

I j ðFSÞ VV

× 100%

ð10Þ

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n

FP =

j=1

Ij

× 100% VV Ij × 100% FP = VV

ð11Þ ð12Þ

Where, VV—is the sales revenue Ij—the considered tax or charge; FS—the planned services budget These methods of calculating the fiscal pressure do not allow comparing the results obtained by economic agents from different branches of the national economy. On the contrary, their application favors the analysis of the evolution of the level of fiscal pressure from a macroeconomic point of view. Fiscal burden is an indicator to be applied with caution, as the calculation does not provide information regarding the management of fiscal burden. Thus, tax exemptions, subsidies granted and other forms of encouragement of entrepreneurial activity are not taken into account in its calculation. As a result, the estimation of the fiscal pressure is relevant, only in the case of a more complex analysis of the influence of taxation on the taxpayer and, respectively, in the case of estimating the causes of tax evasion, the pressure must be seen as causality and not a certainty. An important significance for reducing tax evasion is at the entity level. In this context, the authors have carried out a study through which they theoretically substantiate the statement: the performance of the financial position dependent on the effect of tax evasion. Taxation (Cobzari & Şargu, 2021) is a reality of today’s economic life, the economic and financial performance of companies being influenced by its action. Under the conditions of a fiscal system that respects the principle of neutrality of fiscal measures in relation to different categories of investors and capitals, with the form of ownership, a fiscal system that ensures equal conditions for investors, the influence of taxation on the economic and financial performance of companies must, at least theoretically, have the same effect on all the economic agents. In other words, taxation should not be a factor that can create an advantage or disadvantage for a company compared to another company. However, the creation of a fiscal system that fully respects the principle of neutrality of fiscal measures is only a wishful thinking. Also, even if this desired is ensured, the economic agents do not act identically in terms of the decisions taken in the conduct of economic activities and hence differences may arise in terms of the taxation action on companies (even in the case of companies that carry out similar activities and register the same activity level). At the microeconomic level, the impact of tax evasion can be found in the modification of the aspects of the organization regarding the financial position, financial performance and cash flows (Raita, 2020:78).

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1. With Regard to the Financial Position The financial position of the organization is derived from the balance sheet, being expressed by the answer to the three fundamental questions: – what the organization has: assets; – what the organization owes: liabilities; – who owns the property right: the organization’s capital, owned by the shareholders (stockholders’ equity). Tax evasion will reduce the company’s debts (debts to the state, i.e. budget obligations), therefore, a first effect of tax evasion on the company’s financial position will be the increase in the net situation (Dinga, 2008). The net position without fiscal evasion (SN) is determined as follows: SN = A - D

ð13Þ

where: A—the company’s assets D—the actual debts of the company If we note the tax evasion “achieved” by the organization with EF, then the following relationship can be written: SNEF = A - DEF = A - ðD- EFÞ = SN þ EF

ð14Þ

Where: EF—tax evasion SNEF—the net situation after the occurrence of tax evasion, DEF—the debts of the organization after the occurrence of tax evasion. Therefore, the net situation after tax evasion occurs will increase by exactly the absolute value of tax evasion produced. If we denote by λ—the coefficient that expresses the weight of tax evasion in the total real debt of the organization, then the above relationship becomes: SNEF = A - DEF = A - Dð1- λÞ

ð15Þ

Where: EF—tax evasion SNEF—the net situation after the occurrence of tax evasion DEF—the debts of the organization after the occurrence of tax evasion A—the company’s assets D—the actual debts of the company 0 ≤ λ ≤1. As the net position reflects the net wealth of the organization’s shareholders, it follows that the shareholders become richer proportionally to the tax evasion produced at the level of the organization in question. It is therefore an obvious and massive improvement of the financial position of the organization, likely to attract

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new investors, thus providing it with additional chances of prosperity. Obviously, the increase in the net situation will lead, in the following periods, to the increase in the net assets of the organization, leading, through a “virtuous circle”, to the growth and consolidation of the organization. This can happen by increasing the selffinancing capacity of the investments at the organization level. In addition, the organization can use the net situation surplus to increase its permanent sources of financing the current activity (first of all, the exploitation activity), so it can increase its working capital, an aspect with a beneficial effect on ensuring the financing of the activity exploitation of the organization. 2. On Financial Performance The organization’s financial performance (Ignat et al., 2020) can be seen from its profit and loss account. Since tax evasion is obtained, in principle, by reducing the tax base observable by the tax inspector, it follows that tax evasion will “display” a lower gross profit of the organization. Therefore, from an official point of view, the organization will register a lower economic and financial yield, that is, a lower performance. The main effects of tax evasion on the organization’s real performance. – following the practice of fiscal evasion, the organization will benefit from an additional monetary supply; this means that the organization will be able to selffinance (either to cover the needs of temporary sources, or even for investments); one of the effects will be that the organization will avoid the costs of external financing (especially indirect financing, that is, from the banking system); this saving on the costs of financing the activity will increase the gross profit in the subsequent financial year; this effect is likely to increase, in reality, the performance of the organization, of course, based on the social effort of the whole society; – tax evasion works, therefore, as a monetary substitute, able to provide all the functions of a monetary injection of any kind (bank credit, bond issue, asset sales, buybacks of state securities held by the organization, etc.), in this context, the company’s financial performance will increase, although this increase may prove uncertain and, certainly, it is an unsustainable increase in performance; – the effect of tax evasion on performance should be seen in the medium and long term and not just in the short term. It is about the fact that the tax evasion produced can be discovered in subsequent periods. In fact, the identification of tax evasion is the one that actually reduces the performance of the organization, (Ignat & Șargu, 2022) so it can be said that, in fact, tax evasion has the definite effect of reducing performance. If we denote by EFt—the absolute size of tax evasion produced by an organization, at time t (this represents, in fact, the debit to be discovered by the inspector at time t + Δt), the penalty related to the period when the government did not benefit of the amount evaded but, instead, the organization that produced the tax evasion benefited from this amount will be PΔt. The penalty consists of the interest related to the amount and the period during which the tax evasion was not identified, plus the legal fines, plus certain

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confiscations, if applicable. If we note the rate of interest penalty with φ, the contravention fine with A, and the confiscation with C, it follows that the penalty will be calculated as: PΔt = φ × FF t × Δt þ A þ CEF

ð16Þ

On this basis, a tax evasion multiplier μEF, calculated as follows, can be determined μEF =

EF t þ PΔt >1 EF t

ð17Þ

Therefore, if tax evasion is discovered and sanctioned, it reduces the financial performance of the organization concerned. 3. With Regard to Cash Flows (Turnover or Cash Flow) The organization’s cash flows are obtained from its cash flow statement. The tax evasion produced at the level of the organization is reflected in the treasury flows of the organization, therefore the following effects can be affirmed: – tax evasion represents, from the perspective of the organization (regardless of its illegal character), an amount attracted, that is, a financial resource that increases the possibility of financing the organization, therefore, we have an increase in this category of financial (monetary) flow; – at the same time, tax evasion represents, from the perspective of the government inspector, an increase in the state’s claims on the organization, although, from a legal point of view, the organization should have paid the evaded monetary amount to the state, in reality it retains this amount, therefore, from the perspective of the organization, there is no change in the financial flows with the state because, if it is a “serious” evasion, the budgetary obligation corresponding to this evasion does not appear calculated and recorded anywhere in the organization’s accounting; – in case of discovery of evasion, the treasury will be the organization will be sanctioned, the treasury flows being reduced by the sum of the unpaid tax and the calculated penalties, therefore, we have an essential decrease of the financial (monetary) flow. Tax evasion is a sensitive topic, especially at tax time. Opposition in tax compliance can often be accepted at management level to strengthen the financial position of the entity. At the same time, this approach includes a multitude of risks, both financial and accounting, but also image. Non-compliance not only alerts the tax inspectors, in the case of subsequent controls, but will also reduce the entity’s position on the market and in the activity segment; it may lose its relations in the framework of public procurement, etc. Taxation is a reality of the current economic life, the economic and financial performances of companies being influenced by its action. Under the conditions of a fiscal system that respects the principle of neutrality of fiscal measures in relation to

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different categories of investors and capitals, with the form of ownership, a fiscal system that ensures equal conditions for investors, the influence of taxation on the economic and financial performance of companies must, at least theoretically, have the same effect on all the economic agents. In other words, taxation should not be a factor that can create an advantage or disadvantage for a company compared to another company. However, the creation of a fiscal system that fully respects the principle of neutrality of fiscal measures is only a wishful thinking. Also, even if this desired is ensured, the economic agents do not act identically in terms of the decisions taken in the conduct of economic activities and hence differences may arise in terms of the taxation action on companies (even in the case of companies that carry out similar activities and register the same activity level).

Conclusion Fiscal evasion, in a general approach, represents the evasion by any means, in whole or in part, from the payment of taxes, fees and other amounts due to the state budget, local budgets, the state social insurance budget and the mandatory health insurance funds by individuals and legal entities. Tax evasion is the way in which economic subjects respond to fiscal pressure, when it exceeds a certain threshold considered necessary for the initiation, maintenance and development of the business or any profitable activity, as well as in relation to their current assets or income. The most frequent and simplest form of exposure of tax evasion is the definition that exposes the evasion of taxes and fees of the acquired income and assets that are subject to tax taxation. In a global approach, tax evasion represents the point of the underground economy which, in interaction and interdependence with the other specific components of economic-financial crime, renders the true amplitude of the informal level of the economy. Studying the methodology for measuring tax evasion and the effects borne by the entity/economic agents allows us to find: – In economic theory and practice, there are several methods of estimating tax evasion, these being dependent on the area of analysis (at the entity, branch, underground economy or tax havens level); – The main effects of tax evasion on the entity/organization’s performance would be: following the practice of tax evasion, the organization will, in the short term, benefit from an additional monetary supply; this means that the organization will be able to self-finance (either to cover the needs of temporary sources or even for investments); one of the effects will be to avoid external financing costs (especially indirect financing, i.e. from the banking system); this saving on the costs of financing the activity will increase the gross profit in the

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following financial year; this effect is likely to increase, in reality, the performance of the organization, of course, based on the social effort of the whole society; the effect of fiscal evasion on performance must be seen in the medium and long term and not only in the short term. It is about the fact that the tax evasion produced can be discovered in subsequent periods. This would mean double costs, through the payment of taxes that had to be made in the subsequent period and the penalties/fines incurred. In fact, the identification of tax evasion is the one that actually reduces the financial results of the organization, so it can be said that, in fact, tax evasion has a certain effect of reducing performance;Harmful fiscal conduct has social effects—tarnishing the image of the organization/entity with all the consequences that may follow: the entity may be omitted from the register of public procurements; it will be more difficult to obtain bank loans and financing from shareholders (especially minority) and on the capital market; more rigorous monitoring by the tax authorities, as a result of the compromised fiscal reputation, a fact that reduces the useful time of the accountant and creates additional deficiencies in the economic activity, etc.

References Cobzari, L., & Şargu, N. C. (2021). Criminal prosecution activity and investigations on economic crimes assigned to the state fiscal service. Lucrări Ştiinţifice. Seria Agronomie, 64(1), 181–184. Retrieved from https://ibn.idsi.md/sites/default/files/imag_file/181-184_25.pdf Corina, B. (2019). Efectele economice ale presiunii fiscale în sectorul vitivinicol. Retrieved from http://www.cnaa.md/files/theses/2019/55069/corina_bulgac_thesis.pdf Dinga, E. (2008). Theoretical considerations regarding tax evasion vs tax fraud. Financial Studies from Centre of Financial and Monetary Research “Victor Slavescu”, 12(4), 20–50. (in Romanian). Gabriela, D., & Felicia, C. M. (2011). The fiscal pressure in the EU member states. AnnalsEconomy Series, 1, 157–166. Retrieved from https://www.researchgate.net/publication/2273 82837_The_Fiscal_Pressure_in_the_EU_Member_States Garbellini, N. (2016). Small fiscal multipliers do not justify austerity: A macroeconomic accounting analysis of public debt-to-GDP dynamics. Journal of Economic Issues, 50(4), 1027–1044. https://doi.org/10.1080/00213624.2016.1249748 Girón, A., & Correa, E. (2021). Fiscal stimulus, fiscal policies, and financial instability. Journal of Economic Issues, 55(2), 552–558. https://doi.org/10.1080/00213624.2021.1915083 Ignat, G., & Șargu, N. (2022). Accounting management decision tool in business. Ignat, G., Shargu, L., Athes, H., Bivol, T., & Bivol, N. A. (2020). Studies regarding the importance of management decisions in ensuring authentic financial sustainability. In E3S web of conferences (Vol. 208, pp. 2–10). https://doi.org/10.1051/e3sconf/202020803051 Johnson, M. (2018). Institutionalism and fiscal policy at midcentury. Journal of Economic Issues, 52(1), 103–116. https://doi.org/10.1080/00213624.2018.1430944 Li, H., Guan, S., & Liu, Y. (2022). Analysis on the steady growth effect of China’s fiscal policy from a dynamic perspective. Sustainability, 14(13), 7648. https://doi.org/10.3390/su14137648 Molina-Morales, A., Amate-Fortes, I., & Guarnido-Rueda, A. (2011). Economic and institutional determinants in fiscal pressure: An application to the European case. Journal of Economic Issues, 45(3), 573–592. https://doi.org/10.2753/JEI0021-3624450303

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Nuță, A. C., & Nuță, F. M. (2020). Modelling the influences of economic, demographic, and institutional factors on fiscal pressure using OLS, PCSE, and FD-GMM approaches. Sustainability, 12(4), 1681. https://doi.org/10.3390/su12041681 Raita, V. G. (2020). Developments and insights regarding the role of accounting in combating tax evasion (Doctoral dissertation) (in Romanian). Stawska, J., & Jabłońska, M. (2022). Determinants of inclusive growth in the context of the theory of sustainable finance in the European union countries. Sustainability, 14(1), 100. https://doi. org/10.3390/su14010100 Trandafir, A., & Brezeanu, P. (2011). The optimality of fiscal policy in Romania from the perspective of the Laffer curve. Theoretical and Applied Economics, 18(561), 53–61. (in Romanian). Vintilă, G. (2006). Taxation: Fiscal methods and techniques. Economic Publishing House. (in Romanian).

Selection of Methods for Assessing the Resultativeness of the Company’s Adaptation to Market Conditions Natalia Meshkova

, Julia Stepanova

, and Svetlana Kudinova

Introduction The modern operating environment of industrial enterprises is characterized by a high degree of variability and a low threshold of predictability of upcoming events. First of all, this is due to global changes in the economic and political life of society, the irreversibility of digitalization of business processes of industrial enterprises. In such conditions, one of the best ways to ensure the economic security of an industrial enterprise is effective adaptation to changes occurring in the external environment, including market conditions. In order to ensure the resultativeness of adaptation in the long term, it is necessary to constantly evaluate the resultativeness of adaptation. This will help to identify negative trends in the course of the adaptation process, to level them in time. Continuous assessment of the resultativeness of adaptation will allow to form an information base for making timely and high-quality decisions on the adaptation of industrial enterprises to market conditions. The works reveal the main environmental challenges that modern industrial enterprises have to adapt to Zhigir (2019) and Bauer et al. (2018). Analyzing the research of scientists, we can note a fairly large number of works on evaluating the performance of enterprises using a variety of evaluation methods (Bucherer et al., 2012; Kozhevina et al., 2019). At the same time, the choice of methods for assessing

N. Meshkova (✉) National Research Moscow State University of Civil Engineering (NRU MGSU), Moscow, Russian Federation e-mail: [email protected] J. Stepanova Lugansk Vladimir Dahl State University, Lugansk, Russian Federation S. Kudinova Gzhel State University, Electroizolyator, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_26

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the resultativeness of adaptation has not been practically investigated and requires additional study. In this regard, the purpose of the study is to develop recommendations on the choice of methods for assessing the resultativeness of adaptation of industrial enterprises to market conditions.

