Nazim Efendiev, CEO of major global metals producer Metalloinvest, was named to the supervisory board of Russia’s ESG Alliance at the first official meeting of its founders.
The group focused on environment, social and governance (ESG) norms additionally signed documents to legally register the organisation and approved its charter.
“Metalloinvest regards the Alliance as an important platform for sharing practices and for dialogue with the authorities to create a regulatory environment that encourages the introduction of advanced approaches to sustainable development,” Efendiev said.
ESG-Alliance was created on December 1, 2020 during a conference organised by Sberbank, Russia’s largest lender. The initiative was supported by leading Russian companies with total revenues of over RUB 10 trillion and more than 1.5 million employees.
“There is a complex and costly road ahead, where leaders of the economy need to join forces to find effective and economically sensible solutions for green transformation,” Efendiev said. “Metalloinvest has already accumulated significant expertise in iron ore and low-carbon steel production, and we are interested in collaborating to develop further in this direction.”
The Alliance will promote the transition to sustainable development that ensures environmental protection, societal well-being and long-term business growth. Group members plan to create a permanent platform for dialogue and knowledge exchange for all stakeholders spanning the corporate sector, society and the state.
The Alliance will operate as an autonomous non-profit organisation. Representatives from 28 major Russian founder companies have been elected to its board, including Metalloinvest, AFK Sistema, Prosveshcheniye, Sibur Holding, Uralchem, Uralkali, Polyus, Mercury Retail Holding, EN+ Group, Rusal, Eurasian Resources Group, EuroChem, X5 Group, R-Pharm, Vos’hod Development, AVTOBAN, Kolmar Group, Solar Systems, T Plus, Transmashholding, Delo Group, SUEK, M.Video-Eldorado Group, Russian Copper Company, Sberbank, O1 Properties, Pharmstandard and Gazprom Neft.
Russia’s metallurgical giants have seen booming demand for low-carbon metals as energy transition projects to curb climate change begin to roll out in scale. Rusal, a top producer of low-carbon aluminum and an Alliance member, sees aluminum output growing by up to 18 million tonnes this year. The metal is widely used in electric vehicles, green packaging and other environmental initiatives.
Earlier this year, Metalloinvest announced the construction of the world’s largest facility for hot briquetted iron (HBI), the raw material for low-carbon steelmaking in electric furnaces. The move marked a major step towards decarbonising the world’s most polluting industry.
Metalloinvest also announced its operational results for 2021 this week. This included strengthening its position in premium products used in low-carbon steelmaking, according to the company.
“At the end of 2021, we took an important step in Metalloinvest’s development that will reinforce the Company’s position as a leading supplier of HBI, a key element in the transition to greener metallurgy. In the reporting period, the Company’s steel plants increased the production of high-quality products (HVA), which accounted for more than 40% of total sales for steel products in 2021,” Efendiev said.
