SVEZA was Included in the Sustainable Development Ranking of Russian Companies for the First Time

For the first time, SVEZA was included in the ESG ranking of Russian companies compiled by the Independent European rating agency RAEX-Europe. The updated list was published on April 15. SVEZA became one of the top three companies in the timber industry.

The Independent European rating agency RAEX-Europe has updated the ESG* ranking of 110 Russian companies. Representatives of the paper, timber and wood processing industries have not previously been evaluated by experts. SVEZA was included in the overall list for the first time, taking the 53rd place, and making the top three among the enterprises of the forest sector. ESG ratings, unlike credit ratings, focus on commitment of the companies to responsible social, environmental, and corporate governance practices.

In 2019 SVEZA started implementing a long-term strategy, one of the directions of which is sustainable development. The Group focuses its efforts on ensuring worthy working conditions, reducing the environmental impact and developing the regions where it operates. Inclusion in the ESG ranking shows that SVEZA's activities meet the main goals of sustainable development.

Important criteria of expert assessment were SVEZA's social initiatives in relation to its employees: work on recruiting and retaining staff, motivation and development. Despite the pandemic, SVEZA retained the number of employees at the group's mills, as well as its social obligations to the workforce, and continued to implement training programs, including a paid internship program for university and secondary school students.

It is important to note that the company has no age restrictions for either professional growth or employment. When hiring, HR offices primarily evaluate the experience, professionalism and development potential. SVEZA does not discriminate on the basis of ethnicity, religion or gender. It demands respect for human rights not only within the company, but also from suppliers of wood resources, which is regulated by the Due Diligence System adopted by all enterprises of the group.

The measures that the company takes in relation to the local community received the highest rating from the experts. Work in the field of corporate social responsibility is one of the key areas. The company actively develops sports culture in the regions of its presence, supports competitions and children's sports clubs, participates in the construction of sports facilities. Regular work is carried out on the improvement and development of infrastructure in localities where the SVEZA mills operate. The group provides assistance to educational, cultural, and medical institutions, special attention is paid to helping vulnerable groups.

SVEZA also participates in regional state programs. At the beginning of 2021, an agreement on the socio-economic development of Manturovo was signed with the authorities of the Kostroma region. The Group will finance 15 projects, including such socially significant ones as gasification of the city district, solution of drinking water supply issues, improvement of the quality of medical and educational services, construction of roads, and others.

Aspects of occupational safety and improvement of occupational safety standards were also noted. SVEZA consistently implements a set of measures to improve safe working conditions at its mills, and develops special programs. For example, in 2020 programs aimed at creating a safe environment, such as “Places of Jamming” and “Human Loader”, were developed. In particular, through the use of these programs, the lost time injury frequency rate (LTIFR) showed the best result in 5 years and amounted to 1.04. The result of the implementation of the “Places of Jamming” program last year was a 67% reduction in jamming related injuries compared to 2019.

* ESG (Environmental, Social, Governance) are company development principles based on environmental protection, good relations with employees and customers, and proper corporate governance.