The Russian chapter of the Climate Governance Initiative (CGI Russia), part of the World Economic Forum’s Climate Action Platform and Shaping the Future of Global Public Goods Platforms, produced a report on Russia’s metals and mining sector assessing the integration of climate agenda into their corporate governance systems. The report was produced in partnership with Polyus and Deloitte.
The purpose of the report is to assess the degree of maturity among Russian mining and metallurgical companies in integrating the climate agenda into their corporate governance systems, as well as practical steps toward decarbonization. This is assessed by engagement with such initiatives as the Carbon Disclosure Project (CDP) and Task Force on Climate-related Financial Disclosures (TCFD). Corporates were also assessed for actual indicators of greenhouse gas emissions, as well as indicators of use of renewables and low-carbon energy sources.
Below are the report highlights.
Position of Russian companies against global peers
- The rate at which Russian mining and metallurgical companies are introducing management aspects of the climate agenda of Russian is generally in line with that of their international peer group.
- Russian companies are in the lead in terms of engagement with international climate associations.
- Russian companies are behind the curve when it comes to introducing an internal carbon price as a decarbonization tool.
- About a third of the Russian companies surveyed reported that renewables made up more than 80% of their total energy consumption, with hydropower as the primary source of renewable energy.
- The report highlights that the active use of natural gas is a differentiating feature of the companies
- The report suggests that Boards and Management at Russian companies are increasingly engaging more in discourse around the climate agenda, bringing them in line with global peers.
- The degree of disclosure of climate indicators by Russian companies remains at a relatively low level.
- 50% of Russian sector players said they either had or were developing a climate strategy, which is in line with global figures.
- Russian players adhere to global standards and develop their own climate risk assessment and management systems.
- However, just 70% have performed assessments to date and only 36% have performed scenario analysis exercises.
Metrics and goals
- The GHG emission reduction targets of Russian companies remain far behind those of industry leaders globally.
The full report is available to view on CGI Russia website