Key Corporate Sustainability Assessment Methods for Coal Companies

Many businesses view sustainability issues as important and design corporate sustainability strategies. However, creating such a strategy does not mean the company will progress in sustainable development because the factors influencing businesses remain largely unexplored. Based on a review of studies on corporate sustainability, we identified the major factors affecting any company’s sustainability. They include government regulation, imperfect management, interaction with stakeholders, corporate self-regulation and self-reflection, and the regulatory framework, and can be consolidated into two groups. We also analyzed the groups of methods that can be used to assess a company’s sustainability: traditional corporate sustainability assessment methods, circular economy assessment methods, ESG assessment methods, and non-financial performance indicators. For each group of methods, limitations were identified, and it was concluded that corporate sustainability assessments should factor in the environment in which the company operates. As part of this study, a lack of methods for assessing the corporate sustainability of coal companies was revealed, along with insufficient consideration of industrial factors in the prior literature. These factors are responsible for incorrect corporate sustainability assessments in the coal industry. Taking into account the division of Russian coal companies into three types (energy companies, metal manufacturers, and coal producers) and the aspects of their functioning against the backdrop of economic restrictions (including sanctions and embargoes), the authors prove that each group of companies requires an individual corporate sustainability assessment methodology.