Message from the Chief Executive Officer — Chairman of the Management Board of Russian Railways GRI 102-14

The Group is the largest employer in Russia, with its railway network covering almost the entire country. Having a footprint as big as that, we are well aware of our responsibility towards our employees, their families, the nation at large, and, ultimately, the home we all share – the planet.

Dear partners and colleagues,

In 2021 – the Company’s Year of the Environment – we continued making strides on our sustainable development journey.

The bedrock of all our activities are people, their material and social well-being, and the Russian Railways Human Capital Development Programme until 2025 clearly reflects that.

Our goal is to build a full-fledged green economy within the Company that would see environmental protection integrated into each and every process. This is about creating a new paradigm, one where social responsibility is closely intertwined with the environmental security of present and future generations.

To that end, Russian Railways is implementing a wholesale transition to green logistics. Such transformation encompasses solutions to reduce electricity consumption, digitalise production processes, and take advantage of new fuel technologies.

In the Year of the Environment, we polished the image of Russian Railways as a green company. The Company is well ahead of the targets set in the Instruction of the President of the Russian Federation to achieve a 30% reduction of GHG emissions by 2030 versus 1990, with emissions down 45% in 2021. Our goal is to achieve carbon neutrality by 2050.

The Year of the Environment also saw us make significant headway in biodiversity conservation. Working with experts from nature reserves and R&D institutes, we introduced measures to preserve endangered flora and fauna: wild reindeer, white-tailed eagle, Amur falcon, Asian spruce grouse, Oriental stork, east-dwelling great bustard, saker falcon, fritillaria ruthenica plant, and other species. We also supported a scientific expedition to study the Baikal seals, which serve as an indicator of Lake Baikal’s environmental health.

Russian Railways’ proactive stance on environmental protection contributes to its strong investment case. The Group is the largest issuer of green bonds and a key player representing Russia in the sustainable finance market.

We see companies moving away from greenwashing and focusing on follow-through under sustainable development goals – this is not merely a matter of reputation, but an objective need. Big businesses cannot afford to skirt the issue of sustainability any longer.

I am confident that the culture of environmental protection and all the change it entails will soon trickle down to each individual employee across our company and become part of all production processes.

Bolstered by its R&D and operational capabilities and guided by sustainable development principles, Russian Railways keeps moving forward towards a better future for all. The Company’s excellent performance stems from the vast experience of its professional team, ambitious goals we set for ourselves, diligent long-term planning, and timely and consistent execution in line with the country’s mandate.

I hope this sustainability report proves informative and useful for all stakeholders. The Company welcomes honest and constructive dialogue.