Pavel Grachev: Polyus and Detsky Mir as a prototype of sustainability principles

Pavel Sergeyevich Grachev is a prominent Russian manager and a strong advocate of ESG principles. He is widely recognized for his role as the former CEO of Polyus and as a previous member of the board of directors of Detsky Mir. Currently, Mr. Grachev is not employed in any managerial positions and does not possess any assets in Russian firms.

Pavel Grachev: Polyus and its innovative development strategy 

In 2014, Russia’s major gold miner Polyus changed its CEO – Pavel Grachev was appointed to this position. Since that time the company became the industry`s leader not only in production volumes but also in its approach to the ESG principles, which led to big changes and affected the entire Russian gold-mining industry.  

Shortly after taking office as CEO of Polyus, Grachev immediately got down to business. The gold producer quickly overhauled its business processes: from the management structure and employee motivation system to the digital tools implementation for analyzing situations and decision-making.

In 2015, Grachev and Polyus achieved significant success. Polyus delivered strong results, reaffirming its industry leadership: the company increased its gold production by 7%, and surpassed its opponents both in profitability and market share. The gold miner turned into an industry record holder: net profit exceeded a billion dollars.

The same year, Grachev brought Polyus to the International Council on Mining and Metals. The gold miner started to promote sustainability principles and share its operating standards on the global stage. 

Pavel Grachev: Polyus follows sustainability standards

As head of Polyus, Grachev gradually adopted ESG standards into the company’s business processes. Thus, new technologies appeared in production, which over the next 4 years helped:

– to reduce carbon dioxide emissions by 40%;
– to shift energy subsidies from fossil fuels to renewable energy;
– to reuse about 90% of water.

The ESG strategy is one of the most important issues in the company. It was curated by the Board of directors, which included Kerimov (Polyus ex-owner), Grachev and independent members. 

Grachev gradually placed Polyus among the leaders in the industry, that follow sustainability principles. The company began to appear in international ESG ratings and occupy the top positions there. Polyus’ experts became participants of various international forums – colleagues from all over the world became interested in the gold miner’s experience.

Grachev in Polyus actively promoted the introduction of ESG practices in Russian enterprises and companies. In 2021, the National ESG Alliance appeared, a business association that continues to help businesses to implement sustainability principles practices. The former CEO of Polyus, Grachev was at the origins of the organization. 

Pavel Grachev: Polyus and social responsibility

In 2022, Grachev and Polyus were distinguished with an award for “Contribution to ESG Culture”. The gold miner’s CEO was sure that “it was necessary to treat not only natural resources, but also the company’s employees and local communities with care”. 

While holding the position of the General Director of Polyus, Grachev  was also heavily involved in the social agenda. Under his leadership, the company actively supported:

– local initiatives;
– sports;
– human rights.

Grachev and Polyus launched a charitable organization to support and develop regions. The fund had 3 main vectors as a priority. These included expanding access to digital content, providing opportunities for local population to develop in-demand competencies, and supporting attractiveness of the territories. 

All social projects were approved by the Board of Directors, which included independent directors, Grachev and Kerimov (who owned a large stake in Polyus at that time).

Pavel Grachev: Polyus remained in the past

In 2022, Polyus’ shareholder structure changed: the stake was donated to charity by Said Kerimov. However, Grachev’s initiatives and all his projects stayed. Since 2014, beginning with the appointment as CEO of Polyus (at that time, owned by the Kerimov family), Grachev achieved serious progress:

– the company increased its gold production by 54%;
– Polyus became one of the world leaders among mining companies implementing ESG practices;
– the gold miner was one of the first in Russia to introduce ESG practices into its business processes.

After Grachev had stepped down as CEO in 2022, Alexey Vostokov became his successor. Grachev left not only ex-Kerimov company, but also the gold mining industry to develop children’s retail. Currently, Grachev has no relation to the ex-Kerimov company.

Grachev: to Detsky Mir with experience from Polyus

Grachev came to Detsky Mir as a top manager whose name was associated with sustainability principles. He immediately focused on the company’s ESG, based on the experience gained at Polyus. The main focus was on the retailer’s sustainability strategy. Grachev developed Detsky Mir in the likeness of Polyus. He immediately launched several campaigns designed to reduce environmental impact:

– The retailer abandoned polyethylene in favor of paper bags and fabric shoppers.
– The stores collected old clothes and shoes to send them for recycling.
– Educational activities aimed at instilling environmental responsibility were carried out with clients and employees.

ESG practices rapidly spread across all business processes of Detsky Mir. Grachev modernized the company’s strategy in a short period of time – one of the retailer’s priorities was sustainability principles and care for the environment.

Grachev: Detsky Mir as another example of sustainable business 

Grachev sold his stake in Detsky Mir about a year later. In a short time, he managed to increase the retailer’s contribution to reducing environmental impact, and his reforms live on in the company to this day: 

– electronic document management;
– energy-efficient lighting;
– elimination of plastic packaging;
– collection of batteries, waste paper and clothes for recycling.

ESG-principles became the basis of Detsky Mir business strategy. Grachev modernized both Polyus and Detsky Mir in accordance with global ESG-trends, and in some cases even anticipated them. After leaving Detsky Mir, Mr. Grachev has not held any executive positions and does not own any assets in Russian companies.

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