An instrumental approach in financial strategizing of Russian corporations

The prerequisites and logic of the integration of the ESG approach into the strategic financial management of corporations (financial strategizing of sustainable development) are analyzed. It shows how environmental, social and managerial factors are translated into the language of financial indicators through risk, cost of capital and cash flows. Relevance is determined by the need to quantify a sustainable strategy in the context of macroeconomic uncertainty and limited access to market benchmarks for companies in the form of limited liability companies. The methodological framework is based on a systematic approach, logical and comparative analysis, elements of scenario modeling, as well as profitable valuation methods. The constructions of economic profit, weighted average cost of capital and discounting of free cash flows to equity are used. The study revealed a stable positive relationship between the depth of integration of the ESG approach and the integrated assessment of financial strategizing for the sustainable development of modern Russian commercial corporate organizations, taking into account the industry-specific impact.; Increasing transparency in non-financial disclosure reduces information asymmetry, reduces the risk premium to equity, reduces the cost of borrowed resources through access to sustainable financing programs and soft covenants, while modernizing production and increasing energy efficiency stabilize operating flows and maintain margins, and management and social practices increase productivity, employee retention, and counterparty trust. The conclusion is made about the expediency of the coordinated application of models of economic profit and cashflow analysis in the assessment of sustainable development strategies. Practical recommendations for the financial policy of corporations are formulated. The threshold conditions under which value creation is maintained are fixed. An algorithm for applied diagnostics for LLC is proposed, taking into account industry specifics and requirements for transparency of non-financial data.