Development institutions should be based on responsible business standards

During the expert discussion “Responsible behavior of development institutions” that was held at the 11th Gaidar Forum, its participants discussed responsible conduct standards that make it possible to create stable infrastructure and develop competitive ability of the Russian economy.

Major participants of the discussion were: Svetlana Yachevskaya, Deputy Chairman, Member of the Board, VEB.RF; Andrei Klepach, Chief Economist, VEB.RF; Irina Makiyeva, Deputy Chairman, VEB.RF, Director General of Foundation for the Development of Single-Industry Towns; Aleksandr Plutnik, Chairman of the Management Board, Director General of DOM.RF JSC; Mathilde Mesnard, Deputy Director, the Directorate for Financial and Enterprise Affairs, OECD; Ilya Torosov, Deputy Minister of Economic Development of the Russian Federation; and Andreas Schaal, Director, the Global Relations Secretariat, OECD.

Elena Gushchina, Senior Vice-President, VEB.RF.; Aleksandr Gryaznov, Director, Corporate Ratings, S&P Global Ratings, Russia; Mikhail Babenko, Director for Green Economy Programme, WWF; William Tompson, Head of Division, Eurasia, Global Relations Secretariat, OECD; Nadia Cherkasova, Deputy Chairman of the Management Board, Otkritie FC; and Sergey Korotkov, Director of the UNIDO Centre for International Industrial Cooperation, took part in the discussion as experts.

Antonina Levashenko, moderator of the discussion and Head of the RANEPA Center of Competence and Analysis of OECD standards, brought out the major trends of implementation of responsible conduct standards. Standards are introduced to the companies at various levels, subject to sectors of specialization, and also the amount of non-financial risks of the organization. Requirements to business are formed based on consumer needs. Antonina Levashenko noted: “The future is coming: standards are being written, laws are being adopted and the irresponsibility circle is shrinking.

Mathilde Mesnard, Deputy Director of the Directorate for Financial and Enterprise Affairs, OECD, clarified that, according to European standards of the guidelines, each company shall assess by itself, what risks it has. Responsible business standards using compliance, first of all, improve the working conditions and reduce the poverty.

Implementation of responsible business standards enables development institutions to leverage resources of companies for positive impact on the public living standards, to develop high-quality infrastructure, including to develop cities, Ms. Mesnard emphasized.

Supporting what Ms. Mesnard said, Irina Makiyeva, Deputy Chairman, VEB.RF, Director General of Foundation for the Development of Single-Industry Towns, told about successes in landscaping of Russian single-industry towns. According to her, today, a single-industry town is a place where development institutions are ready to adopt responsible business standards, try something new to solve both environmental and social-and-economic problems.

Irina Makiyeva noted: “A single red line brings together all development institutions: everything we do, we do for man. And the major result of work of the Foundation is involvement of population of residents in development of their cities, rather than dry figures of project finance. It is important that our work is remarkable for everyone.”

When telling about involvement of residents in urban projects, she reported that, for instance, over five thousand people from 80 single-industry towns took place in Clean Games Eco-Quest in 2019 and over 10 thousand people from 160 single-industry towns took place in Walk Through the Town Tourist Project by the Foundation.

To develop the subject, Mikhail Babenko, Director for Green Economy Programme, WWF, told about generation of vision of the future. According to him, what underlies policy and practice of development institutions will further pass to the private sector.

Aleksandr Gryaznov, Director, Corporate Ratings Group, S&P Global, paid attention to the fact that, compared to 2016 statistics, the influence priority switched from managerial non-financial factors to environmental. In particular, this regards construction with about 38% investment, that is why it is important to minimize environmental risks. One of the ways is quality control of the entire construction process.

At the end of the session, Svetlana Yachevskaya, Deputy Chairman, Member of the Board, VEB.RF, noted: “If we are speaking about functions of development institutions, they are wider than functions of ordinary banks, that is why the institutions must control the entire project management cycle.”


Information

The 11th Gaidar Forum “Russia and the World: Challenges of the New Decade” is being held at RANEPA on January 15 and 16, 2020. The forum is focused on the goals of national and global development and the search for practical answers to the most pressing challenges of our time. The forum is attended by ministers of the Government of the Russian Federation, members of the Federal Assembly, governors of the Russian regions, prominent international experts, and representatives of foreign states.

The organizers of the 11th Gaidar Forum are the Russian Presidential Academy of National Economy and Public Administration, the Gaidar Institute for Economic Policy, and the Association of Innovative Regions of Russia.

The title partners of the Gaidar Forum are PJSC Gazprom and JSC Gazprombank. The strategic partners are Coca-Cola, Mastercard, Russian Railways, Pharmstandard group of companies, Johnson & Johnson, Sanofi, Novartis group of companies, MSD, AKIG group of companies, EF Education First. Partners are Prosveshchenie group of companies, EY, Huawei, RVC JSC, Russian Agricultural Bank JSC.

The title information partners of the Gaidar Forum are the Russia-24 TV channel, TASS, RBC, Business FM. The strategic information partners are Kommersant Publishing House, Interfax, Rossiyskaya Gazeta, Invest-Forsythe magazine, Federal Press Agency. The main information partners are Anews.com, Gazeta.Ru, Lenta.Ru, News.ru, Profile. International partners are RT, ThomsonReuters, Sputnik, EFE, Cision, Pan Pacific Agency. Information partners are Snob media project, AEI PRIME, RNS, Expert magazine, Parlamentskaya Gazeta, Polit.ru, Ekho Moskvy radio station, PRO Business TV channel, FINAM.RU information and analytical agency, Davydov.Index, Strategiya magazine, Ekonomika i Zhizn newspaper, Econs portal, Gosudarstvennaya Sluzhba magazine, TV BRICS.