The purpose of this study was to identify contradictions between the positive trend in the aluminum market and the financial performance of companies in the context of achieving the 17 Sustainable Development Goals (SDGs). This research is motivated by the observed decline in profitability of the Russian aluminum company “RUSAL”, which has been influenced by its commitment to sustainable development projects. This commitment manifests in several challenges: (1) an increase in CO2 emissions during the primary stage of production (alumina production accounts for approximately one-third of total emissions) which is highly dependent on the energy sourse used; (2) energy dependency, which compels producers to utilize a mix of traditional and “green” energy sources; (3) difficulties in resource management, as bauxite mining leads to land degradation and soil and water contamination with heavy metals; (4) the necessity to align with the rates of aluminum processing and recycling achieved by countries such as the UK, Germany, Finland and Belgium. The study concludes that: (1) a transition to 100% renewable energy could reduce CO2 emissions by 75.5% during alumina production; however, most aluminum companies, including “RUSAL”, face difficulties in integrating renewables due to high capital costs and insufficient infrastructure; (2) despite positive global trends, this transition requires significant investment and time for both international and Russian aluminum businesses; (3) biodiversity loss and the challenges associated with its restoration may persist for decades; (4) despite successful practices in European countries, Russian companies need to focus on developing infrastructure for aluminum waste processing. The implementation of sustainable development projects in the aluminum industry, both in Russia and abroad, is a long-term endeavor characterized by a high degree of investment risk in its early stages. Achieving the UN SDGs will require further research and concerted international efforts to develop and implement innovations in this field.

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Difficulties in Meeting the UN Sustainable Development Goals (Based on the Example of the Russian Aluminum Business)

  • Valeriia Pavlovna Korsakova,
  • Vladimir Leonidovich Ulanov

摘要

The purpose of this study was to identify contradictions between the positive trend in the aluminum market and the financial performance of companies in the context of achieving the 17 Sustainable Development Goals (SDGs). This research is motivated by the observed decline in profitability of the Russian aluminum company “RUSAL”, which has been influenced by its commitment to sustainable development projects. This commitment manifests in several challenges: (1) an increase in CO2 emissions during the primary stage of production (alumina production accounts for approximately one-third of total emissions) which is highly dependent on the energy sourse used; (2) energy dependency, which compels producers to utilize a mix of traditional and “green” energy sources; (3) difficulties in resource management, as bauxite mining leads to land degradation and soil and water contamination with heavy metals; (4) the necessity to align with the rates of aluminum processing and recycling achieved by countries such as the UK, Germany, Finland and Belgium. The study concludes that: (1) a transition to 100% renewable energy could reduce CO2 emissions by 75.5% during alumina production; however, most aluminum companies, including “RUSAL”, face difficulties in integrating renewables due to high capital costs and insufficient infrastructure; (2) despite positive global trends, this transition requires significant investment and time for both international and Russian aluminum businesses; (3) biodiversity loss and the challenges associated with its restoration may persist for decades; (4) despite successful practices in European countries, Russian companies need to focus on developing infrastructure for aluminum waste processing. The implementation of sustainable development projects in the aluminum industry, both in Russia and abroad, is a long-term endeavor characterized by a high degree of investment risk in its early stages. Achieving the UN SDGs will require further research and concerted international efforts to develop and implement innovations in this field.