Materials and Methods The material was the results of research by foreign and domestic scientists, the authors’ own scientific developments (Sidorenko & Khisamova, 2020). To solve the problem of quantitative measurement of the resultativeness of the adaptation of the enterprise to the influence of the market subject, general scientific methods were used: collection, generalization and systematization of information, the method of analysis and synthesis, comparative analysis (Pimenova, 2021). The task of generalizing the calculated values of the resultativeness of adaptation to the influence of market participants is proposed to be solved using methods of economic analysis. The integral and graphical methods selected by comparative analysis are recommended for use (Saucedo-Martínez et al., 2018). To solve the problem of analyzing the stochastic dependencies of the components of the resultativeness of adaptation to the influence of market participants on the costs of adaptation, the following can be used: correlation, regression and variance analyses. Using the method of comparative analysis, it is recommended to use multivariate correlation and regression analysis. Linear programming, quasi-Newtonian methods, the Nelder-Meade method, Monte Carlo methods, etc. can be used to solve the problem of optimizing the adaptation efficiency indicator. Due to the use of comparative analysis, it is recommended to use the Nelder-Meade method. The use of the above methods allowed the authors to give recommendations on assessing the resultativeness of adaptation of an industrial enterprise to market conditions (Kuntzman, 2017; Sneps-Sneppe et al., 2017).

Results In order to form a list of methods suitable for assessing and optimizing the resultativeness of adaptation, it is necessary to decompose the main task into components: 1. quantitative measurement of the resultativeness of an enterprise’s adaptation to the influence of a particular market entity (suppliers, consumers, competitors); 2. generalization of calculated values of the resultativeness of adaptation to the influence of suppliers, consumers and competitors;

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3. analysis of stochastic dependencies of the components of the resultativeness of adaptation to the influence of market entities on the costs of adaptation; 4. optimization of the adaptation efficiency indicator and its costs. To solve the first problem, the author’s algorithm for assessing the resultativeness of adaptation is proposed (Khusnutdinov et al., 2020), based on the calculation of the parameters of the result of adaptation to market conditions (parametric method). The reason was the lack of methods and models for assessing the resultativeness of the adaptation of an industrial enterprise to market conditions. The proof of this statement can be the conclusions from the analysis of Tables 1 and 2, in which it is proposed to classify the existing models and methods of performance evaluation by the object of evaluation and analyze them for the possibility of applying them to measuring the resultativeness of an enterprise’s adaptation to the influence of market entities. Analyzing Table 1, it can be concluded that the use of methods and models developed to assess the resultativeness of an enterprise’s adaptation to market conditions for assessing the resultativeness of the enterprise as a whole is of little use. Analyzing Table 1, it can be concluded that the use of methods and models developed to assess the resultativeness of an enterprise’s adaptation to market conditions for assessing the resultativeness of the enterprise as a whole is of little use. The resultativeness of the company’s adaptation to market conditions certainly affects the resultativeness of the company’s activities, however, it is only one of the criteria characterizing the resultativeness of the activity. Therefore, to solve the problem of quantifying the resultativeness of an enterprise’s adaptation to the influence of a separate market entity, only individual ideas and indicators can be used to assess the results of adaptation. The resultativeness of the company’s adaptation to market conditions certainly affects the resultativeness of the company’s activities, however, it is only one of the criteria characterizing the resultativeness of the activity. Therefore, to solve the problem of quantifying the resultativeness of an enterprise’s adaptation to the influence of a separate market entity, only individual ideas and indicators can be used to assess the results of adaptation. Let’s consider how applicable the methods and models developed to assess the resultativeness of individual economic processes in Table 2 are for quantifying the resultativeness of an enterprise’s adaptation to market conditions. Adaptation is one of the processes of the company’s activity, therefore, most of the ones discussed in Table 2 methods and models are generally applicable to quantify the resultativeness of adaptation, but in each case a serious correction is required, taking into account the peculiarities of the adaptation process, the result and resultativeness of the adaptation of an industrial enterprise to market conditions. Analysis of the Tables 1 and 2 showed that to date there is no ready-made methodology or model that could be used to assess the resultativeness of an enterprise’s adaptation to the influence of market participants. Analyzing the experience of scientists who have developed methods and models for assessing the performance of an enterprise, its individual divisions or business processes, it can be concluded that for quantitative measurement of the resultativeness of adaptation,

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Table 1 Methods and models developed to assess the performance of the enterprise Method or model, author Management method by goals Management by Objectives MBO P. Drucker

The pyramid of performance. Five-component cycle-the process of R. Lynch, K. Cross, McNair

The resultatives management technology BPM (Business Performance Management)

Model “Tableau de bord” (“On-board scoreboard”)

Balanced Scorecard (BSC) methodology R. Kaplan, D. Norton

АМВІТЕ (Advanced Manufacturing Business Implementation Tool for

The essence of the method Clear work goals and objectives are established that must meet the SMART criteria (concreteness, measurability, reality, result orientation, certainty in time) The model is based on a set of financial and non-financial indicators divided into 9 blocks (market, finance, customer satisfaction, innovation and training, productivity, quality, supply time, production cycle, losses (marriage)). The performance pyramid allows you to manage performance at the level of a company or a separate business unit. It is based on the idea of a continuous management cycle. The resultatives management system traditionally operates with four groups of indicators—financial, accounting (expenditure), market and management. It is a set of financial and non-financial indicators to measure the performance of each division. Indicators in the system are divided into target and functional. The main part of the indicators is monitored online (daily) The task of the system is to translate the company’s strategy into a comprehensive set of monetary and non-monetary indicators for intra-company management purposes that determine the main parameters of the measurement and management system. Each of the business process cycles and the basic components are revealed in the AMBIT model by the system

Applicability for assessing the resultativeness of adaptation It is possible to use SMART criteria to establish the planned results of adaptation

It is possible to apply separate indicators for the blocks market, customer satisfaction, supply time, production cycle

It is possible to implement a continuous cycle of adaptation process management

It can be used to build a system of indicators for assessing the results of adaptation, as well as tracking the values of these indicators

Partial use is possible to build a system of indicators for assessing the results of adaptation

It is possible to apply the idea of highlighting strategically important indicators of the resultativeness of the (continued)

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Table 1 (continued) Method or model, author

The essence of the method

Europe) P. Bradley

according to five analytical indicators. It is proposed to use 25 strategically important management resultativeness indicators for different types of production activities. Three hierarchical levels of indicators are used to assess the resultativeness of economic activity of companies. At each level, all performance indicators are defined in the context of eight groups: Accounting, product development, marketing and sales, planning and production, customer service, procurement, personnel and other indicators. The model is based on the letter of the Latin alphabet “V”. The left side stands for analysis and development. The left side stands for analysis and development. At the junction point of the left and right halves, there is a “total efficiency”. At the junction point of the left and right halves, there is a “total efficiency”. At the junction point of the left and right halves, there is a “total efficiency”. The right side of the letter denotes measurement and evaluation. This model provides a symbiosis of analysis and development, measurement and evaluation Performance and growth assessment. It is carried out in four directions: customer service and markets; improvement of internal processes; change management and strategy; ownership and freedom of action Identifies the following criteria: efficiency, efficiency, quality, profitability,

ENAPS International methodology

V-model Bruce Aaron

EP2M Model Effective Progress and Performance Measurement K. Adams P. Roberts

The method of evaluation by results (performance) D. Sinc

Applicability for assessing the resultativeness of adaptation company’s adaptation to market conditions

It is possible to use the idea of hierarchical levels, which will make it possible to identify the internal reasons for the decrease in the resultativeness of adaptation

The use of this model is rather narrow (ROI estimation) and controversial, therefore, the V-model is of little use for assessing the resultativeness of adaptation

The use is impractical, since the model is used to assess the performance of the enterprise as a whole

The application is impractical, since the method evaluates the resultativeness of the (continued)

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Table 1 (continued) Method or model, author

The essence of the method productivity, working conditions, innovation. When evaluating the results, the following are determined: the significance and specific weight of each criterion; the criterion meter; the relationship of the measurement system with increased productivity

Applicability for assessing the resultativeness of adaptation enterprise as a whole. For the purpose of our study, it is interesting to evaluate the resultativeness of the adaptation process only

it is impossible to do without the parameters of the adaptation result based on the performance of the enterprise. The task of generalizing the calculated values of the resultativeness of adaptation to the influence of suppliers, consumers and competitors can be solved using methods of economic analysis. Let’s consider the following criteria for choosing a suitable method, taking into account the fact that the generalizing indicator of the resultativeness of adaptation is quantitative: objectivity, user perception, the ability to analyze the data obtained, the ability to see the overall picture of the results, the visibility of the method, the independence of the method. Using the selected criteria, we will choose the method most suitable for generalizing the calculated values of the resultativeness of adaptation of an industrial enterprise to the influence of suppliers, consumers and competitors (Table 3). As can be seen from the analysis of Table 3, the graphical method has received the greatest number of advantages, but it cannot act as an independent method. The method of expert assessments scored the least number of points, besides, it does not meet one of the main criteria for quantitative measurement—objectivity. The graphical and integral methods scored the same number of points. The disadvantages of one of the two methods overlap with the advantages of the other. Considering the data of Table 2 it can be argued that it is advisable to use the graphical method as an addition to the integral method. The next task of assessing the resultativeness of adaptation is to analyze the stochastic dependencies that make up the resultativeness of adaptation to the influence of market participants on the costs of adaptation. The following methods are suitable for solving this problem: correlation, regression and variance analysis. We will form criteria that the chosen method should meet: simplicity of perception of the method; absence or ease of preparatory work; availability and volume of the information base; independence from the professionalism of the performer; a range of tasks that can be solved with the help of the method; taking into account the probabilistic (stochastic) relationship between the influencing factor and the final indicator; study of the influence of a particular the number of factors on the final indicator; establishing the level of influence of the factor on the function; the ability

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Table 2 Methods and models developed to assess the resultativeness of individual economic processes Method or model, author A three-dimensional model for determining the resultativeness of economic processes, E. Moseng and P. Brida p

Ternary information-centered resultativeness assessment model O.I. Oleksiuk

The method of the main criterion V.M. Lugovaya

Matrix method of resultativeness evaluation (MMR). D.A. Osadchaya

The precedent model of resultativeness

The essence of the method Resultativeness is determined on the basis of the following concepts: efficiency; costeffectiveness; flexibility. The main methodological tools for ensuring the resultativeness of this model are: organization audit, in-depth diagnostics of activity, self-assessment and implementation of its results, benchmarking To quantify the result of the economic process, it is necessary to determine its parameters in the barycentric system “information—resource— Time”. It is based on logical elements: Result, time, information and resources, through which the resultativeness of economic processes is determined When determining the resultativeness criterion, the method of the main criterion was used, which does not require the construction of an aggregation function based on partial criteria. Aggregation is reduced to assigning one of the criteria (Kj) as the main one, and the remaining criteria must satisfy additional restrictions MMR allows you to bring together—Integrate and aggregate partial indicators in such a way that the results of the work are measured by a single number A precedent expert system is used for personnel certification. Reflects the dependence of labor resultative on the competence and motivation of the staff

Applicability for assessing the resultativeness of adaptation Designed to evaluate the resultativeness of the enterprise management system. It is possible to use methodological tools: self-audit, in-depth diagnostics of activities

When assessing the resultativeness of adaptation, it is advisable to take into account the main logical elements of this model, since they significantly affect the resultativeness of an enterprise’s adaptation to market conditions

The use is possible, but the question arises about the objectivity of establishing the main criterion for the resultativeness of adaptation and the accuracy of restrictions on other criteria.

It is possible to use the idea of MMR, correction is necessary for use in assessing the resultativeness of adaptation

It can be used to evaluate non-qualitative indicators, it is necessary to have professional experts

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Table 3 Selection of a method for generalizing the calculated values of the of adaptation to the influence of suppliers, consumers and competitors Methods of developing a system of indicators + – +

Integral method + + –

Graphical method – + +

Methods of expert assessments – – +

–

+

+

–

– –

+ –

+ –

– +

2

4

4

2

Methods Criteria Objectivity User perception The ability to analyze the received data The ability to see the overall picture of resultativeness Method visibility Independence of the method Total benefits

to analyze the impact on the final function of several factors; cost-effectiveness. The criteria are formed on the basis of an analysis of the essence, disadvantages and advantages of economic analysis methods and generally accepted requirements that each scientific method must meet. To solve the problem of finding stochastic dependencies between indicators, the following methods are most often used: modern multidimensional factor analysis, methods of deterministic factor analysis, multidimensional correlation and regression analysis, variance analysis, sensitivity analysis. In Table 4, we will analyze these methods in accordance with the selected criteria of their suitability for solving the task. Based on the results of the total number of advantages of the selected methods (Table 4) when conducting a study, you need to pay attention to multi-factor correlation and regression analysis (7 points), methods of deterministic factor analysis (6 points) and variance analysis (6 points). Correlation and regression analysis scored the highest number of points, so it is recommended to use it to analyze the dependencies of the components of the effectiveness of adaptation on the costs of it. Let’s choose a method for optimizing the indicator of the effectiveness of adaptation and its costs in Table 5 (suitable methods for use: linear programming, quasi-Newtonian methods, the Nelder-Meade method, Monte Carlo methods, etc.). As can be seen from the analysis of Table 5, the Nelder-Meade method is the most suitable for optimizing the adaptation performance indicator and its costs, which ensures search accuracy with a sufficiently high convergence rate and a small use of computing resources, insensitivity to interference, since gradients are not used in this method.

