Sustainability

Since 2008, the UAE-based renewable energy company Masdar hosts the Abu-Dhabi Sustainability Week (ADSW) to promote green technologies and renewable energy as cornerstones for a cleaner global energy sector. This year, CREON Group is committed as a sponsor of the World Future Energy Forum. A large delegation of specialists participates in the exhibition and forum discussion. More than 5.000 visitors visited the several sectoral summit and the exhibitions.

It is common knowledge that Arab countries such as the United Arab Emirates have achieved economic prosperity thanks to traditional energy sources. But some might still underestimate, that especially the UAE accelerated to the world leaders in terms of investments in new energy sectors. Their state policy in the field of renewable energy is based on the principles of sustainable development formulated by the UN and regionally ensured by active government support of investments in the new energy sector such as renewable energy and green technologies. During the Abu-Dhabi Energy Week, the Minister of Energy of Saudi Arabia, Prince Abdulaziz Ibn Salman Al Saud, predicted that the share of gas and renewable sources in the energy balance of the kingdom will increased significantly. Among renewable energy sources – not only solar and wind, but also hydroelectric power plants.

Sultan Ahmed Al-Jaber, UAE Minister of State and Chairman of Masdar, announced the goals of sustainable development of the emirates for the next 30 years: “At the national level in the UAE, we have increased our portfolio of renewable energy sources by more than 400% in the last 10 years, and we are on the path to doubling it again over the next 10 years. ” By 2030, the country plans to reduce greenhouse gas emissions by 25% and reduce the share of water use from natural sources to 0.5%. The Masdar Chairman stated that «the UAE not only talks the talk but walks the walk towards renewable energy. Because it is right and makes perfect economic sense».

It is no coincidence that the headquarters of the International Renewable Energy Agency (IRENA) is located in the UAE capital. The eco-city of the future Masdar City was built here, and since 2006 the company of the same name Masdar has been operating, through which the Abu Dhabi sovereign fund invests in green projects in 25 countries of the world. Khaldun Khalifa Al Mubarak, CEO of Mubadala Development Company, considers his main task “to act now, given the climate changes that threaten not only future generations, but the very existence of our planet.”

Green technologies and environmentally friendly energy solutions are in line with the investment objectives of the fund managed by Creon Capital, which is regionally oriented towards the emerging markets of Eurasia. The fund is constantly looking for new opportunities for clean energy. Fares Kilzie, Chairman of the Board of Directors of Creon Capital, explains why such solutions for the energy sector will be most in demand: “In parallel to traditional types of energy, Russia and the CIS countries are beginning to show interest in renewable energy and environmental solutions. The result is green projects worth trillions of dollars. As the country diversifies toward clean energy, it will also continue to invest in the responsible production of traditional forms of energy. We urge the majors of the Russian oil and gas sector, who have extensive capabilities and all the necessary infrastructure, to engage more actively in the implementation of green technologies and renewable energy sources. ”

Pictures:

Creon and Masdar executives meeting in Abu-Dhabi (from the left): Mohamed Jameel Al Ramahi (CEO of Masdar),Yousif Al Ali ( Acting Executive Officer of Masdar Clean Energy), Dr. Fares Kilzie (Chairman Creon Capital), Vladimir Nekhvyadovich (1st Deputy CEO ISS Global Solutions).

Masdar Chairman Dr. Sultan Ahmed Ad Jaber opend the Abu-Dhabi Sustainability Week (ADSW)

Creon Capital is represented in the exhibition zone with a stand, as well as portfolio companies such as ISS Global Solutions.

As in the previous year, Sakhalin Energy ranked first in the Environmental Transparency Rating of Russian Oil and Gas Companies. The international producer of liquefied natural gas (LNG), owned by Gazprom, Shell, Mitsubishi and Mitsui outperformed in terms of openness on environmental topics, a clear strategy on environmental responsibility and with concrete measures to decrease the production’s impact on the environment. On the second and third ranks followed Zarubezhneft and Exxon Neftegas Ltd., which also confirmed their leading positions of the previous year.

The rating was conducted for the sixth time already. From the very beginning, CREON Group supported the project as a strategic partner, whereas WWF (Russia) takes responsibility for the methodology and the National Rating Agency carries out the calculation based on publicly available sources. In 2019, the project was part of the EU funded People for Nature project. The government of the Russian Federation supported the event as well: The presentation took place in the government’s Analytical Center in Moscow. This time, 20 oil and gas companies were subject of the rating.

