Thanks to two years of intensive joint efforts, we made serious strides on the implementation of a sustainability strategy at Polyus.

1. The list of ESG rating agencies covering Polyus was expanded, and ESG ratings were improved across all pillars. Polyus currently ranks among the leading Russian companies in all areas of ESG.

2. New information disclosure tools such as the ESG Data Book were launched, while disclosures in annual reports and sustainability reports were improved to meet the requirements of rating agencies.

3. New policies were drafted and published, putting Polyus into the small group of Russian companies to have a supplier code of conduct, which matches international best practice.

4. Scenario analysis was launched at a pilot business unit in 2020 and rolled out across all company facilities in 2021, while a climate strategy was prepared and Scope 3 emissions were calculated.

5. Polyus became a signatory to the UN Global Compact.

Greenhouse gas emissions reduction

In late 2020, Horizon CF experts conducted an energy efficiency audit of Polyus and identified opportunities to cut greenhouse gas emissions. We calculated the potential greenhouse gas emissions from coal and gas, as well as from hydropower plants, clearly showing in concrete figures how much emissions could be cut by switching to more eco-friendly sources. We used this analysis along with our detailed description of how to purchase I-REC green certificates to help Polyus achieve the 100% renewable electricity target in 2021 by signing direct contracts with hydropower plants.

Replacing coal, the most polluting fossil fuel, with renewable hydroelectric power is estimated to translate into a 30% cut in greenhouse gas emissions at Polyus.

Public disclosures and robust stakeholder communication help companies drive effective promotion and positioning.

On this note, we paid considerable attention to developing recommendations for improving the disclosure of information on the Polyus website, namely launching ESG sections, better structuring their ESG Data Book and ensuring that it was filled out regularly.

A serious emphasis was placed on strengthening communication with stakeholders on ESG matters and organising and providing guidance for presentations by Polyus representatives at dedicated ESG events.

An important step in improving a company’s ESG ratings and investability is establishing constructive dialogue with rating agencies.

To do this at Polyus, we also started with analysis. Horizon CF experts conducted a comprehensive analysis of the methodologies used in ESG ratings and Polyus’ rating performance, and reviewed the company’s disclosures and other existing practices to see how they compare. This was used to chart out a step-by-step plan to improve their ESG ratings and achieve inclusion into ESG indices.

On top of this, we set up lines of communication with rating agencies, regularly filling out questionnaires and providing comments to them.

In order to address all aspects of this task, it was vital to organically integrate ESG considerations into the company’s business strategy at all levels. For this reason, we regularly worked closely with Polyus top management to shape the corporate ESG agenda.

We introduced the practice of preparing quarterly and annual ESG presentations detailing the company’s ESG progress for internal discussion, as well as the preparation of specialised presentations on more narrowly defined sustainability topics for discussion by the Board of Directors.

We placed great importance on drafting and improving related internal documents.

• A list of recommendations was prepared to help improve the company’s sustainability strategy regarding climate, human rights, supply chain, and remuneration of top management.
• We developed a new Human Rights Policy and a Supplier Code of Conduct, and improved a number of existing documents.

Our most important tasks included actioning recommendations to improve the company’s performance on corporate governance practices, diversity, greenhouse gas emissions, energy efficiency, and human rights due diligence, all while developing a system for engaging with suppliers on ESG.

Horizon CF experts helped the company to join a number of ESG initiatives, for example the UN Global Compact, which unlocked a new level of investor trust. This move called for the preparation of accompanying documents and reports.

Any serious work that Horizon CF carries out always starts with analysis. With this in mind, the first and most important stage of our work with Polyus was benchmarking to see where they stood in the market across a range of sustainability aspects, such as greenhouse gas emissions in absolute and intensity terms, the share of renewables in the company’s energy mix, key health and safety metrics (LTIFR and FAR), water consumption, climate strategies, and remuneration of top management. Based on these insights, key areas for growth and further improvement were identified.

Horizon CF experts provided consistent support in navigating the process of conducting sustainability research, for example for the CGI report titled Climate Agenda of Russian Metals and Mining Companies: Management System, Strategy and Risks. 

Polyus was provided with tailored reference materials and calculations regarding the carbon trading mechanisms in force in various countries, as well as the greenhouse gas emissions linked to the use of various sources of energy.

Our partnership with Polyus began in 2019, when a team of Horizon CF experts was engaged to boost the company’s environmental and social responsibility credentials as part of its ESG efforts.

Polyus takes a proactive position towards sustainable development goals. To implement the company’s ambitious plans, an effective and consistent ESG process needed to be built.

We were tasked with finding solutions to a broad range of problems, for example:

• Regularly preparing ESG analysis and research
• Refining the company’s ESG practices
• Improving the company’s ESG ratings
• Improving the company’s public disclosure process 
• Driving stakeholder communication