Evaluation of the involvement of international companies in ESG transformation processes

In recent decades, the issue of companies' involvement in the process of implementing ESG principles has been increasingly raised. Conducted studies show that the ESG rating is a significant variable and can have a direct impact not only on the profitability of companies, but also on other factors, such as the size and growth of profits, the reputation and image of the company, the size of investments attracted, etc. Some studies show that ESG and corporate sustainability are often used as interchangeable concepts. Companies implementing ESG principles are associated with sustainability, financial well-being, and a high reputation. However, the issue of the level of companies' involvement in the ESG transformation process has been considered only superficially, touching on the general aspects of the need to implement ESG principles in the activities of companies. The purpose of the study is to assess the degree of companies' involvement in the ESG transformation process based on the evaluation of the top 5 large companies in the pharmaceutical, gas and telecommunications industries of the world's economies. Methodology – the study is based on the evaluation of intensity ratios of Bloomberg methodology covering the integration of ESG analysis into business and investment analysis. Originality / value of the study – In this article, based on the use of the Bloomberg ESG rating assessment methodology, an attempt is made to analyze the level of companies' involvement in the ESG transformation process based on an assessment of the top 5 large companies in the pharmaceutical, gas and telecommunications industries of the world's economies. The question is whether there is a parallel between the size of a company and its level of engagement in ESG. Research results – the conducted analysis has shown that the process of ESG-transformation is observed in companies of different industries. In this case, the size of the company, the level of its capitalization and income does not matter. It is impossible to draw a parallel between “large company” and “high ESG rating”. Companies practically do not pay attention to additional contributions to the elimination of damage and mitigation of environmental resources. Of all the companies reviewed, only TeliaSonera AB from the telecommunications industry has already allocated funds for environmental damage remediation on an annual basis since 2021. ROSTELECOM PJSC joined in 2022 and two more companies Telstra Corporation Limited and TELUS Corporation in 2023.