Rossiyskiye Zheleznye Dorogi (JSC Russian Railways) is a fully state-owned company headquartered in Russia. In 2020, its revenue was USD 31.61 billion. The company is responsible for both managing infrastructure and operating freight and passenger train services in Russia. In 2020, Russian Railways transported 871 million people.
JSC Russian Railways saw a significant increase in its passenger emissions intensity between 2015 and 2020. This is partly due to reduced passenger numbers during the COVID-19 pandemic. However, between 2015 and 2019, the company failed to make the necessary reductions to align with its 1.5°C pathway. Despite the increase in emissions intensity, the company stayed within its carbon budget between 2015 and 2020 for passenger transport. Its freight emissions intensity decreased slightly between 2015 and 2020 but not at the rate required to align to its 1.5°C pathway. The company exceeded its total carbon budget for the period between 2015 and 2020 by nearly 47% for freight transport.
JSC Russian Railways has committed to stopping the purchase of diesel-powered trains. These trains will be replaced with electric-powered trains where possible. The company has partnered with technology companies to research and develop low-carbon alternatives such as hybrid shunting locomotives and hydrogen-powered commuter trains. Despite these collaborations, where electric-powered trains are not possible, Russian Railways considers natural gas-powered locomotives a low-carbon alternative. To align with its net-zero goals, the company should commit to phasing out fossil fuels.
JSC Russian Railways has no clear strategy, promotional initiatives, or financial incentives to influence customer demand for low-carbon transport alternatives. To meet its target of net-zero by 2050, the company should set out a clear strategy to promote its low-carbon solutions to customers. This could include providing financial incentives such as discounts or marketing campaigns. Increased rail use has a significant role to play in achieving 1.5°C decarbonisation scenarios. Therefore, engagement with customers is of particular importance in this sector.
JSC Russian Railways receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. The company is projected to greatly exceed its carbon budget between 2021 and 2035. Passenger activity accounts for about 94% of the company’s business. The emissions intensity from this activity increased between 2016 and 2020. Russian Railways’ continued reliance on fossil fuels means this trend is unlikely to change.
JSC Russian Railways has set a near-term target to reduce the emissions intensity of its rail operations by 4.5% by 2025, compared to 2020. By 2050, the company aims to achieve net-zero emissions across all business activities. It is unclear if offsets will be used to achieve these targets.
JSC Russian Railways plans to replace diesel-powered vehicles with electric and gas-powered ones. The company has committed to not purchasing diesel-powered locomotives beyond 2025. It has not made any commitments to stop the use of fossil fuels in its operations.
JSC Russian Railways’ current business model includes a significant portion of electric rail, about 85%, which is considered low carbon for this assessment. The company is partnering with vehicle manufacturers to develop low-carbon vehicles such as hydrogen-powered commuter trains.
JSC Russian Railways’ scope 1 emissions intensity increased by 3% per year on average between 2015 and 2020 for passenger transport. For freight transport, the intensity decreased by 1% per year over the same period. The company exceeded its carbon budget between 2015 and 2020 for passenger and freight.
JSC Russian Railways has electrified a significant portion of its activities, about 85%. However, its reliance on natural gas to power vehicles where electrification is not possible is not consistent with its net-zero target. It researches alternative fuels but has not made a commitment to using them in operations.
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 or engagement 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. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
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 impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to 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.
No evidence of the company’s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.
The company discloses the share of its direct workforce covered by collective bargaining agreements, as well as some indicators of workforce diversity including the age and gender of its workforce by employee category. The company can however strengthen its commitments and disclosure on most key decent work issues, to ensure the provision of secure, safe and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision making.
The company includes anti-bribery and corruption clauses in contracts with its business relationships. However, no other policies or commitments of the company related to key ethical business topics – personal data protection, 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 relationships with business partners.