Pipe Metallurgical Company (TMK) was assigned a sustainable development rating by the National Rating Agency (NRA) at the level of AA.esg. Experts assessed the level of integration of the sustainable development agenda into TMK’s activities and the quality of the company’s compliance with relevant practices as “very high.”
TMK received a high rating for the environmental component. This is due to the inclusion of the concept of sustainable development in the company’s business strategy and the high degree of regulation of environmental practices aimed at reducing the negative impact on the environment. The experts' opinion was also positively influenced by the high degree of maturity of the integrated environmental and climate risk management system, the availability of an assessment of the environmental practices of contractors and suppliers, and the positive dynamics of environmental costs.
TMK's social policy received a very high rating. The authors of the study noted the significant level of social support that TMK provides to employees and members of their families, and significant investments in human capital. Separately, experts noted the comprehensive labor protection system, the consistent implementation of social and corporate events in the regions of presence and the high level of regulation of social practices.
The corporate governance processes in the company were awarded the maximum rating. This was facilitated by the proper level of regulation and organization of the corporate governance system in accordance with the requirements of the legislation of the Russian Federation, the integration of sustainable development issues into the activities of the Board of Directors and the creation within it of a separate committee for strategy and sustainable development. An effective risk management, internal control and internal audit function had a positive impact on the study results.
“TMK has always paid significant attention to issues of sustainable development as the foundation for long-term and responsible operations. The company is improving the environmental friendliness of its production, investing in improving the quality of life of its employees and developing the regions where it operates, and adheres to high standards in corporate governance. The sustainability rating allows TMK to receive an independent qualified assessment of its work and understand which areas should be strengthened to achieve even better results. The current rating demonstrates the company’s commitment to the principles of responsible business conduct and consistent movement towards achieving the goals set in the Sustainable Development Strategy,” said Denis Papin, head of TMK’s sustainable development department.
The rating was compiled based on information from open sources and information provided by TMK. The basis for assigning an ESG rating to the NRA is a rating model with a scoring system, which includes the final result for three grouped components (ecology/environment, social policy and corporate governance), as well as a composite score.
According to NRA methodology, the scale for the summary assessment of the rating includes three categories - from A (the organization demonstrates leadership in integrating the sustainable development agenda into its activities and the quality of compliance with relevant practices) to C (the organization is at initial level of integration of the sustainable development agenda into their activities, basic mechanisms for compliance with relevant practices have been created or basic mechanisms are in the process of being created). Within the categories, for a more detailed assessment, positions are distributed into seven levels from AAA.esg to C.esg, while the AA.esg rating assigned to TMK is one step lower than the maximum.
