ALROSA Case Study – Climate Action

Total Page：16

File Type：pdf, Size：1020Kb

ALROSA Case Study – Climate Action About the company ALROSA is the largest diamond mining company in the world by volume. Their main mining and processing operations are in two Russian regions: The Republic of Sakha (Yakutia) which accounts for 95% of production, and the Arkhangelsk region. ALROSA joined RJC in 2016 and became certified in 2017. How climate change is affecting operations ALROSA’s operations in Yakutia are located on permafrost. With climate change, there’s a risk of the permafrost melting so the potential impact of climate change is huge. Concerns range from health & safety to production capabilities. Where has pressure to act on climate come from? ALROSA has seen advice from multiple stakeholders to act on climate change: • From industry organizations and institutional investors who note the importance of ESG ratings • From governments through activity seen in the EU with the new green deal and potential due diligence initiatives. The Russian government has also taken a step forward by requiring non-financial reporting from companies listed on the Moscow stock exchange • Finally ALROSA understands that climate is a huge concern for end consumers of diamond jewellery. How they have reduced GHG emissions • The most significant action to contribute to a reduction in emissions has been moving from diesel to natural gas for over 1000 vehicles at Mirny and Aikhal production sites • The generation of renewable energy from a hydro power plant, which contributes over 85% of energy used from facilities in Yakutia, has also greatly facilitated a reduction. Complementary biodiversity initiatives undertaken: • ALSORA is monitoring the migration of reindeer to help prevent disturbing their normal migration patterns. This project is being conducted in collaboration with scientists from Siberian Universities • The regeneration of fish populations. In 2020, water bodies of Yakutia have been replenished with 65,000 pieces of sturgeon fry, 1 million pieces of broad whitefish larval, 1 million pieces of vendace, and over 2 million pieces of northern white fish. Fish stocking preserves the aquatic biological resources of rivers in the region. WWW.RESPONSIBLEJEWELLERY.COM THE COUNCIL FOR RESPONSIBLE JEWELLERY PRACTICES LTD. SECOND FLOOR, QUALITY HOUSE, 5-9 QUALITY COURT, CHANCERY LANE, LONDON, WC2A 1HP. THE RESPONSIBLE JEWELLERY COUNCIL IS THE TRADING NAME OF THE COUNCIL FOR RESPONSIBLE JEWELLERY PRACTICES LTD. REGISTERED IN ENGLAND AND WALES WITH COMPANY NUMBER 05449042. .

Copy Link

Recommended publications

Notes on Moscow Exchange Index Review
Notes on Moscow Exchange index review Moscow Exchange approves the updated list of index components and free float ratios effective from 16 March 2018. X5 Retail Group N.V. (DRs) will be added to Moscow Exchange indices with the expected weight of 1.13 per cent. As these securities were offered initially, they were added without being in the waiting list under consideration. Thus, from 16 March the indices will comprise 46 (component stocks. The MOEX Russia and RTS Index moved to a floating number of component stocks in December 2017. En+ Group plc (DRs) will be in the waiting list to be added to Moscow Exchange indices, as their liquidity rose notably over recent three months. NCSP Group (ords) with low liquidity, ROSSETI (ords) and RosAgro PLC with their weights now below the minimum permissible level (0.2 per cent) will be under consideration to be excluded from the MOEX Russia Index and RTS Index. The Blue Chip Index constituents remain unaltered. X5 Retail Group (DRs), GAZ (ords), Obuvrus LLC (ords) and TNS energo (ords) will be added to the Broad Market Index, while Common of DIXY Group and Uralkali will be removed due to delisting expected. TransContainer (ords), as its free float sank below the minimum threshold of 5 per cent, and Southern Urals Nickel Plant (ords), as its liquidity ratio declined, will be also excluded. LSR Group (ords) will be incuded into SMID Index, while SOLLERS and DIXY Group (ords) will be excluded due to low liquidity ratio. X5 Retail Group (DRs) and Obuvrus LLC (ords) will be added to the Consumer & Retail Index, while DIXY Group (ords) will be removed from the Index.
