The Board has proposed to dispose on the Polymetal’s Russian business as this presents the most viable opportunity for the Group to restore shareholder value by removing or substantially mitigating critical political, legal, financial and operational risks to the Polymetal Retained Group.
«Sustainability is the cornerstone of Polymetal’s business model. Green financing will reinforce our determination to accelerate transition to a low-carbon economy and safer environment», said Vitaly Nesis, Group CEO of Polymetal.
We regard sustainability as an essential element of our activities. As an investment in our society as well as the future, we firmly believe that anchoring sustainability as part of our business strategy will lead to economic, environmental and social progress. At Polymetal we strive for a ‘zero harm’ culture both socially and environmentally; we try to minimise our impact on the environment and biodiversity whilst encouraging a culture where every employee takes personal responsibility for harm reduction.
Polymetal has developed a comprehensive financing programme to meet these aims, including a wide range of debt instruments to secure funding for our sustainability projects. These include the development of solar and wind power plants, investment in grid connections to remote assets and procurement of electricity supplies with the lowest available carbon footprint. We also invest in water treatment facilities and the restoration of local biodiversity that may have been disturbed by our activities. 25% of Polymetal’s debt is sustainability linked, providing a clear and objective data framework for stakeholders to monitor project progress.
Polymetal is a pioneer of green sustainable financing, being one of the first in the global mining industry to secure an ESG-linked loan in 2018.
Following four more transactions, the latest being $125 million Green loan secured in 2020 and $400 million climate transition loans secured in May 2021, Polymetal now boasts a 25% ESG-linked debt portfolio. These credit facilities will support Polymetal’s transition into a sustainable and low-emissions economy.
In September 2020 Polymetal introduced the Green Financing Framework — a standard compiling principles of green financing that aims at facilitating transparency, disclosure procedures, integrity and quality in Polymetal’s green loans. The framework establishes the categories and criteria for projects eligible for green financing, the approach to project selection and evaluation, the principles of proceeds allocation and reporting standards.
The Green Financing Framework is based on and in line with the LMA’s Green Loan Principles 2018. Polymetal has obtained the second opinion on the Framework from Centre for International Climate and Environmental Research («CICERO»). Within CICERO Shades of Green, Polymetal’s Green Financing Framework was rated «Medium Green» (out of possible brown, light, medium and dark green) and received a governance score of «Good» (out of possible Excellent, Good and Fair).
The funds raised via Green Financing Framework will be exclusively used to finance and/or refinance green projects, which fall into the following eligible categories: clean transportation projects, renewable energy projects, energy efficiency, sustainable water management and pollution prevention and control. The green projects will be verified for compliance with the eligibility criteria and relevant Sustainable Development Goals defined in the Green Financing Framework.
Polymetal commits to publish the
Progress on the environmental and social KPIs is disclosed annually in the Sustainability report.