Transparency Rating of Environmental Responsibility

 

RATIONAL APPROACH PROJECT

A pilot project was implemented in 2014 following the initiative of CREON consulting and analytical group in the field of fuel and energy complex and the World Wildlife Fund (WWF) with participation of National Rating Agency. The goal of the project was to obtain objective and comparable information on the level of impact on the environment of participants in the domestic oil and gas sector. The public nature of the rating ultimately contributes to improving the quality of environmental risk management and reducing the impact of the oil and gas industry.

Within four years the rating has not only become a source of objective and comparable information on the level of oil and gas sector impact on the environment, but also created a new dialogue platform between company experts and the society to manage environmental risks of the sector.

NEWS OF THE PROJECT

Interview with environmentalist Alexey Knizhnikov on the situation in Norilsk

June 25, 2020

The situation in Norilsk clearly demonstrates the catastrophic consequences of ignorance of environmental responsibility and companies' lack of openness. Alexey Knizhnikov, WWF Russia Business Environmental Responsibility Program Manager, is confident that the accident could have been prevented if the company hadn’t been so closed and had made efforts to raise the environmental standards of its work.

 

 

 

 

 

 

 

 

For 7 years, Russian oil and gas companies have been participating in the “Rational Approach”, Environmental Transparency Rating and every year they are improving their performance, reducing the burden on the environment, and demonstrating a responsible business approach.

Interview with environmentalist Eugeny Schwartz on the situation in Norilsk

June 14, 2020

Eugeny Schwartz, a well-known Russian environmentalist and independent non-executive director of steel companies, commented on the emergency situation in Norilsk for “Rational Approach” project.

 

 

 

 

 

 

 

 

He said:


• Climate change affects the Arctic most
• International investors and presence on world exchanges help Russian companies to increase responsibility to environmental safety
• To increase safety and sustainability further, industrial enterprises have to participate in environmental ratings and collaborate with local environmental organizations.
Watch video for more details.

The most effective way to deal with environmental disasters is to prevent them

June 10, 2020

Svetlana Radionova, head of Russia’s environmental control Rosprirodnadzor discussed the environmental disaster in Norilsk with media. After depressurization of the oil storage facility at the TPS-3 power plant controlled by Norilsk Nickel, 21 thousand tons of diesel fuel spilled into the environment and water ponds of the Arctic - this is approximately 400 tank wagons.


According to Rosprirodnadzor estimates, the scale of pollution is very considerable, and the audited production facilities were in poor technical condition. The time-frame for the elimination will be delayed: 14 days previously referred to are only the first phase. According to Radionova, the whole process will last much longer and will continue "until nature is completely cleansed". And ensuring actual environmental safety in the region will be possible only after profound modernization of all defense stores.


Radionova noted that the owners of steel companies have been spending money for many years on anything, but not on modernization. The department has poor contact with steel producers. At the same time, Radionova praised the oil companies that are much more attentive to and compliant with regulatory requirements.


The environmental transparency of oil and gas companies that has grown in recent years and their compliance with regulatory requirements, are also the result of our joint work. Since 2014, the CREON GroupCREON Capital and WWF России have been compiling an Environmental Transparency Rating for oil and gas companies, not only evaluating the environmental responsibility of the largest oil and gas enterprises in the post-Soviet countries, but also their safety and efficiency.


We are sure that after the Norilsk accident business attention to the environment and ESG-factors of sustainable development will multiply. And we hope that still companies are ready for change.

World Environment Day

January 01, 2020

Today we all celebrate World Environment Day. This year's theme is biodiversity, as all aspects of our life depend on the state of nature and biodiversity: the quality of air, water, food and resources.
The situation in Norilsk with a fuel spill darkened this day and causes serious concern for the consequences for nature, which have yet to be assessed.


Therefore, today its important as ever consider environmental reality rather than the nominal responsibility of large industrial and oil and gas companies, on which state of the environment largely depends. The joint project of CREON Group and WWF России Rational Approach encourages enterprises to reduce the burden on nature and move to a sustainable development model taking into account ESG factors - indicators of environmental responsibility, attitude to society and corporate governance.


