Assessment of regional institutional readiness for ESG integration: methodology and application of the IRIS index in the Central federal district

Abstract

Institutional conditions play a critical role in the successful integration of ESG principles into regional governance systems. However, the Russian context has lacked methodological tools to comprehensively assess the readiness of regions to adopt and implement sustainability-oriented management approaches. This article introduces an original methodology for calculating the Institutional Readiness Index for Sustainability (IRIS), designed to provide a quantitative assessment of regional capacities for ESG institutionalization.

The index is structured around three components — Environmental (E), Social (S), and Governance (G) — each comprising three indicators. Evaluation is based on expert analysis of strategic documents, regulatory frameworks, and organizational infrastructure across the constituent entities of the Russian Federation. Each indicator is scored on a three-point scale, and the aggregated index is calculated using weighted components (0.33 for E and S; 0.34 for G). The maximum index value is 6.00 points.

Based on the scaled values, a typology of regional institutional readiness levels was developed: high (IRIS ≥ 4.00), medium (3.00 ≤ IRIS < 4.00), and low (IRIS < 3.00). This typology was subsequently applied to the regions of the Central Federal District to verify the model’s robustness. The results confirmed substantial institutional asymmetries and demonstrated the analytical sensitivity of the IRIS index. Tailored policy recommendations were proposed for each typological group to address identified institutional deficits.

The findings highlight the practical applicability of the IRIS index as a tool for strategic planning, comparative assessment, and institutional monitoring. Future research may include expanding the geographical scope of the analysis, comparing IRIS with alternative sustainability indices, and developing composite models of regional ESG maturity.

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