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Segezha Group ranks first in AK&M Rating's list of socially responsible companies in pulp and paper industry and timber processing group

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Segezha Group ranks first in AK&M Rating's list of socially responsible companies in pulp and paper industry and timber processing group

September 02, 2021 - 06:08
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MOSCOW, Sept. 2, 2021 (Press Release) -Segezha Group (a subsidiary of Sistema PJSFC) ranks first on the list of socially responsible companies in the Pulp and Paper Industry and Timber Processing group. AK&M Rating Agency recognises the company as the most socially responsible company. For instance, the holding provides jobs for more than 13,000 people. As an anchor investor and developer of city-forming enterprises in single-industry towns, the company invests in the development of social infrastructure, road construction, and provides services to the population on the supply of vital products and services. Particular emphasis is placed on supporting local communities in the sociocultural sphere through healthcare, education, sports and medicine.

The aim of AK&M's ranking is to identify the companies that provide the greatest benefit to society with the least impact on the environment. The Rating has been compiled since 2018 using two groups of indicators: the social effect of operations and the impact on the environment. The list of participants comprises the 300 largest industrial, energy and transport companies, based on sustainable development data.

Segezha Group was previously recognised in the 2020 ESG Report rating, receiving the highest level of sustainability information disclosure in the reports. The company is also engaged in forest management, in compliance with international certification standards. This year, the holding company adopted a Sustainable Development Policy and set consistent targets for reducing its impact on ecosystems. The document focuses on four main areas: innovative forest business, comfortable life in Russia's forest regions, climate-oriented forest management and production, and a controlled supply chain.

"Segezha Group's products are sought after on international markets and meet environmental requirements not only in Russia, but also in Europe. We constantly improve our environmental performance, upgrade our assets, and build new plants using only the best technology available. We have developed an extensive reforestation programme, and we consistently advocate the preservation of forest ecological values. We plan to implement measures to reduce the impact on the environment, including replacing hydrocarbon fuels with logging and wood waste. Despite the fact that the forestry products are not on the priority list of EU Carbon Border Adjustment directives, we will be fully implementing our planned actions to achieve carbon neutrality in 2025. We consider environmental responsibility to be the key to sustainable development of the economy and the industry," said Nikolay Ivanov, Managing Director for Implementation of State Programs and Forest Industry Policy at Segezha Group.

Segezha Group is one of the largest Russian vertically integrated timber holding companies with a full cycle of logging and added-value wood conversion. The holding includes enterprises in both Russian and European timber, woodworking and pulp and paper industries. The group operates in 11 countries, including Russia. Its products are sold in over 100 countries. SG plants employ 13 thousand people. Segezha Group is the largest forestry company in European Russia. As of 31 December 2020, the total area of leased forest was 8.1 million hectares of forest plots, 83% (6.72 million hectares) of which were certified for compliance with international voluntary forest certification schemes. In 2020, the holding made RUB 69 billion in revenue, achieving an OIBDA margin of 25%. Total investment over the past seven years is roughly RUB 50 billion. Segezha Group is Russia's largest producer of paper for multilayer bags, industrial paper sacks and sawn timber; the world's 2nd largest producer of paper for multilayer bags and industrial paper sacks; and the world's 5th largest producer of large-format birch plywood.