ACRA has assigned ESG-4, category ESG-B to PJSC TransContainer (hereinafter, TransContainer, or the Company), which corresponds to a very high assessment in the field of the environment, social responsibility, and governance. According to the ESG Assessment Methodology, a very high ESG assessment means that the Company pays increased attention to environmental, social responsibility, and governance matters.
The assessment is based on the Company’s favorable indicators in the fields of environmental impact and social responsibility compared to companies in the sample1. In addition, the Company has policies and procedures for managing industry ESG risks.
TransContainer is a leading intermodal container operator in Eurasia. Its container fleet includes 120,000 units of around 180,000 TEUs and 41,000 flatcars. The Company owns 40 container terminals in Russia. TransContainer holds a 58.51% in Sakhalin Shipping Company (SASCO), which possesses 13 vessels. Delo Group is the sole shareholder of TransContainer.
1The sample included Russian and foreign companies in the Logistics industry.
key assessment factors
High assessment of the Company’s activity in the area of environmental impact and its actions to minimize environmental risks. This assessment is based on the Company’s relatively favorable environmental metrics compared to industry peers, as well as elaboration of part of the relevant environmental risks. ACRA notes the Company’s efforts to reduce the level of negative impact on the environment — over the past three years, the Company has reduced specific indicators by more than 15% for water consumption, energy consumption, and GHG emissions. During the assessment of TransContainer, the Agency applied a positive modifier in the area of environmental impact for the Company’s wide use of renewable energy sources (RES). ACRA applied an additional positive analytical adjustment in view of the Company’s disclosure of information on GHG emissions under the Scope 3 parameter, since this information is disclosed by a small number of companies in the Russian Federation. The Company received a moderately high score for compliance with best practices.
Very high assessment of the Company’s social impact and actions to minimize social risks. This assessment is based on TransContainer’s favorable social impact indicators compared to peers, and the elaboration of most of the social risks relevant to the Company and the maximum degree of compliance with best practices. TransContainer’s social impact assessment has been additionally upgraded in view of the Company’s substantial contribution to the development of the social sector in its regions of presence. The Company has core top-level regulations on managing the key industry-specific social risks. In particular, ACRA highly assesses the degree of elaboration and detail of the procedures for occupational health and safety, human rights protection, and information security. The Company received that maximum score for compliance with best social responsibility practices.
The high assessment of corporate governance quality reflects the highly detailed elaboration of corporate governance risks and sufficiently high compliance with best practices in this area. ACRA notes the high degree of information transparency at TransContainer, which is due to the level of disclosure of non-financial statements (GRI, basic), and the moderately high quality of strategic planning and sufficiently high share of members of the board of directors with industry experience. The assessment has been additionally upgraded due to the presence of a report on compliance with the principles and recommendations of the corporate governance code at TransContainer. Measures are taken at the Company to minimize most corporate governance risks, top-level documents have been drawn up to manage part of these risks, and internal regulations and procedures have been adopted. In addition, according to the Agency, the Company is characterized by a moderately high level of compliance with the best corporate governance practices.
key assumptions
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In its assessment of TransContainer’s quantitative indicators, the Agency used its own database to form, in accordance with ACRA’s methodology, a sample of industry peers;
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Data specified in questionnaires and documents of TransContainer is reliable and comparable to benchmarks;
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The analysis was based on current data on the system for managing all ESG aspects at TransContainer and it excluded the Company’s plans to implement sustainable development practices currently being developed and implemented.
assessment components
Final ESG assessment: ESG-4.
Final ESG category: ESG-B.
ESG assessment determination: very high assessment in the field of the environment, social responsibility and governance. Heightened attention is paid to the environment, social responsibility, and governance matters.
additional information
The ESG assessment has been assigned in accordance with the ESG Assessment Methodology.
An ESG assessment has been assigned to PJSC TransContainer for the first time. The assessment is expected to be revised within one year from the publication date of this press release.
The ESG assessment has been assigned based on data provided by PJSC TransContainer, information from publicly available sources, and ACRA’s databases.
The ESG assessment is solicited and PJSC TransContainer participated its assignment.
In assigning the assessment, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodology.
No conflicts of interest were discovered in the course of the assessment process.
The assigned assessment is not a credit rating.
