ESG Global Vision

Corporate governance policy, financial reporting

In force

Issuers of securities on the Russian market

The latest version of the standards for issuance of securities contains a chapter on issuance of bonds with the use of funds raised from the bond offering for financing projects aimed at social development.

The decision to issue such bonds may contain conditions for the use of all the funds received from the bond offering for sustainable development and social finance projects.

If the issuer uses the words "social bonds" in a bond offering the decision to issue the bonds will need to contain a condition for the use of all the funds received from the bond offering for social finance and sustainable development projects.

The decision to issue the bonds is also to contain the consequences of violating the internationally recognized principles and standards of social finance and sustainable development.

Non-financial reporting

Planned

 Russian entities

The Bill introduces the concept of "non-financial accounts" on a legislative level and requires large Russian entities (both state-owned and private) to publish non-financial accounts. Entities not meeting the turnover threshold introduced by the Bill may publish non-financial accounts on a voluntary basis.

Public non-financial accounts are published annually and are drafted in accordance with key (base) indicators enacted by the Russian Government.

Entities with subsidiaries publish consolidated non-financial accounts, including data pertaining to any such subsidiaries.

Public non-financial accounts are audited by an external independent auditor, with certification of non-financial accounts being provided by a national community organization or association of employers.

Social, environmental, governmental policy

In force

State bodies, legal and physical entities

The Act establishes the rights and obligations of natural and legal persons and public authorities to ensure the sanitary and epidemiological well-being of the population as one of the basic conditions for the exercise of the constitutional rights of citizens to health protection and a healthy environment. It also regulates the requirements for living and working space, manufactured and imported products, atmospheric air and drinking water.

Governmental order

In force

State bodies

This Order directs the prosecution authorities to check public institutions as well as legal entities for compliance with relevant labour laws, timely payment of wages and compliance of employment contracts and internal regulations with the principles of labour law.

Social policy, state program

In force

State bodies

The strategy contains steps for the  further development of labour legislation with the following principles:

• Ensuring certainty, transparency and openness in federal labour supervision;
• Establishment and promotion of a system of internal monitoring of employers' compliance with labour legislation
• Introduction of risk-oriented approaches to organizing federal labour oversight
• Streamlining the processes of interaction between the Federal Labour Inspectorate and employees and employers.

Social policy

In force

Russian Labour Code and the law itself provides for requirement to employers to ensure special assessments of working conditions (the "Assessment").

The Assessment is a unified set of measures consistently carried out to identify harmful and/or dangerous factors of the production environment and working process and to assess the level of their impact employees with regard to deviation from the established standards.

Results of the Assessment is applied for improvement of working conditions, providing employees with personal protective equipment, equipping workplaces with collective protective equipment etc.

Environmental decree

In force

State bodies, legal and physical entities

This is the general legislative act on environmental protection, and defines pollutants and categories of objects that have a negative impact on the environment, and establishes a basis for state regulation in the sphere of the environmental protection.

The law also establishes an obligation to pay fees for negatively impacting the environment. The fee is calculated on the basis of a series of decrees to be published by the Russian parliament. RD to pass to Engage support team on 18/01/22

Environmental decree

In force

State bodies, legal entities and individual entrepreneurs, physical entities

High emitting corporate entities will be required from 2023 to provide an authorized state body with a report on their greenhouse gas emissions. The exact level of emissions to trigger the requirement is yet to be determined.

Other entities may also provide such reports voluntarily.

Environmental decree

In force

The Government of Russia

The Government shall:

• ensure that by 2030 greenhouse gas emissions are reduced to 70% of 1990 levels;
• develop and approve a Strategy of socio-economic development for the Russian Federation ensuring lower greenhouse gas emissions by 2050
• implement measures to reduce and prevent greenhouse gas emissions, as well as to increase the absorption of such gases.

Environmental decree

In force

State bodies, legal and physical entities

This law defines waste hazard classes and establishes specific requirements regarding waste management, including requirements for development and implementation of regional waste management programs, waste collection sites, waste transportation and solid waste management.

Environmental decree

In force

State bodies, legal and physical entities

The law identifies rights for aquatic biological resources, implements a quota for bioresources conventions and establishes regulations when applying for permits to harvest biological resources.

Environmental decree

In force

State bodies, regional authorities of Bratsk, Krasnoyarsk, Lipetsk, Magnitogorsk, Mednogorsk, Nizhniy Tagil, Novokuznetsk, Norilsk, Omsk, Chelyabinsk, Cherepovets, Chita, as well as legal entities’ and individual entrepreneurs’ activities which have a  negative effect on the  environment in the cities listed above

This law establishes a framework for an experiment on the limitation of emissions in Russian regions.