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Table 4 Selection of a method for analyzing stochastic dependencies of components of adaptation resultativeness on adaptation costs Methods

Criteria Ease of perception of the method Absence or ease of preparatory work Availability and volume of the information base Independence from the professionalism of the performer The breadth of the spectrum of tasks that can be solved using the method Taking into account the probabilistic (stochastic) relationship between the influencing factor and the final indicator Investigation of the influence of a specific number of factors on the final indicator Establishing the level of influence of the factor on the function The ability to analyze the impact of several factors on the final function Economy (time, money) Total benefits

Modern multidimensional factor analysis –

Methods of deterministic factor analysis +

Multivariate correlation and regression analysis +

Analysis of variance –

Sensitivity analysis +

–

+

–

–

+

–

+

+

+

+

–

+

–

–

–

+

–

+

+

–

+

–

+

+

–

–

–

+

+

–

+

+

+

+

+

+

–

+

+

–

–

+

–

–

+

4

6

7

6

4

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Table 5 Selection of a method for optimizing the adaptation resultativeness indicator and its costs Methods Criteria Search accuracy Availability and volume of the information base The breadth of the spectrum of tasks that can be solved using the method The number of calculation functions per iteration The effect of interference on the calculation results Convergence (reliability) Convergence rate Economy (time, money) Total benefits

Linear programming – +

Quasi— Newtonian methods + +

The NelderMeade method + +

Monte Carlo Methods + +

–

–

+

+

–

–

+

–

–

–

+

–

+ – + 3

+ – + 4

– + + 7

+ + – 5

Table 6 Methods recommended for a comprehensive assessment and optimization of the resultativeness of an enterprise’s adaptation to the influence of market subjects The task of assessing the resultativeness of adaptation Quantitative measurement of the resultativeness of adaptation of an industrial enterprise to market conditions Generalization of calculated values of the resultativeness of adaptation to the influence of suppliers, consumers and competitors Analysis of stochastic dependencies of the components of the resultativeness of adaptation to the influence of market entities on the costs of adaptation Optimization of the adaptation resultativeness indicator and its costs

Methods suitable for evaluation Parametric method Integral method, graphical method Correlation and regression analysis The Nelder-Mead simplex method

Discussion To date, scientists have not developed a single method, methodology or model, the use of which would solve the problem of assessing the resultativeness of the adaptation of the enterprise. There are separate methods that can help solve individual tasks of assessing the resultativeness of adaptation. There is a need, based on the study of the essence of the results and the resultativeness of adaptation, to propose an author’s methodology for assessing the effectiveness of an enterprise’s adaptation to the influence of market subjects. The tasks to be solved when evaluating performance, and the methods suitable for this, are given in Table 6. As a result of studying the available models and methods for assessing the effectiveness of adaptation, as well as analyzing the methods of economic analysis suitable for solving assessment tasks, the following were selected: to calculate the

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values of the adaptation efficiency indicator, a parametric method; to generalize the calculated efficiency values, adaptation to the influence of suppliers, consumers and competitors is an integral method; To establish the relationship between the components of adaptation efficiency and adaptation costs, correlation and regression analysis was used to analyze the dependence and its mathematical description; the Nelder-Meade method was chosen to solve the problems of optimizing the adaptation efficiency indicator.

Conclusion The use of the proposed recommendations on the choice of evaluation methods will provide information on the resultativeness of the adaptation of an industrial enterprise to market conditions formed by suppliers, competitors and consumers. The information obtained will strengthen control over ensuring the economic security of an industrial enterprise, as it will allow to identify the reasons for changes in the resultativeness of adaptation to market conditions, to carry out a reasonable redistribution of funds for adaptation measures, which will contribute to the economy of enterprise resources against the background of improving the resultativeness of adaptation.

References Bauer, V. P., Podvoisky, G. L., & Kotova, N. E. (2018). Adaptation strategies of the US companies to the digitalization of production. The World of New Economy, 12(2), 78–89. https://doi.org/10. 26794/2220-6469-2018-12-2-78-89 Bucherer, E., Eisert, U., & Gassmann, O. (2012). Towards systematic business model innovation: Lessons from product innovation management. Creativity and Innovation Management, 21(2), 183–198. https://doi.org/10.1111/j.1467-8691.2012.00637.x Khusnutdinov, R., Stepanova, J., & Meshkova, N. (2020). Assessing resultativeness of enterprise adaptation to market changes in the digital economy. In E3S web of conferences (Vol. 220, p. 01003). EDP sciences. https://doi.org/10.1051/e3sconf/202022001003 Kozhevina, O., Salienko, N., Kluyeva, V., & Eroshkin, S. (2019). Digital readiness parameters for regional economies: Empirical research and monitoring results (Russia case study). In International scientific conference energy Management of Municipal Facilities and Sustainable Energy Technologies EMMFT 2018 (Vol. 2, pp. 247–256). Springer. https://doi.org/10.1007/978-3030-19868-8_25 Kuntzman, A. A. (2017). The specifics of the adaptation of modern companies to the conditions of the digital economy. Innovation, 9(227). Retrieved from https://cyberleninka.ru/article/n/ spetsifika-adaptatsii-sovremennyh-kompaniy-k-usloviyam-tsifrovoy-ekonomiki (in Russian). Pimenova, E. M. (2021). Specificity of sustainability assessment for industrial enterprise functioning in the digital economy. In Engineering economics: Decisions and solutions from Eurasian perspective (pp. 3–10). Springer. Retrieved from https://link.springer.com/chapter/10.1007/ 978-3-030-53277-2_1

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Institutional Support of ESG-Initiatives Implementation for Sustainable Development Transition Nataliya V. Shekhova and Ivan A. Shekhov

, Vitaly A. Mordovets

, Olga A. Smirnova

,

Introduction Both achieving sustainable development and practical implementation of its main goals have been catching the closest attention to modern scientists, politicians, as well as the modern community in general. Currently, a special emerging of forming the system of institutional sustainable development support is positioned as a commonly recognized global priority. The world community’s awareness of the need of transition to sustainable development has become the main basis for active interaction between a state, business structures, investors, trade unions and non-profit institutions (Pakhomova & Aynabekova, 2022). The ESG-initiative has become considered to be the master form of this interaction. According to experts, the international agenda in the field of ESG can be interpreted as a business-oriented option for the practical implementation of the sustainable development concept. At the same time, in spite of the fact the sustainable development concept was accepted by the entire progressive world community several decades ago, many theoretical and practical issues related to this concept are still remain standing over. Despite the validity of the transition to sustainable development very idea itself, which has been suggested back in the 1980s, there is not any single country in the world which has managed to achieve its practical implementation and realization yet. One of the reasons for this is the dominance of the traditional approach to reducing environmental damage and the lack of necessary institutional conditions to N. V. Shekhova (✉) · O. A. Smirnova · I. A. Shekhov Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation V. A. Mordovets Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_27

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sustainable development transition. Among these conditions there are both appropriate regulatory support, and sufficient degree of templates for non-financial reporting documents development.

Materials and Methods The article is based on using methods of system-structural analysis, synthesis, comparison and generalization, economic-mathematical modeling and logical constructions, induction and axiomatic deduction, which made it possible to identify the paramount problems of sustainable development transition, taking into account the institutional factors, such as legal support and non-financial reporting. The authors formulate proposals for increasing the effectiveness of the institutional system development based on the analysis of the obtained results. The informational basis of the study was formed by regulatory legal acts, scientific works of both domestic and foreign scientists and practitioners in the field of Economic Theory, Environmental Economics (scientific articles and monographs, collections of scientific papers, analytical reviews, abstract journals, statistical collections, reference books).

Discussion The modern Russian economic science offers the following definition for the interpretation of the of sustainable development content: “Sustainable development is such social development in which its natural basis is not destroyed, the created living conditions do not cause human degradation and socially destructive processes do not develop to a scale that threatens the social security” (Danilov-Danilyan, 2019). The fact of current lack of any effective way to ensure the transition to sustainable development, both in Russian and foreign experience, as well as the fact of absence of any really working “technology” for this transition, is not a subject for any discussion today. The periodic initiation of controversy about the utopian nature of the theoretical foundations of the sustainable development paradigm itself can be considered one of the indirect confirmations of this. Recently, against the background of the increasing interest in the problem of sustainable development, some opinions related to the insufficient degree of validity of the theoretical concept itself have been sounded. Hence the expediency for maintaining adherence to traditional approaches is also go to become in doubt (Ershov, 2022). Usually one of the main arguments of all of the opponents is that the practical implementation of the sustainable development concept requires quite amount of financial, technical, technological and organizational costs.

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But nevertheless, we have to admit that it is still necessary to look for and finally to find the “technology” for the practical implementation of ESG-strategies, since the current trends in the socio-economic and environmental development of society invariably lead to a deepening and expansion of environmental, economic and social problems. In 2015, about 200 countries around the world agreed to adopt 17 interrelated global Sustainable Development Goals (SDGs). All these goals determine the paramount environmental and socio-economic priorities. The particular institutional forms have been given to all these SDGs in the crucial document of the United Nations General Assembly Summit called “The 2030 Agenda for Sustainable Development” (UN, 2022). Russia was among the countries that accepted and supported the SDGs. In 2017, the international SDGs indicator system was introduced, on the basis of which national indicator systems are being developed in different countries. These national indicator systems take into account the interests and priorities of the countries (Kurochkina, 2022). The corresponding national and regional ratings are calculated being based on the international indicators systems. The achievement of the SDGs is ensured by the practical implementation of ESG-strategies, in which environmental, social and managerial tasks are combined. These tasks go beyond the obligatory legislative requirements and play a kind of benchmarking role for socially responsible and strategically oriented entrepreneurship focused on innovation and advanced management methods (Pakhomova & Aynabekova, 2022). The fundamental content of both theoretical (conceptual) and practical (applied) world community’s approaches to the necessity and possibility of the SDGs implementation mechanism of the national sustainable development strategies are discussed quite widely in modern scientific literature (Alferova, 2022; Ignatov et al., 2019; Chirkunova & Shekhova, 2021; Shekhova, 2022). Even taking into consideration the fact that most of the countries all over the world have developed their National Sustainable Development Strategies (NSDS) by now, which are the major strategic documents of a fairly high level, since they include all the paramount issues of the most important long term modern agenda, these strategies, however, do not provide a direct corresponding between the actual high quality of these documents, on the one hand, and the concrete results achieved in practice, on the other hand. It seems obvious that it is precisely the low efficiency of public institutions that create incentives for the formation of a system for the practical implementation of the NSDS that is precisely one of the main reasons for the current situation (Komarov & Voloshinskaya, 2021). Although it should be noted that world experience shows quite successful examples of the national ESG strategies implementation as well (Ershov, 2022). One of the latest UN reports says that if the current global trends in the field of long-term development continue in the future, then the SDGs will not be fully achieved by 2030 (UN, 2019). In this regard, the identification and analysis of modern experiences in the development of NSDS for the sake of their further

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replication, including countries that do not have approved NSDSs (for example, in Russia) or have not included the SDGs in their national strategic planning systems, is an extremely urgent task.

Results To create a system of practical tools for sustainable development transition, it is crucial to change the fundamental approach to the implementation of ESG-strategies. It means there is a need to gradually abandon the traditional approach in favor of the institutional one. Traditional tools for taking into account ESG-criteria for the purpose of sustainable development transition can be reduced to the following activities: installation of environmental protection equipment, the implementation of waste disposal technologies, the establishment of bans or quotas (both for some actions and for using of certain substances); application of fiscal instruments (environmental payments and taxes). All these tools often do not solve environmental problems, but even exacerbate them. So, for example, despite the fact that a waste burning plant is formally an object of ecological infrastructure, it can cause much more environment damage than those enterprises which waste it burns. Therefore, it is very important to apply institutional approach, gradually replacing the traditional one with it. The institutional approach implies both the development of proper institutional tools, and providing appropriate institutional conditions for their successful application. The institutional tools are based on improvement of organization and management processes. It explains their fundamental difference from the traditionally used technical and technological tools, which eliminate consequences, but not causes. As for the security of institutional conditions, it is obvious that any methods are “carried out” through certain institutions. This means that in order for the tools of ESG-criteria implementation to support the achievement of the goals for which they were developed, it is necessary to create appropriate institutional system. So, for example, it makes no sense to set the most tough wastewater treatment standards, but not to have a single water company capable of meeting these standards. It does not make any sense to collect payments for environmental pollution in order to compensate for environmental damage, in case these payments, “dissolving” in the budget, are directed to completely different purposes, depriving enterprises of the necessary sources for environmental protection measures financing. Prohibitions, norms, standards, payments and other instruments cannot work effectively in case the appropriate conditions for their successful application are not created.

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Today, among the main institutional conditions which are necessary for the successful implementation of ESG-strategies are competent legal support and improvement of the non-financial reporting mechanism. It should be noted that the practical implementation of the particular policy instruments of individual countries aimed at achieving the SDGs is complicated by a number of problems, one of which is insufficiently effective level of legal and regulatory support of the institutional system of transition to the sustainable development. In particular, we are talking about the unsatisfactory quality of the corresponding national strategies. In Russia the active work for the creation and adoption of regulatory legal acts in terms of the issues under discussion began in the 1990s and it has been ongoing up to the present. The closest attention is paid to the analysis of the main applicable legal and regulatory documents in the academic papers of many modern scientists (Gukhman, 2021). But despite this fact, the NSDS has not been developed in our country yet. The quality of the NSDS in the foreseeable future will continue to be among the factors that really determine the success of the country’s transition to sustainable development. If we talk about Russia, then, according to experts (Pakhomova & Aynabekova, 2022), intensive modernization of regulatory and legal documentation, along with increased efforts on the part of the Russian Federation Government, the Central Bank, financial institutions and other interested companies (stakeholders), will significantly contribute to the successful completion of the stage of practical implementation of the ESG principles. At the same time, it is noted that the increasing pressure from stakeholders related to ESG issues leads to certain difficulties in ensuring the financial stability of economic entities at the micro-, meso- and macrolevels (Stolbov & Shchepeleva, 2022). The implementation of ESG-strategies for the transition to sustainable development transforms the behavior of key stakeholders. Thus, for example, at present, manufacturers are beginning to adhere to the principles of environmentally and socially responsible manufacturing, which involve minimizing the using of primary resources in favor of increasing the circulation of secondary raw materials, as well as increasing resource and energy saving, and reducing the negative technogenic impact on the environment (negative environmental externalities). The corresponding changes are taking place not only in the scope of production, but also in the sphere of consumption. For example, households are reorienting towards environmentally responsible way of consumption, which implies the refusal to purchase unnecessary extra goods and services, the preference for long durability goods, the sharing of goods, the reduction of household waste generation, separate waste collection, energy saving, and so on. Today, investors all around the world are increasingly adhering to the principles of responsible investment, which involve priority financing of projects aimed at achieving sustainable development, and assessing not only their economic efficiency, but also their social and environmental consequences (Tretyakova, 2022). In this regard, the information contained in corporate non-financial reports is

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becoming increasingly important. It is these reports that contain information about the ESG-factors of business companies’ activities. Currently, non-financial reporting is becoming a crucial factor of the investment attractiveness of business companies. Potential investors are interested in the completeness and transparency of the data contained in non-financial or integrated reporting documents. The main problem is the lack of unified standards governing the order of description of ESG-factors in corporate reporting (Tretyakova, 2022). In fact, there is no single approved set of indicators that meet the criteria of responsible investment. Therefore, non-financial reports of business companies differ significantly from each other in their structure, set of indicators and content, which significantly complicates the possibility of their comparison and analysis when making investment decisions. Today the lack of effectiveness of the relevant mechanisms is an obstacle to the implementation of ESG-strategies in most countries of the world. The special attention should be paid to the factors of development of the “green” economy when developing strategic documents related to sustainable development (Glazyrina, 2020; Bobylev et al., 2019). Qualitative factors of environmentally sustainable development and a “green” economy in Russia are described in full details in modern scientific literature. This description is based, among other things, on consideration of the processes of environmentally sustainable development and the “green” economy within the framework of interaction between a state, a business and a society (Kiryushin, 2019). Many problems of forming a “green” economy are based on the lack of public administration mechanisms effectiveness, as well as financing instruments efficiency. Currently, the search for ways to solve these problems is taking place through the creation of so-called “green” courses, which are “a combination of political will, ambitious goals and consistent state policy” (Ershov, 2022).

