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Sustainable Development Report 2018–2019

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Sustainable Development Report 2018–2019 PROMOTING SUSTAINABILITY Sustainability Report 2018–2019 Sustainability Report 2018–2019 About the report TABLE OF CONTENTS ABOUT THE REPORT ABOUT THE REPORT _____________________________1 INDUSTRIAL SAFETY AND LABOUR PROTECTION ___94 Dear readers, Our approach _________________________________97 SUEK MANAGEMENT STATEMENT ________________12 We would like to bring to your attention the SUEK Sustainability Report for 2018–2019. We have Injury risk management _________________________102 been publishing such reports since 2006, as we view the transparency of business practices as one Development of safety culture ____________________104 SUEK: SUSTAINABLE DEVELOPMENT AND VALUE of the key components of corporate social responsibility. The Sustainability Report supplements CREATION _____________________________________18 Measures to improve safety _____________________106 Safe working conditions and health protection _______111 the company's annual integrated reports, providing detailed information about the company’s Company and markets __________________________20 activities in the field of industrial safety, environmental protection, and development of personnel and Geographic footprint ____________________________22 Supply chain responsibility ______________________115 the territories of our presence. The purpose of this report is to show how the company creates value Main activities _________________________________24 ENVIRONMENTAL PERFORMANCE: SAFETY AND for all stakeholders, thereby increasing its sustainability in the face of changing market conditions SUEK strategy _________________________________26 EFFICIENCY ___________________________________116 and strengthening its competitive advantages in the long term. Business model for sustainable development _________30 Our approach ________________________________118 Energy for sustainable development ________________34 Control system _______________________________121 We are guided by the best global reporting practices in the field of ESG/sustainable development. SUEK's sustainable development goals Air resource protection _________________________122 The report is compiled in accordance with internationally recognised GRI Standards (Core option). and management approach ______________________36 Water resource protection _______________________128 The report covers the performance of the SUEK Group (also referred to in the report as “SUEK”, “we”, CORPORATE GOVERNANCE ______________________38 Waste management ___________________________130 “company”) for the calendar years 2018–2019, including all companies consolidated in SUEK's IFRS SUEK'S corporate governance system ______________40 Land reclamation ______________________________131 financial statements. Changes in the scope and boundaries of this report compared to the report for Corporate ethics, anti-corruption, compliance _________46 Biodiversity conservation ________________________132 2016–2017 are due to the consolidation of the Siberian Generating Company in 2018. Risk management ______________________________50 Energy consumption and energy efficiency __________133 Information policy ______________________________52 SUEK AND THE REGIONS: PARTNERSHIP FOR Stakeholder engagement ________________________54 SUSTAINABLE DEVELOPMENT ___________________136 We use the term “coal segment” to describe our activities in the production and sale of coal, the term Our approach ________________________________140 “energy segment” to describe the company's activities in the production of electricity and heat, and ECONOMIC STABILITY AND EFFICIENCY ___________58 Management tools and solutions __________________142 the “logistics segment” to describe the activities of our railway and port capacities. Key results ___________________________________60 Social projects for communities ___________________144 Investment programme __________________________62 The report was reviewed by the company's Internal Audit Service and the external auditor Bureau Development of sales markets ____________________65 PUBLIC RECOGNITION OF SUEK ACTIVITIES _______160 Veritas Certification Rus, approved by the Audit Committee of SUEK's Board of Directors, and Innovative activity ______________________________66 ANNEX 1. SUEK SUSTAINABILITY INDICATORS _____162 publicly certified by the Non-Financial Reporting Council of the Russian Union of Industrialists and Product quality improvement ______________________72 Entrepreneurs. The report is published in hard copy and on the websites suek.ru in Russian and Interaction with customers ________________________74 ANNEX 2. APPLICATION OF GRI REPORTING Supply chain management _______________________75 PRINCIPLES ___________________________________186 