ALROSA launches 2025 Sustainability Programme and Commitments

Alrosa

June 24, 2021 – ALROSA presents comprehensive Sustainability Programme, which covers all business activities of the Company and aims at raising responsibility and transparency of diamond mining and production, and strengthening of customers’ trust.

ALROSA Group Sustainability Programme is a strategic document covering the Group’s fundamental sustainability principles and approach to sustainability and reflecting the Company’s systematic efforts in the field.

In accordance with the comprehensive Programme the Company has identified long-term sustainability ambitions and developed an action plan for their implementation.

ALROSA’s key 2025 sustainability pillars and targets include:

  • Environment: development and approval of environmental and climate change strategy in the 1st quarter of 2022, including scenarios to achieve carbon neutrality, expanded scope of information disclosure in accordance with Climate Disclosure Project (CDP), implementation of Task Force on Climate-related Financial Disclosures (TCFD) recommendations;
  • Communities: ALROSA annually allocates more than RUB 10 bn (more than USD 130 mln) to implement community development and support programs for the operational regions. The share of social investment in the Company’s revenue today is about 5%, which is the highest rate in the diamond industry. ALROSA will also strive to ensure a consistently high share of local and indigenous peoples employment;
  • People: maintaining industry leadership in terms of the share of women in the total headcount (more than 30% of women as of now) and consistent increase in employee loyalty and satisfaction;
  • Health and Safety: achieving zero injuries and an annual 10% decrease in LTIFR;
  • Governance and ethics: conducting regular diamond supply chain due diligence for 100% of diamond production.

Overall, ALROSA has committed to achieve 24 ambitions themed to deliver the strategic pillars, set 52 qualitative and quantitative targets and developed an action plan for their implementation.

“The diamond mining industry now has a crucial role in improving the socioeconomic well-being of the operating regions and the transition to a high-tech low-carbon economy. This was especially evidenced during the periods of instability, as showed the experience of the coronavirus pandemic last year. That is why sustainability has always been part of the mission, strategy and corporate culture of the Company.

If earlier this was a traditional request from our state shareholders, then recently our minority shareholders began paying significant attention to ESG factors. This also applies to such public inquiries from the BlackRock investment fund with a call to improve the work and the system of information disclosure on ESG indicators as well as a recent open letter from the world’s largest investment companies controlling assets worth USD 41 trillion on the need to accelerate the reduction of greenhouse gas emissions. The list of signatories includes up to 20% of the Company’s minority shareholders. Overall, we see that almost all current or potential institutional investors of ALROSA consider ESG aspects when making investment decisions.

By developing detailed action plan to achieve the targets of the Sustainability Programme, ALROSA confirmed its intention to continuously improve its operations, implement modern technologies and best practices, and promote leading international standards in the field of climate, environment, social responsibility, corporate governance and industry self-regulation.

Having achieved the targets, ALROSA is expected to increase the efficiency of sustainability management system, form the basis for the long-term sustainability of the Company, and to significantly enhance contribution to the socio-economic well-being of the operational regions”, – commented Sergey Ivanov, ALROSA CEO.

The five strategic pillars reflect the ALROSA Group approach to sustainable development and its contribution to the achievement of 13 priority UN Sustainable Development Goals. They also confirm the ALROSA Group adherence to the ten fundamental principles of the UN Global Compact and the intention to promote the sustainable development agenda both within the Group’s core activities and within the framework of developing international partnerships. The programme is designed to meet the requirements of the international standards and guidelines for responsible business conduct, industry self-regulation, including the standards of the World Diamond Council (WDC) and the Responsible Jewellery Council (RJC), and also complies with sustainability best practices.

In February 2021, to determine the ALROSA Group sustainability vision and objectives and to assess the effectiveness of the Programme implementation the Supervisory Board’s Strategic Planning Committee has been renamed the Strategy and Sustainable Development Committee. The Committee has established a Sustainability Taskforce comprising of the Supervisory Board members and leading international experts responsible for discussing and agreeing on the objectives, ambitions and targets, including review of the best international practices and analysis of their applicability for the Company.

LEAVE A REPLY

Please enter your comment!
Please enter your name here