The Need for the Green Economy Factors in Assessing the Development and Growth of Russian Raw Materials Companies

Abstract

Approaches to assessing economic development and growth in the context of transition to a green and low-carbon economy are considered on the example of the Russian raw materials business. The implementation of carbon regulation leads not only to the expected environmental results but also to a change in market conditions. With the spread of protectionist measures and restrictions, the assessment of the former integral indicator is distorted. It is shown that the curtailment of long-term contracts for the supply of fossil fuels and restrictions on investments in traditional energy projects adjust the assessment. In this article, its author drew attention to the need to take into account the factors of the green economy in the context of the development and growth of Russian developing companies. Indices, ratings, as well as such indicator systems as environmental, social, and governance may be of interest as a criterion of success. One of the factors of sustainable development and growth of raw materials companies is the number of proven reserves of recoverable resources, the potential of hard-to-recover resource, and the inability to reproduce natural resources. Based on the analysis of dependencies, it is proposed to develop strategies, which allow us to identify new opportunities. The system for assessing economic development and economic growth of raw materials and energy companies, built on a single-criterion approach, should consider the conditions of subsurface use, the level of reserves, and use of additional indicators to consider the impact of external circumstances. The assessment of the Russian raw materials and energy business on market principles may show negative dynamics in the short term, but in the long term, expectations are optimistic. This situation is largely explained by the inconsistency of the set goals for climate protection and the delay or inadequacy of actions taken as an example.

Received: 5 December 2023 | Revised: 18 January 2024 | Accepted: 5 February 2024

Conflicts of Interest

The author declares that he has no conflicts of interest to this work.

Data Availability Statement

Data sharing is not applicable to this article as no new data were created or analyzed in this study.