Sovcombank launches ESG-linked deposit for corporate clients

By Leandra Monteiro

Sovcombank has launched a new product for its corporate clients – a deposit linked to sustainable development goals (ESG deposit). EVRAZ has become its first depositor: its member company EVRAZ NTMK smelter has deposited funds with Russia’s first ESG-deposit at Sovcombank.

The funds will be used to finance projects in line with the UN Sustainable Development Goals (transformational, green and social projects).

In its taxonomy, the Bank adheres to the standards developed by VEB.RF and approved by the Russian Government (green and adaptation projects) as well as the criteria developed by ICMA and LMA (green and social projects).

Mikhail Avtukhov, Deputy Chairman and Head of Corporate Investment Unit, Member of the Board of Sovcombank said, “The bank continues to actively develop its line of responsible financing and investment products with rates linked to sustainability goals. The new ESG deposit, compliant with national and international standards, will support the ESG strategies of our corporate clients and will facilitate the transition to a clean, energy-efficient and environmentally sustainable economy in our country”.

In 2019 Sovcombank was the first Russian bank to adopt the United Nations Environment Programme’s (UNEP FI) Principles for Responsible Banking, emphasising its commitment to sustainable development and corporate social responsibility. In its 2020 Sustainability Report, Sovcombank published strategic ESG targets, including to reach net-zero greenhouse gas emissions from its own operations by 2030.