The specific indicators and comprehensive plans for limitation of pollutive emissions will be established by the regional bodies. Under the law the head of the regional executive body (for example, a governor/mayor) is personally responsible for achieving the targets included in the plan.

Environmental decree

In force

State bodies, legal and physical entities

This law regulates the performance of duties by state and public ecological experts (for example, requirements for the expert commission, particular experts, results of their expertise etc.)  and also details sanctions for violation of the requirements.

Environmental decree

In force

State auhtorities

The Doctrine defines the goals, directions, tasks and principles of the unified state policy in the field of ecology in the Russian Federation for the 21^st century.

Social policy

In force

To all persons offering goods for sale and providing services, all consumers

The Act regulates relations arising between consumers and manufacturers, performers, importers, sellers, and owners of aggregators of information on goods in the sale of goods and establishes consumers' rights to purchase goods of adequate quality and safe for life, health, property of consumers and the environment and to receive information on goods (works, services) and their manufacturers (performers, sellers).

Social policy

In force

State bodies, legal entities

This law regulates energy saving and energy efficiency as well as the creation of legal, economic and organisational foundations for stimulating energy saving and energy efficiency. Energy efficiency affects the circulation of goods and services, the construction of buildings and facilities, and the energy consumption of individual citizens.

Social, environmental, governmental policy

In force

State bodies, legal and physical entities

The Act establishes the rights and obligations of natural and legal persons and public authorities to ensure the sanitary and epidemiological well-being of the population as one of the basic conditions for the exercise of the constitutional rights of citizens to health protection and a healthy environment. It also regulates the requirements for living and working space, manufactured and imported products, atmospheric air and drinking water.

Governmental order

In force

State bodies

This Order directs the prosecution authorities to check public institutions as well as legal entities for compliance with relevant labour laws, timely payment of wages and compliance of employment contracts and internal regulations with the principles of labour law.

Social policy

In force

State bodies, legal entities

This law regulates energy saving and energy efficiency as well as the creation of legal, economic and organisational foundations for stimulating energy saving and energy efficiency. Energy efficiency affects the circulation of goods and services, the construction of buildings and facilities, and the energy consumption of individual citizens.

Environmental policy, Social policy, Corporate governance policy

In force

Russian entities arranging sustainable development projects in Russia

This Decree sets out a number of criteria that sustainability projects are required to meet before being approved by the Russian government.

Projects must submit proposals to state authorities, detailing exactly how their submission will reduce emissions and/or have other beneficial impacts on the environment.

Subsidies for sustainable development projects

In force

Russian entities arranging sustainable development projects in Russia

The Decree contains criteria for investment projects that may receive subsidies from the federal budget for issuance of "green bonds" and taking out "green facilities", namely to cover up to 60% of intertest and coupon payments.

The Decree also includes requirements for entities which may be entitled to the subsidies. The list of the requirements is quite broad, but include requirements that to apply for the subsidies an entity should not receive funds from the federal budget under other legislative acts and the entity should be a Russian based entity and not being controlled by offshore entities (i.e. offshore entities should own less than 50% of shares of the entity), and bonds and facilities should be issued/granted in rubles.

Non-financial reporting

Planned

 Russian entities

The Bill introduces the concept of "non-financial accounts" on a legislative level and requires large Russian entities (both state-owned and private) to publish non-financial accounts. Entities not meeting the turnover threshold introduced by the Bill may publish non-financial accounts on a voluntary basis.

Public non-financial accounts are published annually and are drafted in accordance with key (base) indicators enacted by the Russian Government.

Entities with subsidiaries publish consolidated non-financial accounts, including data pertaining to any such subsidiaries.

Public non-financial accounts are audited by an external independent auditor, with certification of non-financial accounts being provided by a national community organization or association of employers.

Corporate governance policy, financial reporting

In force

Issuers of securities on the Russian market

The latest version of the standards for issuance of securities contains a chapter on issuance of bonds with the use of funds raised from the bond offering for financing projects aimed at social development.

The decision to issue such bonds may contain conditions for the use of all the funds received from the bond offering for sustainable development and social finance projects.

If the issuer uses the words "social bonds" in a bond offering the decision to issue the bonds will need to contain a condition for the use of all the funds received from the bond offering for social finance and sustainable development projects.

The decision to issue the bonds is also to contain the consequences of violating the internationally recognized principles and standards of social finance and sustainable development.