Responsible investment

The responsibility of Sistema as an investor is the effective management of controlled assets and funds to create shared value for shareholders and a wide range of stakeholders in the long term.

The Corporation aims to build competitive businesses with high added value that meet the principles of social and environmental responsibility and contribute to the sustainable development of industries and regions of operations and to the steady growth of socioeconomic and technological potential, human capital, quality of life and social well-being.

Sistema follows the international concept of responsible investment, which implies integration of environmental, social and governance (ESG) factors into the practice of making strategic decisions; ESG factors are applied both to the choice of priority areas for financial investments / valuation of assets and to interaction with key stakeholders:

Shareholders and investors
Government
Employees
Partners and suppliers
Consumers
Local communities and non-profits

Sistema’s principles of responsible and ethical business conduct include:

  • consideration of risks and opportunities associated with the quality of corporate governance and with the state of the environment and the social sphere;
  • implementation in portfolio companies of unified standards, policies and procedures of corporate governance and business ethics to ensure compliance with applicable laws and international best practices;
  • transparency and accountability, i.e. regular disclosure of material information about the activities of the Corporation and its assets;
  • respect for labour, digital and other fundamental human rights;
  • environmental friendliness, responsible resource management and eco-safety of production processes, goods and services of portfolio companies;
  • investment of part of the Corporation’s profits in socially significant projects, both through a corporate charitable foundation established with the aim of co-financing strategic programmes and through independent charitable activities of Sistema Group companies;
  • asset synergies and intersectoral partnerships to maximise contributions to sustainable development.

The principles for responsible investment are implemented in relation to portfolio companies through:

  • involvement in the regular cycle of strategic planning, goal setting and coordination in the key areas of corporate responsibility and sustainable development (human resources, risks, procurement, supply chains and charity);
  • control by the boards of directors of the implementation of strategies; improvement of governance and reporting processes;
  • monitoring of incidents as part of the risk management and anti-corruption system;
  • implementation and certification of management systems in assets according to international standards;
  • formation of a uniform corporate culture and responsible business practices based on ethical values, respect for employees, shareholders and consumers, and care for people and the environment;
  • stimulation of innovation and organisational improvement in portfolio companies. Implementation of the corporation-wide programme of social investment and volunteering.

Many of the Corporation’s investment and social projects are complementary to national priorities and the UN Sustainable Development Goals.