[Show full text]
An Overview of Boards of Directors at Russia's Largest Public Companies
An Overview Of Boards Of Directors At Russia’s Largest Public Companies Andrei Rakitin Milena Barsukova Arina Mazunova Translated from Russian August 2020 Key Results According to information disclosed by 109 of Russia’s largest public companies: “Classic” board compositions of 11, nine, and seven seats prevail The total number of persons on Boards of the companies under study is not as low as it might seem: 89% of all Directors were elected to only one such Board Female Directors account for 12% and are more often elected to the audit, nomination, and remuneration committees than to the strategy committee Among Directors, there are more “humanitarians” than “techies,” while the share of “techies” among chairs is greater than across the whole sample The average age for Directors is 53, 56 for Chairmen, and 58 for Independent Directors Generation X is the most visible on Boards, and Generation Y Directors will likely quickly increase their presence if the impetuous development of digital technologies continues The share of Independent Directors barely reaches 30%, and there is an obvious lack of independence on key committees such as audit Senior Independent Directors were elected at 17% of the companies, while 89% of Chairs are not independent The average total remuneration paid to the Board of Directors is RUR 69 million, with the difference between the maximum and minimum being 18 times Twenty-four percent of the companies disclosed information on individual payments made to their Directors. According to this, the average total remuneration is approximately RUR 9 million per annum for a Director, RUR 17 million for a Chair, and RUR 11 million for an Independent Director The comparison of 2020 findings with results of a similar study published in 2012 paints an interesting dynamic picture.
[Show full text]
PRESS RELEASE JSC ALROSA Announces Purchase of a 25
PRESS RELEASE JSC ALROSA Announces Purchase of a 25 Percent Interest in OJSC Polyus Gold August, 2007, Moscow. Joint-Stock Company ALROSA signed an agreement with ONEXIM Group to buy a 25 percent stake in the Open Joint-Stock Company Polyus Gold (RTS, MICEX, and LSE – PLZL), Russia’s largest gold producer. “This deal was implemented as part of the development strategy approved by the Supervisory Board of JSC ALROSA. Among other things, ALROSA focuses on diversifying into other sectors. The purchase of a significant stake in Polyus Gold, which pursues an effective production strategy, will enable ALROSA to access a market with considerable long-term prospects and will further boost the development and economic growth of regions in Central and Eastern Siberia,” said President of ALROSA Sergei Vybornov. Open Joint-Stock Company Polyus Gold (RTS, MICEX, and LSE – PLZL) – is the leading gold producer in Russia and one of the biggest players in gold mining in the world in terms of deposits and production. The asset portfolio of Polyus Gold includes ore and alluvial gold deposits in the Krasnoyarsk Territory, the Irkutsk, Magadan, and Amur regions, and in the Republic of Sakha (Yakutia), where the company operates gold exploration and mining projects. As of January 1, 2007, the mineral resource base of OJSC Polyus Gold comprises 3,000.7 tons of gold in B+C1+C2 reserves, including 2,149 tons of B+C1 reserves. Joint-Stock Company ALROSA – is a global leader in diamond exploration, mining and sales of rough diamonds, and in cut diamond manufacture. ALROSA accounts for 97 percent of Russia’s rough diamond production and for 25 percent of the global output of rough diamonds.
[Show full text]
Transparency and Disclosure by Russian State-Owned Enterprises
Transparency And Disclosure By Russian State-Owned Enterprises Standard & Poor’s Governance Services Prepared for the Roundtable on Corporate Governance organized by the OECD in Moscow on June 3, 2005 Julia Kochetygova Nick Popivshchy Oleg Shvyrkov Vladimir Todres Christine Liadskaya June 2005 Transparency & Disclosure by Russian State-Owned Enterprises Transparency and Disclosure by Russian State-Owned Enterprises Executive Summary This survey of transparency and disclosure (T&D) by Russian state-owned companies by Standard & Poor’s Governance Services was prepared at the request of the OECD Roundtable on Corporate Governance. According to the OECD Guidelines on Corporate Governance of SOEs, “the state should act as an informed and active owner and establish a clear and consistent ownership policy, ensuring that the governance of state-owned enterprises is carried out in a transparent and accountable manner” (Chapter III). Further, “large or listed SOEs should disclose financial and non financial information according to international best practices” (Chapter V). In stark contrast with these principles, the study revealed consistent differences in disclosure standards between the state-controlled and similarly sized public Russian companies. This is in line with the notion that transparency of state-controlled enterprises is hampered by the tendency of the Russian government and individual officials to use their influence on such companies to promote political or individual goals that often diverge from commercial motives and investor interests. High standards of transparency and disclosure, on the other hand, are a cornerstone in the foundation of good governance. They provide legitimate stakeholders--whether creditors, minority shareholders, taxpayers, or the general public--with the information they need to be able to begin to hold government decision-makers accountable for their actions.
