Metalloinvest, a leading manufacturer and supplier of iron ore products and hot briquetted iron in the world market, one of the regional producers of high-quality steel, shared its experience in attracting green financing at the conference Responsible Financing as a Powerful Force of Positive Transformations. organized by Rosbank and the publishing house "Kommersant".
The conference covered a wide range of issues, including the dynamic development of the ESG market, risks and new opportunities associated with its rapid transformation, the role of investors and rating agencies in the development of market infrastructure and ensuring the maturity of approaches to assessing non-financial factors. The speakers also discussed the tools and practices of responsible financing that can support not only the green, but also the social agenda.
In his speech, Alexey Voronov, Deputy CEO for Finance and Economics of Metalloinvest, noted the high importance of attracting green financing for the transformation of the metallurgical industry.
“ESG aspects are an integral part of the Company's strategy and the basis of its long-term competitiveness, - emphasized Alexey Voronov. - Metalloinvest became the first Russian borrower in the iron and steel industry to tie pre-export credit to sustainable development goals. Metalloinvest became one of the first companies in Russia to open a green financing line of credit pegged to the EcoVadis rating. These steps demonstrate the Company's commitment to sustainable development goals and commitment to implementing a comprehensive strategy in the area of responsible finance. "
Leading Russian and Western experts of the financial sector, representatives of large international companies, research centers, ministries and departments, such as Societe Generale, Sustainalytics, WWF, RSPP, ACRA, Polymetal International plc., Rusal , Bank of Russia, VEB.RF, Moscow Exchange, EY and others.For reference:
In 2019, Metalloinvest signed an agreement on green financing. ING Bank opened a credit line for Metalloinvest for up to USD 100 million.
In 2020, the loan agreement under the pre-export financing line ("PXF-2019/2"), opened by a club of seven international banks at the end of 2019, includes a mechanism according to which the interest rate was pegged to key indicators the effectiveness of the Company for sustainable development.
In 2020, Metalloinvest approved the Environmental Program for 2020-2025. The program aims to reduce specific greenhouse gas emissions from pellet production; when enriching iron ores; water consumption from surface sources, volumes of formation and disposal of technological waste.
In 2021, Metalloinvest completed the development of its Climate Strategy. The company is committed to achieving carbon neutrality and maximizing greenhouse gas emissions from its customers by 2050 as long-term targets.
Metalloinvest is committed to an independent and professional assessment of sustainable development policies and practices. In 2019, the Company was assigned a Silver ESG rating by the international agency EcoVadis with a final score of 60 points, which is significantly better than the industry average (43 points). In 2021, the Company confirmed compliance with the "Silver" level of the EcoVadis rating and a high assessment of the WWF environmental openness rating.
Metalloinvest entered the top 10 global steel companies according to Sustainalytics. In 2020, the Company received an ISS ESG rating of 'C-', again showing an above-average performance in the metallurgical sector.