Management approach

Russian Railways has adopted an approach to sustainable development that weaves together environmental, social, and economic considerations across all our core operations.

An integral approach creates the ideal conditions for sustained growth and ensures we continue operating effectively as the country’s largest transport operator.

One of the Company’s strategic priorities in terms of sustainability is to contribute to the achievement of Russia’s national development goals and the Sustainable Development Goals (SDGs) adopted by the UN General Assembly. Given the scale and significance of Russian Railways’ responsibilities, we play a vital role in achieving national goals and fulfilling Russia’s strategic development vision. We champion the principles of the UN Global Compact – the world’s largest corporate social responsibility initiative – and participate as a member of the Global Compact National Network Association.

The Company complies with the principles of socially responsible business practices enshrined in the Social Charter of the Russian Business adopted by the Russian Union of Industrialists and Entrepreneurs (RSPP) and is a regular contributor to the RSPP’s Corporate Practices Collection.

Sustainable development training at Russian Railways

We developed this policy in line with Russia’s international obligations, national development goals through 2030, and the Strategy for Socio‑Economic Development of Russia with a Low Level of Greenhouse Gas Emissions until 2050. It also aligns with federal legislation and other laws and regulations, as well as Russian Railways’ existing sustainable development framework.

This top‑level public document crystallises our position on sustainable development and establishes unified approaches, clear goals, and specific objectives.

Key goals of Russian Railways in sustainable development:

• maintaining our industry leadership position;
• contributing positively to the country’s social and economic development;
• using resources efficiently, including human capital;
• protecting against natural and man‑made threats;
• upholding the highest standards of environmental and technosphere safety, corporate governance, and social responsibility.

We have set these key objectives for sustainable development:

• minimising our environmental impact and supporting climate action;
• using natural resources efficiently and responsibly;
• respecting and protecting human rights throughout our operations;
• ensuring safe operational processes, working conditions, and the health and well‑being of internal and external stakeholders;
• fostering the professional, career, and personal development of our employees;
• enhancing quality of life and prosperity in the communities where we operate, driving positive social and economic change;
• building effective, transparent stakeholder engagement;
• driving innovation across all areas of our operations;
• strengthening internal processes to elevate our sustainable development activities;
• fighting fraud and corruption while maintaining honest and ethical business practices.

Key corporate documents that guide our approach and principles in sustainable development:

• Sustainable Development Policy of the Russian Railways Group;
• Russian Railways’ Environmental Strategy through 2030 with an outlook through 2035;
• Russian Railways’ Energy Strategy through 2030 with an outlook through 2035;
• Health, Environmental, Industrial and Fire Safety Policy of the Russian Railways Group;
• Russian Railways’ Code of Business Ethics;
• Russian Railways’ Human Capital Development Programme until 2025;
• Russian Railways’ Anti‑Corruption Policy;
• Russian Railways’ Charity and Sponsorship Policy.

Sustainable development management at Russian Railways

Participation of the Board of Directors in sustainable development management

Sustainable development management is an essential part of activities pursued by the Board of Directors as a governance body responsible for the general steering of Russian Railways’ operations. Within its scope of authority, the Board of Directors reviews and approves Russian Railways’ sustainable development documents and oversees their implementation.

The remit of the Board of Directors is set out in the Charter of Russian Railways. Pursuant to Clause 68.1 of the Company’s Charter, the Board of Directors shall determine the Company’s business priorities, and approve its long-term plans, core programmes and function strategies, including the investment programme and innovative development programme. The strategic documents of Russian Railways approved by the Board of Directors address the matters of the Company’s sustainable development.

As part of their sustainability agenda in 2023, the Board and its committees, inter alia:

• approved the Sustainable Development Policy of the Russian Railways Group, defining our position on sustainable development and establishing unified directions for the Group’s activities;
• approved Russian Railways’ Investment Programme for 2025, which envisages a number of investment projects to improve the lives of Russian residents, create a comfortable and safe environment for life and development of tourism (infrastructure development projects at Central and St Petersburg transport hubs, and the high‑speed railway line between St Petersburg and Moscow (Kryukovo (Alabushevo) ‑ Obukhovo section);
• approved the size of Russian Railways’ charity and sponsorship fund and the key initiatives to be supported;
• authorised donation of social, educational, sports and cultural facilities to municipal and regional public law entities.