[Show full text]
Yakutia) “…The Republic of Sakha (Yakutia) Is the Largest Region in the Russian Federation and One of the Richest in Natural Resources
Investor's Guide to the Republic of Sakha (Yakutia) “…The Republic of Sakha (Yakutia) is the largest region in the Russian Federation and one of the richest in natural resources. Needless to say, the stable and dynamic development of Yakutia is of key importance to both the Far Eastern Federal District and all of Russia…” President of the Russian Federation Vladimir Putin “One of the fundamental priorities of the Government of the Republic of Sakha (Yakutia) is to develop comfortable conditions for business and investment activities to ensure dynamic economic growth” Head of the Republic of Sakha (Yakutia) Egor Borisov 2 Contents Welcome from Egor Borisov, Head of the Republic of Sakha (Yakutia) 5 Overview of the Republic of Sakha (Yakutia) 6 Interesting facts about the Republic of Sakha (Yakutia) 7 Strategic priorities of the Republic of Sakha (Yakutia) investment policy 8 Seven reasons to start a business in the Republic of Sakha (Yakutia) 10 1. Rich reserves of natural resources 10 2. Significant business development potential for the extraction and processing of mineral and fossil resources 12 3. Unique geographical location 15 4. Stable credit rating 16 5. Convenient conditions for investment activity 18 6. Developed infrastructure for the support of small and medium-sized enterprises 19 7. High level of social and economic development 20 Investment infrastructure 22 Interaction with large businesses 24 Interaction with small and medium-sized enterprises 25 Other organisations and institutions 26 Practical information on doing business in the Republic of Sakha (Yakutia) 27 Public-Private Partnership 29 Information for small and medium-sized enterprises 31 Appendix 1.
[Show full text]
US Sanctions on Russia
U.S. Sanctions on Russia Updated January 17, 2020 Congressional Research Service https://crsreports.congress.gov R45415 SUMMARY R45415 U.S. Sanctions on Russia January 17, 2020 Sanctions are a central element of U.S. policy to counter and deter malign Russian behavior. The United States has imposed sanctions on Russia mainly in response to Russia’s 2014 invasion of Cory Welt, Coordinator Ukraine, to reverse and deter further Russian aggression in Ukraine, and to deter Russian Specialist in European aggression against other countries. The United States also has imposed sanctions on Russia in Affairs response to (and to deter) election interference and other malicious cyber-enabled activities, human rights abuses, the use of a chemical weapon, weapons proliferation, illicit trade with North Korea, and support to Syria and Venezuela. Most Members of Congress support a robust Kristin Archick Specialist in European use of sanctions amid concerns about Russia’s international behavior and geostrategic intentions. Affairs Sanctions related to Russia’s invasion of Ukraine are based mainly on four executive orders (EOs) that President Obama issued in 2014. That year, Congress also passed and President Rebecca M. Nelson Obama signed into law two acts establishing sanctions in response to Russia’s invasion of Specialist in International Ukraine: the Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Trade and Finance Ukraine Act of 2014 (SSIDES; P.L. 113-95/H.R. 4152) and the Ukraine Freedom Support Act of 2014 (UFSA; P.L. 113-272/H.R. 5859). Dianne E. Rennack Specialist in Foreign Policy In 2017, Congress passed and President Trump signed into law the Countering Russian Influence Legislation in Europe and Eurasia Act of 2017 (CRIEEA; P.L.