In addition, five companies received diplomas in additional categories: Lukoil was granted for its top performance in terms of environmental transparency, Rosneft was honored for encouraging the most constructive dialogue regarding accidents and controversial situations. For its leadership in mitigating environmental impacts Surgutneftegaz received a diploma, whereas Gazprom Neft was granted for its most dynamic growth of oil recovery. Tatneft has shown the most rapid advancement in the rating, which led to a diploma as well.

CREON Group chairman Dr. Fares Kilzie reminded: “We launched this project in 2013, which turned out to be revolutionary for the industry. The concept we are promoting is a forerunner not only in Russia, but globally. It is hard to acknowledge, but the results of our activity will not be visible today or tomorrow. At present, we are witnessing the changes in the Russian oil & gas business, and the massive efforts of the government and the companies are evident now, alongside a significant and inevitable transformation towards sustainable development. And we as a Group are proud of being part of the process.”

Aleksey Knizhnikov of WWF Russia confirms a significant increase of the companies transparency: “The modern economy is rapidly transforming and today investors and consumers value both the economic component of transactions and the social and environmental responsibility of businesses, which is important for gaining a competitive edge,” points out the WWF Russia Head of the Program for the Business Environmental Responsibility. “For the sixth year in a row, we have seen increasing progress in the companies’ disclosure of environmental performance. According to our estimates, public nonfinancial reporting of oil and gas companies has showed the fastest development in Russia over the last years and is becoming the basis for dialog with stakeholders on reducing environmental impacts,” he says.

The robustness of the method and the accuracy of calculations were confirmed by the FBK Grant Thornton audit and consulting group. The company performed selective tests of the criteria and analyzed the accuracy of the scores (levels) against the method, returning a favorable opinion. Vladimir Skobarev, Partner and Head of Corporate Governance and Sustainability at FBK Grant Thornton underlined: “The role of sustainability ratings as important tools for external assessment of corporate social responsibility is increasing every year, while the practice of independent confirmation of the ratings themselves, in turn, is a tool to increase trust in them.”

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About:

The Rating of Environmental Responsibility in the Russian Energy Sector has been launched in 2014 as an initiative of the CREON Group and WWF Russia. The project’s objectives were to conduct tangible and comparable information on environmental activities of oil and gas companies. Thanks to the publicity effect of the rating, some influence could be exerted on the companies in Russia, which partly increased transparency, decreased pollutions or developed an environmental risk-management-system. In 2017, the rating was first presented in Europe, also a separate rating of the Kazakh oil and gas companies was conducted.

The World Wide Fund for Nature (WWF) Russia works with state institutions, companies, experts and local communities to change people’s attitude to nature. The priorities of WWF’s various activities in Russia include the protection and preservation of biodiversity, sustainable forestry and fisheries, the «green economy», environmental governance, climate and energy.

CREON Capital is a fund management company based in Luxembourg. It manages the CREON Energy Fund, which actively invests in energy projects. Green technologies, renewable energy and logistics are among the focus areas of investments. The private equity fund also invests in the processing of gas and the construction of a liquefied natural gas infrastructure.

You may DOWNLOAD the rating brochure HERE:

For further information please contact:

Maria Dymenko, md@communicationz.ru, +7-985-135-1009

Pictures:

Creon Group chairman Fares Kilzie congratulated representatives of Russian oil and gas companies with outstanding results in terms of environmental protection and transparency.

Sakhalin Energy ranked first in the rating. The company’s director for environmental protection Andrey Samatov (right) received the diploma from Creon Group chairman Fares Kilzie.

The rating on “Environmental Transparency of Russian Oil and Gas Companies” has been conducted for the sixth time in joint cooperation between Creon Capital partner Creon Group and WWF Russia. It aims to push the energy companies forward in order to increase measures on environmental protection, which is increasingly happening.

Premiere in Berlin: For the first time outside of Russia, the CREON Group presented the widely-established rating of environmental responsibility of oil and gas companies. The study, which CREON conducts together with the World Wildlife Fund (WWF) Russia annually since 2013, was presented at the conference “Ecological Responsibility in the Russian Energy Sector” in Hotel Marriott Berlin. 90 participants witnessed dynamic debates on the prospects of renewable energies in Russia, the country’s deficits in processing associated gas in oil production, LNG refueling of ships as an environmentally friendly alternative to heavy fuel oil.

From the beginning, the aim of the event was to bring together German and Russian companies as well as experts from associations and environmental organizations. German businesses provide various technologies that contribute to a more sustainable oil and gas production. At the same time, the sensitivity to ecology issues is growing among Russian industrial companies, not least due to better state regulation and the attention paid to ecology issues with instruments such as the CREON rating. The practice-oriented event was supported by the German Committee on Eastern European Economic Relations, the German-Russian Chamber of Commerce and Industry (AHK) and the United Nations Development Program (UNDP).

