ESG Trends in the Context of Sustainable Development of Indigenous Peoples

The evolutionary development of human rights in the 21st century has brought ESG principles to the forefront in companies’ policies. This trend is notably supported and promoted by international and regional financial institutions. The principles of ESG – environmental, social, and governance – aim to contribute to the achievement of the 17 Sustainable Development Goals for mankind proclaimed by the UN.

Indigenous peoples, as subjects of law, are among the stakeholders of the sustainability policies of industrial and other companies, but, on the other hand, they serve as a benchmark for international and country-based rating agencies in determining companies’ compliance with ESG standards.

In 2020, Russia’s National Rating Agency developed and approved a methodology for assigning non-credit ratings that assess a company’s exposure to environmental and social business risks, as well as corporate governance risks (ESG ratings). One of the criteria is whether the company has a policy on interaction with local populations who lead a traditional way of life (e.g., the Indigenous peoples of the North) and the implementation of socially significant projects in this regard.

In 2021, the European rating agency RAEX-Europe ranked Lukoil as the ESG leader in the oil and gas sector and considered the factor of support for Indigenous peoples, among other criteria.

Major companies such as Norilsk Nickel, Sakhalin Energy, Irkutsk Oil Company, the Eastern Siberia-Pacific Ocean oil pipeline, and several more place special emphasis in their social policies on supporting Indigenous peoples.

The voluntary adoption of ESG standards by small and medium-sized businesses will help achieve the sustainable development goals of Indigenous peoples in a shorter time.

Key themes of the roundtable:
● ESG standards of international financial institutions
● Standards of the UN Global Compact;
● Russia’s experience of companies engaging in social responsibility based on the example of:
a) National Standard of the Russian Federation GOST R ISO 26000-2012 ‘Guidelines for Social Responsibility’
b) Standard of responsibility for residents of the Arctic Zone of the Russian Federation
● The role of the Russian Union of Industrialists and Entrepreneurs and the Russian Chamber of Commerce and Industry in disseminating social responsibility practices in places where Indigenous peoples engage in traditional economic activities
● Social responsibility practices of Russian industrial companies in places where Indigenous peoples engage in traditional economic activities
● Dissemination of knowledge about ESG standards among Indigenous peoples
● Investment appeal of Russian industrial companies that provide social support to Indigenous peoples
● Involvement of public associations of Indigenous peoples in the procedures for assigning ESG ratings to companies