Climate action GRI 103-2, 103-3

Management approach

Due to the increased importance of climate protection for the international and domestic agenda, lower GHG emissions and climate action were singled out as an independent area of the Environmental Strategy, which is a priority for the development of Russian Railways and an integral part of the Company's policy in the field of environmental protection.

The reduction of GHG emissions, as an independent area of Russian Railways corporate policy, was included in the Environmental Strategy as a target parameter. The climate is a comprehensive aspect that covers all elements and stages of the transportation process and railway infrastructure development. We consistently reduce GHG emissions, paying more attention to improvements in the GHG emissions management and accounting system, as well as introducing and deploying low-carbon technologies. Russian Railways responsibly implements a programme for reducing GHG emissions in its operations.

Russian Railways has in place and develops a system of GHG emissions monitoring, reporting and control.Since 2017, Russian Railways has been listed among state-owned companies involved in reducing GHG emissionsApproved by the Russian Government’s Order No. AKh-P9-5761 dated 31 August 2017. and submits annual reports on respective activities and performance to authorised agencies of the Russian Federation.

Every year, environmental issues become increasingly important. In 2021, Federal Law No. 296—FZ On Limiting Greenhouse Gas Emissions dated 2 July 2021 was adopted and the Strategy for Socio-Economic Development of Russia with a Low Level of Greenhouse Gas Emissions until 2050 was approvedApproved by the Russian Government’s Order No. 3052-r dated 29 October 2021..

The Company launched a review of documents underlying its strategic planning with respect to the climate policy, primarily the Environmental Strategy.

GHG emissions calculation methodology

Russian Railways calculates GHG emissions on the basis of the Methodology for GHG Emissions Volume Measurement at Russian RailwaysApproved by Russian Railways’ Order No. 1602r dated 8 August 2017. prepared in line with applicable Russian methodological guidelines on the calculation of direct emissionsApproved by Order of the Russian Ministry of Natural Resources and Environment No. 300 dated 30 June 2015. and indirect energy-related emissionsApproved by Order of the Russian Ministry of Natural Resources and Environment No. 330 dated 29 June 2017., as well as methodological guidelines of the Intergovernmental Panel on Climate Change (IPCC). Emissions are calculated in relation to CO₂, without taking into account other greenhouse gases, according to data on the consumption of energy resources. Such approach is permitted by both Russian regulations and methodological guidelines of the IPCC.

The methodology involves the calculation of two GHG emissions categories:

• direct emissions from burning carbon-containing fuel on stationary and mobile equipment in Russian Railways’ operations (Scope 1 under the Greenhouse Gas ProtocolGreenhouse Gas Protocol. Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.);
• indirect energy-related emissions associated with the purchase of electricity and heat by Russian Railways’ units from third parties (Scope 2 under the Greenhouse Gas Protocol).

Currently, the Company does not calculate any indirect GHG emissions associated with the purchase of construction materials, rolling stock and supplies, as well as any other goods (Scope 3 under the Greenhouse Gas Protocol).