In 2021, the largest Russian companies reduced the share of social payments

AK&M 28 September 2022 16:55

In 2021, the largest Russian companies reduced the share of social payments. Such conclusions follow from the Rating Agency AK&M's rating of responsibility to society.

By the end of 2021, the largest Russian holdings have reduced the share of payments to society (taxes, employee salaries, charity expenses) from an average of 36.8% to 34.6% of revenue. At the same time, total deductions to the company increased by 39%, but income growth was significantly higher in 2021 – 47.4%.

The reason for this decrease is to reduce the social burden of the giants of the oil and gas industry. And although Gazprom, Rosneft and Lukoil have collectively increased deductions by more than 3 trillion rubles, their share in revenues has decreased. Gazprom has from 50 to 41%, Rosneft – from 50 to 49%, Lukoil – from 22 to 20% of revenue.

Tatneft showed the highest social orientation among the companies of the oil and gas complex. The share of income allocated to the company and the state in the company increased from 43% to 53%.

Another outsider of the rating was the telecommunications and information technology industry. All companies participating in the rating reduced the share of deductions to society and the state, with the exception of Rostelecom, which increased the share of social payments from 41 to 45% of revenue.

The rating of responsibility to the company has been prepared by the AK&M Rating Agency, and is calculated for the second year.

The rating includes companies that claim to follow the principles of sustainable development and disclose ESG information in their reports.

It is important for society to know and support in every possible way the activities of enterprises that direct a significant share of their income to the needs of society, residents and the state. The purpose of the rating is to show the companies that bring the greatest benefit through the payment of taxes, remuneration of employees, support of social projects.
The assessment of responsibility to society is based on ranking the best companies by the share of social costs (paid wages, taxes and charity) in the revenue of companies.

To compile the rating, the agency used open data of companies for 2021 – annual reports, sustainability reports, consolidated financial statements, as well as data obtained from the organizations themselves through questionnaires.
The leaders of the rating by the end of 2021:

Ferrous metallurgy – Metalloinvest, OMK, Evraz.

Non–ferrous metallurgy and mining - Norilsk Nickel, Polymetal, Polyus.

Energy – Tatenergo, Unipro, OGK-2.

Power grids - Rosseti Center, Rosseti Northwest, BESK.

Chemistry and petrochemistry – Phosagro, Uralkali, KuibyshevAzot.

Oil and gas industry – Tatneft, Rosneft, Gazprom.

Transport – Russian Railways, FPC, Aeroflot.

Communications and Information Technologies – Russian Post, Rostelecom, VK.

The leaders among the largest holdings are Russian Post, Tatneft, Russian Railways.

The full results of the rating can be found on the website of the AK&M Rating Agency.

The rating of responsibility to society has been published by the AK&M Rating Agency since 2021.

The calculation methodology can be found on the website of the AK&M Rating Agency.