Environmental responsibility Rating for Mining&Metals Companies of Russia 2020
Structure of the Rating
The rating consists of three sections: environmental management, environmental impact and disclosure of environmental information.
- Environmental Management
assesses the quality of environmental management in the companies. The criteria included in this section are, for the most part, substantially more rigid compared to the Russian legislation on environmental protection. However, they comply with the world's best practices in the field of environmental protection for the mining and metals industry.
- Environmental Impact
It shows the degree of negative impact on the environmental components (air, water bodies, soil) in the course of project implementation. It also demonstrates the level of sustainability for corporate production. Most criteria are composed basing on elements of national statistical reporting in the field of environmental protection. The data sources are represented by 2-TP reports (air, waste, water, land), 4-OS reports (costs and payments), which reflect the impact of the companies on the environment as a result of their activities.
This section presents the quantitative indicators, which are translated into a qualitative scale using average values for each criterion for each subindustry (diamond industry, precious metals mining, extraction and processing of nonferrous metals ores, production and processing of ferrous and alloying metals, mining and chemical industry, coal industry). In the absence of official sources (Federal Service of State Statistics, Ministry of Natural resources, Ministry of Economic Development and affiliated agencies), the average value of the criterion is to be calculated as the arithmetic mean of the values for the subsector companies represented in the rating. For comparative analysis between companies, specific indicators are used, which are calculated by dividing the gross values by the company's revenue.
- Disclosure of Information
It evaluates the extent of the companies' readiness to disclose information with respect to environmental impact of their industrial activities. Historically, Russian mining and metallurgical industry has been quite a closed community, with environmentally significant information not getting completely reflected in the public information domain. Recently, a gradual increase in corporate transparency has been detected to be a new trend.
Criteria 3.5 and 3.6 are assessed as follows. Each environment-related conflict or accident included in the "Review of Environmental-Related Conflicts of Mining and Metal Companies in Russia" (published by WWF Russia on a regular basis) is evaluated in terms of public coverage. If the company provided no comments on the situation, the criterion is colored red. If the company covers one or more situations or incidents, it is assigned a yellow level. If the company publishes information and its comments on several controversial situations and accidents at its website, the criterion is green. If no accidents or environment- related conflicts have been detected, the company is also assigned a green level.
Companies are assigned color flags for each creterion: Red, Yellow, or Green. If the criterion is not relevant for a company (for example, dredging is not among the company's activities), the level is not assigned. For such cases, the company is required to present proof of being irrelevant to the criterion. If no information is publicly available, and the company has not provided a justification for the non- relevance of the criterion at the stage of sending work materials, the company is assigned a red level.
At the next stage, companies are ranked for each section. A Red flag counts as 0, a Yellow one means 1 point, and a Green one, 2 points. For each section, companies are assigned an arithmetic mean of their points for the criteria in the corresponding section. In this calculation, only the criteria that have been assigned color flags are taken into account, i.e. the criteria that are not relevant for a given company are not included. As a result, each company is assigned final points for the Management Section, for the Environmental Impact Section and for the Disclosure Section. Totals range from 0 to 2. At this stage, the leader is determined in each of the three areas: management (Environmental Management), operational (Environmental Impact), information (Disclosure of Information).
In order to prevent the data that were used to calculate the ratings of previous years from disappearing or getting replaced, the organizers proposed the following motivational solution to the problem: a retrospective assessment of each company's activities over the last three years being carried out during the next data collection. If data has disappeared from the public space or has been modified, a request is sent to the company about the reasons for such changes. If there is an adequate explanation (for example, a new website, a new methodology, unaccounted data, etc.), the data modification is registered. If the answer is inadequate or absent, red levels are assigned for the current year to the criteria for which previous years data disappeared or got modified. Thus, the overall score for this section and the total ranking will be reduced for the companies that failed to explain the disappearance or replacement of data on their websites for the previous years of the rating.
The final Rating is then calculated for each company by averaging the three values assigned at the previous stages.
The final profiles of the participating companies are available to the public on the WWF Russia website after the results of the current rating have been published.
The rating organizers reserve the right to apply penalties (up to suspension from the calculation of the current rating) in case of proven violation of laws and norms in the field of human rights (e.g. claims or negative assessment of the company's activities by the Human Rights Council (HRC) or relevant judicial verdicts), as well as in the case of high-profile federal or international accidents with significant damage to the environment.
The Rating is calculated as follows.
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