Conclusion To achieve the main goals of sustainable development, recognized today by the world community as the most important global priority, it is necessary to ensure a gradual refusing the traditional approach to implementation ESG-strategies in favor of the institutional one. It means both the development of institutional instruments themselves and the creation of the appropriate effective institutional conditions for the practical implementation of national ESG initiatives. Among those institutional conditions that are of particular relevance are appropriate regulatory support and improvement of the non-financial reporting mechanism. Today the lack of effectiveness of the corresponding mechanisms is considered to be the obstacle to the implementation of ESG-strategies mechanism in most countries all around the world.

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It is the preparation of thoughtful legal acts, as well as formal procedures for the preparation and presentation of the results of non-financial corporate reporting, taking into account the opinions of broad academic, business and public communities, together with a secured mechanism for implementing the requirements contained in them, that will work to achieve sustainable development, based on the successful results of the best world experiences.

References Alferova, Т. V. (2022). Localization of sustainable development goals on the example of the Volga and Ural federal districts. ECO Founders: Siberian Branch of the Russian Academy of Sciences, Institute of Economics and Industrial Production Organization of the SB RAS, Novosibirsk National Research State University, Autonomous Non-profit Organization, 10, 148–167. (in Russian). Bobylev, S.N., Mikhailova, S. M., Kiryushin, P. A., Yakovleva, E. Yu., Astapkovich, M., Solodova, M. A., ... & Chunosova, E. Yu. (2019). Green economy and sustainable development goals for Russia. Retrieved from https://esg-library.mgimo.ru/upload/iblock/d02/pvvd2z2 cgyboet8cgigzww5cyb1t32gj/Zelenaya-ekonomika-i-TSUR_MGU_2019.pdf Chirkunova, E. K., & Shekhova, N. V. (2021). Innovative approaches to the implementation of sustainable development goals in the modern Russian economy. Bulletin of the Samara University. Economics and Management, 12(2), 101–110. https://doi.org/10.18287/2542-04612021-12-2-101-110 Danilov-Danilyan, V. I. (2019). Global environmental issue and sustainable development. Moscow University. Economics Bulletin, 4. https://doi.org/10.38050/01300105201942 Ershov, D. N. (2022). Problems and prospects for green development. Environmental Economics, 2, 18–35. Glazyrina, I. P. (2020). A thorny path to a «green» economy. ECO, 9(555), 8–23. https://doi.org/10. 30680/ECO0131-7652-2020-9-8-23. In Russian. Gukhman, G. А. (2021). On the parameters of «green» growth in the current strategic documents. Energiya: ekonomika, tekhnika, ekologiya, 1, 47–50. (in Russian). Ignatov, A., Mikhnevich, S., Popova, I., Safonkina, E., Sakharov, A., & Shelepov, A. (2019). Leading donorsʼ approaches to SDGs implementation. International Organisations Research Journal (IORJ), 14(1), 164. https://doi.org/10.17323/1996-7845-2019-01-10 Kiryushin, P. A. (2019). Factors of environmentally sustainable development and green economy in Russia. Moscow University Economic Bulletin. Economic Bulletin, 1, 122–138. Retrieved from https://cyberleninka.ru/article/n/faktory-ekologicheski-ustoychivogo-razvitiya-i-zelenoyekonomiki-v-rossii (in Russian). Komarov, V.М., & Voloshinskaya А.А. (2021). National strategies of sustainable development: Comparative analysis. ECO, 1(559), 112–129. Retrieved from: https://ecotrends.ru/index.php/ eco/article/view/4181 (in Russian). Kurochkina, A. Y. (2022). Analysis of the metrics of sustainable development goals indicators in the activities of domestic enterprises. Problems of Modern Economy, 2(82), 85–86. Retrieved from http://www.m-economy.ru/art.php?nArtId=7331 (in Russian). Pakhomova, N. V. & Aynabekova, К. К. (2022). Drivers and barriers on the ESG-strategies implementation way of major businesses in Russia and Kazakhstan: A comparative analysis. Problems of Modern Economy, 1(81), 163–168. Retrieved from http://www.m-economy.ru/art. php?nArtId=7290 (in Russian).

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Shekhova, N. V. (2022). Ecological safety of the global economy. In Innovative Technologies and Special-Purpose Technical Means: Proceedings of the XIV All-Russian scientific and practical conference, pp. 255–258. (in Russian). Stolbov, M. I., & Shchepeleva, M. A. (2022). The impact of ESG-factors on financial stability. Voprosy Ekonomiki, 11, 136–148. https://doi.org/10.32609/0042-8736-2022-11-136-148. (in Russian). Tretyakova, E. A. (2022). Disclosure of ESG-factors in the non-financial reporting of Russian oil and gas companies. ECO, 9, 130–148. Retrieved from https://ecotrends.ru/index.php/eco/ article/view/4509 (in Russian). UN. (2019). United Nations. The future is now: Science for achieving sustainable development: Global Sustainable Development Report. Retrieved from https://sustainabledevelopment.un. org/content/documents/24797GSDR_report_2019.pdf UN. (2022). United Nations. Sustainable development goals. Retrieved from https://www.un.org/ sustainabledevelopment/ru/about/development-agenda/. (in Russian).

Eye Tracking as a Research and Training Tool for Ensuring Quality Education Marianna Ababkova

, Irina Melnikova

, and Olga Vasileva

Introduction Research activities based on new technologies and neuromarketing tools are mostly developed in the research firms and not so much in academia (Ababkova & Leontieva, 2018; Shearer et al., 2020.). Some authors warn that ignoring such a considerable development would mean that universities’ students would be outcasts of current research practices (Agarwal & Dutta, 2015). Therefore, introducing new forms and techniques of research activities into educational process could be both technological development within the curriculum and a serious encouragement for students’ research activity in media education. To achieve the objectives of advertising it is crucial for marketers to thoroughly understand not only the structure and elements of advertising, but also to tailor a complex set of multimodal determinants according to the laws of perception to ensure its effectiveness. It is critical to study how recipients interact with an advertisement to improve their experience (Lévêque & Liu, 2019). Traditionally advertising research used to be carried out on the basis of such conventional tools as verbal techniques (surveys, interviews, focus groups, etc.), rendering respondents’ attitude and emotions to an object under review (Krivcova

M. Ababkova Saint-Petersburg Electrotechnical University “LETI”, St. Petersburg, Russian Federation e-mail: [email protected] I. Melnikova Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation e-mail: [email protected] O. Vasileva (✉) Herzen State Pedagogical University of Russia, St. Petersburg, Russian Federation e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_28

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et al., 2020). However, some researchers criticize traditional marketing research for not yielding consumers’ percept or comprehension of a marketing driver, but rather identifying consumers’ reactions to researchers’ conceptualization of a stimulus (Gebhardt et al., 2020; Nasr et al., 2018). Some researchers point out that advertising message as a creolized text requires an adequate approach to the research methodology, since it represents a special system in which a final meaning is generated not by a simple sum of incorporated verbal and nonverbal components, but by their particular interaction (Dediurina, 2021; Bulatova et al., 2015). Thus, advertising phenomenon requires a comprehensive and multidisciplinary study. In recent years, the methods of cognitive neuroscience such as eye tracking and biofeedback contribute immensely to the understanding of merging conscious and subconscious reactions to advertising messages to improve a communication campaign effectiveness (Borawska et al., 2022). Oculography, gaze tracking or eye tracking is a tool to scan visual stimuli or their elements and to get the detailed visualized information about the parts of a static or dynamic image to specify where respondent’s attention lingers on, which part goes unnoticed, or causes an emotional response. Eye tracking, although not yet a dominant technique within communication research, helps to manifest a measure of attention to a stimulus to reveal the objects of interest and individual content processing (Cummins, 2017). Moreover, an advertisement as an integrative media text with visual figurative and verbal parts equivalent in meaning attracts interest and causes a certain cognitive load. This cognitive load expressed in recipient’s eyes fixation on various parts of an advertising item can be investigated with the help of an eye tracker. Nowadays this research technique plays an essential role in assessing the nature of the perception of such multidimensional messages (Bulatova et al., 2015). Thus, eye tracking enable researchers to identify key areas of advertising layout that attract the respondent’s attention, as well as to study reading strategies for various combinations of advertising message. As a literature survey reveals, nowadays the eye tracking could be employed within the following educational areas: – Eye tracking research for the educational process, as a tool for continuous improvement to fit in the learners’ requirements and perception of teaching materials, handouts, e-books and multimedia (Sun et al., 2018; Rohbock & Jagoda, 2011; Rosiek & Sajka, 2017). The researchers also could seek a deeper understanding of the complex interactions during online and offline classes and adapt practical suggestions to improve online teaching skills (Shi & Stickler, 2021; Knoeferle & Crocker, 2009); – Eye tracking for linguistic studies and foreign language teaching (Sagarra & Aroline Seibert, 2011; Paolazzi et al., 2021); – Eye tracking as a part of research activities for academics, educational practitioners and students. Adapting eye tracking as a new research tool to the specialisms of media education can provide not only intensive intellectual, emotional and physical participation of the students in research practices, but also increase

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their involvement due to learning new research techniques. Eye tracking could encourage students to join a research lab, form research groups, cooperate and exchange ideas with their peers, and thus to up bring new generation of researchers in a period of technological advances (Chisega-Negrilă & ChisegaNegrilă, 2018); – Eye tracking for testing university’s communication strategy (sites, outdoor advertising, etc.) (Ababkova & Leontieva, 2018).

Materials and Methods A master class was designed within the lecture’s theme “Strategic International communications” for the students of the first grade of the Master Programme “Advertising and PR in International Communications”. It was aimed to test the applicability of this new technique as a part of training of advertising practitioners, and to demonstrate the peculiar features of research process and metrics of eye tracking on the example of social advertising. The research took place at the Center for Sociological Research and Digital Communications, an educational and research unit of the Higher School of Media Communications and Public Relations of the Institute Humanities (Peter the Great St. Petersburg Polytechnic University). The master class consisted of 30-minute lecture on social advertising and new research tools based on neurotechnologies. The idea was to create awareness of the students about the eye tracking study, and to demonstrate them the whole process and the metrics, and at the same time to obtain data clarifying the process of perception of social advertising dedicated to vaccination against Covid-19. Afterwards the pilot eye tracking research and interview session was carried out. The students took part in the pilot study and monitored the research process. The experiment was guided and supervised by two lecturers. The eye tracking research was enhanced with an interview in order to compare results of verbal and non-verbal techniques in advertising studies, and to demonstrate the possibility of combining conventional and innovative techniques. A total of 38 students (28 females and 9 males) participated in the master class and the pilot study. This sample size is usually recognized as representative in research based on the eye-tracking technology (Wedel & Pieters, 2008; MuñozLeiva et al., 2019). The hypothesis of the study was that the number of gaze fixations could be used as a marker of attention selectivity of the respondents, so called areas of interest (AOI). The experiment was carried out in a quiet room isolated from external noise, with a diffused light (200 Lux) to simulate a “home environment”. Eye movements were registered by an infrared video eye tracking device (Gazepoint eye tracker GP3 (60 Hz), Canada), measuring the reflection of the cornea and pupil at a frequency of 60 Hz. The system has a spatial tracking accuracy of approximately 0.5°–1° viewing angle. The data were processed with “Neuroburo” software (St. Petersburg, Russia).

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The process of the eye-tracking study consisted of several stages: – The introductory (preliminary) stage. The participants were seated at a desk in front of the LCD monitor, and received instructions for the procedure. At this stage, a respondent had to sign a written consent statement with basic information about the research project and personal information (first name, last name and signature). The participant was fully informed about the purpose of the study. For each respondent a nine-point calibration of the eye position was performed to optimize the accuracy of spatial tracking. – The experimental stage. The respondents were presented with 2 types of social advertisement, there was no time limit for viewing the images. All the advertisements presented during the test were dedicated to the vaccination program as a main prevention measure against Covid-19, and contained fear and shame appeal as one of the most popular exhortations in social advertising (Mičík & Tesařová, 2018). The example№ 1 consisted of a text part and a visual part of equal importance in the ad’s composition. The second example was composed mostly of a text; its slogan was stylized as a СTA-button with a cursor. Before starting the eye tracking study, the respondents were asked the question “Which element of social advertisement, in your opinion, is more significant?”. A larger number of the respondents (27 people) pointed to the photo (“attracts attention”, “conveys the idea of advertisement”), the rest of the respondents noted that everything depends on the complexity of the topic (“scientific data is needed”, “text conveys meaning”, “text explains better”). The second part of the study included the demonstration of two specimens of social advertisement on a 17-inch monitor with a resolution of 1920 × 1080 pixels. The eye tracker was located at a distance of about 75 cm from the respondents, without head fixation to ensure conditions close to reality. After the eye tracking session, the follow-up interview with the participants was held to reveal the respondents’ attitude toward the chosen advertisement samples. The participants went to a second room and responded to an interviewer comprising queries regarding socio-demographic details and their verbal evaluation of the ads. – The final stage provided the experimenters with feedback of the participants on the importance of the master class and its significance to their specialism.

Discussion A number of indicators obtained through eye tracker, such as the gaze duration on the advertisement and its verbal and visual parts, the number of fixations and the average gaze duration on each of the areas, the user’s eye motions and a pattern, help to get an accurate idea of what happens during the respondent’s contact with the advertisement (Bulatova et al., 2015; Al Dahhan et al., 2016). For example, a number of studies have proved that the saccade speed (rapid eye movements in

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Table 1 Means for gaze duration and number of fixations Stimuli data Total viewing time (ms) Text viewing time (ms) Picture viewing time Number of fixations Fixations on text Fixations on visual part

Advertisement №1 628 + -13.4 194 + -6.2 434 + -7.2 42 + -7.1 16 + -3.2 26 + -3.9

Advertisement №2 454 + -10.1 401 + -6.0 53 + -4.1 22 + -5.3 16 + -1.2 6 + -4.1

Fig. 1 Example of a gaze plot for the advertisement №1

one direction) can act as indicator of cognitive load, and anxiety may be associated with a decrease in the speed of antisaccades (gaze movement in the opposite direction) as a response to the presentation of threatening stimuli (Derakshan et al., 2009), which could be a useful indicator in studying recipient’s feelings during the contact with an advertising message. Other studies argue that microsaccades (small saccades within the process of gaze fixation on a visual target) rate reflects visual load of a task rather than its mental load (Schneider et al., 2021). However, there is no data yet acquired to report the notable features of perception for other types of emotionally charged information (Kozhuhova, 2015). As a result of the study, heat maps and gaze plots were obtained to form a set of data to characterize gaze fixation and areas of interest. As the number of fixations or fixations count is a very general measurement which needs to be completed with others (Holmqvist et al., 2011), a metric of viewing time was introduced. The general viewing pattern of two examples of advertisement through the visual metrics is presented in the table below (see the Table 1). Most of the fixations and the duration of saccades were recorded for the advertisement№1 on its visual part (Figs. 1 and 2). The participant’s gaze analysis revealed that the 78% of respondents first focused on the physicians, their masks, white coats, and then the participants’ gaze moved to the text part of the advertisement. The СTA-button and the cursor that were originally conceived as a central part of the layout, attracted less attention that the text in the upper part of the layout. To test the hypothesis about the applicability of the number of fixations as a marker of attention selectivity of the respondents, areas of interest (AOI) were

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Fig. 2 Example of a gaze plot for advertisement №1

Fig. 3 Analysis of the heat maps for the ad №1 (the number of fixations)

Lower Part of the Text Upper Part of the Text White coat Masks Physicians 0

Fig. 4 Analysis of the heat maps for the ad №2 (the number of fixations)

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СTA-button and Cursor

Upper Part of the Text

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highlighted. The analysis of the respondents’ heat maps identified the following AOIs (Figs. 3 and 4). Thus, the AOIs for the sampling №1 include physicians’ faces, masks, and the lower part of the text. Of note that the upper part of the text, according to some sources (Muñoz-Leiva et al., 2019) as the most engaging and appealing to the recipients, should be written in a larger font and located in the upper part of the visual field, however, attracted less attention of the respondents. Also, the СTAbutton and the cursor from the sampling №2 were less attention-grabbing elements.

