PJSC Sberbank : Sber and market leaders hold the first conference on the establishment of the National ESG Alliance

The first conference dedicated to the establishment of the National ESG Alliance is over. Conference participants signed an agreement on cooperation on the back of the Alliance's establishment.

Participating in the meeting were the top executives of Avtoban, PJSFC Sistema, Gazprom Neft, EuroChem, Kolmar Group, Metallonivest, Uralchem, Polyus, Prosveshcheniye, RUSAL, R-Pharm, Sibur Holding, Solar Systems, SUEK, T Plus, TechnoNICOL, TMH, Delo Group, Uralkali, Pharmstandard, Unilever Rus, En+ Group, Eurasian Resources Group, Mercury Retail Holding, PLC O1, Properties Vos'hod Development, and X5 Group.

The mission of the alliance is to facilitate the transition to a sustainable model of economic development that ensures the conservation of nature, the well-being of society and the long-term prosperity of business amid the limited natural resources. It is based on the interest, cooperation and partnership of all the parties involved.

The National ESG Alliance is designed as a permanent platform facilitating dialogue and involvement of all stakeholders, exchange of knowledge and experience between business sectors, government and society, development and promotion of new norms and standards in the field of ESG, including industry guidelines, the formation of a common assessment framework and ESG reporting, developing transformative partnerships, interaction and implementation of common programs to achieve sustainable development goals of investment support for breakthrough projects focused on ESG transformation.

The suggestion to create the alliance to unite the efforts of top companies in ESG transition was discussed during the Eastern Economic Forum in Vladivostok in September 2021. The initiative received a wide support on behalf of leading Russian and international companies.

Herman Gref, CEO, Chairman of the Executive Board, Sberbank:

"Discussing social activities of companies, transparent and efficient management and preservation of the environment, we came to the conclusion that businesses, primarily the largest ones, need to unite their efforts to enhance this agenda in the country. We realized that we must work to create a regulatory framework, standards, rules for checking these standards, the formation of new legislation stimulating the ESG conversion among all market participants, and lobbying the national interests of Russia and domestic business in the international arena. These are the key tasks we have laid in the foundation of the constituent documents of the ESG Alliance. The original founders today are 28 companies representing more than 18 sectors of the Russian economy. The alliance is formed on a voluntary basis, and we encourage business representatives to join it. From our experience, such voluntary associations addressing serious problems facing business deliver great results. And it seems to me that this initiative can turn out to be a very useful and effective solution for promoting Russia in terms of the ESG agenda."

Ivan Streshinsky, CEO of USM, Board Chair of Metalloinvest:

"We are certain that the union of the largest Russian companies will facilitate the search for effective solutions in the field of climate and green transformation of the industry. Metalloinvest has accumulated considerable experience in the production of iron ore and low-carbon steel, and is interested in cooperation to develop new technology. We are ready to share our practices of introducing sustainable development principles into corporate governance."

Dmitry Mazepin, CEO, Uralchem JSC:

"Uralchem and Uralkali are pleased to join the ESG alliance. Uralkali is the first company in the industry to take out an ESG-linked loan. Created to facilitate a collective discussion of ESG and climate agenda issues, will allow all parties to hear each other and quickly move on to concrete and coordinated actions. We are convinced that when it comes to the global energy transition, Russia should be among the leaders. And there are all the prerequisites for this."

Vladimir Chirakhov, CEO (President), PJSFC Sistema:

"Joining the ESG Alliance attests to our commitment to sustainability principles, which Sistema has been pursuing for almost 20 years as one of the first Russian signatories to the UN Global Compact. The creation of the National ESG Alliance will facilitate a better promotion of international principles and leadership practices in the field of corporate governance, social and environmental responsibility of business in Russia. We are consistently engaged in the ESG transformation of our corporation and see our role as an investor in promoting the implementation of ESG standards across our assets, as well as creating a culture of responsible investment in the country."

Pavel Grachev, CEO, Polyus:

"Polyus has a wealth of experience in collaborating and developing industry standards for sustainability with its global mining peers, and we are delighted to have a cross-industry platform to help Russian companies implement the best ESG practices. Polyus is ready to offer a wide support of the initiatives that help transform the Russian economy in accordance with the principles of sustainable development."

Kirill Lipa, CEO, TMH:

"TMH is a leader in transport engineering, an innovator in the field of environmentally friendly transport. We hope that our participation in the alliance will make our work even more effective due to the synchronization of the efforts of the largest and most responsible companies that are members of the new association. I would like to thank Sber for taking the trouble to coordinate the activities of Russian companies in achieving sustainable development goals. Combining our efforts has every chance to become truly effective and useful for creating a business environment based on the principles of sustainable development in Russia, to ensure that the interests of future generations are met and are in line with the world's best practices."

