Key Motivators of Business Sustainability in Russia (Results of the WWF project “Contribution of the Leading Russian Companies to Sustainable Development”) Dr. Nina Poussenkova Institute of World Economy and International Relations, Russian Academy of Sciences

Project Description WWF is surveying business sustainability in BRIC countries + South Africa WWF-Russia sent questionnaires to 315 biggest Russian companies As of June 25, we received 61 answers Representation by sectors: –Forestry – 9 –Oil and gas – 8 –Ferrous metallurgy – 7 –Machine building - 7 –Financial sector – 6 –Chemical and petrochemical – 6 –Non-ferrous metallurgy – 2 –Food – 3 –Transportation – 5 –Power generation – 1 –Coal production - 1 –Other - 6

What are the reasons why your enterprise is interested in environmental factors? It is part of your business, i.e. you sell environmental goods & services - 4 It helps to attract foreign investments – 9 Key company customers, consumers and clients demand it – 12 It is a useful marketing strategy and makes your enterprise stand-out –13 It improves time and cost productivity as resources are more efficiently utilized – 13 It enhances your market share amongst other like products – 14 It improves export possibilities and access to important overseas markets – 16 It is part of regional or social values followed by the enterprise – 31 It is part of your enterprise’s core values and corporate principles - 38

Does the use of environmentally-friendly machinery or processes increase or decrease your productivity and costs? q Increases productivity -21 q Increases costs - 19 q Decreases productivity -0 q Reduces costs -16 q Don’t know -6 Does your enterprise encourage any of the following environmentally-friendly business practices? q Use of solar power, bio-gas or any renewable source of energy - 9 Environmental due diligence when acquiring a new premise or company/unit – 11 Purchase of environmentally friendly and less energy consuming office equipment – 17 Regular environmental audit or assessment – 36 Environmental impact assessment when setting up the manufacturing unit – 46 - q

Has your enterprise been exposed to (or adhere to) any of the following : q ISO Certification - 29 Financing provided by EBRD and the World Bank group - 9 G- Global Compact Principles or Global Reporting Initiative - 8 q Forest Stewardship Council certification – 7 Corporate Social Responsibility (CSR) schemes – 5 The “Clean Development Mechanism” or “carbon trading” - 4 q Marine Stewardship Council certification - 0 GEF funding facility – 0 “Equator Principles” - 0 H

How do you think Russia’s accession to WTO will affect competitiveness of your company and the state of the environment in Russia? Competitiveness Enhance competitiveness - 19 Weaken competitiveness - 11 Will have no impact on competitiveness - 19 I do not know - 7 State of the environment Improve the state of the environment - 25 Worsen the state of the environment - 4 Will have no impact on the state of the environment - 19 I do not know - 8

The key factors that encourage the environmental activities of Russian companies in general: The desire to ensure high environmental quality in the region where the company operates and where its workers and their families live – 33 The desire to comply with legislation – 32 The desire to reduce payments for pollution - 31 Incentives provided by the government (tax breaks, credits) – 30 The necessity of complying with environmental standards because of the growing internationalization of business and Russia’s integration into world economy – 25 Administrative measures (environmental fines, closures of enterprises, lawsuits) – 23 The awareness that compliance with environmental norms can enhance competitiveness of the company - 13 Consumer preferences - 9 Environment-protection activities of the public - 9 q NGOs’ activities - 5 q