A call to action to ranking companies to downgrade businesses still operating in Russia
Several hundred world’s largest companies have left or suspended their operations in the Russian market in the three weeks since the start of the full-scale Russian war in Ukraine.
Nevertheless, many companies remain in the Russian market under the guise of responsibility for their employees of consumers or taking half-measures in the form of promises to stop investing, while continuing to supply goods and services to Russia. Some of these global companies enjoy high ESG ratings from leading ranking agencies.
ESG ranking agencies examine a company’s environmental, social, and corporate governance policies to determine its sustainability. And when we talk about war, there is no room for halftones, and, accordingly, companies can no longer be responsible on a scale. To have a high ESG ranking they must meet the highest standards of responsible business conduct.
Companies remaining in the Russian market finance the war against Ukraine and the genocide of the Ukrainian people. These companies cannot and should not be in the top ESG rankings and claim a good reputation and investment attractiveness.
That is why it is important not only to encourage individual companies to leave Russia but also to require ESG ranking agencies to fairly assess the level of social responsibility of international companies that make a choice of remaining in Russia.
Here is the list of top ESG ranking agencies to which you can appeal demanding to review their ratings. Here you can find a template letter to address the management of these agencies. Business decisions have consequences in the impact investing space — let us make sure ESG rankings reflect that.
