With the aim of drawing public attention to issues of information disclosure related to sustainable development and defining uniform approaches to the disclosure of such information, in July 2021 the Bank of Russia published recommendations on the disclosure of extra-financial information associated with the activities of such companies (hereinafter referred to as "Recommendations on the disclosure of information related to sustainable development") 1.

In accordance with the Recommendations on Disclosure of Sustainability-Related Information, companies are recommended to disclose sustainability-related information in their annual report. However, with the aim of providing flexibility and convenience to interested parties for the disclosure of information related to the sustainable development of the company, they have the right to disclose such information separately in a separate sustainability report ( hereinafter referred to as the “Sustainable Development Report, SDR”).

The Bank of Russia carried out monitoring of disclosure practices by public companies whose shares are included in the sustainability listing lists at the end of 2021. A total of 69 annual reports including information on sustainable development and/or RDDs of joint-stock companies were examined.

Integration of sustainable development issues into the strategic planning process

When reviewing the annual reports and Sustainability Reports (SDDRs) of publicly listed companies (SCBs), the question of integrating SCBs into their general corporate UN sustainability strategies (hereinafter referred to as the UN SDGs) was examined. The results of the analysis show that 54 (78%) of SCBs integrate sustainability issues into their strategic planning process, in one form or another. Among them, 52 SCBs have developed corporate sustainability objectives based on the UN SDGs, 41 have formulated their own corporate sustainability strategies, and 39 have key performance indicators (KPIs ) of companies linked to the achievement of the UN SDGs and included in the overall company strategy.

Additionally, 17 (25%) of the SCBs have formulated a climate strategy. It should be noted that 47 of the SCBs actually include data on greenhouse gas (GHG) emissions in their annual reports or RDDS. Among them, 47 SCBs provide information on the total volume of GHG emissions, including direct GHG emissions (Scope 1 *3); 32 SCBs provide information on Scope 1 and indirect GHG emissions (Scope 2 *4), while 19 SCBs provide information on Scope 1, Scope 2 and other indirect GHG emissions (Scope 3 *5).

Distribution of completeness of information on individual ESG factors

Data included in annual reports and Sustainability Reports (SDDRs) by publicly traded companies (SCBs) to describe ESG factors and sustainability issues, including related risks and opportunities, vary considerably in scope and detail. Less than half of SCBs, 34 (49%), maintain a relative balance in disclosing information on all three factors. However, expert assessment of the completeness of data presentation for each individual ESG factor shows that SCBs describe corporate governance-related factors in more detail in their reports. It should be noted that an equally important aspect for SCBs when it comes to corporate governance is the consideration of ESG risks, including those related to climate. Environmental factors, including climate, were described comprehensively by 38 (55%) of the SCBs, while social factors were described comprehensively by 37 (54%) of the SCBs. Particular attention should be paid to the developing practice in 2022 of preparing a Sustainability Handbook (ESG Data Book) - an electronic annex to the RDDS that summarizes the main sustainability performance indicators of SCBs for each factor ESG. This format indicates a systemic approach of SCBs to monitoring and accounting for quantitative indicators related to sustainable development. 13 (19%) of SCBs used this format.

Independent external assessment of sustainability information

In accordance with the recommendations on the disclosure of sustainable development information, companies are encouraged to carry out an independent external assessment of this information, disclosed in the annual report or the RDDS, in the form of professional confirmation (certification). This procedure should help to strengthen the confidence of stakeholders in the activities of companies and in the information they disclose in terms of sustainable development. According to annual reports and/or RDDS, independent external assessment of selective data, including greenhouse gas emissions data, is much more common than full professional confirmation (certification) of RDDS. Another common practice among the largest Russian issuing companies is the process of public certification of RDDS by the Union of Industrialists and Entrepreneurs of Russia (RSPP). The annual reports and/or RDDS of 23 (SCB) contain information on the independent external assessment in the form of professional confirmation and/or public certification. Overall, the monitoring results demonstrate that societal interest in the sustainability agenda persists. The Bank of Russia expects companies to continue their work on sustainability disclosure, including using the recommendations on sustainability disclosure.


1. Information letter of the Bank of Russia dated July 12, 2021, number IN-06-28/49, regarding recommendations on the disclosure of extra-financial information by listed joint stock companies related to their activities .
2. https://www.cbr.ru/Collection/Collection/File/43510/Review_corp_0112022.pdf

*3 - Scope 1 - direct greenhouse gas emissions from sources owned or controlled by publicly traded joint stock companies.

*4 - Scope 2 - indirect energy emissions of greenhouse gases from the production of purchased and consumed thermal and electrical energy.

*5 - Scope 3 - other indirect greenhouse gas emissions (excluding indirect energy emissions) that occur in the value creation chain, including on the consumer and supplier side.