Management approach
The Company’s strategic priority in terms of sustainability is to contribute to the achievement of the Sustainable Development Goals (SDGs) adopted by the UN General Assembly. Russian Railways’ commitment to the UN SDGs is reflected in its efforts to ensure economic stability, environmental safety and social security. Russian Railways is committed to the principles of the UN Global Compact. The Company is a member of the Global Compact National Network Association.
The Company complies with the principles of socially responsible business practices enshrined in the Social Charter of the Russian Business adopted by the Russian Union of Industrialists and Entrepreneurs (RSPP) and is a regular contributor to the RSPP’s Corporate Practices Collection.
In pursuing its sustainable development policy, the Company complies with international treaties, laws and regulations of the Russian Federation, as well as its own policies and procedures.
Russian Railways in 2022 ESG rankings and indices
National Credit RatingsESG Index of Russian Business is an expert comparison of Russian companies from different industries reflecting their alignment with ESG practices. Russian Railways’ ranking: category II, above average. | |
Expert RA rating agencyESG Transparency Ranking of Russian Companies and Banks is an expert assessment focusing on the scope of ESG disclosures (transparency) in the annual and sustainability reports of major Russian companies and banks. Russian Railways’ ranking: No. 69 out of 100 (No. 74 in 2021). ESG Transparency Ranking of Russian Transportation Companies seeks to identify leaders among the country’s major transportation and infrastructure companies in terms of their ESG transparency (quality of non-financial disclosures published in relevant annual and sustainability reports). Russian Railways’ ranking: No. 4 out of 9. | |
Expert Media HoldingExpert’s Sustainability Ranking of Russian Companies seeks to identify Russian businesses championing the sustainable development of the country and implementing relevant ESG practices. Russian Railways’ ranking: No. 38 out of 100 (No. 51 in 2021). | |
Russian Union of Industrialists and Entrepreneurs (RSPP)RSPP’s Sustainable Development Vector Index is an assessment reflecting the social, economic and environmental performance of major Russian companies. Russian Railways’ ranking: Leader Group A. | |
RAEX AnalyticsESG ranking of Russian companies comprehensive assessment of the ESG profile of the largest Russian companies who published their 2021 non-financial statements. Russian Railways’ ranking: No. 47 out of 160. |
Participation of the Board of Directors in sustainable development management
Sustainable development management is an essential part of activities pursued by the Board of Directors as a governance body responsible for the general steering of the Company’s operations. Within its scope of authority, the Board of Directors reviews and approves the basic internal documents and monitors their implementation.
The remit of the Board of Directors is set out in the Charter of Russian RailwaysApproved by Order of the Russian Government No. 1838 dated 27 October 2021.. Pursuant to Clause 68.1 of the Company’s Charter, the Board of Directors shall determine the Company’s business priorities, and approve its long-term plans, core programmes and function strategies, including the long-term development programme, financial plan, investment programme, and innovative development programme.
The said strategic documents of Russian Railways approved by the Board of Directors address the matters of sustainable development of the Company.
As part of their sustainability agenda in 2022, the Board and its Committees:
- approved Russian Railways’ investment programme for 2022–2024, which provides for a number of investment projects to improve the lives of Russian citizens, create a comfortable and safe environment for life and development of tourism (infrastructure development projects at Central and St Petersburg transport hubs, and the South cluster);
- approved the size of Russian Railways’ charity and sponsorship fund and the key initiatives to be supported;
- resolved to donate social, educational, sports and cultural facilities to municipal and regional public law entities;
- the Board’s Strategic Planning Committee reviewed the report on the progress against Russian Railways’ Long-Term Development Programme until 2025 and KPI achievement in 2021, addressing, among others, the matters of the Company’s sustainable development.
Pursuant to Clause 68.1 of the Company’s Charter, the Board of Directors shall consider reports on progress against the Company’s core programmes and function strategies, encompassing, among others, the matters of sustainable development.
The Board of Directors regularly reviews reports on the implementation of the Company’s Charity and Sponsorship Policy and Comprehensive Innovative Development Programme.
In addition to that, the Board’s Audit and Risk Committee shall regularly consider the risk appetite metrics of Russian Railways, including but not limited to the assessment of acceptable risks related to the sustainable development of the Company (environmental, health and safety risks, etc.).
