ESG AND PROJECT FINANCING IN THE CHEMICAL INDUSTRY

Abstract

ESG is a comprehensive approach to evaluating companies based on their environmental and social performance and how they are governed. This approach is supported by international commitments such as the Paris Agreement, but also by EU legislation. Financial indicators are key in making decisions about the development of companies and the financing of investment projects. Nowadays, indicators related to the impact of investment activities on the environment, society and corporate governance are also increasingly being reflected, ESG is becoming another key indicator in the assessment of investments. This paper aims to map the impact of ESG on project financing from the perspective of banks and from the perspective of companies in chemical industry. Based on structured interviews, it will be assessed to what extent the ESG approach influences the evaluation of project proposals when considering financing from the perspective of banks, and to what extent ESG influences the evaluation of investment proposals from the perspective of chemical industry companies.