En+ Group presents the fourth UN Global SDGs Support Report covering the period from August 2021 to August 2022.
En+ Group (LSE, MOEX: ENPG), a Russian leader in low-carbon aluminium production and renewable energy, presents the fourth UN Global SDGs Support Report covering the period from August 2021 to August 2022. The report contains information about En+ Group's approach and projects contributing to the global efforts to support 17 UN SDGs, as well as their input to the National Development Goals of the Russian Federation.
· The share of low-carbon electricity purchased for aluminium smelters exceeded 99% due almost entirely to hydro generation (99.4% (98.8% hydropower, 0.6% wind power);
· The New Energy Programme allowed to increase green hydropower generation by 2.1 billion kWh compared to 2007;
· Increased annual generation of green hydropower reduced GHG emissions by 2.44 million tonnes of CO2-eq in 2021 by partially replacing demand for electricity generated by CHPPs;
· En+ Group has identified one more priority SDG - SDG 11 "Sustainable Cities and Human Settlements", which implementation will positively affect other UN Global Goals;
· Following three-years monitoring of the water quality and ecological condition of Lake Baikal, the Group has identified threats to the Baikal coastal ecosystem. To prevent further degradation of the ecosystem, En+ Group initiated the creation of the Baikal without Plastic Association.
The full report is already available on the company's website.
The Group supports all 17 SDGs, with a particular focus on the eight SDGs prioritised for En+ business. The goals, selected on the basis of areas where the Group can have the greatest impact, cover four key areas: Climate Change Leadership (SDGs 7 and 13), Sustainable Use of Natural Resources (SDGs 6, 12 and 15), Human Development (SDGs 3 and 8) and Cooperation and Partnerships (SDG 17). Due to the high concentration of assets in smaller cities with poor infrastructure, SDG 11, Sustainable Cities and Human Settlements, has become an additional priority for the Group.
Climate Change Leadership
In 2021, En+ Group was one of the first companies in Russia to set the goal of becoming carbon neutral by 2050. The company's interim goal of reducing greenhouse gas emissions by at least 35% by 2030 was the most ambitious in the global aluminium industry at the time. The Group continues to adhere to its stated strategic goals in both segments, largely ahead of the declared deadlines for achieving certain targets.
For example, in early 2021, En+ Group participated in the UNGC's SDG Accelerator, under which it set a goal to increase alternative energy use by 2030. Already in 2021, the share of low-carbon electricity purchased for the aluminium smelters in the Metals segment exceeded 99% almost entirely from hydro generation (99.4% (98.8% hydroelectricity, 0.6% wind power).
En+ continues to pursue technological improvements at its aluminium smelters, systematically introducing technologies such as Eco-Soderberg, inert anode and a wide range of energy efficiency and carbon capture projects.
Modernisation and energy efficiency projects are also being implemented in the Power Segment. For example, the Group is implementing the New Energy hydropower modernisation programme, which aims to increase electricity generation at existing HPPs and to reduce carbon footprint by curbing the greenhouse gas emissions of the Company’s coal-fired power plants. The group aims to ramp up the energy output by 2.5 billion kWh using the same amount of water passing through the hydropower turbines and to prevent emissions of over 2.5 million tonnes of CO2 per year from 2025. Today, the Programme reduces GHG emissions by 2.44 million tonnes of CO2 annually.
One of the important initiatives 2021-2022 in the Power segment was the inventory of greenhouse gases from hydropower reservoirs. Hydrogen energy projects are also under way, such as the development of cryogenic tank containers for transporting liquid hydrogen to solve the problem of transporting hydrogen over long distances, which remains a major barrier to the development of hydrogen energy.
Great deal of attention is being paid on projects providing compensation for its emissions, which, for technical and economic reasons, cannot yet be eliminated. For example, 1.1 million trees have already been planted in the Krasnoyarsk region and the Irkutsk region, 505,000 hectares in the Krasnoyarsk region are under aerial forest protection, which allows the annual absorption of 440,000 tonnes of CO2, and new forest-climate projects related to efficient forest management are being considered.
Sustainable Use of Natural Resources
En+ Group recognises that sustainability cannot be achieved without addressing the wide range of business impacts on ecosystems today. The Group is proud of its long history of environmental initiatives, from water quality monitoring and wastewater purification to the protection of endemic species and responsible waste management.
In June 2022, the development of a comprehensive programme to minimise wastewater discharges and losses began. The Group made a commitment to eliminate untreated wastewater discharges by the Power segment by 2030. Currently, purification facilities are in various stages of implementation at the Power Segment facilities. The project at Vostsibugol facilities is fully completed, and work is underway at Irkutsk and Krasnoyarsk HPPs.
The company also plans to minimise non-productive water losses by 2030 by optimising technological systems. In order to achieve this, an inventory of water consumption and actualisation of water balances of facilities began in 2022 to identify unproductive losses and subsequent preparation of measures to reduce them.
By 2025, En+ intends to deploy water-recycling systems for Metals segment’s key processes. In 2021, the share of recycled water of the total water used for production was already 91.5%.
The Company implements many biodiversity and nature protection projects and plans to continue increasing their number: until 2024, the plan is to develop programmes for pilot facilities (three existing production facilities per segment), until 2030 - for the Group's facilities with significant biodiversity risks. The development of programmes and action plans for the pilot facilities of the Power Segment - Irkutsk, Bratsk and Ust-Ilimsk HPPs - has already been started in 2022.
The Group's production facilities are mostly located in towns with relatively underdeveloped infrastructure; therefore, to create decent living conditions for employees and local residents, En+ pays great attention to investments in communities and towns of operation.
The approach to SDG 11 is based on three key components: tourism, infrastructure and historical restoration. The Group's projects address both sustainable and supervised tourism infrastructure and enhance the tourism potential of the regions. Measures ranging from support for sustainable and electrified transport to the construction of modern and environmentally friendly housing, medical centres, offices and convention centres are being implemented in the focal regions. The Group pays special attention to the preservation of historical monuments and areas; the restoration and renovation of historical sites that not only maintains the charm of cities with a rich historical heritage, but also reduces the environmental impact compared to building from scratch.
Engagement with employees is also an crucial area of focus for the Group. En+ strives to provide every employee with a sense of support, safety and care by continuously developing corporate training and targeted support programmes and improving operational safety principles in both segments to achieve zero injuries. The company is proud of its culture of equal opportunities and human rights, with a special focus on gender equality. In 2021, women made up 33% of the board of directors and 27.3% of the company's employees.
Cooperation and Partnerships
In 2021, En+ Group developed corporate goals in line with the SDGs through the UNGC Accelerator. Through the WBCSD and participation in the feedback process for the SBTN and the Post 2020 Global Biodiversity Framework, En+ Group became familiar with the best steps in shaping an effective corporate biodiversity strategy.
In 2021, En+ Group became the first organization in Russia to be included in the UN Energy Compact as a company committed to increasing the production of clean energy and promoting access to clean energy everywhere.
Also in 2021, En+ Group submitted its first CDP application for its Power segment. CDP is an international organisation that maintains a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. The Metals segment - RUSAL - has participated in the CDP since 2015 and is committed to full disclosure of its GHG emissions. In 2021, RUSAL again received an "A-" rating, the highest rating awarded by the CDP to an aluminium producer.
The Group is also actively involved in the development of the sustainability agenda at national level, having become a founding member of the National ESG Alliance in 2022.