Interview of Dean of the Faculty of Economics and Business Ekaterina Bezsmertnaya to the RAEX Ranking Group

“Skilled personnel capable of integrating the principles of sustainable development into their professional activities are needed both in industries and in ministries and departments.”

Today in Russia, there is no consolidated understanding of the role and functionality of universities in the ESG principles’ implementation. Some universities see their task in formal compliance with the UN SDGs, others in training specialized specialists, and some in introducing resource-saving practices into everyday student life. Based on your university’s experience, please summarize, ESG in relation to the university is (in order of priority) …

In Russia today, perhaps, there is no single view of society on the ESG content. In mass media and discussions, sometimes polar points of view on this trend are expressed. There is an opinion that ESG is a phenomenon firmly rooted in all spheres of socio-economic life, a kind of culture, a progressive way of thinking that should be formed from an early age. But in the context of geopolitical tensions, rather harsh comments are increasingly being heard, in which the ESG project is assessed as an “economic trap for hydrocarbon exporters”[1].

Neither the current nor the ones coming into force on 09/01/2025 in connection with the publication of the order of the Ministry of Science and Higher Education of the Russian Federation dated 02/01/2022 No. 89 lists of specialties and concentrations of higher education training  do not contain any names of areas of concentrations with the terms “ESG” or “sustainable development”. Nevertheless, if we turn to the data of the HSE ESG Center, Russian universities already in 2022 offered applicants more than 650 educational programs focused on the study of the ESG agenda. Given the wide range of issues covered by ESG, alumni of relevant educational programs should have a broad outlook, and the skills they have acquired during their studies should be based on the principles of complexity and interdisciplinarity. At the same time, there is also a request from employers for specialists in this field: if you turn to the resource hh.ru As of 09/27/2023, almost 1.5 thousand relevant vacancies were posted on the site, including a sustainability manager, a lean manufacturing project manager, an ESG business analyst, etc.

It seems that recently, unfortunately, the leading topic of discussion in professional communities has not been the substantive content of the movement towards ESG benchmarks, but the problem of “measuring sustainability”, which allows determining the place of a single entity in the relevant rankings assigned by news agencies, and thus increasing its attractiveness in the eyes of investors.

Russian universities are also participants in many international and domestic rankings, some of which are now also focused on evaluating efforts to maintain sustainable development. In particular, in the UI GreenMetric ranking created by the Universitas Indonesia, which evaluates the environmental friendliness of campuses and the environmental sustainability of universities, in 2010 (when the ranking was first presented) 95 universities were represented, of which only one was Russian. By the end of 2022, 1,050 universities have already been included in the rating, 52 of them are Russian.

If we return to the issue of the lack of a role’s consolidated understanding and universities’ functionality in the implementation of the ESG principles, then, apparently, the generators of recognized ratings largely form ideas at universities about the content of university functionality in this area. In particular, the ranking of THE Impact Rankings 2023 (The Times Higher Education Impact Rankings) takes into account the activities of universities within all 17 UN SDGs. Universities in this ranking are evaluated in four main areas: a) research (conducting scientific research on ESG topics), b) management (sustainable disposal of material, technical, and human resources), c) advocacy (achievements of universities, reflecting the universities’ contribution of to the society development, d) teaching (sufficiency of qualified specialists, ensuring that students acquire key skills in sustainable development). Most likely, the most common opinion of representatives of university communities about their place in the ESG movement includes these main directions.

Whose experience, including foreign ones, does your university rely on?

Today, probably, all the leading universities are closely monitoring various innovations in all areas related to the activities of universities, and are trying to learn from each other’s best practices. The field of sustainable development is no exception. Every year, FinU hosts many scientific and practical events, where opinions and experiences are exchanged in terms of sustainable development issues. I would probably not be mistaken if I said that ESG topics became a special subject of research at the FinU long before the widespread use of the now popular abbreviation. For example, in April 2023. The University hosted the nineteenth International Scientific and Practical Conference “Corporate Social Responsibility and Business Ethics”, where business representatives and the University community discuss topical issues of sustainable development and corporate relations.

At the same time, we must not forget that the theme of sustainable development, which today is considered to be the product of understanding the problems of protecting humanity from global threats, mainly by European and North American political scientific and political circles, was close to domestic researchers. In particular, back in 1976, the USSR established the All-Union Institute for Systems Research, which studied environmental protection and the development of global processes.

