ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, has published its first Sustainability Report (the “Report”).
Preparation and publication of a separate Sustainability Report is the result of systematic implementation of the goals outlined in the current ESG Policy of Etalon Group and consistent work to improve the quality of information disclosure.
The Report contains information on a wide range of material topics, including industrial safety, environmental stewardship, human capital, relations with local communities, innovation and sustainable supply chains. For the first time the Company is publishing information on its direct and indirect energy-related emissions (scope 1 and 2) as well as downstream indirect emissions during the product life cycle and in connection with business travel. In addition, the Report presents the Group’s Sustainable Development Strategy, which outlines the Company’s ESG-related goals and initiatives.
Commenting on the publication of Company’s first Sustainability Report, Chief Executive Officer Gennady Shcherbina said:
“Despite the turbulence of recent years, we have been consistently incorporating and systematising sustainable approaches to doing business. Following the approval of our ESG Policy in 2021, we developed a sustainability strategy and goals: with due regard for new global challenges, we are focusing on the efficient use of resources and combating climate change, caring for our employees, developing local communities and conducting business in a responsible manner.
“This year we are publishing a separate Sustainability Report, thereby fulfilling the promise set out in our ESG Policy. We see the publication of the Report as an important step in increasing the transparency of our non-financial disclosures and engaging all stakeholders in improving our sustainable practices.
“In 2022, we made important progress on environmental, social and corporate governance issues.
“As part of our social initiatives, we have built schools and kindergartens in the regions where we operate, which will be attended by more than 780 children; we are taking part in the ‘Science and Universities’ national project; we have implemented more than 65 community development activities and programmes, including charitable projects. A traditional focus for us remains the well-being and safety of our employees, whose number increased by almost a quarter to 5,900 in 2022 as we grew our business in the regions and acquired YIT Russia. We continued to improve our approach to occupational health and safety and to digitalise our workplace safety system. As a result, there were no fatal accidents at our construction sites, and injury rates decreased.
“We continued to improve our corporate governance and systematise our approach to sustainable business development: we developed and approved the Supplier Code, which includes ESG criteria for evaluating contractors; we developed a sustainability strategy and continue to work on the formation of specific measurable ESG goals.
“As part of our efforts to combat climate change, we take a particularly rigorous approach to our resource-efficiency calculations when designing buildings, selecting materials and vetting suppliers. Several of our properties have already been certified in line with the Green Zoom green standards. In 2022 we continued our efforts in this area, taking part in a trial project for a new national GOST R green standard for apartment buildings developed by Dom.rf.
“We also decided to digitalise our carbon footprint, calculating our scopes 1 and 2 and, in part, scope 3 greenhouse gas emissions this year for the purposes of our first stand-alone sustainability report. We developed our methodology for calculating greenhouse gas emissions as a tool for monitoring and reducing our environmental impact by optimising our supply chains and route planning, taking a responsible approach to our choice of materials, and implementing other impactful measures to reduce our carbon footprint. One such measure is the development of state-of-the-art industrial housing construction technologies. We expect that by transitioning to the production of prefabricated elements and the large-scale application of this technology we will be able to considerably reduce CO2 emissions both throughout the production cycle and the life cycle of the buildings.
“We are committed to maintaining our high standards of social responsibility, expanding our sustainability practices and sharing our success with a wide range of stakeholders.”
The Report is available at https://www.etalongroup.com/investor-relations/annual-reports-and-accounts/
This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/
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About Etalon Group
Founded in 1987, Etalon Group is one of Russia’s largest development and construction companies. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. In 2021, the Company began a regional expansion programme and has already launched new projects in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With a 35-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry. Since its foundation, Etalon Group has delivered 8.6 mln sqm of real estate.
Thanks to its integrated business model, Etalon Group is able to create added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs more than 5,800 people, and its nationwide sales network covers 35 regions of Russia.
Etalon Group’s assets comprise 38 projects at the design and construction stages, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 6.4 mln sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2022 was RUB 288 billion.
In 2022, Etalon Group’s new contract sales totalled 292 ths sqm, or RUB 58.7 billion, not including accumulated new contract sales at YIT Russia as of its acquisition.
The Company's revenue in 2022 amounted to RUB 80.6 billion, with EBITDA of RUB 16.5 billion.
Etalon Group’s GDRs have been listed on the Main Market of the London Stock Exchange since 20 April 2011 and included in the Level 1 quotation list of Moscow Exchange since 31 January 2020 under the ticker ETLN. In July 2023, the Company completed the process of changing the basis for its listing on Moscow Exchange.