MKB has become first on RAEX-Europe's ESG ranking of Russian banks
Rating agency RAEX-Europe has published the first ESG ranking of Russian banks, which is headed by Credit Bank of Moscow.
The primary evaluation sample consisted of the 10 largest banks by commission and interest income for 2019 according to RAEX-Analytics.
Albeit the banking sector's ESG risks do not look substantial compared to such industries as manufacturing or transportation, banks do create notable environmental impacts. For example, large banks with broad regional networks consume a lot of energy resources, paper, etc. Banks also influence regional economies by creating new jobs. But their more prominent impact on the nature and society comes from financing of companies and households.
RAEX-Europe analysts believe that "MKB's leadership is mainly underpinned by its close cooperation with multilateral development banks on ESG subjects. Supported by international financial institutions such as EBRD and IFC, MKB has developed its own social and environmental management policy under which it classifies all borrowers according to their level of ESG risks. MKB has a stop list of projects and controversial industries. The Bank is also active in green finance projects and has its own ESG strategy. In addition, MKB addresses vigorously its own S&E impacts, in particular by implementing the "green office" concept".
In January, RAEX-Europe published the first 2021 update of the ESG ranking of Russian companies, with MKB debuting on the 34th position, higher than the other of the two banks that were then in the ranking. The updated February ranking includes already 10 banks, with MKB ranking #18 – a well-deserved spot among the top 20 strongest Russian companies by ESG progress.