[Show full text]
Emerging Players in Global Mining Public Disclosure Authorized Public Disclosure Authorized
Extractive Industries and Development48882 Series #5 June 2009 Public Disclosure Authorized Emerging Players in Global Mining Public Disclosure Authorized Public Disclosure Authorized Dr. David Humphreys The World Bank 1818 H Street, N.W. Washington, D.C. 20433 USA www.worldbank.org/ogmc (OR /oil OR /gas OR /mining) Public Disclosure Authorized www.ifc.org/ogmc (OR /oil OR /gas OR /mining) World Bank Group’s Oil, Gas, and Mining Policy Division Oil, Gas, Mining, and Chemicals Department A joint service of the World Bank and the International Finance Corporation The Oil, Gas, and Mining Policy Division series publishes reviews and analyses of sector experience from around the world as well as new findings from analytical work. It places particular emphasis on how the experience and knowledge gained relates to developing country policy makers, communities affected by extractive industries, extractive industry enterprises, and civil society organizations. We hope to see this series inform a wide range of interested parties on the opportunities as well as the risks presented by the sector. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors and should not be attributed in any manner to the World Bank or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. Extractive Industries
[Show full text]
Social and Environmental Report 2015
SOCIAL AND ENVIRONMENTAL REPORT 2015 ALROSA* is a Russian Group of diamond mining companies that occupies a leading position in the industry and has the largest rough diamond reserves in the world. The Group accounts for one third of the reserves and more than a quarter of the production of the global rough diamonds market. The key areas of activity, comprising the focus of the major strategic efforts of the Group, are deposits exploration, mining, processing and sales of rough diamonds. The core activities of ALROSA Group are concentrated in two regions of the Russian Federation, namely the Republic of Sakha (Yakutia) and the Arkhangelsk Region, as well as on the African continent. The majority of ALROSA Group revenue comes from selling rough diamonds. Rough diamonds are sold under long-term agreements to Russian and foreign diamond cutting companies. The rough diamond segment accounts for about 90% of the total Group revenue. *For the purpose of this Report, ALROSA Group means PJSC ALROSA and its subsidiaries. INTRODUCTION ADDRESS BY THE PRESIDENT 2 4 6 OF PJSC ALROSA 6 OUR APPROACH ENVIRONMENTAL INDEPENDENT ABOUT THIS REPORT TO SUSTAINABLE RESPONSIBILITY AUDITOR’S 10 DEVELOPMENT 61 REPORT 27 ENVIRONMENTAL POLICY 112 IMPLEMENTATION INTEGRATION OF SUSTAINABLE 62 DEVELOPMENT GOALS IN ACTIVITIES OF THE COMPANY FUNDING OF ENVIRONMENTAL 28 PROTECTION ACTIVITIES 70 1 STAKEHOLDER ENGAGEMENT 31 ENVIRONMENTAL PROTECTION GOALS ABOUT ALROSA GROUP ACHIEVEMENT MANAGEMENT IN THE SPHERE 73 7 17 OF SUSTAINABLE DEVELOPMENT GENERAL INFORMATION 34 ANNEXES 18 115 ETHICS AND ANTI-CORRUPTION Annex 1. PRODUCTION CHAIN ACTIVITIES 40 SCOPE OF MATERIAL ASPECTS AND GEOGRAPHY 116 18 INNOVATIVE DEVELOPMENT Annex 2.
[Show full text]
Investment from Russia Stabilizes After the Global Crisis 1
Institute of World Economy and International Relations (IMEMO) of Russian Academy of Sciences Investment from Russia stabilizes after the global crisis 1 Report dated June 23, 2011 EMBARGO: The contents of this report must not be quoted or summarized in the print, broadcast or electronic media before June 23, 2011, 3:00 p.m. Moscow; 11 a.m. GMT; and 7 a.m. New York. Moscow and New York, June 23, 2011 : The Institute of World Economy and International Relations (IMEMO) of the Russian Academy of Sciences, Moscow, and the Vale Columbia Center on Sustainable International Investment (VCC), a joint undertaking of the Columbia Law School and the Earth Institute at Columbia University in New York, are releasing the results of their second joint survey of Russian outward investors today 2. The survey is part of a long-term study of the rapid global expansion of multinational enterprises (MNEs) from emerging markets. The present survey, conducted at the beginning of 2011, covers the period 2007-2009. Highlights Despite the global crisis of the last few years, Russia has remained one of the leading outward investors in the world. The foreign assets of Russian MNEs have grown rapidly and only China and Mexico are further ahead among emerging markets. As the results of our survey show, several non- financial 3 Russian MNEs are significant actors in the world economy. The foreign assets of the 20 leading non-financial MNEs were about USD 107 billion at the end of 2009 (table 1). Their foreign sales 4 were USD 198 billion and they had more than 200,000 employees abroad.
[Show full text]
Information (Materials) Provided to Shareholders in Preparation for the Annual General Shareholders’ Meeting of Pjsc Gazprom in 2021
INFORMATION (MATERIALS) PROVIDED TO SHAREHOLDERS IN PREPARATION FOR THE ANNUAL GENERAL SHAREHOLDERS’ MEETING OF PJSC GAZPROM IN 2021 2 List of information (materials) provided to shareholders in preparation for the annual General Shareholders’ Meeting of PJSC GAZPROM 1. Announcement of the annual General Shareholders’ Meeting of PJSC GAZPROM. 2. PJSC GAZPROM Annual Report for 2020 and Annual Accounts (Financial Statements) for 2020, including the Auditor’s Report. 3. Report on PJSC GAZPROM related party transactions made in 2020. 4. Opinion of PJSC GAZPROM Audit Commission on reliability of data contained in PJSC GAZPROM Annual Report for 2020, Annual Accounts (Financial Statements) for 2020 and in the Report on PJSC GAZPROM related party transactions made in 2020. 5. PJSC GAZPROM Internal Audit Opinion for 2020. 6. Review of PJSC GAZPROM Auditor’s Report by the Audit Committee of PJSC GAZPROM Board of Directors. 7. 2020 profit allocation recommendations of PJSC GAZPROM Board of Directors, in particular, on the amount, timing and form of payment of the annual dividends on the Company’s shares and the date, as of which the persons entitled to the dividends are determined. 8. Information on the candidacy for PJSC GAZPROM Auditor. 9. Proposals on the amount of remuneration to members of PJSC GAZPROM Board of Directors. 10. Proposals on the amount of remuneration to members of PJSC GAZPROM Audit Commission. 11. Draft Amendments to PJSC GAZPROM Articles of Association and the change-related information in the form of the current version and the proposed version comparison. 12. Draft Amendments to the Regulation on PJSC GAZPROM Board of Directors and the change-related information in the form of the current version and the proposed version comparison.
