Sergey Nikonorov. ECG Instead of ESG: Russia Is Forming Its Own System for Assessing Responsible Business

The updated national standard GOST R 71198–2026 «Business Reputation Index of Business Entities (ECG Rating)» comes into force on June 13, 2026. The expanded methodology aims to cover a broader range of business data and take into account alignment with national development goals. Moreover, more than 7.6 million business entities are already using the current version of the GOST for the ECG rating, according to Anton Shalaev, head of Rosstandart, speaking at SPIEF–2026 – this document became the most popular Russian standard by the end of 2025. Commentary is provided by PORA expert Sergey Nikonorov, Doctor of Economic Sciences, Professor at the Department of Economics of Sustainable Development and Natural Resource Management, Director of the Center for the Study of Economic Problems of Arctic Development at the Faculty of Economics of Lomonosov Moscow State University, and head of the working group for the sustainable development rating of companies and regions of the Russian Arctic, «The Polar Index».

The adoption of the national standard for the ECG rating (GOST R 71198-2026) has become one of the most notable events in the field of corporate responsibility regulation in recent years [ECG (Ecology, Cadres/Human Resources, Government) – Ed. note]. In essence, we are talking not just about a new company rating, but about an attempt to form a Russian model for assessing responsible business that relies on national priorities and state data, rather than on international approaches and voluntary reporting.

Over the past decade, ESG ratings have remained the global benchmark for assessing sustainable development. They have allowed investors, banks, and partners to assess the environmental, social, and governance maturity of companies. However, the changing geopolitical situation, sanctions restrictions, and the reduced participation of Russian business in international financial markets have raised the question of creating a domestic assessment system that takes into account the specifics of the national economy.

The ECG rating is becoming precisely such a tool, based on three key components: Ecology, Human Resources, and State (Ekologiya, Kadry, Gosudarstvo). Unlike the ESG model, based primarily on corporate reporting and assessments by external agencies, the new system uses data from state information resources – the Federal Tax Service, the Federal Treasury, the Federal Antimonopoly Service, the Federal Financial Monitoring Service, the Federal Bailiff Service, and other agencies. This makes it possible to minimize the subjectivity of the assessment and significantly increase the reliability of the results.

Another important difference lies in the scale of coverage. While ESG ratings have traditionally been oriented primarily toward large businesses and public companies, the ECG rating extends to virtually the entire Russian entrepreneurial sector – from individual entrepreneurs to the largest corporations. In effect, for the first time, a tool is emerging that allows for assessing the level of trustworthiness and social responsibility of most economic participants within a single logic.

The ECG rating acquires particular significance due to its practical link to state support mechanisms. High positions in the rating are already becoming a basis for receiving various preferences: benefits when participating in public procurement, reduced contract security requirements, priority connection to infrastructure, and other incentive measures. According to the developers of the standard, such mechanisms are already in place in more than fifty Russian regions.

It is also noteworthy that the updated version of the standard expands the list of assessed criteria. The focus includes issues of personnel stability, support for families with children, employer participation in implementing demographic policy, corporate social programs, and projects aimed at strengthening family values. At the same time, the block assessing business reputation and trustworthiness has been strengthened, making the rating useful not only for the state but also for businesses when selecting counterparties and suppliers.

At the same time, it is still premature to say that the ECG rating can completely replace ESG. For companies operating in international markets, attracting foreign capital, or developing export directions, ESG ratings remain relevant. They remain a clear and recognized language of communication with global investors and international financial institutions.

The most likely scenario appears to be the coexistence of the two systems. The ECG rating will be used as a tool for interaction between business and the state domestically, while ESG will retain its importance for international activities. However, this model inevitably creates additional costs for companies, which will have to take into account the requirements of both approaches and maintain parallel reporting systems.

There are also substantive limitations to the new methodology. In particular, the current version of the standard does not sufficiently address issues of the climate agenda and the development of the green economy. Indicators of occupational safety, training, and professional development of personnel require special attention. Furthermore, the methodology does not yet adequately account for the sectoral specifics of business and the level of its export activity.

Nevertheless, the emergence of the ECG rating can be seen as an important stage in the formation of Russia’s responsible business infrastructure. In the context of structural economic transformation, the state gains a tool that allows it to incentivize socially responsible behavior by companies and link support measures to specific business reputation criteria.

The main question today is not whether the ECG rating will replace the ESG system, but whether the new model can become a full-fledged standard of trust within the country. If the developers manage to eliminate existing methodological limitations and ensure stable rules of the game, the ECG rating has every chance of becoming one of the key tools of state economic policy in the coming years.

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