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Results Perception schemes of a social advertisement layout give an idea of the nature of cognitive activity of respondents (Bulatova et al., 2015), and the sequence of processing its visual and textual parts. Table 2 shows the number of the respondents who applied one or another reading strategy for the social advertisements. The majority of respondents began to study the sample No. 1 from the photo of physicians, then moved their gaze to the text; the pattern of perception of the sample No. 2 was opposite: text first, then the image of the CTA button. The tested sample No. 1 was also characterized by the repeated gaze movements between the image and the text more than 3 times. In general, respondents paid more attention to the tested sample No. 1 (on average, 628 ms) compared to the advertising sample No.2, since the images of doctors more vividly represent the problem situation and the essence of the advertising idea. The follow-up interview included the respondents’ verbal assessment of the attractiveness of the presented social advertisement samples. It was found that sample No. 1 appeared to be more appealing, as the embodiment of the idea of the noble work of doctors and a call for help in a difficult situation. The majority respondents (85%) said that they prefer the sample No. 1 and described it as comprehensible, morуgentle, the words and visual image could be interpreted as encouraging. The advertisement appeals to a sense of responsibility, it could be deciphered as a call to cooperate in a difficult situation, this incentive could ensure the effectiveness of the advertisement. The sample No. 2 was assessed by the overwhelming majority of the respondents (83%) negatively. They portrayed it as “disgusting”, “empty”, “uninformative”, “frighting”, evoking a feeling of guilt. The further studies could be recommended to find the connection between the speed of antisaccades and the emotional response to the negative stimuli. A brief survey concluded the master class, and its results showed, that more than 60%respondents believe that eye tracking could be used for usability tests of websites, perception analysis of advertising layouts to guide target audience Table 2 Schemes of perception of social advertising in the experiment Schemes of perception Text–image (three or less gaze movements from text to image) Image–text (three or less gaze movements from image to text) Text–image–text Image–text–image Text–image–text– image Moving the gaze more than three times gaze movements between the image and text

Advertisement №1 2

Advertisement №2 21

30

–

4 1 0 1

7 4 1 1

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attention. According to the students, the use of such research technique in education broadens horizons both for educators and learners for better understanding of attention triggers (84%); introduces advanced technologies to the educational process (98%); stimulates students’ creativity (92%); facilitates the understanding of complex research techniques (64%%); enhances students’ involvement in research activities (34%). 63% participants said that they were inspired to design the advertisement layout more thoroughly considering patterns of recipient perception. The following key barriers for the implementation of high-tech research techniques in education were outlined as follows: technique can be very expensive (24%), serious training and preparation is required to use eye tracking as a research technique (89%). 76% of the students added that they would like to take part in the experiment based on eye tracking again. The hypothesis of the applicability of the number of gaze fixations as a marker of attention selectivity of the respondents, areas of interest (AOI) was proved to be true.

Conclusion As the pilot research has shown, the application of emerging research technologies has a great potential for educational practitioners in quality education. Eye tracking technology as a tool for ensuring quality education makes it possible to explain the learning process from different points of view and provide reliable empirical data on the main cognitive processes of information processing during offline and online study, etc. (Jarodzka et al., 2017; Suero Montero et al., 2022; Rodrigues & Rosa, 2017). It helps to improve the teaching progress and efficiently integrate different hi-tech research techniques in education (Sun et al., 2018). As some studies from the current century suggested there is a direct relationship between saccade count and cognitive workload, and, to be more precise, the higher cognitive workload is associated with a greater number of cascades (Mondal & Majumdar, 2020). Thus, eye tracking for education could provide educational practitioners with the information on the difficulty of teaching materials, the user interface design issues and ineffective presentations (Mat Zain et al., 2011). The verbal techniques combined with the eye-tracking allow to increase the validity of research, for example, a follow-up interview allows to clarify some aspects of the recipient’s interaction with the stimuli; the “thinking aloud” technique (Shi & Stickler, 2021) during the oculography session helps to gain respondent’s comments about his interaction with the test sample. In the case of using mix techniques, the reliability and accuracy of the eye tracking increases. It is recommended to carry out additional studies based on eye tracking, including such parameters as the pupil diameter, to evaluate the emotional aspects of the visual stimuli. Also, eye tracking in media education could be considered as an additional tool to encourage students to participate in multidisciplinary research activities and to make

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them active and motivated participants in their learning, to have an insight into the processes of advertisement’s perception on the basis of hi-tech techniques.

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Improving the Methodology for Calculating the Index of Growth of Small and Medium-Sized Businesses Elena V. Yaluner

, Mikhail G. Voronin, and Alexey B. Zelensky

Introduction At the current situation of a pandemic, exacerbation of the economic and geopolitical situation, one of the important tasks of reducing uncertainty factors in assessing the situation and making decisions is the task of obtaining accurate and up-to-date data, both with increasing the availability of data for analysis for market participants and the subjects of the sector under consideration. Solving this problem will make it possible to manage and support the small and medium-sized business (SME) sector, reasonably and competently choose priority measures in the context of medium-term and long-term planning for the development of SMEs, and make up to date changes to the content of federal and regional programs while monitoring the results of their implementation. In studies on the distribution of enterprises by the number of working places in Russia, it demonstrates the predominance of the importance of large business entities, the data are reflected in the report The EU in the world for 2020. In the light of this distribution, the policy is understandable, which is indicated, among other things, by responsible leaders and top officials of the state. Russian Prime Minister Mikhail Mishustin constantly points out the need to clarify real employment in small and medium-sized businesses.

E. V. Yaluner (✉) Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation Institute for Regional Economic Studies Russian Academy of Science, St. Petersburg, Russian Federation M. G. Voronin · A. B. Zelensky Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_29

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This, firstly, will make it possible to understand how Russia’s indicators differ from those of developed and most developing countries, and secondly, to assess the social effect of the SME sector in terms of job creation. The emphasis on this aspect is also important, in the opinion of the authors, because many officially registered small and medium-sized businesses do not have a significant impact on the economy, due to the lack of active operating activities and the provision of a minimum amount of contributions. In the opinion of the authors, the social effect of the activities of these enterprises is manifested in the fact that, on the one hand, their existence provides both the possibility of legalizing the operational activity of the shadow sector and the prospects for the development of entrepreneurial initiatives. On the other hand, such entities form the prospects for competitiveness and demonopolization of their industry, helping to overcome the formal barriers of “consistency” of legal entities, which are set by many private and state companies, including in public procurement in accordance with federal laws 223-FZ and 44-FZ (Yaluner et al., 2018). According to the modern methodology developed by the Ministry of Economic Development of the Russian Federation, it is supposed to receive employment da-ta in the SME sector on insurance premiums, which really looks more promising than the current methodology of Rosstat. In addition, employment in the SME sector, as the main social indicator of the sector, should have an update frequency comparable to the update frequency of the SME register data. However, it should be taken into account that the share of “gray” entrepreneurship is highest among small and micro enterprises, and their contribution to the economy and jobs based on this methodology will not be taken into account. Therefore, despite the fact that it is logical to take into account enterprises operating on a legal basis, this approach will distort the results of the contribution of the SME sector to the country’s economy, and most importantly, it contradicts the sustainable development goals recommended by the UN—protecting jobs, supporting small and medium-sized enterprises and workers in the informal sector through economic response and recovery programs (Mordovets et al., 2019). Therefore, workers in the shadow sector also need to be protected and their contribution to the country’s economy should be taken into account, realizing that such work is structurally negative, but economically positive.

Materials and Methods Currently, due to the difficult geopolitical situation, a situation is emerging in which a significant part of the shadow sector, the so-called “gray economy”, has a predominant share of a positive impact on the economy—it creates jobs, fulfills the needs of citizens in increasing the speed of business transactions. The destructive impact on the established economic and political system is not lost. In addition, most of the small and medium-sized businesses are in the shadow zone solely due to economic feasibility, most often associated with the inability to work equally effectively

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legally. The increase in the shadow sector should first of all push for lowering barriers, sharing the responsibility of social guarantees with the most economically vulnerable employers and maximum motivation to get out of the shadow, rather than stimulating by increasing the tax burden and delegating social responsibility to the enterprises themselves, since in this way the state does not contribute to the development of enterprises in the short term. Expert assessments, for the most part, also suffer from the lack of dynamics. According to the national report of the global monitoring of entrepreneurship in 2012, “The most frequently mentioned factor negatively affecting the development of entrepreneurship in the country by experts was the policy of the state”. The situation is similar in all other global monitoring reports, the only thing that has changed is that the wording has become tougher “Corruption at all levels of government has been increasingly mentioned in recent years as a factor hindering doing business in the country” (Mordovets et al., 2019; Litau, 2017). Corruption does not leave the agenda at all and, in principle, is considered as a general destructive factor that can be mentioned when developing any problem. And despite the fact that corruption is really destructive, in the level of business activity or the main problems of the SME sector, this is not a problem of the first echelon, as the business community itself says in the same surveys. Thus, the interviewed experts issue practically the same recommendations, but the implementation of these recommendations in the proper way either does not occur at all, or the expert community does not want to see them. We’re leaning towards some-thing that doesn’t happen at all. All this demonstrates the fact that expert and entrepreneurial assessments are “frozen” in certain ranges and their quick response to changes in the environment should not be expected (Voronkova et al., 2016). Therefore, a more objective and faster mechanism is needed to obtain representative data on the state of entrepreneurship and its growth potentials in order to adjust the policy of support and regulation of the SME sector in accordance with the results obtained (Litau, 2018). Under the most favorable conditions, it is possible to develop such an index or indicator that will be sufficiently significant and understandable to inform about the situation in the SME sector within the framework of the task of the Federal Project “Acceleration of small and medium-sized businesses”, which includes “Creation of a digital plat-form focused on information support for the production and marketing activities of small and medium-sized businesses, including individual entrepreneurs” (Litau, 2019). The “SME Growth Index” can become such an indicator, since it takes into account the main parameters of a particular SME entity, which means it can meet the needs of indicative planning both at the federal and regional levels, without which not a single large economy can do in the modern world. However, the methodology for calculating the SME growth index is far from ideal; in the SME index, initially, the indicator of the average number of employees of SMEs was of very little importance, which is the main element of both the scaling of companies and their stability (due to the talent pool), not to mention the maximum the social significance of this parameter. Even with a reserve in revenue and

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structural flexibility, it is quite difficult to hire professional people, especially in a crisis, and based on this index methodology, a company with the maximum growth prospects and stability to change is a one-person company with the maximum salary to revenue. Especially many questions are raised by the actualization of the problem of intellectual capital as an asset of the company (Vetrenko et al., 2017). Profit in this case will be minimal, but it is not taken into account, and the number of employees has only 1/5 of the influence on the index. In relation to self-employed citizens or exclusively family or personal enterprises, such a technique would be understandable, but in this case it excludes the significance of the social aspect of SMEs, and most importantly, it distorts the real state of affairs in the sector and the ability to scale entities that do not invest enough in human capital, nor in the personnel management system itself, which is even more critical for the regions (Vetrenko et al., 2017). Another significant problem in assessing the number of employees in the sector has been and remains the methodology for estimating the number of employees in the sector, not as a general value for the regions and the country, but as the ratio of the number of employees per 1 enterprise, which is incorrect due to the distortion of values in the event of a decrease in the number of entities, while even if the gross number of employed will decrease, and with it the number of SMEs will decrease even more rapidly, then the indicator will grow, which is logically not true. The SME growth index does a good job of characterizing the “average” SME entity in general and in a specific group of regions, demonstrating its performance, which is very good when considering a specific entity outside the market or in an established market, but incorrectly when the market, industry or sector as a whole is highly dynamic. In the limit, even with excellent indicators taken into account, if the market narrows and locks into a few participants that grow and strengthen, the SME sector will not rise quickly, just the entities that can evolve will go beyond medium-sized businesses, and the rest will leave the market and disappear. An unfortunate ending that is unlikely to happen in a seller’s market as new SMEs will fill the niches of departed enterprises, lowering the level of added value to compensate for the lack of other competitive advantages, but is quite expected in the buyer’s market, since the level of added value and so can only be available given a certain scale. It is unlikely that the incompressible remnant of SMEs living in the seller’s market, since they simply realize their near-monopolistic logistical, political and information advantages and thereby survive, will perfectly reflect the state of affairs in the sector and its growth prospects, even if their revenue and the average number of employees will grow. The main destructive component of the logic of defining the “average SME entity” by the index, and not the sector as a whole, is the impossibility of quantifying the expected effect for the entire sector in the implementation of government programs, although such an assessment is a necessity for a programmatic approach (Yaluner et al., 2018). The solution to this situation is the synergy of both the “ microdata “ already used in the SME Growth Index and industry-wide data collected by government agencies. The existing indicator of the SME Growth Index was updated in 2020 and takes into account the employment of the population more significantly, which, in our

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Table 1 Recommended SME growth stage ranges Name stage Range values Length range Range values Header level

Explosive height From 50 to 45 Δ5 -50 to -45 A crisis

Heyday From 45 to 35 Δ10 -45 to -35 Depression

Moderate height From 35 to 10 Δ15 -35 to -10 Reject

Stagnation From 10 to -10 Δ20 From -10 to 10 Stagnation

opinion, is very correct. But the methodology still does not reflect the picture, including because of the use of “average employment”. The SME Growth Index does not correlate with the above-mentioned surveys, which show that the assessment of the situation by representatives of SMEs through the aggregate index from 03/25/2020 decreased by 09/07/2020 from minus 33 points to minus 39 points. Thus, having fallen below the level of the post-crisis 2015, which, even taking into account the general stagnation of the indicator in the polls, is significant, as it has overcome the historical milestone. While the SME Growth Index, according to the new methodology, balances between “stagnation” and “moderate growth”, and in the range from -50 to +50 is only in positive values. Here we see the problem of incorrect assessment of the ranges of values of the Indices that characterize growth, stagnation or decline. Based on the logic of de-creasing importance of values for a particular stage, it would be logical to present the lengths of the stage ranges in accordance with the logic presented in Table 1. Therefore, the boundaries of growth are more clearly defined, and the significance of the Index values increases with the increase of the Index itself, as it happens in the economy, since each subsequent percentage of growth or decline is more difficult or has more destructive consequences than the previous ones. In the future, with the ranges from Table 1, it will be possible to adjust in accordance with the distribution function of the values of the historical sample, possibly taking into account economic cycles and the reduced/increased significance of positive values during the exit from the recession and negative ones at the heyday stage, that is, to form a floating range. Index of the old calculation mechanism per 1 sq. and 2 sq. was strictly higher than the indicators for 2kv. 2019, and the number of enterprises in the sector is below the level of 2019 Q2 according to the SME register. At the same time, the SME Growth Index, calculated according to the new methodology, fell from Q1 to Q2, and grew from Q2 to Q1, although the number of SMEs, compared with the data for 2019, fell by 2.23% in the first quarter, by 2.61% in the second quarter, and 3.46% in the third quarter. The SME growth index does not reflect the total number of sector entities, neither in the old nor in the new version of the methodology (Yaluner et al., 2018). Unfortunately, it cannot be said that this is consistent with the stated goal of characterizing the degree of development of the SME sector. The same problem arises on directly dependent indicators, in particular with the sum of the average number of employees employed by small and medium-sized businesses (in accordance with the assessment methodology). This indicator objectively stagnated in a moderate range with a slight decrease and a slight increase throughout the