[Show full text]
ESG Ranking of Russian Companies 2020 (As of 11.11.2020)
ESG Ranking of Russian companies 2020 (as of 11.11.2020) Company Industry Sub-industry ESG Rank E Rank S Rank G Rank LUKOIL Oil&Gas Integrated Oil & Gas 1 3 10 2 SIBUR Holding Chemicals Petrochemicals 2 1 4 10 Passenger Russian Railways Transport Transportation, Ground 3 11 8 4 & Sea Wireless MTS Telecom Telecommunications 4 18 5 3 Services NLMK Metals&Mining Iron & Steel 5 6 2 16 Inter RAO Energy Electric Utilities 6 2 6 17 Integrated Rostelecom Telecom Telecommunications 7 17 12 8 Services Rosatom Energy Nuclear energy 8 8 23 5 SUEK Metals&Mining Coal 9 13 11 15 Sakhalin Energy Oil&Gas Integrated Oil & Gas 10 7 7 29 Gazprom Oil&Gas Integrated Oil & Gas 11 4 14 22 Severstal Metals&Mining Iron & Steel 12 24 3 11 Polyus Metals&Mining Gold 13 14 9 20 Non-Gold Precious ALROSA Metals&Mining 14 15 17 9 Metals & Minerals Sistema Holdings Holdings 15 20 15 13 Aeroflot Transport Airlines 16 26 1 27 FGC UES Energy Electric Utilities 17 12 30 1 RusHydro Energy Electric Utilities 18 5 16 26 Rosneft Oil&Gas Integrated Oil & Gas 19 9 22 18 Rosseti Energy Electric Utilities 20 10 28 6 Phosagro Chemicals Agricultural Chemicals 21 19 24 14 Specialty Mining & Rusal Metals&Mining 22 16 19 25 Metals NOVATEK Oil&Gas Integrated Oil & Gas 23 23 18 21 MMK Metals&Mining Iron & Steel 24 22 25 12 Oil & Gas Transportation TransNeft Oil&Gas 25 28 29 7 Services EVRAZ Metals&Mining Iron & Steel 26 29 20 24 Metalloinvest Metals&Mining Iron & Steel 27 21 21 31 TMK Metals&Mining Iron & Steel 28 25 27 28 Specialty Mining & Nornickel Metals&Mining 29 31 13 23 Metals Tatneft
[Show full text]
“I Have Never Liked to Confront the Wounded Opponents”
“I have never liked to confront the wounded opponents” 24 October 2018, Kommersant, kommersant.ru Vladimir Potanin, head of Nornickel, spoke about the shareholder conflict, Belousov list and cryptocurrency. The long-running dispute between MMC Norilsk Nickel’s shareholders suddenly flared up once again this year only to come to a grinding halt after the introduction of sanctions against Oleg Deripaska, a co-owner of the company, and his victory in a case heard at London's High Court. Why did Interros, the company's largest shareholder, give up the fight? How is the company protecting itself from the sanctions? What will be the group’s next big investment projects? To get answers to those questions, Kommersant talked to Vladimir Potanin, President of Nornickel. When did you last meet Oleg Deripaska in person? In spring. During the court hearings in London? No, we did not meet in court, but we had met before trying to work out a compromise. We spent half a night looking for an acceptable solution. I wanted to talk Oleg out of taking this case to court and tried to discuss his position. What was his position? There is no point in talking about this anymore, as nothing really worked out. We met once again after that. It was during the court hearings and I think that he was already under the sanctions. At some point, I felt that it would make sense to talk again. But, in his typical manner, Oleg just wiggled out of the discussion without providing any explanation. We had a phone talk this summer and considered another meeting.
[Show full text]