ALROSA allocated 8% of its consolidated revenue of 2020, or equivalent of $216 m to environmental and social projects

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July 27, 2021 – ALROSA announces that its social and environmental investments totaled RUB 15.8 bn (USD 216 m) in 2020, retaining its leadership position in the diamond industry[1]. This investment constitutes around 8% of ALROSA’s total revenue for the year.

ALROSA’s social investments amounted to RUB 10.2 bn (USD 141 m) in 2020 and included contribution to pension fund under non-state insurance programmes for employees, financing regional development projects and corporate social programmes for employees and their families, as well as supporting charitable and sponsorship projects. A large proportion of the funds were spent on developing of social infrastructure, incl. healthcare & recreation, education, cultural and sports facilities.

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These social investments are not included in ALROSA’s financial contributions to the local budgets in its regions of presence. As a major taxpayer, the Company paid RUB 43.1 bn (USD 425.4 m) in taxes and mandatory contributions in 2020. Over 60% of those contributions went to the Republic of Sakha (Yakutia) and its municipal districts. On top of this, the Republic is a recipient of dividend payments as a shareholder in ALROSA with the share of 33%.

ALROSA also allocated RUB 5.6 bn (USD 70 m) to environmental initiatives, with the majority of funds invested in waste management and recycling projects, as well as projects aimed at reducing water intake from natural water supply systems, water recycling at concentrators, reducing direct greenhouse gas emissions, and energy efficiency and land rehabilitation projects.

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Sergey Ivanov, CEO of ALROSA, said: "ALROSA is committed to sustainable development, which is reflected in the numerous annual social and environmental initiatives we undertake in the regions of our presence. The Company retained its leadership position for ESG investments in the diamond industry in 2020, contributing around 8% of our total revenue.

This is in addition to over RUB 1 bn (USD 14 m) allocated to anti-COVID measures aimed to ensure the health and safety of our employees while also supporting hospitals and healthcare workers. Our environmental investments have enabled us to build on our existing strategic projects aimed at preserving the environment and developing unique ecosystems."

The full version of ALROSA’s 2020 Sustainability Report available here.

ALROSA’s 2021-2025 Sustainability Programme available here.

REFERENCE

ALROSA is committed to environmental, social and governance (ESG) matters and meets the highest standards of corporate social responsibility (CSR). The Company executes over 500 social and environmental initiatives every year and allocates around 8% of its annual revenue to these causes as part of its global ‘Diamonds that Care’ programme. ALROSA’s social and environmental investment is comparable to its investment in technical retooling, productive capacity and infrastructure at RUB 20-25 billion (USD 197.9 – 247.3 million) per annum.


[1] Based on ALROSA’s internal estimates

This page was last updated on 27 July 2021 at 14.39