Institutionalization of ESG-principles at the international level and in the Russian Federation, their impact on ferrous metallurgy enterprises. Part 2

Abstract

Currently, a new development trend is being formed in the world associated with the decarbonization of economies. This process is based on the institutionalization of ESG-principles – an approach to doing business, characterized by the involvement of companies in solving environmental, social and governance problems. The process of institutionalization of ESG-principles at the international level was initiated in 1948 with the adoption of the Universal Declaration of Human Rights under the auspices of the UN. The active involvement of Russia in the formation of the institutional framework in the field of ESG has begun only in 2020. The reason for this was the ratification of a number of international documents, as well as the active promotion of climate policy by many countries of the world. The stages of the institutionalization process at the international level discussed in detail in Report 1. The decarbonization of economies creates development risks for industries whose products are characterized by high carbon and energy intensity. Ferrous metallurgy also belongs to them. This report presents the results of a study of the effectiveness of measures taken by the Russian Government in the field of reducing atmospheric air pollution in large industrial centers of the ferrous metallurgy based on data from the Unified Information System for Monitoring Air Quality, as well as the results of an analysis of the ESG-practices of the largest Russian ferrous enterprises and compliance with carbon intensity and energy intensity of their products according to the criteria of sustainable (including green) development projects established in our country. As a result of the study, it was found that despite the use of ESG-principles in their activities, the specific emissions of CO2-equivalent of the largest iron and steel enterprises significantly exceed the criteria for sustainable (including green) development projects established by the Russian Government.