Insufficient government incentives and integration of sustainable development goals into the work of companies
Today, two characteristic features are seen as a barrier – demand, let’s call it, for more government incentives, 20% versus 3% in 2019, and demand for a transformation strategy. The absence of [such a strategy] is considered a barrier today by 15% of respondents versus 3% in 2019 […] The integration of sustainable development goals is one of those criteria that demonstrates how popular sustainable development, or ESG, is for Russian business today [...] A comparison with 2019 shows that these sustainable development goals are being integrated by 15% of respondents [according to research conducted as part of the KPMG and Effie Barometer of Sustainable Business Transformation], while in 2019 this indicator was 7%. This is good news, but nevertheless we are seeing that another 85% are not integrating these goals. So there is still room for growth — Oleg Goshchansky, Chairman, Managing Partner, KPMG in Russia and the CIS .
There are disagreements about nuclear power plants, hydroelectric power plants, incinerators, biodegradable materials, and so on. This is where we see the state and, if you will, interstate cooperation playing a role. We must determine a position and promote it in every possible way. There is no uniformity and ESG metrics [responsible investing, an approach to investing that seeks to include environmental, social, and corporate governance] differ among themselves and the ESG ratings of different agencies. Thus, the world realizes that there is a need for the unification of non-financial reporting standards, and almost everyone is talking about this — Andrey Bugrov, Senior Vice President for Sustainable Development, Norilsk Nickel.
The cross-border carbon regulation that Europe is going to introduce in the near future will naturally affect virtually all Russian export-oriented industries. The most important thing in this regard is that there should be a transparent mechanism based on detailed analytics because, if we take the aluminium industry, when it interacts with the European Commission, which regulates the industry, we still have not seen how this initiative will affect the manufacturing industry in Europe, i.e., our clients. It could be an issue of losses exceeding the expected benefits with these initiatives — Evgeniy Nikitin, Chief Executive Officer, RUSAL.