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first half of 2020. Having a deviation between the January 15 321,788 and June 15,295,920 data less than 0.1%, and then after a one-month decline having a significant jump. This dynamic is very logical, given the delay between the pandemic restrictions and the reduction of employees, even in a forced economic situation, further smoothed out by government support measures. This is not seen in the SME Growth Index, even taking into account the volume of revenue and the size of the wage fund, cost reduction packages at enterprises were adopted in stages. And in industries that felt the fall in purchasing power later than others, they were not accepted at all in the second quarter. An inverse correlation with indicators is not achieved, for example, with the dynamics of workers who performed work under GPC contracts in% of the month of the previous year according to Rosstat. Fundamentally, these indicators are only indirectly related, but employees who decided to earn money on GPC contracts for the most part either got on the stock exchange or would appear to be employed in the gray or formal SME sector (Yaluner & Moisenko, 2016). Only a small proportion of them would have remained without earnings and the status of the unemployed, or got a job in the staff of large companies during the crisis. However, there is no inverse correlation, which tells us about the insufficient significance of the real number of employees in the SME sector, in contrast to the average number of employees per 1 SME. Thus, the current calculation methodology achieves the following effect—the SME growth index shows the state of affairs in the sector, but due to its calculation methodology, the data are overestimated. Consider the current calculation method in more detail: The current formula is quite simple and capacious; in general terms, it can be written as follows: ðX i
ai Þ,

ð1Þ

where x1—The ratio of revenue per 1 SME (for the period, rubles); x2—Payroll ratio per 1 employed person (on average per month for the period, rubles); x3—The ratio of the number of employees per 1 enterprise (for the period, people); ai—Appropriate indicator significance weights. Revealing the dimensions of the indicators, the change of which is taken into account by the Index, without taking into account the weights, we get the following: rub: people rub: þ þ , 1 SME 1 people 1 SME

ð2Þ

In other words, the current methodology for calculating the SME Growth Index assumes an increase in the Index from indicators fundamentally important for growth, such as an increase in the total cash flow and an increase in payroll, or an

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increase in the number of employees per 1 SME. In addition, the increase in the Index comes from indicators that are significant only for a particular subject, and not for the sector as a whole, in particular, the index will grow from a fall in the total number of SMEs, an increase in “dead” SMEs with near-zero indicators, and so on. From the method of calculating the Index, it turns out that if tomorrow half of the enterprises in the SME sector close, and the rest maintain conditions for employees and increase revenue, then the Index will show growth, or stagnation, although a crisis will actually occur in the sector and in a country with enormous unemployment. Due to the ratio of gross values in different periods, the dimension is blurred, but the fundamental significance of the indicators remains, and the current methodology does not allow achieving the stated goals of the main analytical index, on the basis of which it is possible to predict the development of the SME sector as accurately and quickly as possible.

Results Methods for solving the problem are presented to us as follows. Based on the principles on which the first 3 indicators were chosen (ability to collect up-to-date information, reliability, significance for the sector and subjects), it would be advisable to consider such an indicator as “total number of SMEs”. This parameter will characterize both the general demographics of the sector and potential entrepreneurial activity, as well as the level of entrepreneurial initiative, the flexibility of the sector, its volume, and will allow moving away from consideration of many one-dimensional subjects to consideration of the sector as a whole. Data aggregation for this indicator can also be performed by the Federal Tax Service, through the register of SMEs, which, in accordance with the new methodology for accounting for citizens employed in the sector, aggregates the indicator of employment in the sector, it can be updated with adequate frequency and be promising for division by regions, sectors of the economy and taxation systems. Data on the total number of entities will form a general picture of the sector, data on the number of employees (total, not per 1 SME) will reflect the social features and significance of the sector, data on revenue and payroll provided by the banking sector will help show the financial component of the processes, as with in terms of income as well as in terms of expenses. The basic formula remains the same as in the original methodology (1), but at the same time it changes x3 from the ratio of the number of employees per 1 enterprise to the ratio of the number of employees employed in the SME sector (for the period, people), and adds x4—the number of SME sector entities (for the period, units). Then the disclosure of dimensionality indicators is as follows:

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336 Table 2 Aggregated variations of the parameter significance coefficients Variations Indices SME growth Name type index Socially prevailing index Financially prevailing index Current index SME growth Featured index with financial bias Recommended index with social bias Equilibrium index

Odds significance parameters Financial Social Revenue FOT Qty employed 0.1 0.1 0.4 0.4 0.4 0.1 0.2 0.4 0.4 0.3 0.3 0.2 0.2 0.2 0.3 0.25 0.25 0.25

rub: rub: þ þ ðpeopleÞ þ ðSME Þ, 1 SME 1 people

Qty subjects 0.4 0.1 0.2 0.3 0.25

ð3Þ

In this case, the increase in the total number of employees and the total number of SMEs will correlate with average wages per employee and average revenue per enterprise through market mechanisms and more fully reflect the situation in the sector. In the indicator type, a brief description of the prevailing significance of the indicator is given. Based on these characteristics, we have considered the general possibilities of changing the weights of the significance coefficients, ai illustrated in Table 2. The step between the weights of the coefficients can be made even smaller to increase accuracy, but the current step of 0.1 or 10% of significance allows you to clearly demonstrate how different the indices will be with different considerations, primarily of social and financial parameters, and also how much such indices differ with index calculated according to the current methodology. Due to the obtained variations in the weights of the coefficients, we calculate the growth indices of SMEs using the current method of accounting for the number of employees in the sector (per 1 SME), as well as using the method of accounting for the total number of employees in the sector (Table 3). As can be seen from the tables, the growth index of SMEs, taking into account the total number of employees, is always lower than taking into account the number of employees per 1 SME, which, in our opinion, is more correct, since it takes into account the negative dynamics of employment in 2020 in the sector compared to 2019, and is also logically related to the target indicator of the national project “Small and medium-sized businesses and support for individual entrepreneurial initiatives”, where the target is indicated in million people, and not the average number per 1 SME enterprise. In addition to the general state of the sector, overall employment also allows for a more correct correlation with the state of affairs in specific regions, due to the fact that the total number of people employed in the region may have a different ratio to the total number of people employed in the SME sector in the region, which will directly affect the significance of the indicator of employment in the sector of the region in total, but the average number of employees

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Table 3 Indicators of variations in SME growth indices, taking into account the direction of the index Periods Q1 2020 Q2 2020 Name type index Indicators indices Socially prevailing SME growth index 2.8 2.5 Financially prevailing SME growth index 8.3 5.5 Current index SME growth 6.9 4.8 Featured index with financial bias 6.5 4.5 Recommended index with social bias 4.7 3.5 Equilibrium index 5.6 3.8 Including employees according to the SME register Socially prevailing SME growth index 1.5 0.7 Financially prevailing SME growth index 8.0 5.0 Current index SME growth 6.9 4.8 Featured index with financial bias 5.8 3.6 Recommended index with social bias 3.7 2.1 Equilibrium index 4.8 2.9

Q3 2020 2.7 6.4 5.8 5.2 4.0 3.8 0.1 5.7 5.8 3.9 2.0 2.9

per enterprise will only indirectly depend on the regional situation in the labor economy. The developed methodology of the SME Growth Index will make it possible to more correctly differentiate regions, both on a territorial basis and in terms of the importance of the SME sector in the regional economy, and in this regard, it will be more objective to take into account the situation for issuing subsidies, subsidies, recommendations, control points and other tools.

Discussion In the future, in addition to moving away from the average employment in the sector as the main social parameter, and the intermediate use of total employment in the sector, it is also advisable to consider updating the main financial indicator of the sector, in particular, revenue per 1 SME. In the case of revenue, the problem lies in the fact that in connection with the measurement in rubles on average per 1 SME: firstly, there is an inverse relationship with the number of SMEs, as mentioned above, and secondly, there is no understanding of the money supply as a whole in sector, i.e. the financial targets of the nat are not related in any way. Projects (the share of SMEs in total exports and the share of SMEs in GDP) with indicators, thirdly, due to inflation and a decrease in the purchasing power of the ruble, the data will always be overestimated, let’s say hyperinflation will throw the index up, although this will have a devastating effect on the legal sector of SMEs. The fundamental meaning of the SME Growth Index is being lost. We find that the main solution at the initial stage is to correct the overestimation of the ruble values,

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9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0

1st quarter of the year 2020

2st quarter of the year 2020

3st quarter of the year 2020

current increase index social bias recommend index growth index socially prevailing fearured index (financial bias) equilibrium index uniform index

Fig. 1 Graph of indicators of variation in the SME growth index, taking into account the number of employees per 1 SME subject (for the period, people)

while adopting the remaining recommendations, the total money supply will be taken into account through the product of the number of sector entities and the average revenue per 1 SME, which is not accurate, but will reflect the overall financial significance, and the inverse relationship from the number of subjects of the sector will also disappear due to the study of the total money supply and the number of subjects themselves. Improving the methodology for calculating the index of growth of small and medium-sized businesses. As can be seen from Fig. 1, the current SME Growth Index is always in the range between the Recommended Financial Index and the Financial SME Growth Index, which indicates the insufficient social focus of the methodology for calculating the SME Growth Index today.

Conclusion Thus, based on the general idea of filling the index with a minimum set of necessary indicators that demonstrate both a holistic sectoral and individual growth dynamics of SMEs, we have developed the following set of recommendations for updating and practical orientation of the SME Growth Index: – Modify the calculation methodology from taking into account only the individual growth prospects of SMEs, to taking into account the overall growth prospects for the entire SME sector by taking into account the general indicators of the number of employees in the sector and the number of entities in the sector and the

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individual growth prospects of specific SMEs by taking into account revenue per 1 SME and payroll for 1 person in accordance with the proposed method. Change the methodology for accounting for employees in the SME sector from the average per SME to accounting for the total number of employees in the industry, with subsequent differentiation into regional clusters and industry clusters. Change the share of significance of social indicators (the number of employees and the number of subjects) to correctly reflect the social significance of the SME Growth Index. Even equilibrium significance coefficients will give a more socially significant result if the indicators are correctly calculated. In fact, in our opinion, the exact weights of the significance of indicators can be refined as they correlate with other macroeconomic indicators and the goals of national projects. Use weighted averages across groups and the aggregate index. That is, to corelate the significance of growth indicators in the sample with gross indicators, since the Altai Territory, which has grown by 50 points (according to data for the third quarter of 2020), is unlikely to make up a significant share in the aggregate and even group index, and the gross indicators of St. as well as its market size, after all, they are not comparable with Moscow. The arithmetic mean calculation in this case is not correct and distorts the state of affairs in the sector. Use purchasing power data or recommended deflators to more fully reflect the real significance of financial indicators, otherwise, even with really negative trends, the index will be positive.

References Litau, E. (2017). ‘Evolution of species’ in business: From mice to elephants. The Question of Small Enterprise Development. Journal of Advanced Research in Law and Economics (JARLE), 8(28), 1812–1824. Litau, E. (2018, September). Information flows management as a way to overcome “puberty challenges” of a small enterprise. In Proceedings of the 2nd International Conference on Business and Information Management (pp. 34–38). https://doi.org/10.1145/3278252.3278259 Litau, E. Y. (2019). Concept of entrepreneurship anti-ideology. Entrepreneurship and Sustainability Issues, 7(2), 1308–1318. https://doi.org/10.9770/jesi.2019.7.2(35) Mordovets, V. A., Andreev, S. I., Averyanova, O. V., Grafov, A. A., & Shunaev, A. M. (2019). Neutralizing the threats of the organization involvement in corruption offenses: Innovations and technologies. International Journal of Recent Technology and Engineering, 8(4), 8906–8911. https://doi.org/10.35940/ijrte.D9529.118419

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Vetrenko, P. P., Mordovets, V. A., & Yaluner, E. V. (2017). Development of intellectual capital in the Russian economy to ensure the economic security of a corporation under competition. Voronkova, O. V., Kurochkina, A. A., Firova, I. P., & Yaluner, E. V. (2016). Innovative managerial aspects of the potential of material-technical base and the formation of controlling mechanism in the management of the enterprise potential development. The Journal of Internet Banking and Commerce. Retrieved from https://www.icommercecentral.com/open-access/innovative-mana gerial-aspects-of-the-potential-of-materialtechnical-base-and-the-formation-of-controllingmechanism-in-the-management-of-the-enterprise-potential-development.php?aid=82708 Yaluner, E. V., & Moisenko, A. S. (2016). Entrepreneurial talent as a factor of small business development. Components of Scientific and Technological Progress, 3(29), 27–29. Yaluner, E. V., Yu, I., Vetrenko, P. P., Chernusheva, E. A., & Voronkova, O. V. (2018). Entrepreneurship support infrastructure in St. Petersburg and the Leningrad region: Assessment and forecasts. International Journal of Civil Engineering and Technology, 9(10), 1149–1157.

Transformation of Electricity Markets in the Eurasian Economic Union Member States: Problems and Prospects of Liberalization Vahe Davtyan

, Ylia Valeeva

, Gulnara Valeeva

, and Maria Vaganova

Introduction The need to study energy integration process in the EAEU is determined by a complex of problems in the national energy systems of the Union member states that impede the implementation of a policy of full integration. In this regard, the problems of different level of development of energy systems, different models of functioning of national energy markets, tendencies of protectionism, etc. are of particular importance. Overcoming these problems is a key challenge for Eurasian energy integration, the analysis of which is of great scientific and practical interest. Section XX “Energy” is one of the main components of the Treaty on the Eurasian Economic Union (Lukmanova et al., 2020). It states that the formation of common markets for energy resources will eliminate barriers to mutual trade in them, contribute to the creation of equal conditions for business entities of the member states and increase the volume of mutually beneficial supplies of these resources. The section “Energy” includes Articles 79-85, which regulate issues such as: – interaction of the member states in energy; – indicative (forecast) balances of gas, oil and oil products;

V. Davtyan (✉) Russian-Armenian University, Yerevan, Armenia Y. Valeeva Kazan State Power Engineering University, Kazan, Russian Federation G. Valeeva Kazan State Agrarian University, Kazan, Russian Federation M. Vaganova Kazan Federal University, Kazan, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_30

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– formation of a common electricity market of the Union; – ensuring access to the services of natural monopoly entities in the electricity industry; – formation of a common gas market of the Union and provision of access to services of natural monopoly entities in the gas transportation; – formation of common markets for oil and oil products of the Union and provision of access to services of subjects of natural monopolies in the transportation of oil and oil products (Lukmanova et al., 2020). Among the basic principles for the formation of a common market are the market pricing, development of competition, elimination of technical and administrative obstacles to energy integration, development of transport infrastructures of the common market, creation of favorable conditions for attracting investments, harmonization of national norms and rules for the functioning of energy systems (Setiawan & Asvial, 2016). Thus, one of the key goals of the Eurasian economic integration is the formation of a common market for electricity, natural gas and oil and oil products. Each of the above areas is regulated within the framework of a separate software package of systemic activities aimed at ensuring the integration process.

