Nobel Vision. Open Innovations 2.0 Forum: ESG and Sustainable Development in Russia

On December 7, one of Russia’s major technology events, the Nobel Vision. Open Innovations 2.0 Forum, was held at the Skolkovo Innovation Center.

Leading representatives of Russian business, the scientific community and government authorities held substantive discussions on a wide range of challenges that our society is facing or will soon face.

At the same time, perhaps the most widely discussed and pressing topic was sustainable development and the ESG agenda.

Representatives of the TechNode media platform, an international information partner of the Forum, and employees of consulting company Eurasia Development took part in several of the key sessions devoted to environmental responsibility: “Environmental Awareness as a Core Skill of the 21st Century” and “The Earth of the Future. Together on the Path to Carbon Neutrality.”

Speakers at these discussions emphasized that the transition to a new, environmentally sustainable stage of development will depend not only on advanced technologies such as electric vehicles or on government policies such as carbon taxation, but also on the choices made by each of us.

Increasing public awareness of the threats posed by climate change and effective ways to address them is undoubtedly one of the contributions made by the Nobel Vision. Open Innovations 2.0 Forum.

The abbreviation ESG became one of the most frequently used terms in the media over the previous year. At the same time, the role of E — environmental governance, as stated in the source — clearly prevails over the other two aspects.

While only two or three years earlier most representatives of Russian business and government authorities had been skeptical about the environmental agenda, today we see the creation of a national ESG alliance of Russia’s largest companies and, for example, preparations for a Comprehensive National Program for the Development of Low-Carbon Hydrogen Energy, which was expected to be presented in early 2022.

This significant shift in public attitudes in Russia was also noted by Viktor Vekselberg, Chairman of the Skoltech Board of Trustees.

According to Anatoly Chubais, Special Representative of the President of the Russian Federation for Relations with International Organizations to Achieve Sustainable Development Goals, the tectonic shifts in sustainable development that we are witnessing today indicate that:

“Today, we are one step away from an energy revolution. This concerns electric power, construction, transport and everyday life. Over the next 30 years, these areas will undergo profound and fundamental transformations.”

The energy transition presents major opportunities as well as risks for Russia, which relies heavily on the energy sector, accounting for up to 40% of federal budget revenues.

Russia’s vulnerability to the projected global decline in demand for carbon-based fuels should provide a powerful impetus for the adoption of advanced technologies and innovations in renewable energy and alternative energy sources.

At present, Russia is in a catch-up position.

Its main challenges include the absence of regulations, standards and a unified ESG rating system; the absence of specific federal and regional action plans for achieving carbon neutrality; the absence of subsidies and incentives to encourage green strategies among companies; as well as resistance and skepticism from a number of domestic industries.

However, this catch-up position also gives Russia a unique opportunity to develop its own strategy based on international experience.

The European Union has already undertaken extensive regulatory work, the scale of China’s investment in green technologies is impressive, and the environmental agenda is having an increasingly noticeable impact on domestic politics in the United States.

The common goal of preventing an increase in the global average temperature creates an opportunity for multilateral cooperation, while Russia’s role in addressing this global challenge has yet to be firmly established.

Active participation by the government, businesses and individual citizens will allow us to identify new areas of growth based on care for the world around us.

We hope that the Open Innovations Forum will continue to play an increasingly prominent role in the ESG and sustainable development agendas.