Sustainable Development of Agro-industrial Enterprises Based on ESG Innovation Management

Abstract

The research aims to substantiate the benefits and develop recommendations for the sustainable development of entrepreneurship in the agro-industrial complex (AIC) based on ESG management of innovation. Using the example of the sample of countries with incomes above the world average in 2022, the author applied the methods of correlation analysis to determine the closeness of the relationship and the dependence of innovation management indicators in the activities of agricultural enterprises on the factors of ESG management. ESG management of innovation can achieve greater sustainability of agro-industrial enterprises than ESG management of innovation separately. The theoretical significance of the author’s conclusions is connected with the fact that the proposed ESG approach to innovation management in the activities of agro-industrial enterprises ensured the fullest compliance of their development with sustainability standards in the Decade of Action. The developed ESG approach involves a new order of implementation of the directions of innovation management in the activities of agro-industrial enterprises: systemic implementation of environmental (E), social (S), and governance (G) directions. The benefits of innovation management in the activities of agro-industrial enterprises in the ESG approach are derived not only by agro-industrial complex enterprises that implement innovations but by all stakeholders. Sustainability in the ESG approach is interpreted as a balance of stakeholder interests, which most closely corresponds to the system of 17 SDGs in the Decade of Action. The practical significance of the author’s recommendations is that the recommended control growth of ESG management factors of innovation in the activities of Russian enterprises of the agro-industrial complex will maximize their sustainability in the Decade of Action and increase the effectiveness of their innovation management.