An important condition for the successful incorporation of ESG principles in banks’ activity is reflecting the data on the implementation of environmental, social and governance activities in the reporting for stakeholders. The paper aims to build the models of ESG factors’ impact on the banking industry. Methodologically, the study rests on the theories of ESG banking and green (responsible) finance and uses the methods of dialectical and economic statistical analysis. By means of correlation analysis the authors reveal causal relationships and establish the ESG factors affecting the banking sector of the Russian Federation. The obtained data point to the importance of green finance within the framework of the sustainable environmental and economic development of the banking industry. The study does not fully confirm the thesis that following the ESG principles will lead to an increase in the profitability and efficiency of the banking sector: only social factors directly influence the performance of the banking sector, while environmental factors have an inverse effect, and there is no relationship with the governance factors. The findings can be useful while incorporating ESG principles in the regulation of financial markets and in investment practices. This will enable the organisations in the banking sector to form an ESG-based strategy, control the factors affecting the financial sustainability of the baking industry, manage ESG risks based on an extensive dialogue with stakeholders, and win goodwill
National economic policy uncertainty is a determinant of stock market volatility, decreased investor confidence, and macroeconomic instability. The study aims to examine the interaction between Russia’s Economic Policy Uncertainty Index (REPU), the Moscow Stock Exchange RTS Index (RTSI) and the exchange rate of US dollar to Russian ruble. Methodologically, the analysis relies on the theories of financial markets and the concept of economic uncertainty. The causality is investigated using the Granger causality test. The data is the monthly indices and exchange rates for January 1996 – July 2024. The findings indicate that there is no statistically significant causality from the REPU to the RTSI, which suggests that the direct impact of economic policy uncertainty news on stock prices is limited. However, a significant causation is established between the REPU and the exchange rate, indicating that policy uncertainty causes currency depreciation. This evidences that economic policy uncertainty plays an important role in exchange rate fluctuations. The insights derived from the study could help policymakers and investors assess issues related to financial stability and exchange rate risks. In future, the study could be extended to examine other macroeconomic indicators and external shocks influencing financial markets