ESG INTEGRATION IN EVALUATING AND FINANCING LOCAL GOVERNMENT: A NEW PROSPECTS FOR LOCAL GOVERNMENTS AND MODERN SOCIETIES

Anastasios SEPETIS

Assistant Professor, Business Administration Department, University of West Attica, 12241 Egaleo, Athens, Greece

tsepet@uniwa.gr

(CorrespondingAuthor)

Dimitrios TSIRIGOTIS

Researcher, Department of Digital Studies, University of Piraeus,

dimtsirigotis@outlook.com

Ioannis NIKOLAOU

Professor, Business and Environmental Technology Economics Lab,Department of Environmental Engineering, Democritus University of Thrace, 67100 Xanthi, Greece

inikol@env.duth.gr

Yannis MANIATIS

Professor, Department of Digital Systems, University of Piraeus, GR-18534 Piraeus, Greece

maniatis@unipi.gr

Abstract

The discourse on Environmental, Social and Governance (ESG) factors in the financial markets brings a prime opportunity for local governments to the fore. This opportunity pertains to their efforts to reduce their environmental impact, improve the living conditions of local communities and reform their decision-making processes. This paper is an attempt to capture the said perspective of the Local Government through the critical overview of the relevant theoretical background and much more of the existing successful practices. The supreme challenge is to find the optimal ratio between economic growth, socially fair development and the preservation of natural resources. In this equation, one could argue that the independent variables are human resources, finite natural resources, the institutional framework (that should set limits to depletion), as well as the financing of activities aimed at Sustainable Development. Urban sustainability derived from ESG factors can provide a more comprehensive approach to the above equation by challenging the central authority to establish appropriate rules and approve good practices and the markets to further insist on sustainable investments. In order to perform comprehensive research for the synergies ESG criteria in the Local Government, we chose to use the systematic literature review’s guidelines. Furthermore, the purpose of this paper is to shape an ESG integration model for Greek local authorities by utilizing the existing literature.

Keywords: Sustainable Finance, Environmental Social and Governance (ESG), Sustainable Regions, Sustainable Cities, Municipal Green Bonds

JEL classification: R10, Q01, Q50, G10, G30, H10, H30, H70

 pp. 81-97

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