The role of ESG in the adaptation of the agro-industrial sector to climate change

Abstract

The purpose of this study was to investigate the role of utilising the work of agro-industrial companies in the sustainable development of Azerbaijan. Thus, the study assessed the essence of the concept of Environmental, Social, and Governance, and its role for the state and enterprises. It was concluded that in recent years, more and more attention has been paid to this kind of principles in the corporate world, as companies realise the importance of solving environmental and social problems to attract investors and develop sustainable practices. This is also consistent with the concept of corporate social responsibility, which emphasises the ethical obligations of business to society. The analysis of investment flows in such companies in the agricultural sector has shown that they can significantly expand the scope of their activities and accelerate the introduction of sustainable agriculture methods around the world. It was concluded that, given the benefits that investments in these companies bring to the country, it is important to include programmes aimed at increasing the investment attractiveness of such companies in the framework of national policy. In addition, targeted government support for such companies is effective. All this remains especially relevant in the realities of Azerbaijan, as a country with a transitional economy with a fairly high role for the agricultural sector (at least within the framework of food security), and the need for economic diversification. The results obtained in the framework of the study can be used to formulate a long-term development strategy for Azerbaijan in the context of combating climate change in the agro-industrial sector

Keywords

• agro-industrial sector
• investments
• innovations
• food security
• ecology
• sustainable development