Sustainalytics assigns ESG rating to Metinvest
Metinvest, an international vertically integrated group of mining and metallurgical companies, has conducted a comprehensive assessment of its environmental performance, social policy and corporate governance (ESG) with the assistance of Sustainalytics, a leading independent provider of research, ratings and data in the field of ESG.
"This is the first time that Sustainalytics has assessed Metinvest's ESG performance using its ESG Risk Ratings methodology. An ESG Risk Ratings score is a measure of unmanaged ESG risks on an absolute scale of 0-100, with a lower score signaling less unmanaged ESG risks," the group said on its website.
"Metinvest received an overall ESG Risk Rating score of 32.0. While the risk of experiencing material financial impacts driven by ESG factors was assessed as high due to the steel industry’s significant exposure, Sustainalytics recognized the Group’s management of material ESG issues as strong," the report says.
"Notably, Metinvest's management in such areas as human capital, occupational health and safety, as well as community relations was assessed as strong. In addition, Sustainalytics assigned a high score for the group's corporate governance and its adherence to high standards of business ethics," it says.
"When compared with industry peers, Metinvest is ranked at ninth place out of the 140 steel companies assessed by Sustainalytics worldwide," according to the document.
"We recognize that mining and steel manufacturing always have a high level of exposure relative to many other industries. Metinvest consistently takes into account environmental, social and governance factors in its business decisions, therefore we have launched our first external assessment in the ESG field as part of our overall commitment to business transparency. We believe that measuring our ESG performance helps us to better understand our strengths and weaknesses for further sustainable development. We have received vital feedback and analyzed how we can build more robust risk management institutions to ensure the group's continued industry leadership," Yuriy Ryzhenkov, the Chief Executive Officer of Metinvest, said.
"ESG topics are gaining importance worldwide for all groups of stakeholders, including lenders. We believe that this rating assigned to the group by Sustainalytics will help to alleviate the decision-making process in funds allocation for our existing and future investors and creditors," Oleksandr Liubarev, the Corporate Finance and Treasury Director at Metinvest, said.