Adaptation of investment analysis to the features of socially oriented investments

¹ Peter the Great St. Petersburg Polytechnic University, 195251 Saint-Petersburg, Russia
² The North-West Institute of management - branch of the Russian Presidential Academy of National Economy and Public Administration (RANEPA), 197376 Saint-Petersburg, Russia

^* Corresponding author: mmed11@yandex.ru

Abstract

The current trend in the transition of the economy from a linear to a circular model implies, among other things, a reorientation of target indicators from cost criteria in favour of social and environmental significance. The sustainable development of the economy requires the complex interaction of all market players, the awareness of consumers and producers, investments from the state, as well as the attraction of private capital. Socially significant investments in ESG projects have a number of distinctive features, which makes it impossible to assess their effectiveness by the usual criteria for investment analysis. Methods for assessing the social return on investment today certainly exist and are being developed, but their perception, interpretation and, in particular, areas of practical application remain insufficiently accessible. This article is devoted to the analysis of the SROI indicator, as a generally accepted criterion for measuring the social return on investment, as well as the peculiarities of using this indicator for Russian investors. The purpose of the study is to analyse the existing methods for evaluating the effectiveness of investments in ESG projects, taking into account the specifics of the Russian economy in the current realities. Research objectives: To identify the main known methods in the field of evaluating investments in ESG projects; To identify the main problems when using international methods in the practice of assessing socially significant investments in the Russian market; Suggest ways to solve the identified problems.