RUSAL and Sberbank will implement an ESG strategy

The agreement was announced during the 2020 Russian and CIS Metals and Mining Industry Joint Summit hosted by Sberbank and the Adam Smith Institute.

RUSAL plans to engage Sberbank for consultation and informational support on sustainable development initiatives, in particular with regard to existing practices and already available financing tools for ongoing environmental and social welfare projects. The agreement will also be utilised to focus on the impact of the company’s sustainable development strategy on public corporate ESG ratings.

“RUSAL is a world leading aluminium producer and is one of the most responsible companies with regards to its efforts to minimise its carbon footprint. The ESG agenda is becoming a wholly separate branch of our cooperation. By accomplishing the tasks specified in our agreement we will make a significant contribution to environmental preservation for future generations, improvements in corporate governance and the broader landscape of social responsibility for large businesses as whole. I am sure that the signing of this document is a landmark event not only for Sberbank and RUSAL, but also for developing the “green” economy as a whole,” said Anatoly Popov, Deputy Chairman of the Executive Board, Sberbank.

“Investment in ‘green’ projects and compliance with ESG principles are two key areas in our company's whole business operation. We are sure that the agreement with Sberbank will promote not only the company's dynamic economic development, but also the stronger social and environmental aspects of our business,” said Oleg Mukhamedshin, RUSAL’s Director for Strategy, Business Development and Financial Market.

In 2019 RUSAL became the first company in Russia to sign a sustainability-linked syndicated pre-export finance facility for over USD1 billion. The interest rate is subject to a sustainability discount or premium depending on the company’s fulfilment of the key performance indicators (KPI) for sustainability. The key indicators are related to both the company’s environmental impact and sustainable development and notably include the growth targets of ALLOW aluminium sales – RUSAL’s low-carbon aluminium produced with hydropower.