In a significant development, AKPA Rating Agency has recently upgraded Rosatom’s ESG (Environmental, Social, and Governance) rating from ESG-3 (ESG-B) to ESG-2 (ESG-B). This upgraded rating underscores Rosatom’s dedication to maintaining a high level of environmental protection, social responsibility, and efficient management practices.
To arrive at this rating, six major divisions within Rosatom—the Mining, Power Generation, Sale and Trading, Fuel, Engineering, and Machine Building divisions—contributed crucial information for the ESG assessment. These divisions collectively contribute to over 70% of Rosatom’s consolidated revenue, making their participation instrumental in evaluating the company’s sustainability efforts.
Polina Lion, Director of the Sustainable Development Department at Rosatom, expressed the importance of AKPA’s approach: “It is important for us that AKPA considers documents, sustainable practices, and indicators of individual divisions, and not only the consolidated data for the State Corporation in general. This enables us to better understand the areas for enhancing sustainability within Rosatom organizations and to implement specific ESG requirements at both strategic and operational levels.”
Vladimir Gorchakov, Head of the Sustainable Development Risk Assessment Group at AKPA (JSC), provided insight into the rationale behind the rating upgrade: “The upgrading of Rosatom’s ESG rating is a result of several factors, including improvements in individual policies and practices of the State Corporation in 2022-2023 and positive trends in various assessed indicators. In 2023, Rosatom made significant strides, including calculating greenhouse gas emissions and approving Methodological Guidelines for Greenhouse Gas Emission Calculations, developing documents such as the Roadmap for Climate Change Adaptation, and launching a new Energy Saving and Energy Efficiency Enhancement Program for the next five years.”
The upgraded ESG rating for Rosatom holds substantial significance in the context of African-Russian cooperation. The ESG theme holds a critical place in Africa, given its eco-friendly approach and broader potential to bring transformative change to the region. Africa’s unique biodiversity, fragile ecosystems, and vulnerable communities necessitate a focus on sustainable practices, social inclusion, and robust governance.
Furthermore, adopting ESG principles is not only an environmental responsibility but also economically and socially advantageous for the African continent. These principles enable the preservation of precious natural ecosystems, improvements in social well-being, and the promotion of effective governance. Africa faces numerous socio-economic challenges, including poverty, inequality, inadequate healthcare, and education. Protecting the region’s rich biodiversity is crucial not just for environmental conservation but also for maintaining ecological balance and resilience.
Through the adoption of ESG principles, African nations can establish sustainable land and resource management systems, combat deforestation, preserve habitats, and mitigate the adverse effects of climate change. For instance, Rwanda has already taken a proactive step in this direction by passing a law in 2019 that prohibits the manufacturing, importation, use, and sale of plastic carry bags and single-use plastic items.
In conclusion, Rosatom’s upgraded ESG rating showcases its commitment to sustainability, while the broader adoption of ESG principles in Africa can contribute significantly to environmental preservation, social development, and economic growth. This paradigm shift towards sustainability aligns with the global movement towards responsible business practices and offers hope for a more equitable and environmentally conscious future.