Materials and Methods The research methodology is based on an integrated approach, including the study of international practice of ensuring energy security and identification of the degree of influence of integration processes on it (Pamitran et al., 2015). The study uses a structural-functional method, as well as a comparative analysis method in order to identify the features of the national electricity markets of the EAEU member states. By comparing the indicators of the electric power markets of the EAEU member states, the study reveals the basic problems of integration. Methods of statistical and systemic analysis are also used in the research.

Results and Discussion The results of the study revealed that the key problem of electric power integration in the EAEU is the energy surplus of its member countries. This is considered in the context of the export-oriented energy policy of the member countries, which creates obstacles to the full integration of markets through the intensification of exportimport operations between the participants of the integration project. At the same time, it was found out that this circumstance has a negative impact on the process of liberalization of the national electricity markets, which takes place in an uneven and unsynchronized way. As a result, the EAEU member states

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Table 1 Data on the length of power transmission lines (220 kV and above) of the EAEU member states (thousand km) Index PL

Armenia 1.44

Belaurs 7.0

Kazakhstan 24.5

Kyrgyzstan 2.3

Russia 130.0

EAEU 165.24

demonstrate protectionism in their energy policy, which contradicts the principles of liberalization. Drawing upon the example of Armenia, it was revealed that the main risk stemmed from the liberalization of the national market is the weakening of positions in the regional market due to the policy of importing cheaper electricity from external markets. Determination of the main indicators of economic growth is a key research question. Many scientists agree that one of the drivers of economic development is interregional interaction (Kozonogova et al., 2020). Challenges of Electricity Integration The electricity systems of the EAEU member states are an important branch of integration formed during the Soviet era, with the collapse of which the electricity sector found itself in crisis. In the presence of high-voltage power transmission lines connecting the former Soviet republics, the existence of a number of geopolitical contradictions did not allow to use the infrastructure potential inherited from the USSR to the required extent. Today, the EAEU member states have a diversified system of power transmission lines (Gibadullin & Pulyaeva, 2019) (Table 1). The tasks of the common electricity market of the EAEU include building relationships between sellers and buyers from different member states of the Union. At the same time, there is a surplus of electricity in the EAEU. According to the data for 2018, with a total consumption of about 1.237 billion kWh of electricity, its total production by the member states amounted to more than 1.260 billion kWh (86.6% was generated in the Russian Federation and 8.5%—in the Republic of Kazakhstan) (Gibadullin, 2018). The installed generating capacity of the EAEU (290 GW) has a potential to in-crease the volume of electricity generation. The presented data indicate that the EAEU power industry is able to meet the growing needs of the member states with the development of long-term export strategies having a potential to stabilize electricity prices in the internal markets of the member states. The basic indicators of the EAEU electric power industry are shown below (Table 2) (Gibadullin & Pulyaeva, 2019). The common electricity market of the member states is a system of relations between the subjects of the internal electricity markets of the member states, associated with the sale and purchase of electrical energy (capacity) and related services, acting on the basis of general rules and relevant agreements. The Eurasian Economic Commission (EEC) identifies the following principles for the functioning of a common market: – cooperation on the basis of equality, mutual benefit and non-economic harm to any of the member states;

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Table 2 Indicators of the EAEU electric power industry Index Installed capacity, GW Generation, billion kWh Consumption, billion kWh Export, billion kWh Import, billion kWh

Armenia 3.3 7.31 6.36 1.22 0.27

Belarus 9.8 33.31 36.33 0.16 3.18

Kazakhstan 22.0 94.0 92.3 3.10 1.40

Kyrgyzstan 3.6 12.84 12.97 0.20 0.33

Russia 244.1 1071.64 1054.32

EAEU 282.8 1219.10 1202.28

20.48 3.16

25.16 8.34

– maintaining a balance of economic interests of producers and consumers of electrical energy; – stage-by-stage harmonization of the legislation of the member states in the field of the electric power industry, including in terms of information disclosure; – priority use of mechanisms based on market relations and fair competition in competitive activities; – unimpeded access to the services of natural monopoly entities in the electric power industry, etc. (Gibadullin, 2018). At present, the EEC is consistently working on the formation of a common electric power market, which implies ensuring access to mutual trade in electricity for all wholesalers and buyers. This will allow power plants to increase their sales market, and large consumers to purchase electricity at a lower price from EAEU partners. In addition to trading under bilateral contracts, it is planned to organize centralized exchange trading in electricity at existing spots in Russia and Kazakhstan. To launch a common electricity market, in accordance with the Treaty on the Union, it is necessary to initiate stage-by-stage formation of the regulatory framework, including the relevant concept and program, as well as the conclusion of an international treaty within the Union, which entered into force in 2019 (Gibadullin, 2018). On May 29, 2019, in Nur-Sultan, the heads of the EAEU countries signed an international agreement on the common electricity market within the Union. The document includes a protocol on the common electricity market of the EAEU (a new version of Appendix No. 21 to the Treaty on the EAEU), which defines the legal basis for the formation and functioning of the common electric power market. The document defines the methods of trade in electricity, establishes requirements for ensuring its interstate transmission and access to the services of natural monopoly entities in the field of electricity in the common electricity market of the Union, their regulation and control of activities. The Protocol on the Electricity Market defines the stages of development of the common electricity market of the EAEU—in the period before the creation of the common gas market (from January 1, 2025) and after its creation (Rodionova et al., 2020). For the full functioning of the common electricity market, the member countries of the Union need to prepare and approve a package of documents. In particular,

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Table 3 Mutual trade in electricity between the EAEU member states Export/import, billion kWh Armenia Belarus Kazakhstan Kyrgyzstan Russia Total

Armenia – – – – – 0

Belarus – – – – – 0

Kazakhstan – – – 0.33 2.77 3.1

Kyrgyzstan – – 0.2 – – 0.2

Russia – 3.18 1.13 – – 4.31

EAEU 0 3.18 1.33 0.33 2.77 7.61

there are four rules for the functioning of the common electric power market of the Union, regulating the following issues: – – – –

electricity trade; interstate transmission of electricity; distribution of the throughput of interstate power transmission lines; exchange of information on the common electricity market of the EAEU.

Turning to the indicators of mutual trade in electricity between the EAEU member states, it should be noted that Armenia is practically out of this process (Table 3) (Gibadullin & Pulyaeva, 2019). The construction of the North-South electricity corridor (Iran-ArmeniaGeorgia-Russia) will provide Armenia with an opportunity to enter the Russian electricity market. In general, breaking the energy blockade through Eurasian integration is the main challenge for the Armenian economy. In this regard, it is necessary not only to pursue an active policy aimed at the construction of new infrastructures, but also to apply market mechanisms to ensure a low cost of electricity produced (Davtyan, 2018). Liberalization of Electricity Markets One of the most important questions arising in the implementation of the policy of energy market liberalization is how radical it is to separate generation from electricity transmission and distribution. As noted by V.V. Kudryaviy, the real outcome of the reforms in the electric power industry in Russia was the following threats to energy security: – – – – –

decrease in the capacity of management in the center and at the local level; collapse of the maintenance system; massive use of non-localized foreign equipment; loss of responsibility for the reliability of power supply; appointment by the first managers of “managers” who do not have technological competencies and experience of successful work, etc. (Kudryaviy, 2015).

In Kazakhstan and Kyrgyzstan, liberalization is generally formal in nature: generation is separated from transmission and distribution. Meanwhile, the assets of energy companies, although divided, continue to be controlled by the state, which is the

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result of the acquisition of energy assets by companies with state equity participation. In turn, Belarus is in no hurry to liberalize its energy market. This is associated, firstly, with the upcoming launch of the BelNPP, which will fundamentally change the structure of the energy system and the market (Kamecko et al., 2021), and, secondly, with more than once voiced position on the advisability of forming a common gas market and only then—the electricity market. This approach seems to us quite reasonable, also proceeding from the interests of Armenia, which provides more than 40% of electricity generation at thermal power plants operating on natural gas imported from Russia. The liberalization process in Armenia, launched in 2017, faces many problems in the electricity sector, most of which boil down to a large credit burden and high cost of generated electricity. In general, the main obstacle to the formation of a common EAEU energy market is the lack of a common vision of national markets liberalization among the member states—an important condition for the implementation of the integration project. Let us also turn to some conceptual problems of energy integration in the EAEU. There are two main models of integration: regulated and liberal. In case of regulated model of integration, we usually deal with an unchanging structure of the internal market, often extremely monopolized, whereas in case of the liberal integration model, we are talking about the openness of the internal market for new participants, freedom of competition, etc. It is obvious that in the Eurasian context we will inevitably deal with regulated integration, which is used, for example, in the South American gas market (Avila-Lopez et al., 2019). Here we face no problem that could call into question the integration process as a whole. However, finding a compromise model seems to be extremely important in order to ensure a positive impact of integration on the revitalization of domestic markets. This is also important given the fact that the program provides for the stimulation of investment activities in the industry. The main characteristic of the EAEU electricity markets is energy surplus and, consequently, the export orientation of most of the member countries. With the excess generation capacities, they seek to find foreign markets, often using protectionist methods to promote their energy interests. The latter directly contradicts the basic principle of the formation of a common electricity market—the liberalization of national markets. Liberalization concerns not only the internal structure of the market, the rules of its functioning, but also export-import operations. In this sense, not all members of the Union are ready to “open their gates” for external suppliers, including the EAEU partners. In 2019, the total electricity generation in the EAEU exceeded 1.2 trillion kWh. As for the volume of mutual trade, until 2018, it reached about 10 billion kWh, but this figure decreased significantly due to the termination of the import of electricity from Russia by Belarus in 2018 (imports amounted to about 3 billion kWh annually) (Lukmanova et al., 2020; Gibadullin & Pulyaeva, 2019; Gibadullin, 2018). It is also necessary to address separately the main characteristics of the electricity systems of the EAEU member states.

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Russia: In 2020, the installed capacity of power plants of the United Electricity Networks of Russia amounted to 246.342.5 MW. Electricity consumption and generation has been growing over the past 10 years. In 2019, generation increased by 0.9% compared to 2018—up to 1.080.6 billion kWh, consumption increased by 0.4% and amounted to 1.059.4 billion kWh. Electric power surplus in Russia, according to various estimates, ranges from 20 to 30 GW (Saneev et al., 2020). Belarus: The installed capacity of generating facilities in Belarus is 10.073.99 MW. The country’s electricity consumption is 38 billion kWh per year. It is expected that after the launch of the second unit of the BelNPP, electricity generation in Belarus will increase by 18 billion kWh, which opens up great opportunities for export (Kamecko et al., 2021). Kazakhstan. As of 2021, the total installed capacity of power plants in Kazakhstan is 23.621.6 MW, and the available capacity is 20.078.6 MW. The volume of electricity production reaches 106 billion kWh. At the same time, Kazakhstan is a net exporter of electricity; the excess generation reaches 5 billion kWh (Mukatov & Khabibullin, 2018). Armenia. Armenia has a surplus generation capacity: out of the installed capacity of 2.885 MW, about 2000 MW are used today. Annual electricity production in Armenia is about 7 billion kWh, up to 1.5 billion kWh exported to Iran. Currently, the construction of the third high-voltage power transmission line Iran-Armenia is underway, which will increase the mutual flows between the countries from the current 350 MW to 1200 MW. In its turn, this power line is part of the North-South international electric power corridor project, the implementation of which may in the future ensure the country’s position in international, including Eurasian, electric power markets (Markarov & Davtyan, 2020). Kyrgyzstan: The installed capacity of power plants in Kyrgyzstan is 3.892 MW: 862 MW are thermal power plants, and 3.030 MW are hydroelectric power plants. Annual generation in Kyrgyzstan is about 15 billion kWh. Currently, the country is struggling to provide electricity to the domestic market, although, according to the CASA-1000 program (a USAID-funded electricity transmission project in Central and South Asia), it is planned that starting from 2023, Kyrgyzstan, together with Tajikistan, will supply electricity to Pakistan and Afghanistan. In particular, the supplies are planned to be carried out during the summer period, when the country experiences an electricity surplus (Mehta et al., 2021). Thus, almost all EAEU member states are aimed at developing export strategies. At the same time, taking into account the availability of the necessary generation capacity, as well as favorable geographical location, Russia, Belarus and Kazakhstan have the greatest potential to activate exports. As for Armenia, it is in a post-war shock, and the regional geo-economic architecture does not allow for a full-fledged diversification of export routes. Moreover, due to problems with export (caused primarily by the slow pace of implementation of the above-mentioned Iran-Armenia power transmission line project), the operation of one of the key energy facilities, the fifth power unit of the Hrazdan TPP (480 MW), has been stopped.

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As regards Kyrgyzstan, two key problems should be noted. First, a colossal debt has been accumulated in country’s energy system, which has reached $15 billion over the past 15 years. This affects the tariff policy, which causes significant damage to the investment climate of the system. Secondly, currently in the energy system of Kyrgyzstan there is a high depreciation of fixed assets, which reaches 60% (World Bank, 2017). On Some Risks of Liberalization in Armenia Today, the Armenian electricity market is based on a “single buyer-seller” model, introduced in 2004. According to this model, the right to purchase electricity from producers and to sell it to consumers on the wholesale market remains with holding a distribution license. In 2017, the government of Armenia approved a program for the liberalization of the Armenian electricity market, which was also dictated by the prospects for connecting to the common energy markets of the Eurasian Economic Union (Government of the Republic of Armenia, 2017). On February 7, 2018, the National Assembly of Armenia amended the Law on Energy. The amendments provide for the liberalization of country’s electricity market. The aim of the program is to improve the efficiency of the domestic market and promote exports. The program provides for the creation of mechanisms for the export of the entire volume of electricity unclaimed in the domestic market, subject to the synchronization of the rules of interstate trade with neighboring countries. It is expected that this may lead to the formation of a competitive environment in the domestic market, which can be mainly achieved through the formation of the institution of electric power traders. The latter will purchase electricity from producers and sell it to consumers, paying the “Electric Networks of Armenia” (ENA) CJSC a margin for distribution services. At the same time, in distribution, the ENA monopoly will retain. It is assumed that this will not lead to an increase in domestic tariffs, since the company will actually be freed from supply costs. Distribution costs will be borne by the ESA, with the cost of delivery being borne by the traders themselves. The program provides for the creation of a market operator that will act as the main institution responsible for electricity trading. Within the framework of the new model, it is planned to form an electronic exchange. At the exchange, a qualified consumer will be able to purchase electricity on an unregulated market at a free price if he needs volumes exceeding those anticipated (Government of the Republic of Armenia, 2017). Market liberalization will allow the country to pursue a socially oriented tariff policy by introducing night and day tariffs. Seasonal, peak or nightly busy times will also be considered for the purpose of setting new rates. It is also important to highlight the potential risks and threats emanating from the model of liberalization of the Armenian electricity market. The reforms envisage free entry of large producers into the market, providing an opportunity to supply cheap electricity to Armenia. The main risk here is that Armenia, being a country with excess generating capacities, will gradually reduce

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export volumes with an increase in the share of imported (mainly Georgian) electricity on the domestic market. An increase in the share of electricity produced in Georgia on the market in Armenia can be facilitated by the low cost of Georgian generation, which is provided mainly due to the intensive development of hydropower (Markarov & Davtyan, 2020). This tendency fundamentally contradicts the basic model of ensuring Armenia’s energy security, built on the principle of increasing exports to foreign markets, the weakening of positions in which will inevitably lead to the loss of a geostrategic regional resource. Consequently, the problems of regulation of the electric power market in Armenia should be considered not only from a purely commercial, but also from a geopolitical standpoint.

