Metalloinvest improves its indicators for EcoVadis ESG-rating
27 December 2019
Metalloinvest (“the Company”), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, announces the positive dynamics in the sustainable development indicators, which have been reflected in the score of the independent international rating agency EcoVadis.
Based on the actualisation of the Corporate Social Responsibility (CSR) rating in 2019 Metalloinvest has been awarded a ‘Silver’ rating. Metalloinvest’s rating improved by 3 points year-on-year to 60 points in 2019, while the average industry rating was 43 points.
Metalloinvest was ranked in 12% of companies rated by EcoVadis globally. At the same time, the Company featured in 8% of in the ‘Environment’ category and in 4% in ‘Labor and Human Rights” category among the producers in the manufacture of basic iron and steel industry.
Andrey Varichev, CEO of Management Company Metalloinvest, commented: “We constantly improve our standards and practices in the field of employees’ life and health protection, we take care of environment and well-being of local residents in the towns where the Company operates. Sustainable development has become a key pillar in our Company’s strategy for long-term leadership and corporate culture. Our customers and investors enhance attention in ecological and social aspects of the business. An independent assessment of the company’s progress in this sphere is important to them.”
Based on the results of its assessment, EcoVadis identified areas where Metalloinvest can improve CSR practices in order to achieve an even better rating in 2020.
The Company has improved its positions in the number of ratings in sustainable development for 2019. In the WWF’s (World Wide Fund for Nature) rating Metalloinvest took 4th place compared to 6th in the previous year, showing the best result out of all companies in the ferrous metallurgy industry. Also, the Company received the highest rating in the ‘Information Disclosure’ category.
The Company took 45th place in Interfax-ERA’s Fundamental Efficiency (environmental and energy) rating. The rating covers the largest top-150 companies in Russia and Kazakhstan. Moreover, Metalloinvest ranked second among the top-5 steel companies in terms of steel production.
Metalloinvest uses the best available technologies in production as well as directly reduced iron and steel casting in the electric furnace, enabling the Company to minimise its environmental footprint. Between 2007-2018 total dust emissions into the atmosphere from Company enterprises declined by 24%.
The Company increases the output of high-quality products (such as HBI and premium quality pellets), the use of which allows customers to reduce gas emissions during steel production.
The total expenses of Company in the field of environmental protection were 44 bn roubles in 2013-2018.
Metalloinvest has been supporting UN global initiatives, including pursuing 17 UN Sustainable Development Goals (UN SDGs). In 2019, Metalloinvest has joined the United Nations Global Compact (UNGC), an international initiative centered on corporate sustainability and social responsibility.
In 2019 Metalloinvest became the first private company in Russia to sign a loan agreement with ING Bank in the amount of up to USD 100 mn, the interest rate of which depends on the ESG rating.
EcoVadis is an international rating platform that evaluates the management system for corporate and social responsibility of business. The EcoVadis methodology is based on international CSR standards including the Global reporting initiative, the UN Global compact and ISO 26000. EcoVadis evaluates companies in 4 groups: environment, labour & human rights, ethics and sustainable procurement. In 2018, Metalloinvest received the ‘Silver’ CSR rating from EcoVadis.
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