Russia has changed the ESG scenario | AKM.RU
Isn’t it, paradoxically, Russia is tired of catching up with the ESG password, launching a running interface like that, and now it has become the one who completely changed the landscape of this application, forcing us to look for new development scenarios. It happened both in their own country and in countries that were once close participants.
A week ago, the reputable investment and research company MSCI (Morgan Stanley Capital International), engaged in the rating of environmental, social and governance assessments, downgraded Russia’s state rating on ESG to a possible one – from “B” to “CCC”. Of course, this was a blow to investments. Many companies will lose capital. Not much in international trade, but still, 300 out of 4800. Another month ago, according to Bloomberg ESG, the owner of ESG investment funds worth at least $8.3 billion, including a stake in such attractive companies as Gazprom, ” Rosneft and Sberbank, as well as raising bonds. It is already known that trust in ESG funds today is not complete, there are facts of greenwashing and falsification, however, the absence of ESG certificates from Russian companies may be acceptable.
Nominal rating and the presence of not keeping Russia out of the ESG, caused by internal transformation, go on as usual. The crisis in relations with Russia unwittingly paralyzes all ESG movements and, above all, its own bureaucratic indicators and lack of transparency. The problem of climate has ceased to be the only one in the first place, but is forced to stand in line with other people. Such, for example, as tracking chains and partners, and then mandatory open reporting on them. Today, we do not have sufficient and honest information about the sudden risks of ESG. The problem is that at the first hit of the ESG packet, 100% is detected, and then there is a distortion in indicators and tools.
What Western ESG specialists are returning is that today they are looking not only for dirty business in their supply chain, so as not to spoil their ESG portfolio, but also to check if a Russian company suddenly or intentionally got into this chain. Most likely, in such ESG areas as metals, minerals, hydrogen, etc., in the chain of association, the Russian company will inevitably…
Despite the high degree of isolation from Russia, it is inevitable to do so, as they say, is seen as a vague prospect. It is known that more than 30 companies specializing in consumer goods have not disclosed their plans in connection with entering the Russian market. Many pharmaceutical companies are preparing that the exit from the project causes significant damage to the population of Russia. Some also envision legal consequences for their employees in the country if the Russian government retaliates.
One way or another, companies in the US and Europe are rethinking some aspects of their approach to ESG and investing in emerging markets. On the one hand, to do everything to make the chain of probability as transparent as possible, and, on the other hand, flexibility in relations with the parties.
What could be the ESG scenario for Russia?
The first chapter in this scenario is certainly the one that domestic companies decide to write for themselves. Having taken the first step, you can stop and rethink your path, but not start back, separating yourself from changes on a planetary scale, climate, etc.
It would make sense for ESG to stop being yelled at every opportunity, rather than the apparently behind the six letters. We would have slowed down the pace of ESG conferences, round tables, etc., but gathered a strong expert reaction in the face of responsible business and the scientific community, set transparent, humane and achievable goals at a specific time in an emotional place. Even though most of the ESG framework is maintained, sustainability policies must be maintained. Be sure to voluntarily comply with the stability requirements using the scope of delivery, they are available. Changes in reducing the carbon footprint, personnel policy, coverage with society, environmental services are timely and, most importantly, informal measures.
Olga Strelkova
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