The concept of ESG is believed to have emerged in 2004, when the then UN Secretary-General Kofi Annan formulated the concept in a speech to the heads of major global companies with a proposal to incorporate these principles into their strategies. Today, ESG principles are firmly embedded in the business strategies of not only the largest companies, but also small and medium-sized companies, but for many Russian companies this issue has a longer history.
sustainable principles
One of the leaders of the agenda in Russia is aluminum producer Rusal. The leading role is connected with several aspects, and the most important one is that the company adapts its world practices to the Russian reality, combining them with the developments already happening in our country. And today RUSAL shares its experience with other sectors and instills the principles of sustainable development in its partners.
With calculations According to analysts of the SCAN-Interfax system, the aluminum giant is consistently among the ten most active companies in this regard. But this is not only about media activities, but also about real projects that the company is still working on today, despite the difficult economic situation. In the face of ongoing pressure on Russian producers from unfriendly countries, attempts to ban the supply of aluminum and its derivatives to European markets, and the “flexible” export tax introduced in Russia on October 1, the situation for the Russian aluminum industry is currently described as difficult.
Strategic approach
This spring, the Board of Directors of Rusal approved the strategy for sustainable business development until 2035, which sets out the company’s priorities in the field of ecology, social policy and corporate governance. In total, the strategy identifies 12 priority projects for RUSAL’s ESG transformation, and the document itself aims to make sustainable development accessible throughout the aluminum supply chain.
Environmental and climate protection issues are of great importance for the metallurgical industry; This sector has a historically cumulative effect in terms of environmental impact. Realizing this, Rusal experts, including research organizations such as the Engineering and Technology Center, began to develop new environmentally friendly solutions for the aluminum industry in the early 2000s. Since then, the company’s factories have been regularly modernized.
One of the current projects is being carried out at the Krasnoyarsk aluminum foundry, where two workshops of similar capacity and more environmentally friendly will be established instead of 11 old electrolysis workshops. As a result, thanks to the aluminum production technology in PA-550 electrolyzers with pre-baked anode, fluoride emissions will be reduced by 60% and benzopyrene emissions will be completely eliminated. Gas purification plants at Bratsk and other aluminum smelters are being modernized: technologies developed by the Siberian Research, Design and Design Institute of the Aluminum and Electrode Industry (SibVAMI), Rusal’s structural division, allow capturing 99.9% of emissions.
The company pays attention to the occupational safety of its employees as well as environmental safety. One of Rusal’s goals is to halve the frequency of occupational injuries and eliminate fatal injuries in the workplace by 2030. At the same time, one of the 12 ESG transformation projects within the framework of the company’s sustainable development strategy is called “Workplace of the Next Generation”: RUSAL develops a corporate culture whose main features are a healthy psychological climate, equal opportunities in career development, ensuring gender balance and providing employees with the same job and equal qualifications. Closing the historical wage gap between men and women.
In the spotlight
Rusal’s social responsibility has many dimensions: the Russian aluminum industry means the well-being of approximately 57 thousand employees of the company’s factories and enterprises and their families, as well as dozens of cities and towns in our country, especially in Siberia. For many regions of the country, aluminum industry enterprises today actually act as city builders, since their real contribution to the economy and social well-being is one of the most important, if not decisive.
The focus of the company’s social investment strategy until 2035 is on improving the quality of life of the company’s employees and their families, as well as improving the company’s areas of responsibility.. The company has been actively involved in social projects since its establishment in 2000, supporting local communities and public initiatives in various fields. In 2018-2023 alone, the total volume of social investments exceeded 28 billion rubles.
RUSAL invests in the construction and modernization of social infrastructure facilities, their maintenance and equipment, support of local communities and non-profit organizations, strengthening the resource base for the development of Russia’s scientific, educational and cultural potential. From this year, the main tool for selecting and prioritizing the company’s social investment projects is RUSAL’s index of quality of life and sustainable development of responsibility cities, specially modified by the company based on internationally comparable methodology with the participation of experts. VEB.RF is aimed at the needs of small industrial and mono-industrial cities. With its help, the company’s experts evaluate, based on statistical and survey indicators, the strengths and weaknesses of the development of each city or workers’ settlement in 12 main areas of socio-economic and environmental well-being, including general satisfaction with quality. life and confidence in the future.
well-known status
The extent of Rusal’s work in the field of corporate social responsibility, caring for the environment and climate and improving various aspects of corporate governance is recognized among independent experts. This year, NKR rating agency and RBC included the company in the first highest category in their ESG indices; This means the company has high levels of environmental, social and governance standards. Rusal also received platinum employer status and was ranked among the best according to the Forbes methodology. The aluminum producer’s projects win awards in a variety of competitions, from those related to the environment to projects dedicated to corporate philanthropy, community investment and volunteering.
The company shares best practices among its partners and suppliers and instills the principles of sustainable development. To assess their maturity in the context of sustainable development and reliability, RUSAL has developed its own methodology. For example, the company has co-founded associations such as the Russian Climate Protection Partnership and the National ESG Alliance, each involving several dozen Russian and international companies, to disseminate best practices and develop new solutions.
But today, as a result of the actions of hostile countries and a number of external factors, Rusal and the Russian aluminum industry as a whole are under unprecedented pressure, which brings it to the brink of an acute crisis with serious long-term consequences. Against this background, serious risks arise not only for the company’s leadership position, but also for the implementation of numerous social and environmental projects.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.