ESG transparency ranking: metallurgical and oil and gas companies lead the way

Photo by: MikeMareen / iStock

Expert RA rating agency has released a review of the ESG transparency ranking of Russian companies and banks. Although about 30 companies have left the list this year, new entrants have been added to it.

ESG stands for Environment, Social, Governance. In the context of the rating, the agency evaluated non-financial information and reports on the sustainable development of enterprises in 2021.

Expert RA notes that the year 2022 has certainly had an impact on the ESG agenda. Fearing sanctions, some companies decided not to disclose non-financial information. In addition, the absence of foreign investors has forced businesses to reconsider their attitude to sustainability priorities and match them with the demand of the domestic market and regulators.

Not all companies have shifted their focus away from sustainability. In November, the agency conducted a survey of rating clients from various sectors, which showed that for 67% of respondents the importance of the ESG agenda remained, for 5% — even increased, and for 28% — decreased.

In addition to the fact that some of the companies that participated in last year’s rankings decided not to publish their data this year, there was a positive trend. Some organisations prepared and disclosed sustainability reports for the first time, despite the current situation. Therefore, the ranking decreased slightly and included 118 companies.

The leaders in ESG transparency this year are the metallurgical and oil and gas companies — they continue to disclose all relevant information as fully as possible. Insurers, infrastructure construction, machine building and leisure companies are still lagging behind.

The agency’s ranking list in 2022 was supplemented by companies from the machine building, pulp and paper and insurance industries, as well as a public-law company that forms and manages an integrated MSW management system.

It is worth noting that in 2022 the demand for ESG specialists in Russia has increased by 20% compared to 2021.

Cover photo: sdlgzps / iStock