It seems that the humanistic ideas of protecting humanity from global threats and ensuring decent living conditions for present and future generations in the configuration that is characteristic of the modern green (in the broadest sense) agenda have to a certain extent overgrown with certain far-fetched problems, and many initiatives involving the private interests of certain political and economic groups do not seem achievable in the near foreseeable future. Some ambitious green projects are predicted by some scientists to pay off only after hundreds of years[2]. Seemingly successful decisions regarding the achievement of certain Sustainable Development Goals sometimes lead to reverse effects in terms of other goals. For example, the intensification of the wind turbines’ production led to the mass felling of balsa (a special type of wood), which caused an environmental disaster in the Ecuadorian Amazon region. Approximately 80% of the world’s cobalt reserves, without which the production of electric vehicles is impossible, are located in the Congo, where a significant share of this metal’s extraction falls on unsafe artisanal mines, where child labor is often used[3]. Conclusions about the constant positive impact of national, racial and gender diversity of the board of directors on the performance of companies, etc. are questionable. It seems that in terms of broadcasting ESG knowledge to young people, an extremely careful and balanced approach should be followed, which makes it possible to form analytical skills and critical thinking among students, allowing them to separate technological and social innovations that are really aimed at to minimize environmental and social risks and improve the quality of people’s lives, from eco-trends, greenwashing practices, etc. 

Does your university have programs focused on training specialists in ESG?

 Since 2022, a profile “Corporate Economics and ESG Investment” partially in English is being implemented at the FinU at the Faculty of Economics and Business as part of the Bachelor’s degree program “Corporate Finance” (Economics) in partnership with the Ministry of Energy[4]. The training takes place during the standard period for a bachelor’s degree – 4 years. Upon completion of their studies, graduates will receive a bachelor’s degree in Economics. The peculiarity of the program is that in addition to traditional knowledge in economics (accounting, statistics, financial markets, corporate finance, etc.), students receive skills in environmental economics, corporate social responsibility of business, etc. The long-term cooperation of the Department of Corporate Finance and Corporate Governance implementing the program with representatives of federal agencies and leading corporations immersed in the issues of sustainable development allows for a fusion of theory and practice, integration into the learning process of professional market participants, implementation of workshops from practitioners into the educational process, active involvement of students in scientific and practical activities.

There is also a master’s degree program “Corporate Finance and ESG-Business Transformation”, implemented in partnership with the united company RUSAL, a leading company in the aluminum industry, the largest producer of aluminum with a low carbon footprint[5]. The two-year program is aimed at training financiers with in-depth knowledge of sustainable development, analysts for ranking agencies, and employees of IR departments. 

The ESG topic is of great interest to students. Considering that the issue of sustainable development is firmly among the development priorities of many domestic companies that are aware of their responsibility for the development of the region of presence, environmental protection, and social support for their employees, we plan to offer training modules related to ecology and sustainable development as elective subjects also to students enrolled in other educational programs.

In addition to bachelor’s and master’s degree programs, FinU also has a wide range of continuing education programs aimed at business owners, top managers, experts in the field of ESG, in particular the continuing education programs “Management of Sustainable Development in Business”, implemented by the FinU jointly with the Center for Education and Expertise of the Association of Financial Market Participants “Nonprofit Partnership for the Development of the RTS Financial Market”, it was created on the initiative of business representatives[6].

How do you take into account the potential demand from employers when determining the content of educational programs in the field of ESG? What is their participation in the educational process?

Applicants, and mainly their parents, are primarily interested in employment prospects after graduation when choosing a university. In this regard, any educational program is examined with the participation of representatives of partner companies before its implementation. Both the passport of the educational program and the curricula, as well as the content of specialized academic disciplines, are coordinated.  ESG-related programs have also been included in the list of higher education programs after coordination with partners. Skilled personnel capable of integrating the principles of sustainable development into their professional activities are needed both in industries and in ministries and departments. Therefore, the offer of such programs is, in fact, the fulfillment of the employers’ order.

Do you cooperate with other universities to implement the principles of ESG? Has this cooperation been affected by the rupture and weakening of ties with universities from unfriendly countries?

We are currently discussing the possibility of opening a new master’s degree program together with the Chechen State University. The plans include the preparation of a double-degree program, as a result of which the student will receive master’s degrees in economics and ecology and environmental management.

FinU is actively developing the practice of interaction with foreign universities on the organization of academic mobility of research and teaching staff and students, publishing joint textbooks and monographs, conducting joint scientific events (fortunately, modern information technologies allow developing many of these areas in an online format, without directly crossing borders).

Of course, the process of interaction with universities from unfriendly countries is not as active now as it used to be. However, most partner universities did not break off cooperation with the FinU, but suspended it. In a way, this suspension has made the process of developing international relations even more active than before. We are negotiating with some foreign universities in China, India, Malaysia and other countries for which the sustainable development agenda is also relevant. In the near future, FinU will offer new educational programs to applicants, which are also implemented with the participation of foreign partners. 

