In December 2021, JSC INK-Capital (hereinafter referred to as the Company) issued its debut stock bonds on the Moscow Exchange. This issue became, among other features, the first issue of adaptation bonds in Russia.
In order to confirm (verify) the Company’s stock bonds compliance with the principles of transitional bonds, adaptation financial instrument criteria, and the requirements of the Sustainable Development Section of the Moscow Exchange, the Company assumed, in accordance with the report of an independent verifier (Expert RA) dated December 13, 2021, an obligation to develop a detailed strategy including climate risks assessment, scientifically-based determination and setting of goals for greenhouse gas emissions reduction, developing a voluntary monitoring system and conducting an independent audit of greenhouse gas emissions and hazardous substances that are directly and indirectly generated as a result of the Group's activities.
The Decarbonization Strategy was approved by JSC INK-Capital Board of Directors on December 14, 2022.
The objective of the Decarbonization Strategy is to formalize INK Group’s efforts to minimize its impacts on the climate, including through identification and mitigation of climate risks, development and implementation of adaptation actions and facilitating low-carbon development with account taken of the Group’s strategic priorities.
As part of implementation of the Decarbonization Strategy, INK Group has set the following objectives:
- periodical quantification of greenhouse gas emissions, with 2020 as the Baseline Year;
- identification and assessment of climate risks (physical and transition);
- optimization of the corporate governance structure to manage climate-related issues efficiently;
- setting climate goals on a timeline until 2030 and 2050;
- developing actions on operating activity process decarbonization;
- developing actions on value chain decarbonization;
- describing stakeholder engagement tools;
- describing the Decarbonization Strategy revision potential (management of change and establishing the materiality level).
The Decarbonization Strategy covers the following material topics:
1) quantification of INK Group’s greenhouse gas emissions by three categories: direct emissions from sources owned by INK Group (Scope 1); indirect energy emissions from energy consumed within INK Group and procured externally (Scope 2); other indirect emissions (Scope 3);
2) results of benchmarking of processes carbon intensity of companies in the reference group;
3) climate risks management mechanisms of INK Group;
4) the role of corporate governance, including the governance bodies system, in the efforts to identify and reduce the probability of emergence (realization) of climate risks;
5) INK Group’s decarbonization goals, including their quantitative description;
6) key actions to achieve value chain decarbonization goals;
7) stakeholder engagement on climate change; etc.
The Decarbonization Strategy is a transitional tool and is expected to become a constituent part of the Climate Strategy to be developed and approved in 2023.
The Decarbonization Strategy was submitted for review to JSC Expert RA Rating Agency, which issued a press release on December 12, 2022, stating that JSC INK-Capital stock bonds continue to comply with the principles of transition bonds and adaptation financial instrument criteria.