MOSCOW, Nov. 29, 2021 /PRNewswire/ -- S&P Global Ratings said today that it has assigned Sber an ESG Evaluation of 67. The group's ESG Evaluation is the result of an ESG profile of 63, combined with adequate preparedness. Higher numbers indicate stronger sustainability in our evaluations.
Our ESG Evaluation score of 67 on Sber indicates that it has a relatively high exposure to environmental and social issues and is at an early stage of ESG integration into its lending operations. Our score recognizes an excellent awareness of potential long-term disruptions, such as sustainability issues, as demonstrated by the recently adopted ESG strategy, which is fully integrated in the group's 2023 business strategy.
"We anticipate that Sber will use its effective assessment and action planning capabilities and its strong ability to embed strategies into decision-making and culture to implement its recently announced ESG strategy," said S&P Global analyst Ekaterina Marushkevich. "We also recognize the group's leading role in Russia in raising awareness of ESG issues through ongoing engagement with stakeholders such as government bodies, regulators, and peers," she added.
Sber is the largest financial group in Russia and Central and Eastern Europe, and focuses on corporate and retail banking. Although the group operates in 18 countries, Russia contributes most of its revenue. It has total assets of $545 billion and ranks among the Top 25 European banks and the Top 70 banks in the world. It employs 286,000 people and serves around 106 million customers. Sber is controlled by the Russian government through the Ministry of Finance, which holds 50%+1 equity stake.
What Is An ESG Evaluation?
S&P Global Ratings' ESG evaluation is a cross-sector, relative analysis of an entity's capacity to continue to operate successfully. It is grounded in how ESG factors could affect stakeholders, potentially leading to a material direct or indirect financial impact on the entity.
Our definition of stakeholders for a particular entity goes beyond shareholders to include employees, the local community, government, regulators, customers, lenders, borrowers, policyholders, voters, members, and suppliers. A high ESG evaluation indicates an entity is relatively less prone to experiencing material ESG-related events, and is relatively better positioned to capitalize on ESG-related growth opportunities than entities with lower ESG evaluations.
First, we establish an ESG profile for a given entity, which assesses the exposure of the entity's operations to observable ESG risks and opportunities, and how the entity is mitigating these risks and capitalizing on these opportunities.
Second, we assess the entity's long-term preparedness, namely its capacity to anticipate and adapt to a variety of long-term plausible disruptions.
S&P Global Ratings currently evaluates more than 95 entities across the globe; they have an average score of 67. Since the first ESG evaluation, published in June 2019, we have finalized ESG Evaluations across 22 sectors globally. By region, the highest average score is 73, for companies headquartered in Europe, the Middle East, and Africa.
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