In contrast to other policy areas of German-Russian relations, ecology topics in the energy sector offer considerable scope for bilateral cooperation. Ursula Borak, director of the Federal Ministry of Economics and Energy (BMWi), Deputy Director-General and head of the department “International, fossil fuels and nuclear energy”, emphasized in her speech: “German-Russian energy relations lay the fundament for the economic relations between both countries, which is not only due to their high share in bilateral trade. They also imply great modernization potential for cooperation between Germany and Russia. There are many opportunities for projects where environmental protection and economic interests go hand in hand. Together with our Russian partners, the Federal Ministry for Economic Affairs and Energy supports companies in recognizing and taking advantage of these opportunities.”

Dr. Christiane Schuchart, Russia Director at the German Committee on Eastern European Economic Relations, said: “Mutual investment and joint projects in the energy sector create trust due to their long-term perspective and can thus make a positive contribution to the political rapprochement between Russia and Germany. Environment and climate – and thus all of us – benefit from the fact that German-Russian energy cooperation is becoming “green.” With the topic of ecology in the Russian energy sector, the CREON event stands out in the lush conference landscape.

It is crucial to reduce mutual prejudices and strengthen the exchange of projects related to environmental responsibility. In this sense, the presentation by Natalia Zaytseva, who heads the Center for Sustainable Businesses at the Moscow School of Management Skolkovo, turned out to be a helpful overview. In independent European sustainability rankings, Russia ranks midfield, after all. The number of companies that recognize their responsibility for a sustainable economy is also growing steadily in Russia.

This is in line with the observations of Alexey Knizhnikov, who is responsible for the ranking at WWF Russia: “Four years ago, it was extremely difficult for us to even get data and information on accidents and pollution. In the meantime, especially the big oil and gas companies are getting more and more transparent from year to year, because the pressure of the public is growing. “However, there are still deficits: “Satellite imagery suggests that in the oil production much more accompanying gas is flared than the official data of government and companies claim”, Knizhnikov called an example. Incidents in factories are all too often concealed.

Gazprom, Sakhalin Energy and Nord Stream 2 representatives commented on the criticism: Nikias Wagner, Head of Public Affairs at Gazprom Germania, referred to around one billion euros in expenses that Gazprom invests annually in environmental protection: “I believe this number speaks for itself. “Andrey Samatov, Head of the Environmental Division at Sakhalin Energy, explained his numerous projects to reduce greenhouse gases in liquefied natural gas production. In the Environmental Responsibility ranking of Russian oil and gas companies, Samatov may find confirmation that they are on the right track: Sakhalin Energy took first place in 2017, followed by Exxon Mobil and Surgutneftegaz.

The ecological responsibility event will not be a one-time event in Germany. CREON agreed with the East Committee of German Business and the German-Russian Chamber of Commerce and Industry to organize the event again and expand it next year. “Russia is moving in the field of ecology and sustainability. That is why it is in the interests of the German economy to further develop bilateral economic relations in this field too”, says the Committee’s Managing Director Michael Harms.

Fares Kilzie, Founder and Chairman of the CREON Group, said about future activities: “It is no coincidence that we have chosen Berlin as the location for our first German-Russian ecology conference. Here, German-Russian cooperation is already taking place at a high level, which also confirmed the top-class participation in the conference. CREON is a pioneer in the field of ecological modernization. Now it is time to implement projects together with our German partners.”

Pictures:

1) Ursala Borak (German Ministry of Economy and Energy) held a keynote speech on German-Russian Economic Relations.

2) Andrey Samatov (Sakhalin Energy, and Alexey Knizhnikov (WWF Russia)

3) Round table discussions during the coffee-break.

4) The 2017 Rating of Environmental Resposibility of Russian oil and gas companies is available in English language.

4) Svetlana Scheynfeld, United Nations Development Program

5) Discussion the perspectives of renewable energies in Russia: Mikhail Babenko (WWF), Georgy Kekelidze (Eurosolar Russia), Thomas Heidemann (CMS Hashe Sigle), Christopfer Frey (Enercon) and Moderator Sebastian Kiefer (AHK).

Media contact:

Florian Willershausen
Director Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E willershausen@creoncapital.lu
www.creoncapital.lu

Abu-Dhabi Sustainability Week supported by Creon Capital

Sakhalin Energy ranks 1st in Environmental Transparency Rating of Oil and Gas Companies

1st CREON conference on environmental responsibility in Russia