Various issues of ESG and sustainable development become more important for international and Russian businesses.
International partners of Russian companies set ESG standards-based requirements and oversee their fulfillment. Such requirements apply not only to the products and services but to the principles on which Russian companies implement their business activities. Such standards are being integrated both on the corporate level by various companies, and on the regulatory level of numerous countries (including Russia) which number is steadily growing. Thus, certain ESG-based instruments (like, for example, green financing and green bonds), reporting on carbon emissions, etc. have already been specifically regulated, and the spectrum of such regulated issues is growing constantly.
Evaluation and consideration of ESG-risks become mandatory for almost any business activity (e.g., for the preparation of management, financial and non-financial reporting, and especially attracting financing). Not only do financial institutions commence requiring from the companies evaluation of climate risks and consideration of other ESG-related aspects, but even the Central Bank of Russia is now working on the development of the principles of “sustainable investments”. The companies which implement their projects based on the ESG-principles (and with the aim to achieve the goals of sustainable development), enjoy direct and indirect incentives (including, inter alia, tax incentives, special financing rates, etc.).
EMPP lawyers have been part of the groups working on the regulation governing ESG-related projects and regularly participated in the implementation of such projects. Since 2004 they have been participating in the drafting of applicable enactments, as well as in structuring and implementation of such projects and the related transactions. Our lawyers have advised numerous companies and institutions (including, inter alia, Morgan Chase, Macquarie Bank Limited, the World Bank, JSC Eurochem, JSC Minudobreniya, Carbon Trade and Finance – SICAR SA, Phosagro, Camco International, AES Corporation, and many others) on various ESG-related matters.