Applying sustanable development concept to projects of Arctic exploration

The purpose of the article is to find and justify methods for assessing the effectiveness of Arctic exploration projects based on the concept of sustainable development. The main features of sustainable exploration of the Arctic macro-region are the strategic nature of the projects, their social orientation, focus on creating long-lasting competitive advantages and high risks. So, the standard methods of evaluating project effectiveness do not work, while prerequisites exist to use the real option method (ROV). Applying the real option valuation method allows to take into account the value of managerial flexibility, which determines the possibility of changing the parameters of the project at any stage. As the main efficiency criteria, we propose to use the economic value added (EVA) indicator, which consists of the value of investment decisions made by the company (net present value, NPV) and present value of the real option which is created by sustainable industrial project (present value of the real option, PVRO. In the paper, we prove that applying of the proposed methodical approach will raise effectiveness of Arctic exploration projects due to certain risks mitigation for stakeholders. Therefore, the projects will be more attractive for investors.