The Board of Directors regularly reviews reports on the implementation of the Company’s Charity and Sponsorship Policy and Russian Railways Group’s Comprehensive Innovative Development Programme.

In addition to that, the Board’s Audit and Risk Committee shall regularly consider the risk appetite of Russian Railways, including but not limited to the assessment of risks related to the Company’s sustainable development (environmental, health and safety, corruption risks, etc.).

In 2024, following best practices, Russian Railways’ Board of Directors expanded the Strategic Planning Committee’s remit to embrace sustainable development matters (including those covering policy and reporting).

Russian Railways in 2024 ESG rankings and indices

Russian Union of Industrialists and Entrepreneurs (RSPP)

RSPP’s Sustainable Development Vector Index is an assessment reflecting the social, economic and environmental performance of major Russian companies

Russian Railways’ ranking: Leader Group A (maintained from 2023)

RSPP’s Responsibility and Transparency Index is an assessment reflecting the scope and quality of public sustainability disclosure by major Russian companies

Russian Railways’ ranking: Leader Group B+ (maintained from 2023)

Expert RA rating agency

Expert RA ESG Rating assesses how well key business decisions align with sustainable development across environmental, social, and economic dimensions

Russian Railways’ ranking: ESG‑II(b) – very high level of sustainable development implementation and planning (assigned for the first time)

ESG Transparency Ranking of Russian Companies and Banks is an expert assessment focusing on the scope of ESG disclosures (transparency) in the annual and sustainability reports of major Russian companies and banks

Russian Railways’ ranking: No. 25 out of 100 (No. 51 in 2023)

ESG Transparency Ranking of Russian Transportation and Infrastructure Companies seeks to identify leaders among the country’s major transportation and infrastructure companies in terms of their ESG transparency (quality of non‑financial disclosures published in relevant annual and sustainability reports)

Russian Railways’ ranking: No. 2 out of 12 (No. 3 in 2023)

RAEX rating agency

ESG Rating of Russian Companies is an integrated rating calculated as a weighted average across environmental (E), social (S), and governance (G) dimensions

Russian Railways’ ranking: Level A – ESG risk and opportunity management at a sufficiently high level (upgraded from BBB level)

RAEX comment: “The main driver of the rating increase was new social data that positively impacted the assessment. Improved transparency in labour practices, social benefits, and human rights enhanced the company’s evaluation. Among environmental indicators, the company most effectively mitigates pollution and waste management risks, developing strong reuse and recycling practices.”

ESG Ranking of Major Russian and Foreign Companies covers the largest companies in Russia, Kazakhstan, and Mongolia that completed comprehensive ESG assessment for 2023 and end‑2024 under the new methodology that accounts for industry, country, and territorial specifics

Russian Railways’ ranking: No. 36 out of 144 (No. 22 in 2023)

Sustainable development training at Russian Railways

Russian Railways continues to offer a training course on sustainable development. It was designed by the Corporate University in collaboration with the Environment and Technosphere Safety Department (Sustainable Development Coordination Division), as well as with input from the Corporate Finance Department and Social Development Department.

Spanning 32 academic hours, the course is available on the Corporate University’s learning portal and features seven modules:

• “Corporate Responsibility — a Fad or a Must: Why Businesses Need to Become Sustainable”;
• “Sustainable Development: Agenda Evolution”;
• “Green Economy, Carbon Neutrality, Environmental Mindfulness in Business”;
• “Human-Centric Talent Development, Inclusiveness, Corporate Social Responsibility”;
• “Sustainable Business Transformation”;
• “Sustainability Projects: Financial, Methodological, and Technological Considerations”;
• “Environmental Mindset and Personal Sustainability”.