SIBUR updates ESG strategy and presents its 2022 results

Having achieved some of its targets ahead of schedule, the Company is making additional commitments in the areas of environmental protection and health and safety.

SIBUR has presented its key ESG performance results for 2022 and updated its 2025 Sustainable Development Strategy. Having achieved some of its targets ahead of schedule, the Company is making additional commitments in the areas of environmental protection and health and safety. In addition, SIBUR will expand its social entrepreneurship support programme in the regions where it operates, while also seeking to enhance corporate governance.

“SIBUR remains strongly committed to ESG principles and continues to address all aspects of the sustainability agenda. Given the early achievement of some previously set targets, swift changes in the external environment and the expansion of the Company’s operations, we have made a decision to update our ESG strategy. We are also continuing with our non-financial disclosures as a way to maintain transparency,” said Maxim Remchukov, Head of SIBUR’s Sustainable Development.

Environmental performance

• Environmental impact reduction targets were achieved ahead of schedule: specific emissions of pollutants were reduced by 9% from the 2018 baseline level (vs the 2025 target of 5%), specific water consumption decreased by 24% (vs the 2025 target of 5%), specific mass of contaminants in wastewater fell by 55% (vs the 2025 target of 40%), and the rate of waste recycling came in at 54% (vs the 2025 target of 50%). Spending on environmental protection in 2022 totalled approximately RUB 9 billion. The strategy's new targets reflect the additional environmental impacts to be delivered in 2023 and 2024 through efforts to improve the Company’s environmental performance and production efficiency.

• SIBUR keeps taking consistent steps to reduce its negative climate impact in line with strategic targets. Compared to 2021, the Company reduced specific greenhouse gas emissions in Gas Processing and Petrochemicals by 20% and 5% respectively, and increased the share of green energy in its energy mix sixfold. SIBUR successfully completed international validation of its climate project earning certified emission reductions (CERs) of 3 million tonnes of CO2-eq. and launched the Green Formula forestation initiative. The economic effect of the energy efficiency measures implemented in 2022 amounted to RUB 2.45 billion.

• In the reporting year, SIBUR launched production of PET granules with recycled content under the Vivilen brand and put on stream a 4.9 MW solar power plant at its POLIEF facility in Bashkortostan. Since the commencement of production and thanks to partnership projects, more than 187 million plastic bottles have been recycled.

Social performance

• SIBUR views employee health as a priority. This was reflected in our ESG strategy, which now sets a new separate target to reduce employee time lost for ill health cases by 5% annually. It includes ensuring the safety of production processes for human health, maintaining and improving physical health and well-being of our employees, and adhering to stringent health and safety standards. Spending on health and safety in 2022 amounted to RUB 2.79 billion.

• The employee engagement rate in 2022 was 79.8% in line with best global peers and above the average across the Russian manufacturing industry.

• The Company’s comprehensive diversity and inclusion (D&I) programme was updated to include targeted training modules into management development and adaptation programmes. The share of women in the total headcount in 2022 was 31%.

• Social investment in 2022 increased 1.6-fold. In 2022, the support for social entrepreneurship was added as a new focus area to the Formula for Good Deeds programme, while the share of corporate volunteers exceeded the target and reached 27%. As part of the updated targets for 2025, SIBUR will seek to expand its social entrepreneurship support programme in the regions where it operates and increase the share of corporate volunteers to 30%, with at least half of them being environmental volunteers.

Corporate governance

• SIBUR develops and improves corporate governance as a key element to ensuring its sustainable development. We strive to meet the highest standards of business ethics and compliance, and expect the same from our partners.

• By the end of 2022, over 600 employees of the Company's key counterparties were trained under the Human Rights in the Workplace programme. In line with the new targets of its ESG strategy, the Company will look to extend the corporate governance principles beyond its own operations to encompass the entire supply chain. In particular, this includes minimising human rights violations by all supply chain participants.