Metinvest Today
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METINVEST SOCIAL REPORT 2009-2010 1 METINVEST'S CSR REPORT FOR 2009-10 HAS BEEN PREPARED IN ACCORDANCE WITH THE SUSTAINABILITY REPORTING GUIDELINES OF THE GLOBAL REPORTING INITIATIVE AND MEETS THE GRI'S B+ APPLICATION LEVEL 2 SOCIAL REPORT 2009-2010 METINVEST METINVEST SOCIAL REPORT 2009-2010 3 METINVEST AT GLANCE 2009-10 * STRONGER NEW GLOBAL №1 STRATEGIC PRESENCE Today Metinvest exports a large part of its IN THE TOP 100 output to more than 1,000 consumers in 75 UKRAINIAN BUSINESS PROSPECTS countries. Metinvest has approved a development strategy to 2020 Metinvest, is introducing quality-control and FOR MORE DETAILS, SEE PAGE 18 that targets long-term sustainable growth through the LEADERS RATING production-safety programmes at its PRODUCT QUALITY economic cycle. Each goal includes objectives for doing enterprises, and it works with consumers in Metinvest's Ukrainian enterprises paid business responsibly. various different ways. *For more on Metinvest's global presence, see www.metinvestholding.com MORE THAN SEE PAGE 12 FOR MORE ABOUT THE STRATEGY FINANCIAL CONSOLIDATED REVENUE: HIGHLIGHTS US$1,389.4m US$9,358m FOR 2010 ADJUSTED EBITDA IFRS: IN TAXES US$2,552m JOINT OPERATIONAL 35.7mt Iron ore IMPLEMENTATION HIGHLIGHTS concentrate PROJECTS FOR 2010 In 2010 in the first phase of the joint implementation project to utilise coal-gas at Krasnodon Coal, Metinvest received€ 598,000. Over the five years of the first commitment period of the Kyoto Protocol, it expects to reduce greenhouse-gas emissions across 10.1mt 8.7mt all joint projects by more than 8 million tonnes of CO2 Coking coal equivalent. 2.9mt Steel Steam coal PAGE 60 FOR MORE ON OUR PROJECTS, SEE SEE PAGE 8 Container gas utilisation plant at Krasnodon Coal FOR DETAILS 4 SOCIAL REPORT 2009-2010 METINVEST METINVEST SOCIAL REPORT 2009-2010 5 WE AIM TO PRODUCE HIGH-QUALITY PRODUCTS LETTER WHILE GIVING DUE CONSIDERATION TO THE INTERESTS FROM THE CEO OF SOCIETY, OUR EMPLOYEES AND ALL STAKEHOLDERS Dear readers, suffered in the process. Metinvest's and corporate standards, which are set Global Compact in 2010 was a overriding priority is the health and based on the experience of leading significant move for us, marking CONTENTS welcome to Metinvest's second safety of its employees, and we companies in the global business another step toward to forming a new corporate social responsibility (CSR) continue to work systematically towards community. culture in our relations with state and OUR COMPANY report for 2009-10, which has been our strategic goal of reducing injuries to non-government organisations, as well prepared to the B+ Application Level of zero. I believe that we still have much to The key factor underpinning Metinvest's as society at the national and STAKEHOLDER ENGAGEMENT the Global Reporting Initiative (GRI). It do, despite the steady reduction in the success in both production and international level. details the areas where we have made injury rate. sustainable development is the PRODUCT QUALITY notable improvements in our CSR professionalism of our employees. An I am confident that this CSR report EMPLOYMENT RELATIONS activities, as well as the tasks that still During the reporting period, we devised important strategic goal for us is to represents an excellent opportunity for lie ahead. numerous corporate standards aimed build a united team that is motivated to Metinvest to provide you, our readers, HEALTH AND SAFETY at preventing injuries, at assessing and achieve common goals. Over the past with information about what we do and After we successfully overcame the reducing the risks stemming from our two years, we have drafted a how we envision our social ENVIRONMENT global economic downturn, our financial production processes, and at improving development plan for our HR system, responsibility. We always welcome and operating performance stabilised in the accountability of our contractors. have almost completed work to responses and comments that help us ENERGY EFFICIENCY AND ENERGY SAVING 2010, and the Company met all its The comprehensive “Strategy for introduce a transparent remuneration to improve our approaches and find obligations to the state, employees, Developing the Healthcare System at system, and continued to run the Talent more efficient solutions along the road CLIMATE CHANGE partners, and local communities. Group Enterprises” was also drafted Pool programme. I am confident that to sustainable development. We have adopted a strategy for our and began to be introduced in 2010. this programme will help to ensure SOCIAL INVESTMENT long-term sustainable development. continuity in our managerial decisions KEY RESULTS AND PLANS FOR THE FUTURE The focus of Metinvest's new strategy, We recognise the problem of global and in the Company's management A business in the global which runs to 2020, is to improve the climate change and are taking style, as well as promote leadership ABOUT THE REPORT efficiency of what we do and to measures to minimise our impact over skills and innovative thinking. AND