Rusal

No leading practices were identified for this company.

Rusal uses 99% renewable energy at its aluminium smelters produced by hydropower plants. Furthermore, the company has already started implementing inert anode technology. However, the maturity and scope of these technologies are not covered in sufficient detail.

No leading practices were identified for this company.

No leading practices were identified for this company.

Rusal has targets to reduce its scope 1 and 2 emissions by at least 25% by 2032, and by at least 47% by 2050, compared to 2018. Moreover, the company has reduced its emissions intensity by 9% from 2017 to 2022. However, these reductions and targets fall behind the industry expectations. Further, the company has not established targets for reducing its scope 3 emissions. In addition to setting and disclosing a scope 3 emissions reduction target, Rusal should also report any offsets it intends to use to allow for a comprehensive analysis of its targets and progress against them.

While the company’s board has oversight of climate issues, none of the board members were found to have significant expertise in the low-carbon transition. Further, though the company has targets to reduce its emissions, it needs to establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should also be informed by scenario analysis to ensure its ambition aligns with a 1.5°C pathway.

Rusal commits to implementing aluminium scrap recycling projects as part of its 2030 strategy. However, the company should develop a comprehensive plan for scrap reduction with quantitative targets and a timeline. It should also detail its method for implementing this plan. Moreover, the plan should be regularly monitored and its responsibility should lie with high-level employees in the company. The company can enhance its transparency by disclosing its research and development (R&D) expenditure over the last three years and providing quantitative data on its investment in low-carbon technologies.

Rusal recognises the urgency of climate change challenges and supports the Paris Agreement. However, the company lacks both supplier and client engagement strategies to promote emissions reduction and the low-carbon transition. As one of the largest aluminium producers in the world, Rusal should encourage emissions reduction by shifting demand towards low-carbon alternatives and implementing action plans. Moreover, the company should publicly disclose a policy for engaging with trade associations on climate change and consider actively participating in initiatives for emissions reduction.

Rusal has targets to reduce its scope 1 and 2 emissions by at least 25% by 2032, and by at least 47% by 2050, compared to 2018. Moreover, the company has reduced its emissions intensity by 9% from 2017 to 2022. If such trend continues over the next 5 years the company will remain on track of its 1.5 pathway. The company has should establish targets for reducing its scope 3 emissions.

Rusal supports the Paris Agreement. However, it should disclose its climate strategy towards a low-carbon transition, including financial estimations and associated costs, as well as short- and long-term action plans. The company actively develops inert anode technology. However, no evidence was found that the company is contributing to low-carbon energy generation. Moreover, while Rusal explains how it engages with its diverse stakeholders on sustainability issues, the company lacks an engagement strategy to influence its suppliers and customers to reduce their emissions.

The company has been disclosing its scope 3 emissions, but this includes only the emissions from the production of purchased fuels and raw materials. It is, therefore, difficult to assess future trends in its downstream scope 3 emissions. Additionally, there is no evidence that the company has a strategy to engage its clients and suppliers in reducing emissions. Moreover, Rusal has become more energy-intensive from 2020 to 2022, making it challenging for the company to reduce its absolute emissions in the next five years.

Rusal does not provide information regarding its low-carbon capital expenditure and low-carbon mitigation R&D. The company also does not disclose whether it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models.

Rusal has targets for climate-related sustainability issues. However, the company does not have a comprehensive transition plan. Given its impact, it is crucial for the company to set out a transition plan with financial estimations and associated costs.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work. However, it can strengthen disclosure of its human rights due diligence process and engagement with affected stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, such as age and gender. However, no relevant disclosure was found of additional indicators of workforce diversity.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. Furthermore, no additional commitments of the company related to key ethical business topics such as tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its business relationships.