Metalloinvest has become the official partner of the Environmental Wellbeing Forum organized by Forbes Congress. Within the framework of the event, a constructive exchange of views took place between representatives of the state, business and public institutions on topical issues related to the preservation of the environment and the prospects for the introduction of environmentally oriented models into the economy.
Yevgeny Polesskiy, Director of the Department for Government Relations and Urban Development at Metalloinvest, noted that for the Company, the issues of reducing the negative impact on the environment and the carbon footprint of its products are of a practical nature. Metalloinvest has developed and is implementing a number of programs with specific targets in this area.
In 2020, Metalloinvest approved the Environmental Program for the period until 2025. The program provides for investments in the amount of over 22 billion rubles in a complex of environmental protection measures with a “direct” environmental effect at all production sites of the Company. At the same time, 70% of the program budget will be the Clean Air project aimed at improving the quality of atmospheric air.
The main goals of the energy efficiency program, calculated until 2025, are to reduce the consumption of electricity and gas by 8%, diesel fuel by 48%.
This year, the Climate Strategy was also approved, according to which the Company plans to reduce its own direct emissions (Scope 1) and indirect energy emissions (Scope 2) by 6% compared to 2019 2025, 77% by 2035. Metalloinvest plans to achieve carbon neutrality by 2050.
Artem Lavrishchev, Director of the Department for the Development of Financial and Economic Activities of Metalloinvest, emphasized that thanks to the chosen strategy, the Company is a leader in attracting green financing.
“The Company's ambitious goals and efficient implementation of planned projects are highly appreciated by key partners, investors, suppliers and banks,” noted Artem Lavrishchev.
In 2019, Metalloinvest became the first private company in Russia, which opened a green financing line of credit, the interest rate of which was tied to the EcoVadis rating (in ING Bank in the amount of USD 100 million or the equivalent in euros). In 2020, a 3-year extension of the line was announced.
Metalloinvest became the first Russian borrower in the iron and steel industry to tie pre-export credit to sustainable development goals. In 2020, the loan agreement, opened by a club of seven international banks, includes a mechanism according to which the interest rate was tied to the Company's key performance indicators for sustainable development.
The following KPIs are defined: development and implementation of a plan to reduce greenhouse gas emissions, reduce emissions of pollutants into the air, and increase the share of processing waste. The achievement of the KPIs will be assessed based on the results of two milestones in 2022 and 2024. based on an independently certified sustainability report.
Currently, the Company has ESG ratings from three independent international agencies: EcoVadis, ISS ESG and Sustainalytics; is a member of the UN Global Compact (UNGC) and supports UN global initiatives, including the 17 UN Sustainable Development Goals (UN SDGs).