suek.com in English. SOCIAL PERFORMANCE: ANNEX 3. MATERIAL TOPICS AND REPORT The content of the report is determined by topics in the field of sustainable development and EMPOWERING OUR PEOPLE ______________________76 BOUNDARIES _________________________________188 corporate responsibility that are most significant for the company and its stakeholders. When Our approach _________________________________79 ANNEX 4. TABLE OF REPORT COMPLIANCE WITH determining the scope of these topics, we focused on the UN Sustainable Development Goals, Recruitment and retention ________________________81 REPORTING STANDARDS. GRI CONTENT INDEX ____192 the principles of the UN Global Compact, the provisions of the Social Charter of Russian Business, Remuneration and social support __________________84 and international standards ISO 26000 and GRI. Cooperation with trade unions _____________________86 ANNEX 5. INDEPENDENT ASSURANCE OF NON-FINANCIAL REPORTING _________________204 Training and development ________________________88 Nurturing the pool of talent _______________________91 ANNEX 6. CERTIFICATE OF PUBLIC ASSURANCE Corporate culture and internal communications _______92 OF THE REPORT BY THE RSPP BOARD FOR NON-FINANCIAL REPORTING ________________216 26000 Social Responsibility GLOSSARY ___________________________________218 ABBREVIATIONS AND ACRONYMS _______________220 www.suek.ru CONTACTS AND FEEDBACK _____________________222 1 In recent years, international practice has often used the abbreviation ESG (environmental, social, and governance) to refer to issues of sustainable development. 2 SUEK's IFRS financial statements included in the report are given in roubles. For conversion, the average annual RUB/USD exchange rate was used: 62.7078 in 2018 and 64.7362 in 2019. 1 Sustainability Report 2018–2019 About the report Elaboration of the scope of material topics and determination of the priorities for coverage in the report were carried out from the perspective of SUEK's strategic priorities and values, on the one hand, and the priorities of stakeholders, on the other hand 3. WHERE TO FIND DETAILED WHERE TO FIND DETAILED INFORMATION ON THE CONTENT INFORMATION ON THE CONTENT OF THESE TOPICS AND OUR GRI STANDARDS IN ACCORDANCE WITH OF THESE TOPICS AND OUR GRI STANDARDS IN ACCORDANCE WITH MANAGEMENT APPROACHES WHICH THE MAIN CONCRETE DATA MANAGEMENT APPROACHES WHICH THE MAIN CONCRETE DATA MATERIAL TOPICS TO THESE TOPICS (GRI 103) ON THESE TOPICS IS DISCLOSED4 MATERIAL TOPICS TO THESE TOPICS (GRI 103) ON THESE TOPICS IS DISCLOSED4 A1. Financial stability Statement from the Chairman of the GRI 102. General disclosures. A8. Remuneration Chapter Social performance: GRI 201. Economic performance and the company’s Board of Directors and CEO of SUEK Organisational profile. and social support for empowering our people GRI 202. Market presence development potential Chapters Corporate governance; GRI 201. Economic performance employees GRI 401. Employment SUEK: Sustainable development and value creation A9. HR policy and labour Chapter Social performance: GRI 401. Employment relations empowering our people GRI 402. Labour relations A2. Industrial safety Chapter Industrial safety and labour GRI 403. Occupational health and workplace and emergency protection safety A10. Staff training Chapter Social performance: GRI 404. Training and education preparedness empowering our people A11. Company's Chapter SUEK and the regions: GRI 201. Economic performance A3. Product quality and Chapter SUEK: Sustainable GRI 201. Economic performance contribution partnership for sustainable manufacture of high-value development and value creation GRI 416. Customer health and safety to development of urban development products infrastructure A4. Operational efficiency Chapter SUEK: Sustainable GRI 201. Economic performance A12. Company's Chapter SUEK and the regions: GRI 203. Indirect economic impacts development and value creation GRI 302. Energy contribution partnership for sustainable GRI 413. Local communities to development of local development communities A5. Company’s Chapter Environmental performance: GRI 303. Water environmental footprint, safety and efficiency GRI 306. Effluents and waste including reducing greenhouse gas emissions GRI 305. Emissions A13. Supplier requirements Chapter Sustainable development GRI 201. Economic performance and support for local and value creation GRI 204. Procurement practices suppliers GRI 205. Anti-corruption A6. Corporate governance Chapter Corporate governance GRI 102. General disclosures GRI 414. Supplier social assessment and risk management GRI 206. Anti-competitive behaviour A14. Contribution to socio- Chapter SUEK and the regions: GRI 201. Economic performance A7. Interaction on business Chapters Corporate governance; GRI 102. General disclosures economic development
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