From environmental management to ESG diagnostics of organizations: Implementation mechanisms and legal regulation

Vitebsk State Technological University, Vitebsk, Republic of Belarus

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Abstract

The article examines the theoretical and practical aspects of the transformation of environmental management into a system of ESG diagnostics for organizations within the context of the evolving sustainable development concept. Modern approaches to understanding ESG diagnostics as a tool for the comprehensive assessment of environmental, social, and governance aspects of organizational activities are explored. The place of environmental management within the ESG management system is determined, and its role in ensuring the sustainability and competitiveness of business entities is revealed. The study analyzes the scientific approaches of domestic and foreign researchers to ESG transformation and the integration of sustainable development principles into corporate governance systems. The main types of ESG diagnostics, methods of their implementation, and the entities providing such services are examined. The paper presents the specific features of conducting ESG diagnostics both internally by organizations and with the involvement of external experts. Special attention is given to the analysis of international frameworks, non-financial reporting standards, and the legal regulation of the ESG agenda in the Republic of Belarus. Strategic documents and legislative acts governing environmental, social, and governance aspects of organizational activities are systematized. The authors conclude that ESG diagnostics serves as an important tool for assessing the level of sustainable development of an organization, identifying ESG risks, and developing an effective ESG strategy in the context of modern economic transformation.