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Development of corporate investment funds as a tool to achieve the goals of international treaties in the field of climate change.

Maira BauerMariya BulatenkoNatalia Shimshirt
Published in: International environmental agreements : politics, law and economics (2021)
The UNFCCC and Paris Climate Agreement set the environmental agenda for many years to come, making environmental protection a global trend. Herewith, these documents created many unprecedented challenges for business, shifting the focus from the original role of commercial benefit to the trade-off between profit and social responsibility. The need to adapt business strategies to the existing agenda has created new requirements for shaping the investment environment. In this aspect, there arises the question regarding the organizational and legal form the investment activities can be carried out in and what additional regulatory instruments can be applied to simplify the procedure for attracting environmental investments. In the current conditions, corporate investment funds may be considered as promising instruments for achieving the goals of international climate agreements. The study suggests that corporate investment funds can become an effective tool for attracting environmental investments. The study purpose is to assess the role of corporate investment funds in international climate agreements goals achievement, to consider the possibility of development strategies to improve management efficiency in the corporate investment funds in terms of their linkage to UNFCCC, Paris Climate Agreement and in a comparative perspective. The study methodology is based on the analysis of world and Russian law enforcement practices in the corporate activities field through the application of a systematic approach. The relationship between corporate governance represented by big businesses and the state is considered in the framework of the investment mechanism and the institutional environment, which is visualized in the model of the business landscape of a corporate investment fund in order to determine management strategies in the operation and development of a corporate investment fund. The study results can be put into practice by financial market participants and other entities in order to increase the efficiency of the use of assets and knowledge of national jurisdictions in the context of world and Russian practices.
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