ESG FUNDS AS A TOOL FOR FINANCING MUNICIPALITIES

Abstrakt
In this article, the author pointing out the concept of ESG as a generally applicable concept, not only in the business sector, but even in the public sector. Applying the ESG concept in municipalities would increase the environmental and social perception of municipalities, and the quality of life of the residents would increase too. The creation of an ESG fund, which would be under the management of the business sector, would ensure the missing financial resources for municipalities who are largely dependent on the state budget and therefore cannot devote themselves more to ESG transformations. The paper represents a further continuation of author´s research in this area. Purpose of the article We would like to point out the basic problem of the financing municipalities in the condition of the Slovak Republic. This municipalities are dependent on financing by state and our paper brings out the opportunity how to change it. Methodology/methods In this paper we use methods like deduction and synthesis because we are trying to make a co-operation between business sector and municipalities, and our work points out ideas how to do it. Scientific aim This paper points out the possibility how to use ESG funds for supporting the municipalities. Findings ESG funds brings more efficient redistribution of finances from income taxes. Conclusions (limits, implications etc.) We pointed out the positive impact for both sides, especially in increasing the ESG ratings for the municipalities and for business sector too. ESG funds brings the opportunity to support municipalities with their effort to improve living of their residents, who are often the workers in the business sector.

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Zväzok: XVI, Číslo: 1/2024