Implementation of ESG criteria: Integration of environmental, social and governance criteria of companies in water management

In today’s environment, achieving sustainable development goals is an important component for any state. In this regard, finding new opportunities to improve the situation in the context of this situation remains relevant. The purpose of this study was to find an opportunity to use Environmental, Social, Governance (ESG) criteria in companies where water management is an important part of their operations. The main methods used were formal legal and forecasting. The paper describes in some detail the role of ESG criteria in achieving various development goals of the country, namely economic, social and environmental ones. The use of this approach also helps to attract more investments for enterprises and, therefore, ensure its more rapid development. In addition, the study emphasized the high role of water management in Azerbaijan, which is why the implementation of ESG criteria is particularly important in the country. The study also showed that there is a global trend towards the formation of a legislative framework in countries aimed at mandatory use of ESG criteria for reporting by enterprises. However, this kind of governance is not actively developed in Azerbaijan. In this regard, the paper describes some recommendations on the formation and implementation of this kind of state policy. In addition, the paper formulates recommendations on how companies should use the implemented ESG criteria and how they should be formed on the basis of international standards. The results obtained in the study form an idea of the implementation of ESG criteria both in general and in the context of water management.

Keyword: macroeconomics; public policy; sustainable development; use of ESG criteria in the regulatory framework; water resources management