REPORTING PROCESS marketplace needs to constantly improve our business the long term. I am proud to say that establish internal stan- processes. All of our declared strategic Metinvest today leads Ukrainian As the major employer in many TABLE OF GRI INDICATORS dards matching those of goals set out objectives for doing companies in the use of Kyoto Protocol Ukrainian towns, we continue to play an business responsibly. mechanisms. Based on joint important role in urban development, INDEPENDENT the leaders in its sector implementation projects at the Group's and we maintain close ties to the ASSURANCE REPORT A business in the global marketplace coal and metals enterprises greenhouse people who live and work alongside us. needs to establish internal standards gas emissions are expected to fall by This report details the progress that we matching those of the leaders in its more than 8 million tonnes of CO2 have made in developing partnership sector. We aim to produce high-quality equivalent. We are thus making a relations with local communities over products while giving due consideration noticeable contribution to meeting the the past two years. A “Social to the interests of society, our obligations that Ukraine has assumed. Investment Strategy” has been drafted employees and all stakeholders. For us, and approved, a portfolio of new this is driven primarily by moral and Alongside emissions-reduction and corporate programmes has been put ethical considerations, and also by our energy-efficiency programmes, our together, and strategic social and awareness that in the 21st century a environmental work targets efficient economic urban development projects business's sustainability depends management of water resources, waste have been launched in collaboration directly on its ability to function safely products and land reclamation. An with international partners. These and with minimal environmental impact. integrated management system initiatives open up great opportunities to We therefore consider our investments certified to OHSAS 18001 and involve a wider range of stakeholders. I in protecting people and the ISO 14001 has been introduced at the consider this to be of great importance, environment to be investments in the Managing Company and major since we can change our life for the future, and we are striving to build a production facilities. better only if we do so together. corporate culture in which all workers feel part of a common cause and In 2010, the Managing Company's HSE We must also not forget that many of approach their work responsibly. Internal Audit department was today's development goals are global, established. The enterprises' activity in and achieving them requires combined We do not consider work to have been these areas is monitored continually, as efforts with reliable partners focused on done successfully if people have is their compliance with legal obligations a common result. Signing the UN 6 SOCIAL REPORT 2009-2010 METINVEST METINVEST SOCIAL REPORT 2009-2010 7 METINVEST GROUP IS AN INTERNATIONAL, VERTICALLY INTEGRATED OUR METALS AND MINING COMPANY WITH 24 ENTERPRISES IN UKRAINE, EUROPE AND THE US. THE COMPANY CONTROLS EACH STAGE COMPANY OF THE PRODUCTION CHAIN, FROM MINING IRON ORE AND COAL AND PRODUCING COKE AND STEEL TO MAKING HIGH VALUE-ADDED PRODUCTS 24 ENTERPRISES INTERNATIONAL TALENT IN UKRAINE, EUROPE QUALITY POOL AND THE US STANDARDS DEVELOPMENT Metinvest is a global vertically The Company is introducing and During the reporting period, personnel integrated metals and mining com- certifying quality management development became a priority for the pany. systems that meet ISO 9001 stan- Company. Last year, an integrated dard. development programme was developed in conjunction with a leading Russian business school. SEE PAGE 8 SEE PAGE 20 SEE PAGE 26 FOR DETAILS FOR DETAILS FOR DETAILS REDUCTION SYSTEMATIC OF APPROACH TO WASTE INJURIES MANAGEMENT During the reporting period, Metinvest Last year Metinvest started the major reduced the injury rate by 11.5%. environmental project MONTIS to process and recycle slag at metal production enterprises. SEE PAGE 34 SEE PAGE 50 FOR DETAILS FOR DETAILS PARTICIPATION IN THE USAID PARTNERSHIP PROGRAMME Metinvest has entered into a partner- ship with USAID to devise a strategic social and economic development plan for Krasnodon. SEE PAGE 68 FOR DETAILS 8 SOCIAL REPORT 2009-2010 METINVEST METINVEST SOCIAL REPORT 2009-2010 9 TODAY, WE ARE ALREADY ONE OF UKRAINE'S LARGEST METINVEST COMPANIES AND A MAJOR EXPORTER AND TAXPAYER. TODAY THE COMPANY'S SUCCESSFUL DEVELOPMENT IN THE FUTURE WILL CONTRIBUTE TO AN INCREASE IN UKRAINE'S STANDING Metinvest is an international vertically assets with Ilyich Iron and Steel Works, Metinvest recognises the importance of Metinvest's management believes that integrated metals and mining company1 one of Ukraine's largest metals appropriate corporate management an effective internal control and risk with 24 enterprises in Ukraine, Europe enterprises. These decisions were and supports high levels of management system will provide and the US.