Sustainalytics, an independent global provider of ESG and corporate governance research and ratings to investors, has increased Russian steelmaker Severstal’s rating from 54 to 70 points (out of a possible 100) in 2018, placing the company in eighth position out of 42 metallurgical companies from around the world. Sustainalytics also placed Severstal in its “leader” category.
This is the latest in a series of ESG rating upgrades Severstal received throughout 2018 in recognition of continuous improvements to its ESG performance and disclosure.
According to Alexander Shevelev, CEO of Severstal, the company stands by the principles of sustainable development. "We have made significant efforts not only to conform to established legislative norms, but to set new industry standards and also to contribute meaningfully to the future of the communities of which we are a part. In 2019 we will significantly increase our investment in environmental projects, with a planned budget of more than 825 million rubles," he said.
Investors often include analysis of ESG issues in their company appraisals. Transparency is a key area they are particularly focused on. "Last year, Severstal began disclosing additional ESG information with our operating results, and in October 2018 the board of directors approved the company's long-term goals for labour protection, industrial safety and environmental protection," Shevelev said.
"Our improved positions in a number of both international and Russian ESG ratings is a reflection of the company’s strong performance and continued progress in the area of ESG,” he commented.