What stages in the ESG principles’ implementation into the daily management practice and life of your university are already over and what are ahead? How is the management of implementing ESG principles in the life of the university organized?

Individual processes related in one way or another to the implementation of ESG principles are highlighted in the University’s program documents - in particular, this concerns policy in research and innovation, youth policy, human capital development policy, etc. Individual indicators (for example: the share of purchases from small businesses and socially oriented non-profit organizations in the total volume of purchases; the share of buildings or premises available to students and employees with disabilities; domestic technologies created using the results of research and development demanded by the real sector of the economy and social sectors, etc.) are included in the personal maps of key performance indicators of responsible performers.

Does your university (in addition to educational activities) do any work to promote ESG principles? Which audience do you consider to be the target audience?

— In 2023, FinU entered the interval group “401-600” among 1,591 universities from around the world, becoming the eighth among Russian universities included in THE Impact Rankings 2023. The Three University Missions Moscow International University Ranking, FinU in 2023 he entered the interval group “501-550” – however, it should be noted that the methodology of this ranking does not directly link the University’s position to any ESG indicators: the evaluation criteria included in the group “University and Society” are more related to the universities’ communication activity, their information openness, successful alumni, so or otherwise exerting their influence on society within the framework.

FinU, as an academic partner, cooperates with CGI Russia, a platform for members of company boards of directors created to hold events on the climate agenda, in particular as part of research carried out on the basis of annual surveys of the largest Russian companies.

Since 2022, FinU has been involved in the implementation of a project to create and promote an ECG rating (ecology, personnel, state) together with the Institute of Demographic Policy named after D. I. Mendeleev, with the support of the Plenipotentiary Representative of the President of the Russian Federation in the Central Federal District I. O. Shchegolev, the Federal Tax Service of Russia, the Accounts Chamber of the Russian Federation. The ECG ranking is aimed at creating a mechanism that allows providing support to responsible companies through a system of preferences. It is planned that the compensation of the efforts directed by specific enterprises – ranking leaders to the region of presence development will be targeted at the reduction of administrative barriers by the state and the provision of the most favored nation regime.

The scoring stage, implemented using a unique mechanism for collecting the necessary information from aggregator agencies (the Federal Tax Service of Russia, the Federal Treasury, the Federal Financial Monitoring Service, the Federal Anti-Monopoly Service of Russia, the Federal Bailiff Service, the Ministry of Justice of Russia), as of the end of September 2023, almost 100 thousand companies from various regions of the country had passed. The main function of the FinU during the implementation of this project is to conduct a survey of companies, as part of which additional information provided by companies on a voluntary basis is verified on an application basis (this is data on the use of the best available technologies by companies, participation in charity projects, specific measures of social support for employees of the enterprise, etc.) and calculation of the finalized indicator. The key difference between the ECG and the ESG rankings is the emphasis on national priorities and values, as well as a greater focus on measures to increase the social responsibility of companies. 

One of the priorities in terms of promoting ESG principles is direct work with the student community, which consists in creating conditions for educating them to be active citizens and responsible, and widely involving students in socially significant, cultural, and charitable events.

In recent years, the number of activists in our country offering and developing environmental initiatives has increased dramatically, and many of them are young people between the ages of 14 and 35. This may partly be due to the fact that the growing up period of today’s youth has fallen into an active phase of global consumption growth, and therefore young people, observing the current environmental situation, have taken an active position in order to preserve natural resources for future generations. For many, participation in environmental events is an opportunity to prove themselves and make the world a better place. In a study conducted back in 2019, scientists of the Russian Academy of Sciences revealed that representatives of the older generation are most afraid of war, middle-aged people are most afraid of social instability, and generation Z (born after 1995) are concerned about environmental issues and environmental catastrophe[7]. According to a study by the NAFI analytical center conducted in the summer of 2022, modern youth, even during the search for a future employer, pays great attention to managerial, social, and environmental practices embedded in the business processes of companies (respectively 92%, 89% and 74% of the surveyed youth representatives indicated the importance of these priorities for them)[8]. Apparently, it is no coincidence that our students enthusiastically respond to offers to participate in environmental actions. FinU often hosts events with the participation of eco-activists, both isolated (collecting waste paper, organizing separate places for storing batteries and plastic products, etc.) and larger-scale (for example, the Ecosphere educational building greening project as part of the largest ecological festival of the capital “Ecofest”, held with the support of the Department of Nature Management and Environmental Protection of Moscow). FinU students and its branches have traditionally participated in the Green Marathon organized by Sberbank over the past few years, the purpose of which is to draw public attention to environmental problems and raise funds for tree planting, acting not only as direct participants in the race, but also as volunteers.

Source RAEX Ranking Group