Since 2014, the rating has been held in Russia, later the oil companies of Kazakhstan and Azerbaijan joined, and we expect that more and more companies will strive to improve their environmental performance. Because oil and gas companies undergo not only an internal audit to the board of directors, banks and shareholders, but also an external one to the company. And participation in environmental ratings contributes to the development of environmental culture and social responsibility.

Experts discussed methods to modify the Environmental Transparency Rating of oil and gas companies

May 28, 2020

On May 29, experts of WWF-Russia, CREON Group, National Rating Agency and representatives of industry discussed the ways to improve methodology of the environmental transparency rating of Eurasian oil and gas companies. Due to COVID-19, the discussion was organized online for the first time.

“By conducting this may discussions in a new format and in a new reality for the whole world, we expected lacking interest in the topic,” says Alexey Knizhnikov, head of the WWF-Russia program on environmental business responsibility. However, the willingness to participate in the rating is still very high”.

After the pandemic, interest in environmental responsibility will multiply both business and society, says Fares Kilzie, head of CREON Group: “The rating will become even more demanding as a neutral instrument of self-control, which defines the transparency and environmental responsibility of oil and gas companies to both society and investors”, says Kilzie.

As highlighted by Alexei Knizhnikov, all ranking studies are based on non-financial data available in open sources, “therefore, companies that want to be high ranked, have to provide up to date and comprehensive information”.

The Rational Approach Project with its Transparency Rating of Environmental Responsibility started in 2014. Their aims are to promote sustainability in the Eurasian energy sector, to motivate oil and gas companies to implement the best available technologies and to evolve a dialogue on environmental issues between business and society.

Experts concluded that the economic consequences of pandemic can only be overcome by making long-term decisions and focusing on sustainable development goals. Disclosure of environmentally significant information on the activities of oil, gas and petrochemical companies helps to reduce their environmental impact.

WWF and CREON Group presented first Eurasian ecological rating of oil and gas companies

March 24, 2020

The investment Greon Group in partnership with World Wildlife Fund (WWF) Russia extended the participants’ geography of its environmental transparency rating with oil companies from Azerbaijan. For the first time analytics compared them to ones from Russia and Kazakhstan. The rating allows to assess investment attractiveness of oil companies, which becomes very important for industry’s post-corona crisis recovery.

“The situation with coronavirus is alarming but should be temporary: oil and gas markets slump caused by global economic slowdown worsened by the coronavirus pandemic. However, I am sure the industry will overcome today’s challenges”, said Fares Kilzie, chairman of the board of Creon Group. “The rating importance will be even higher after the crisis as it defines transparency and ecological responsibility of oil companies. Here are key indicators for any investors in today's business reality”, emphasized Kilzie.

The third Berlin Conference «Ecological responsibility in the Russian energy sector»

Fall 2020

 

One can identify but a few topics within the realm of EU-Russia relations in which both parties find congruent interests. Two of these are environmental protection and climate policy. Moscow and Brussels are committed to the Paris Agreement. Furthermore, the bilateral political relationship between Germany and Russia has returned to a position of cooperation - the result of the June signing of the energy efficiency partnership agreement by ministers of economic development Peter Altmaier and Maxim Oreshkin.

Concerning businesses, this cooperation has never fallen asleep: EU companies are localizing their wind energy technologies in Russia, they are helping to separate waste and process associated petroleum gas in products of use. Research projects have been started to separate carbon from hydrogen based on natural gas. In the meantime, Russia supplying gas to Europe helps to become a little more environmentally friendly as the German market is still heavily dependent on coal in energy generation. In both Western and Eastern Europe, there are innovative "green" technologies that need sales markets, applications and financing.

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© Здравый Смысл. Россия, Москва, 119296, Университетский проспект 9. +7 (495) 276-77-88

© Rational Approach. Russia, 119296, Moscow, Universitetsky Prospekt, 9 Tel.: +7 (495) 276-77-88