Barents Region Sustainable Development Index Moscow 2018 Sustainable

Barents Region Sustainable Development Index Moscow 2018

Sustainable development of the Arctic Polar Index is a joint project of the PORA Expert Center and the Environmental Economics Chair, Lomonosov Moscow State University The project is aimed at promoting the sustainable development principles in the Russian Arctic Polar Index sustainable development rating 2

Two sustainable development ratings Under the inception phase of the project, two independent, although interconnected, sustainable development ratings were designed, one for the Russian Arctic regions, and the other for the companies operating there. Polar Index sustainable development rating Polar Index Rating of companies Rating of regions 3

Polar Index. Companies Presented on 5 June 2018. First specialized sustainability rating of companies operating in the Russian Arctic. ‘Each company is an important primary contributor to the sustainability of the region it operates in. ’ Polar Index sustainable development rating 4

Polar Index. Regions The second rating designed under the project. Presented on 5 September 2018. The rating evaluates sustainability of development in the Russian Arctic at the macro-scale. The rating covers all regions that are administratively part of the Arctic Zone of the Russian Federation. Polar Index sustainable development rating 5

Polar Index of the Barents Region New stage of the Polar Index project: going international. PORA and the MSU Faculty of Economy launch a new sub-project, the Polar Index of the Barents Region. Two ratings were created: • first sustainable development rating of the Barents region provinces; • sustainable development rating of the companies operating in the Barents region The Barents Euro-Arctic Region is the Europe’s biggest interregional association established on 11 January 1993. Polar Index sustainable development rating 6

Barents Euro-Arctic Region The region encompasses 13 Norwegian, Russian, Finnish and Swedish administrative provinces located in geographical proximity of the Barents Sea. The Barents Region is an important platform for the Euro-Arctic cooperation. It is also a ground for competition over its natural riches. The region is as an arena for innovative business solutions and introduction of cuttingedge methods of extraction and processing of natural resources. Polar Index sustainable development rating 7

Provinces rating calculation methodology The methodology for calculating the provinces sustainability rating is based on three aggregate parameters as follows: • Human Development Index (UN methodology) • Happy Planet Index (updated) • Adjusted Environmental Economics Index Polar Index sustainable development rating Parameters Human Development Index Happy Planet Index Environmental Economics Index 8

Corporate rating calculation methodology The methodology for calculating the sustainability rating of the Barents region business entities is based on three aggregate parameters as follows: • Financial performance of companies as per the International Financial Reporting Standards (IFRS) • Quality indicators of corporate social responsibility (CSR) performance • Quality indicators of the environmental resource management (ERM) performance Polar Index sustainable development rating Parameters International Financial Reporting Standards Corporate social responsibility Environmental resource management 9

Rating Outcomes for Barents Region Provinces Rankings: • Russian regions: Ranked 3, 4, 6, 9, and 13 • Swedish län: Ranked 1 and 2 • Norwegian fylker: Ranked 5, 7 and 8 • Finnish maakunta: Ranked 10, 11 and 12 Sustainable development rating Polar Index. Regions 10

Rating Outcomes for Barents Region Companies Rankings: • Companies operating in Russia: Ranked 1, 2, 3, 7, 9, 10, 12, 13, and 26 • Companies operating in Norway: Ranked 1, 8, 11, 15, 16, 17, 18, 22, and 23 • Companies operating in Finland: Ranked 5, 6, 20, and 21 • Companies operating in Sweden: Ranked 14, 19, 24, and 25 Sustainable development rating Polar Index. Regions 11

Project Team PORA Expert Center (Project Office for the Development of the Arctic) A Russia-wide platform for communication between government, public and business entities interested in sustainable development in the Arctic. The PORA Expert Center's mission is to raise public awareness of social, economic and environmental aspects of human activities in the Russian North. Environmental Economics Chair, M. V. Lomonosov Moscow State University Russia's leading think tank in the field of environmental protection and stewardship both globally and regionally. The Chair played a major role in introducing the concept of sustainable development in Russia. Polar Index sustainable development rating 12