Conclusion One of the key goals of the Eurasian economic integration is the formation of a common market for electricity, natural gas, oil and oil products. Each of these areas is a separate software package of systemic activities aimed at ensuring the integration process. A key component of energy integration in the EAEU is the liberalization of electricity markets, which is necessary for the formation of a common electricity market by 2025. The main obstacle to the formation of a common EAEU electricity market is the lack of a common vision of liberalization of national markets among the member states. A key obstacle to integration is also a set of disagreements in bilateral relations between some EAEU members as well as the use of protectionist methods for promoting national energy interests. At the same time, the surplus power capacity is the main characteristic of member states’ national markets which creates additional problems for integration project. Acknowledgments The work was supported by the Science Committee of Republic of Armenia in the frames of the research project № 21 T-2H107.

References Avila-Lopez, L. A., Lyu, C., & Lopez-Leyva, S. (2019). Innovation and growth: Evidence from Latin American countries. Journal of Applied Economics, 22(1), 287–303. https://doi.org/10. 1080/02102412.2019.1610624 Davtyan, V. (2018). The Armenian nuclear power plant: Problems of electricity export. In MATEC Web of Conferences (Vol. 212, p. 02010). EDP Sciences. https://doi.org/10.1051/matecconf/ 201821202010 Electricity Market Liberalization Program and Measures for the Development of Interstate Trade of the Republic of Armenia: Appendix to the Protocol of the Government of the Republic of Armenia 32-10, 2017. Retrieved from https://www.e-gov.am/protocols/item/774/%20 (in Armenian).

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The Contribution of Ecological and Medical Tourism to Sustainable Development Based on the Potential of Radon Water Springs in the Leningrad Region Artur V. Sauts

, Pavel V. Zhukov, and Svetlana V. Eregina

Introduction Medical tourism is strongly linked to health, longevity, quality of life and social and economic prosperity, as it combines the meeting of emotional and cultural needs and has a healing effect on the human body in the most rational way. In addition, with the rational organisation of tourism activities, medical and ecological tourism become one of the most sustainable forms of tourism. The development of said types of tourism undoubtedly has a positive impact on social and economic prosperity while minimising negative environmental impacts. Tourists looking for a health spa treatment or enjoying the beautiful scenery of natural monuments, ecological trails or historical buildings and facilities can expose their bodies to both the positive and negative effects of radioactive radon gas. Radon, or more precisely radon isotope 222, is a chemically inert gas. Naturally, it is found in soil and can be released into the atmosphere in large quantities during seismic activity (D’Incecco et al., 2021). Radon is 7 times heavier than air and therefore accumulates mainly in low-lying areas. The main sites of ecological tourism, where A. V. Sauts (✉) Saint Petersburg State Chemical and Pharmaceutical University of the Ministry of Healthcare of the Russian Federation, St. Petersburg, Russian Federation Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation P. V. Zhukov Saint-Petersburg University of Management Technologies and Economics, St. Petersburg, Russian Federation LLC «Terra», St. Petersburg, Russian Federation S. V. Eregina Vologda State University, Vologda, Russian Federation © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 A. Rumyantseva et al. (eds.), Finance, Economics, and Industry for Sustainable Development, Springer Proceedings in Business and Economics, https://doi.org/10.1007/978-3-031-30498-9_31

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it is possible to get radon irradiation, are natural valleys, water reservoirs, adits, man-made objects made of radioactive rocks. As for medical tourism, these are the health resorts with radon baths, which gained popularity in the twentieth century. The biological effect of radon exposure is related to the absorption of alpha radiation, which triggers a chain of physiological reactions. Twenty minutes later, half of the amount of radiation received is released, and after a few hours radon will have completely dissipated from the body. Thus, low doses of radiation are both safe and have a stimulating effect on the body (Puchkov et al., 2022:8). At the same time, radon can be hazardous to health and, in large quantities, to life and it is also one of the main sources of ionizing radiation in buildings (Frutos et al., 2021:6). Once in the human body, radon causes radiation microscopic thermal tissue damage and can result in lung cancer (Somsunun et al., 2022:4). It should also be noted that the tourism industry is adversely affected by the fear, mistrust and lack of necessary radioecological knowledge of potential tourists and tourism workers, which deprives them of the opportunity to receive appropriate medical services or to enjoy a radiation-hazardous natural or architectural monument. The Leningrad region is a territory of the Russian Federation rich in natural and man-made radon sources, the rational use of which will contribute significantly to the development of tourism and health care, which are an integral part of the sustainable development of the state. The objective of this work is to conduct an analytical review of natural sources of radon, followed by an assessment of their potential, the disclosure of which offers prospects for the development of medical and ecological tourism in the Leningrad region.

Materials and Methods The study was based on information from the media, geographic information systems and medical statistics. The methodological basis of the study is the comparative, socio-ecological and semiotic analysis of development trends in tourism and natural radon sources, the use of which makes it possible to assess the current situation and identify relevant trends in the area under study.

Results and Discussion One of the most prominent places with a natural radon source is the rural settlement of Lopukhinskoye, located in the Lomonosov municipal district of Leningrad region. The settlement has a well-developed network of paved roads that provide access to various parts of St. Petersburg. The administrative centre of the Lopukhinskoye Rural Settlement is the village of Lopukhinka, which includes many historic villages

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dating back to the founding of St. Petersburg. Almost all of them have preserved on their territories the ancient estates of the royal nobility, as well as people of creativity, art and science. For instance, just nine kilometres from the village of Lopukhinka there are the ruins of the Ust-Ruditsa estate, the residence of M.V. Lomonosov, where the glass and smalt factory was located. The estate buildings are no longer extant and the garden is in disrepair, but students from St Petersburg universities regularly come here for internships and care of cultivated trees, indicating the area’s involvement as a location for scientific and ecological tourism. Lopukhinskoye settlement occupies 270 km2 of the entire area of the Lomonosov district. The total resident population here as of January 1, 2017 is 2996 people, most of the citizens, approximately 75%, are of working age. On the territory of the settlement there is a unique natural monument— Lopukhinskoye radon lake. In fact, this is a group of several small artificial lakes. They were formed in the nineteenth century, when the river of Lopukhinka was blocked by a dam. The length of the upper lake is about 200 m, the lower one is 550 m, the width of the lakes is 40–60 m. The lakes are fed with water from springs flowing from fractured Ordovician limestones. The hydrocarbonate waters of the springs are enriched with colorless radon (Ivanov & Belyakov, 2010:4). As mentioned above, radon in moderate doses gives a healing effect, therefore, back in the 30s. Nineteenth century on the basis of radon water springs, a small hydropathic facility for sailors operated, founded by the famous navigator F.F. Bellingshausen together with the famous surgeon N.I. Pirogov. In those days, this place was called “Russian Switzerland”. The fauna of the natural monument is well represented by a whole complex of species, the distribution of which in our region is closely related to broad-leaved forests or to forests with a significant admixture of broad-leaved species. These include the tawny owl, red-breasted flycatcher, marsh tit, Eurasian nuthatch and hawfinch. The area of the natural monument is 16.0 km2. Importantly, this nature park has a well-maintained ecological path. Here, in Soviet times, it was decided to conduct an experiment and a trout farm was set up near the Radon lakes, the products of which may be of interest to potential tourists. In addition to the radon water springs, the settlement has the accompanying elements of ecological tourism—flora and fauna. On the eastern border of the settlement there is a botanical wildlife reserve called “Gostilitzky”. It should be noted that on the territory of the Lopukhinsky settlement there is a smaller protected area, most of the Reserve is located on the territory of the neighboring Gostilitsky settlement, within the Ordovician plateau. Here, on rendzina soils, so-called “complex spruce forests” are developed, which are rare for the Leningrad region. Along with spruce, broad-leaved species grow here—linden, maple, and hazel in the undergrowth. There are no water bodies on the territory of the reserve, but in the protected zone there are the sources of several rivers and streams, including the Rudica River. In the central part of the reserve there is a bog massif, which is a system of swamps, located in flat depressions, separated from each other by narrow ridges, sometimes they are connected to each other by ridges. Low twisted pines

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grow over its entire area, along the outskirts—birches. These bogs are especially beautiful when cottongrass bears fruit and covers them with a continuous carpet. Swamps in other parts of the Reserve occupy insignificant areas. The mezereum can be found in the reserve. All parts of the plant are poisonous, but it blooms very beautifully, usually in early spring, when the leaves have not yet blossomed. Early flowering plants also include lungwort and liverwort also grow here. The annotated list of plants includes 314 species belonging to 63 families. In the flora of the Gostilitzky reserve, 2 species were identified, included in the “Red Data Book of the Russian Federation (plants and fungi)” (2008) and in the “Red Data Book of the Leningrad Region (plants and fungi)” (2000)—a Cypripedium calceolus and a Dactylorhiza baltica. Birds are the most noticeable and quantitatively predominant component of the fauna of the Gostilitzky Reserve. A large number of protected bird species have been identified here. For example, the white stork uses the agricultural land adjacent to the reserve for food. A pair of white storks was noted on freshly cut fields in the vicinity of the village of Zaostrovie near the southern border of the reserve. The annotated list of birds includes 106 species inhabiting the territory of the reserve and immediately near its borders. The area of the natural monument is 1599 ha. The unique eco-village “Khutor near Izvara” is located near major natural attractions. As at 2018, 90% of the lots there are sold out, and 70% of them are built up with houses. “Khutor near Izvara” is, first and foremost, the ideology of a healthy lifestyle, as well as the return of the traditions of strong families and family estates, good neighborly relations. The location was not chosen by chance. The company has long begun to study the experience of foreign colleagues in the field of building eco-friendly housing, intending to launch a new product for the Russian market—eco-villages. A large complex “SOVA Skazka WEST” operates on the territory of the village, specializing in leasing eco-friendly cottages in the barn-house style. In order to popularize radon water springs and the natural monument “Radon water springs and lakes of the village of Lopukhinka”, the regional branch of the Russian Society of Nature Conservation and the Directorate of Protected Areas of the Leningrad region developed the updated eco-route. The objective of the project is to introduce the concept of radon sources into tourism circulation with an emphasis on the health-improving effect on the one hand and as a counterpoint to the negative factors that radon carries in urban areas. Thus, the formed route allows you to reveal the recreational opportunities of the region, where the main emphasis is on radon sources, which in a small amount have a healing effect on the body. At the same time, an increase in the concentration of radon has a negative and pathological effect on the human body, which is confirmed by the calculations rearranged in the article. Another object of ecological tourism is the Sablinsk regional complex natural monument, located near the village of Ulyanovka, Tosnensky District, Leningrad region. On the territory of the natural monument, the rivers of Sablinka and Tosna flow and there are deep canyon-like valleys with rocky outcrops and waterfalls, ancient mounds. In outcrops of Ordovician platy limestones, there are ancient

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fossils. The canyon of the Sablinka River starts 0.5 km below the Sablinsky waterfall and goes 1 km downstream to the Tosna River. The depth of the canyon in the middle part reaches 30 m (Tsuba, 2014:254). Sablinsky caves are abandoned underground quartz sand mines dating from the mid-nineteenth century to the early twentieth century. Since the cessation of quartz mining, collapses and flooding, blockages and secondary gravity cavities began in the workings, which led to the formation of labyrinths, the passage of which requires precautions (Skvortsov & Komissarova, 2016:310). The geological rocks of the section in the area of the Sablinsky natural monument are naturally radioactive. Mudstones have the highest level of radioactivity in the studied workings, the value of which is 1200–3000 Bq/kg, which is approximately 10 times higher than the natural level (Lebedev, 2012:32). The level of radon-222 in the air of the Zhemchuzhnaya cave exceeds the permissible level by approximately 50–88 times (Lebedev & Grebennikov, 2010:37). Being in such places is dangerous for their health. To ensure the safety and thus unlock the tourism potential of this site, it is necessary to introduce radiometric control and introduce additional engineering and technical measures to remove air containing radon, as is done, for example, in the tourist cave in south-eastern New Mexico in the USA (Anderson et al., 2021:314) and in the former Kowary uranium mine, the Niedzwiedzia cave, located near the village of Kletno, Nizhnesilezskoe voivodeship, in south-western Poland (Olszewski et al., 2005:804). In addition to the listed natural monuments, there are a large number of bogs in the Leningrad region, which, even when filled in, have been natural sources of radon for centuries. The objects of medical tourism are health resorts with radon baths. Radon baths are a recognised treatment for musculoskeletal disorders in the former Soviet Union, and recognition of the technique began to grow in Europe and the USA more than 10 years ago (Erickson, 2007:49). In addition, radon therapy is used in the treatment of diseases of the cardiovascular, genitourinary system, diseases of the gastrointestinal tract and skin and metabolism (Petrova & Yakovlev, 2018a:13). All of the diseases mentioned above are typical for residents of the Russian Federation, in particular the Leningrad region and its bordering regions. Currently, a number of private clinics and health resorts offer radiotherapy services in the Leningrad Region, but they use “imported” radon. The creation of a specialized resort on the territory of Lopukhinskoye Lake, where there is a constant source of radon and minimal logistics costs, would give a big breakthrough in the development of medical tourism in the Leningrad Region (Petrova & Yakovlev, 2018b:36). Similar resorts exist in the Stavropol, Krasnodar and Chelyabensk regions and other regions of the Russian Federation, as well as abroad, for example, in the city of Dehloran in western Iran (Adelikhah et al., 2020). The high radioactive danger of radon can make tourists reluctant to visit unique natural places and self-medicate because of the danger to their health and even life. It should also be noted that it is problematic to protect yourself from invisible danger using household dosimeters because they measure gamma rather than alpha radiation, which comes from radon. Radon activity is measured by a special radiometer

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that registers alpha radiation. The price of a radiometer is several tens of times higher than the price of a household dosimeter. It is difficult to judge the activity of radon by the gamma background, because additional data are required that cannot be obtained with a simple dosimeter (Sautz & Sautz, 2021:32).

Conclusion To summarize, the natural radon water springs of the Leningrad Region have great potential as objects of ecological and medical tourism. Creation of recreational and anthropogenic facilities on the territories of the listed locations and organisation of visits to avoid negative impacts on health will serve as a great impetus for the development of safe ecological tourism. The establishment of medical infrastructure facilities, in addition to tourism development, will have a positive impact on the medical and social environment through the treatment of diseases typical for the residents of the Russian regions, the prevention of technological changes in the natural radiation background, which will positively influence the sustainable development of the North West region. The areas of advertising, promotion and health education for potential tourists, patients and tourism workers should be noted as further areas of research.

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