Alexey Andreev, Director General, DSK AVTOBAN, JSC:

"The forging of the ESG alliance is the right and necessary step that will direct the Russian construction complex toward the highest quality governance of companies, respect for people and the most careful treatment of our nature and its irreplaceable resources. One-third of Russia's largest banks have already implemented the ESG evaluation of companies in assessing credit risks. Therefore, brands that implement ESM strategies in their manufacturing or service industries are in a better position and have a more sustainable business model."

Mikhail Kozhevniov, President, Prosveshcheniye:

"For Prosveshcheniye GC, the ESG agenda is a vital strategic field of development. In this line of work, we have to do a lot to transform the governance system and practices of interaction with partners, suppliers and consumers as soon as in 2022. We plan to improve our product line by expanding the list of materials and projects on ecology, social sciences, and inclusive education. Next year, ESG and sustainable development objectives will become part of the updated strategy of the Group of Companies and, I hope, an organic part of modern culture and education. The role that Prosveshcheniye plays the social segment of the country obliges us to strive to ensure the ESG transformation not only of our company, but also to contribute to the ESG transformation of the entire Russian education."

Konstantin Voitikkov, Vice President for Production and Delivery Service, Unilever Russia, Ukraine, and Belarus:

"Unilever presented its sustainable development plan, Compass 2030, in February, committing to work in three ESG fields at once: improving the health of the planet, improving the quality of life of people, as well as creating an inclusive and equal environment for all. We set ourselves some ambitious goals, and they require close cooperation with responsible market participants. We hope that the formation of the ESG Alliance will help us join forces to move to a more sustainable economic model and have a positive impact on the planet and society together."

Benedikt Sobotka, CEO, Eurasian Resources Group:

"We are happy that our long-term partnership with Sber is leading to broad and fruitful cooperation in a number of new fields. Today, we were enthusiastic taking part in the first Sber conference dedicated to the formation of the ESG alliance and the signing of a corresponding agreement of intent to join it. The alliance's mission to promote the transition to a sustainable economic development model and cross-sectoral cooperation in the field of ESG resonates well with the ESG goals of the Eurasian Resources Group. We look forward to working together and sharing our expertise with Sber and other leading Russian and international players within the ESG alliance. This work can be very useful for the development of individual industries and sectors of the economy, including mining and metals. We welcome the initiative of Sber to forge such an alliance."

Vladimir Markov, CEO, TechnoNICOL:

"TechnoNICOL is a recognized leader in manufacturing construction systems. This status imposes a special responsibility to society on each of our employees. Since 2017, we have implemented over 500 environmental projects. For example, we were the first among the manufacturers of building materials to reintroduce insulation materials, PVC membranes and drainage systems dismantled from construction sites, as well as waste from expanded polystyrene into the technological cycle. Construction waste accounts for almost a third of waste generated in most developed countries. Therefore, this project was crucial for us. We are ready to share our expertise with other members of the Alliance. I am sure that only through joint efforts will we be able to provide the Russian economy with the painless ESG transformation it needs. Businesses need to unite. Alone, everyone will be developing at a much slower pace."

Evgenii Nikitin, CEO of RUSAL:

"The formation of the Alliance is dictated by the global challenges facing Russian business. The intensive phase of ESG transition that we are entering requires the pooling of efforts by those who, like RUSAL, have become pioneers in their sectors, and those who must catch up in order not to lose their competitiveness in global markets.

"The ESG transformation of RUSAL encompasses not only its core operations, such as the fundamental technological re-equipment of existing aluminum production facilities with a significant reduction in environmental impact, but also programs that ensure the qualitative development of the social sector in the cities of our presence, such as the construction of hospitals to combat the coronavirus pandemic. We are ready to share our knowledge, experience and initiatives with the members of the Alliance and all stakeholders on the principles of partnership and cooperation."

Lord Barker, Executive Chairman of the Board of Directors, En+ Group:

"The creation of platforms that unite businesses, such as the National ESG Alliance, shows that sustainable development has become a mandatory part of the country's private sector agenda. Leading companies in various sectors of the economy have a need not only to adhere to ESG standards, but also to further extend them to the entire business community, as well as to develop government regulation the transition to a carbon-free and sustainable economy of the future requires.

"Both En+ Group and our metals branch (RUSAL) have a lot to share in terms of our experience in decarbonization, and we look forward to a constructive dialogue with other members of the ESG alliance."

Valery Mikhailov, shareholder, O1 Properties:

"The growing interest in the ESG agenda is a positive stage in the development of Russian business, but at the same time, it inevitably generates a lot of speculation. The forging of the Alliance as a single institution addressing these issues and exchanging experience will contribute to improving the quality of the dialogue among all the stakeholders and the conscious dissemination of the principles of sustainable business development in the interest of the Russian economy."