ENVIRONMENTAL RESPONSIBILITY RATING FOR MINING&METALS COMPANIES OF RUSSIA 2016
Russia's mining and metals industry can make a sizeable contribution to the sustainable development of Russian regions and the country as a whole. For the industry to achieve that, aside from showing impressive economic performance, it has to demonstrate high levels of environmental responsibility among mining companies and a willingness to implement the most effective measures to minimize the negative impact of production activities on the environment, as well as introduce resource and energy conservation measures and implement biodiversity conservation programs. In addition to optimizing government regulation, another effective way of achieving high levels of environmental responsibility among businesses is to improve corporate policies, standards, and practices.
The Environmental Transparency Rating for Mining and Metal Companies is a project that provides stakeholders with objective and comparable information on the transparency levels of different companies and the extent of their impact on the environment. We expect this kind of ratings to help improve the quality of environmental risk management in the mining and metals industry. We also hope that ratings will inspire companies to increase their levels of environmental responsibility, encourage businesses to cooperate with stakeholders, and ensure transparency in future project discussions.
Objective Contribute to reducing the environmental burden, improving resource efficiency, and conducting socially responsible business in the Russian mining and metals industry.
- Record the key indicators of the environmental performance of Russian mining and metal companies.
- Compare the key players of the Russian mining and metals sector based on:
- the level of environmental impact;
- the degree of openness and accessibility of environmentally relevant information;
- the quality of environmental management, considering state requirements and best practices from around the world;
- the frequency of violating environmental legislation during project implementation;
- mineral resource efficiency.
- Monitor the companies’ interannual dynamics on the indicators listed above.
- The rating is based on the criteria outlined primarily in the Main Provisions of the Environmental and Social Responsibility Policy for Mining Companies , as well as in a number of international documents, such as the IRMA Standard for Responsible Mining Operations, GRI Sustainability Reporting Guide , the EBRD's Sectoral Strategy and others.
- The methodology is discussed with all stakeholders during face-to-face and virtual meetings. After the discussions, the approved methodology becomes publicly available on the WWF-Russia website.
- The assessment is performed for all segments, from field development and resource extraction to processing.
The rating is based on publicly available information on the companies' activities in Russia.
Publicly available information includes publicly available annual financial and environmental reports and reports on environmental protection (including regional ones); documents published on the company's official websites (including those of the company's subsidiaries) with links to the relevant pages in the website menu; interviews of the company's spokespeople for federal and regional media.
- The rating is calculated by a professional rating agency, selected during a competition.
- The rating is calculated for the largest companies (by key types of minerals) operating in Russia. The selection of companies for the rating is based on the State Report "On the Current Condition and Utilization of Mineral Resources of the Russian Federation." Additionally, the rating includes companies operating in WWF's priority ecoregions (in terms of biodiversity conservation).
- The rating is calculated annually, which helps monitor the dynamics for different companies and for the industry overall.
- In 2009, based on the analysis of Russian and international experience in solving social and environmental problems related to the mining industry, WWF experts created the Main Provisions of the Environmental and Social Responsibility Policy for Mining Companies (https://wwf.ru/upload/iblock/d90/mining.pdf) aimed at reducing potential risks and negative consequences during mineral field development.
- In 2015—2016, based on this document, in partnership with environmental NGOs and with the support of the UNDP/ GEF / Ministry of Natural Resources and Environment of the Russian Federation Project, "Mainstreaming Biodiversity Conservation into Russia’s Energy Sector Policies and Operations", WWF-Russia developed the methodology for the environmental transparency rating for mining companies operating in Russia. At the development stage, the methodology was discussed with stakeholders, including mining companies.
- Starting from 2017, the Environmental Transparency Rating for Mining and Metal Companies has been published annually.
- Since 2019, the rating has been calculated as part of the People for Nature project carried out by WWF-Russia with the support of the European Union.
Structure of the Rating
The rating consists of three sections: environmental management, environmental impact and disclosure of environmental information.
- Environmental Management
assesses major principles and quality of environmental management in the company. Criteria included in this section are, in most cases, substantially more strict compared to those required by Russian legislation on environment protection. However, these criteria reflect the best international standards and practices in mining and metals sector.
- Environmental Impact
evaluates the damage level to the environment (air, water, soil) during the projects implementation and the level of environmental responsibility of companies. Most of the criteria include components of state statistical reporting on environment protection. Data sources — reports in the form of 2-tp (air, waste, water, remediation), 4-OS (costs and payments) — reflect the impact of companies on the environment as a result of their activities. For comparative analysis between companies, this Section includes specific indicators derived by division of gross values by the company revenue. The Rating mainly uses quantitative values that are transformed to qualitative scale by comparing to last year numbers.
- Disclosure of Information
evaluates the extent of companies’ readiness to disclose information with respect to environmental impact of their industrial activities. In the framework of this project, we take into account that historically Russian mining and metals industry is considered to be a rather closed community and the environmental information is not fully available to general public.
Сompanies are assigned color flags for each of the criteria — Red, Yellow or Green. When a criterion is not relevant for the given company (for example, the company does not dredge), no flag is assigned. The company is obliged to provide substantiation of the corresponding criterion irrelevance. When the information related to the criterion is not available publicly, red flag is assigned.
At the next stage, points are assigned for every criterion. Red flag counts as 0 points, Yellow as 1 point, and Green as 2 points. For each section, companies are assigned an average of their criteria points in the corresponding section. In this calculation, only those criteria that have been assigned color flags are taken into account, i.e. criteria that are not relevant for the given company, are not included in the calculation. As a result, every company is assigned final points for Environmental Management Section, Environmental Impact Section and Information Disclosure Section. Final points vary from 0 to 2. At this stage, the leaders are chosen in every of the following areas: Management, Operations, Information, respectively.
The final Rating is calculated for every company by averaging three values assigned in accordance with the previous stage..
While being calculated, preliminary collected rating data are sent out to companies in order to allow to make necessary corrections.
The Rating is calculated as follows.
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