August 31, 2021 – ALROSA is the first Russian company to join the World Economic Forum’s Stakeholder Capitalism Metrics initiative and adopt a formal commitment to implement the new ESG reporting standard.
According to the ‘stakeholder capitalism’ concept created by Klaus Schwab, founder and executive chairman of the World Economic Forum, companies should aim both to make a profit and to meet the needs of and create value for all their stakeholders, including shareholders as well as employees, clients, local communities and others.
In 2020, WEF in collaboration with international audit and consulting firms and experts of the Bank of America published a report ‘Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation’, which aims to develop a universal international standard for nonfinancial reporting, including a set of concise, consistent and comparable ESG metrics that can be applied to companies of different industries and regions.
The proposed standard includes 55 universal indicators and disclosures, drawn from existing voluntary sustainability standards such as SASB, GRI, CDP and TCFD.
Sergey Ivanov, ALROSA’s CEO and Chairman of the Executive Committee, said: “Being a partner of WEF, ALROSA adheres to the highest international ethical business standards and constantly seeks to improve the quality of information disclosure on sustainability aspects. Joining the WEF initiative is another important step in the company’s efforts to promote and implement effective ESG management approaches in the diamond industry with due consideration for the needs and interests of a wide range of stakeholders. We believe that information disclosure standards must be constantly improved and reflect the latest development trends in the ESG-focused economy. In this context, developing international collaboration and exchanging information in this area is becoming particularly important.”
As a member of WEF’s specialized working groups, ALROSA was also involved in developing the set of metrics. In 2020 Sustainability Report ALROSA reported the information in accordance with the WEF metrics and recommendations. From 2021, ALROSA plans to disclose these indicators on an annual basis. Furthermore, to exchange its experience in implementing ESG metrics and improve its non-financial reporting system, ALROSA has joined WEF’s ESG Practitioner Group.
ALROSA’s commitment to adopt and implement stakeholder capitalism metrics
ALROSA Group is the world leader in diamond mining, operating in 10 regions of Russia and 9 countries of the world. Its key production assets are located in Russia – in the Republic of Sakha (Yakutia) and Arkhangelsk Region - and it also conducts geological exploration in Zimbabwe. The responsible business principles are an integral element of the company’s strategy. In 2021, ALROSA adopted a comprehensive 2021-2025 Sustainability Program, which defines its key strategic sustainability priorities and ambitions.
ALROSA contributes to shaping and promoting the global sustainable development agenda through its participation in international organizations and initiatives such as the UN Global Compact, the Responsible Jewellery Council, the World Diamond Council and the Natural Diamond Council.