RUSAL and ESG: Sustainable Development in Russia’s Aluminum Industry

The idea of ESG gained prominence in 2004 when UN Secretary-General Kofi Annan urged major global corporations to weave environmental, social, and governance principles into their strategic thinking. Today, ESG concerns are a staple across businesses of all sizes, including many Russian companies that have long integrated these concerns into their practices and development plans.

sustainable principles

In Russia, one standout driver of the ESG agenda is the aluminum producer RUSAL. The company has earned its leadership by blending global best practices with local realities, adapting international frameworks to Russian conditions, and sharing its approach with partners across other sectors to promote sustainable development.

Analysts from the SCAN-Interfax system consistently rank the aluminum giant among the top ten actively pursuing ESG initiatives. These efforts go beyond public relations; they encompass concrete projects advancing sustainable development despite economic headwinds. Russian producers face ongoing pressure from unfriendly nations, attempts to restrict aluminum exports to Europe, and a new export tax introduced in October. Yet the industry context remains challenging but resolute.

Strategic approach

Earlier this year, RUSAL’s Board of Directors approved a sustainable business plan extending to 2035. The strategy outlines priorities in ecology, social policy, and governance, detailing twelve flagship ESG transformation projects designed to make sustainable practices accessible throughout the aluminum supply chain.

Environmental stewardship and climate protection are central to metallurgical industries due to their historical footprint. Acknowledging this, RUSAL has engaged in ongoing research with organizations such as the Engineering and Technology Center to develop cleaner solutions for aluminum production. Since the early 2000s, the company has modernized its operations regularly.

A current example is at the Krasnoyarsk aluminum foundry, where two newer, capacity-aligned workshops will replace eleven older electrolysis units. The PA-550 electrolyzer technology with a pre-baked anode is expected to cut fluoride emissions by about 60% and eliminate benzopyrene emissions. In Bratsk and other smelters, gas-cleaning facilities are being upgraded using methods developed by SibVAMI, a division of RUSAL, enabling 99.9% emission capture.

Occupational safety and environmental protection are priorities. One aim is to reduce injury frequency by 50% and remove fatal incidents by 2030. A dedicated ESG project titled “Workplace of the Next Generation” focuses on cultivating a corporate culture with a healthy psychological climate, equal career opportunities, gender balance, fair pay, and clear, equal qualifications for all employees.

In the spotlight

RUSAL’s social responsibilities span many dimensions, touching the well-being of about 57 thousand employees and their families, as well as dozens of cities and towns across Russia, particularly in Siberia. In numerous regions, aluminum enterprises serve as catalysts for local development and employment, contributing significantly to economic and social vitality.

The social investment strategy through 2035 prioritizes improving living standards for employees and their families, alongside broader corporate responsibility initiatives. Since the company’s inception in 2000, it has actively backed local communities and public initiatives. Between 2018 and 2023, social investments surpassed 28 billion rubles.

RUSAL funds the construction and modernization of social infrastructure, supports local communities and non-profit groups, and strengthens Russia’s scientific, educational, and cultural base. From this year, the quality-of-life and sustainable development index for responsibility cities guides project selection, a framework adapted by the company with international comparability and expert input. A related program, operated with VEB.RF, assesses 12 key areas of socio-economic and environmental well-being to gauge city-level progress and future confidence.

well-known status

Independent observers recognize RUSAL’s leadership in corporate social responsibility, environmental stewardship, and governance. This year, rating agencies named the company to top ESG tiers, signaling strong environmental, social, and governance performance. The company has earned platinum employer status and is repeatedly highlighted in Forbes-style assessments. Its initiatives win awards across environmental, philanthropic, community investment, and volunteer categories.

RUSAL also shares best practices with partners and suppliers, spreading sustainable development knowledge. It has developed its own maturity model and helped launch industry groups such as the Russian Climate Protection Partnership and the National ESG Alliance, which unite dozens of Russian and international firms to advance responsible practices.

However, external pressures from unfriendly states and other factors have created unprecedented stress for RUSAL and the wider aluminum sector. The resulting risks threaten not only leadership, but also the progress of numerous social and environmental programs and the broader industrial base driving regional development.