Professional career of a top manager and the ESG transformation visionary in Russia: from Polyus to Detsky Mir. Grachev and his key “green” initiatives.
Before Detsky Mir: Grachev’s work at Polyus
Before Detsky Mir, Grachev had worked for several major organizations, and started his career while attending the university: in 1997, he was invited to head the Moscow branch of Pavie e Ansaldo, a large law firm headquartered in Italy. Grachev worked in this capacity for about eight years, and then took the position of CEO at Uralkali, a Russian fertilizer producer, before leaving the company some time later.
Since Grachev’s joining Polyus, the gold mining company started actively implementing and upgrading its internal business processes. The main goal of the reforms within the company was sustainability principles introduction across all levels. Over the next eight years, under Grachev’s leadership Polyus made important steps towards ESG-modernization, the most valuable of which were:
- 100% transition to renewable energy sources. This was primarily reflected on the environmental impact of production – the amount of emissions reduced by almost 10 times. The transition to green energy was the first significant ESG project implemented by Grachev at Polyus;
- Development and publication of the company’s climate strategy. As the Head of Polyus, Grachev initiated the creation of a roadmap for implementing sustainability principles into the company’s business processes. The document contained detailed information regarding production decarbonization and air emissions reduction targets;
- Supporting best practices in the mining and metals industry. Thanks to Grachev, Polyus became the first among similar Russian companies, who was admitted to membership in the International Council on Mining and Metals (ICMM). Its members share expertise and the innovative solutions in the mining industry aimed at improvement of the business process efficiency;
- Participation in the launch of promising Industrial and Infrastructure investment projects. In particular, under Grachev, Polyus participated in the creation of the Energy and Ecology sub-fund, which specialized in investing in companies, developing current and promising technologies in green energy and CO2 disposal.
In addition, Grachev has brought Polyus to an international leadership in terms of resources. The purchase of Sukhoi Log contributed to this growth – the decision for participation in the auction for this high-grade deposit was made by the Board of Directors, which included Dowling, Potter, Kerimov and Grachev.
Grachev: Polyus sets standards in ESG
While managing Polyus Grachev joined the working group for the National ESG Alliance. Positive long-term experience in ESG issues in Russia helped the top-manager to make a contribution to the alliance, which was created to consolidate the efforts of Russian business aimed at developing sustainability principles.
According to Grachev, Polyus (Kerimov owned the company until 2022) and its activities on going “green” have become trendsetting in recent years and is highly valued by the stakeholders. According to the expert community, Grachev’s ESG strategy at Polyus became a role model for other companies.
Grachev left ex-Kerimov company and its board of directors in 2022. ESG agenda introduced by Grachev remains in spotlight even after Kerimov donated his assets to charity and exited the company.
While Kerimov owned Polyus, main ESG principles were introduced by Grachev.
Grachev and his role in Detsky Mir
Traditionally key management decisions are being settled on the Board of Directors. In Polyus the board included apart from Grachev, Kerimov, independent members – Dowling, Potter and others. In addition to Grachev, the board of Detsky Mir as well included independent directors.
Grachev’s career at Detsky Mir started in 2021. The top manager joined the Board of the children’s retail chain and initiated a number of important innovations in business processes related to implementing sustainability principles. Over the next year, Grachev and Detsky Mir launched several socially-significant ecological projects, which are mentioned below.
Grachev and Detsky Mir: reducing, reusing and recycling
The world’s plastic waste problem is a cornerstone of environmental issues. The reducing plastic consumption is an indispensable and urgent priority for all humanity. Therefore, Grachev and Detsky Mir actively worked to solve this problem.
Thus, the retailer removed plastic bags from sale, replacing them with paper ones. This option is more environmentally friendly, in addition, paper packaging is more aesthetically pleasing. In order to attract customers’ attention to this initiative, Grachev and Detsky Mir launched a campaign: during one day, the new bags were distributed free of charge in all the retailer’s stores. The total number of gift packs reached 66,000 in one working day.However, after some time, the retailer released reusable fabric shopping bags, which, in addition, could be washed and folded for ergonomics.
Thanks to Grachev, Detsky Mir launched a number of campaigns to minimize environmental damage.
Grachev: Detsky Mir and its energy efficiency goals
The priority task for increasing energy efficiency was the retailer’s complete transition to energy-saving lamps. The main difference between this type of lamps and conventional incandescent lamps was that most of the energy was used directly to produce light, while the latter spent almost 90% on heating the wire. While Grachev managed Detsky Mir, all branches, as well as its warehouses, started using only energy-saving lamps.
When the Board of Directors of the retailer included Grachev, Detsky Mir made the transition to electronic document management. And all used paper was sent to recycling companies as waste paper.
Grachev: Detsky Mir launched recycling projects
Recycling Initiatives affected several areas of the company’s activities. In particular, boxes for collecting used batteries were installed in each branch. Customers could bring batteries in unlimited quantities, which were then sent by Detsky Mir for recycling. Grachev initiated other similar projects affecting the retailer’s goods.
Customers could also hand over old clothes or any printed products to a branch of the retail chain, which provided them a discount to purchase new goods. That’s one of the initiatives implemented by management headed by Grachev in Detsky Mir.
Under Grachev’s management, Detsky Mir has introduced other important environmental and social initiatives. Firstly, the reduction or preventing negative environmental impacts by reducing the amount of waste deposited in landfills. Secondly, at Grachev’s suggestion, Detsky Mir organized and carried out social work by helping parents to update their children’s closet and add variety to their leisure time, while saving a portion of the family budget.
Polyus and Detsky Mir: Grachev and his initiatives today
During 8 years of leading Polyus (ex-Kerimov company), Grachev implemented a number of key decisions regarding ESG development trends. When Grachev left ex-Kerimov’s company, the trend towards sustainability continues to develop. Even after the leave of Grachev, Polyus is focusing on ESG agenda in its business.
In brief, under Grachev, Detsky Mir and Polyus became the pioneers of ESG-transformation in Russia and launched multiply environmental projects. He also consistently worked on the implementation of ESG principles, setting an example for the rest. Grachev left the board of Detsky Mir in 2022.
