ESG Transformation of the Real Sector: An Empirical Analysis of ESG Agenda Drivers in Companies in the Caucasus and Central Asia (CCA) Region

Bakyt  Beknazarov; Dana  Bekniyzova; Diana  Stepanova; Nazar  Khakimov; Elena  Tarando; Feruza  Khakimova; Andrey  Zharov; Shoira  Choriyeva; Magomed  Tashtamirov

doi:10.48161/qaj.v5n4a1844

Authors

Bakyt Beknazarov Department of Economics, М. Auezov South Kazakhstan State University, Shymkent 160012, Kazakhstan;
Dana Bekniyzova Department of Business and Management, Innovative University of Eurasia, Pavlodar 140000, Kazakhstan;
Diana Stepanova Department of State and Municipal Finance, Plekhanov Russian University of Economics, Moscow 115093, Russia;
Nazar Khakimov Department of History and Social Sciences, Tashkent University of Applied Sciences, Tashkent 100185, Uzbekistan;
Elena Tarando Faculty of Sociology, Department of Economic Sociology, Saint-Petersburg State University, Saint-Petersburg 199034, Russia;
Feruza Khakimova Department of Banking and Finance, Tashkent University of Applied Sciences, Tashkent 100185, Uzbekistan;
Andrey Zharov Department of Technosphere Safety, Peoples' Friendship University of Russa, Moscow 117198, Russia;
Shoira Choriyeva Department of Banking and Finance, Tashkent University of Applied Sciences, Tashkent 100185, Uzbekistan;
Magomed Tashtamirov Institute of Economics and Finance, Kadyrov Chechen State University, Grozny 366007, Russia.

DOI:

https://doi.org/10.48161/qaj.v5n4a1844

Keywords:

ESG agenda, ESG transformation, ESG principles, sustainable development, ESG practices, environmental initiatives, social responsibility, corporate governance.

Abstract

ESG transformation of industrial companies is a key factor for business success and positive social change. At the same time, the implementation of ESG standards in the Caucasus and Central Asia (CCA) region is still in its formative stage. The aim of this study is to examine the factors that contribute to the expansion of ESG practices within enterprises in the real sector of the economy. This study surveyed 692 companies from Russia and Kazakhstan across five key industries using an online questionnaire with 14 statements assessing ESG engagement on a 5-point scale. The collected data underwent factor analysis (principal component method with varimax rotation) and ridge regression modeling to identify key drivers of corporate commitment to ESG practices. The results show that despite growing geopolitical tensions, interest in implementing ESG practices not only persists but is increasing in importance. Our analysis indicates that increased regulatory pressure from governments and international organizations is the main driver of ESG transformation for Russian and Kazakhstani companies across all studied industries. Additionally, enhanced investment attractiveness and access to international funding markets are significant factors shaping corporate commitment to the ESG agenda in most sectors.

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