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Ar-Nknh-2011-Eng.Pdf TABLE OF CONTENTS ADDRESSES 06 06 Chairman of the Board of Directors 08 General Director ABOUT THE REPORT 11 12 Period under report, the reporting cycle 13 Reporting principles 14 EVENTS IMPORTANT FOR THE COMPANY AND THE COMMUNITY ABOUT THE COMPANY 23 26 Core activities 26 Company’s development strategy 29 World market standing 32 Economical efficiency CORPORATE SOCIAL RESPONSIBILITY 35 36 Management of sustainable development 37 Risk management 38 Principles of corporate social responsibility 39 Interaction with stakeholders THE COMPANY AND SHAREHOLDERS 45 46 Corporate management 48 Responsible business practice 48 Information policy of the Company THE COMPANY AND BUSINESS PARTNERS 51 52 The Company activities in the field of produce quality and safety 53 System of mandatory requirements to produce safety 55 Customer satisfaction THE COMPANY AND EMPLOYEES 57 58 Human resource management 68 Social partnership 69 Social programs for Company employees SAFETY AND HEALTH OF EMPLOYEES 80 Occupational and industrial safety policy 79 81 Occupational and industrial safety training system 81 Employees’ life and health preservation is the Company priority ENVIRONMENTAL ACTIVITIES OF THE COMPANY 87 88 Arrangement of environmental activities 89 Main events relevant to environmental protection 98 Results of environment-related activity THE COMPANY AND COMMUNITY 101 103 Social programs developed jointly with the community 107 OAO Nizhnekamskneftekhim and science 110 Marketing communications INDEPENDENT AUDITOR’S OPINION ON CERTIFICATION 113 OF THE SUSTAINABLE DEVELOPMENT REPORT 118 TABLE OF STANDARD GRI ELEMENTS 127 FEEDBACK QUESTIONNAIRE 128 CONTACT DETAILS ОАО NIZHNEKAMSKNEFTEKHIM Sustainability report // 2011 Address of the Chairman of the Board of Directors 6 ОАО NIZHNEKAMSKNEFTEKHIM Sustainability report // 2011 Dear readers, colleagues, partners and friends, Allow me to present to your attention the Report on Sustainable for development of education, children's and youthful sports and Development of the OAO Nizhnekamskneftekhim for the 2011 creativity, welfare gain of inhabitants and public health services period which covers all social aspects of activity of one of the enhancement in the city of Nizhnekamsk. The company kept on leaders of the national petrochemical industry and the backbone financing reduced hot water rates for the population of Republic enterprise of the city of Nizhnekamsk. Tatarstan. Outstanding financial and economic indicators of activity of our Pages of the Report on Sustainable Development of the OAO Company for accounting 2011 year have been achieved not only Nizhnekamskneftekhim for the 2011 period presented to your owing to a favorable economic situation in the product markets, attention contain detailed information on activity of the Company but also owing to the immense contribution of highly professional in social services being in balance and going hand in hand with its staff involved in all business activities of the Company. In fact, it is industrial potential. the people who take executive decisions, who make seemingly impossible tasks their mission, but successfully complete them, I am confident, that social activity of the OAO Nizhnekamskneftekhim generate the profit so needed to the Company. will be focused on improvement of the quality of life and raising of living standards of the workers and city dwellers of Nizhnekamsk in It is the social responsibility and social partnership of shareholders, the future as well. Professional experience of the Company staff, administration and labor collective of OAO Nizhnekamskneftekhim its high sense of duty, harmony of interests of community and that provide a basis of successful development of the Company business will serve as the warranty for achievement of the strategic today, Its competitiveness, business development and prosperity aims and objectives for continuation of the upward tendency of the of the Republic as a whole depend on how much strong is the Company in the long-term perspective. social capital of the Company. In the last financial year the Company allocated 6.7 billion Roubles for social services, environmental safety, charity and sponsorship. The target charitable programs have been launched Chairman of the Board of Directors OAO Nizhnekamskneftekhim A.K. Shigabutdinov 7 ОАО NIZHNEKAMSKNEFTEKHIM Sustainability report // 2011 Address of the General Director Dear shareholdes, colleagues and partners, Here is the Report of Sustainable Development of OAO Nizhneka- mskneftekhim in 2011, in which the Company discloses informa- tion about the main aspects of its activities in the field of sustainable development. This is where we tried to reflect qualitative changes in activity of the Company and to emphasize our innovative ap- proaches and to show openness to business and society. Report on sustainable development has become an integral part of our business. We understand that social responsibility and social partnership is the foundation of a successful business. The com- petitiveness of the Company and the prosperity of the Republic as a whole depend on the scale and quality of social work. Recogniz- ing the active role of business in social development and the need for greater social dialogue Nizhnekamskneftekhim has joined the Social Charter of Russian business in 2011. In the reporting year the Company has achieved very high produc- tion results. Total volume of production is estimated at 121.3 billion rubles. This is 30.8 billion rubles higher than in 2010. The growth rate of industrial production amounted to 107.6%. Throughout the 8 ОАО NIZHNEKAMSKNEFTEKHIM Sustainability report // 2011 year the main production facilities were running smoothly and at On occasion of the 45-th anniversary of Nizhnekamsk the Com- optimal loads, thereby maximum outputs were achieved: 559,000 pany presented another gift to the city – the park of petrochemists. tons of rubber and 593,000 tons of plastics. Its area is 8 hectares and it includes: children’s playground with recreation complexes and benches and paved paths and grounds In the International Year of Chemistry the Company has launched a and floor lamp lighting and utilities. Thus, residents and visitors of new rubber finishing and drying line and a pilot plant for production Nizhnekamsk have a new recreation area. of elastomers under the State contract, and continued its scientific and technical cooperation with Kazan National Research Techno- In 2011 Nizhnekamskneftekhim continued the implementation of logical University, and hosted the third conference of young scien- social investment programs. The total amount of payments made tists of science and technology center and the review contest for during the reporting period for the items included in the Collective young innovators of the Company. Agreement is estimated at 452 million rubles which exceeds the planned amount by 4%. In addition to the Collective Agreement Today, just as more than four decades ago, Nizhnekamskneftekhim and based on the approved provisions, payments have been made remains the city-forming enterprise. 646.4 million rubles of taxes from February 1 for the anniversary dates of employees and in con- was transferred to the budget of Nizhnekamsk in the course of the nection with the first marriage. Interest payments at year-end were year. These funds are redistributed in the form of salaries to state resumed to employees of the Company, and pecuniary aid was en- employees and the construction expenses for housings, roads and visaged for the vacation. In general, these payments totaled more for maintenance of social facilities. than 500 million rubles. The Company provided financing to hous- ing construction through the State Housing Fund of Tatarstan, and While trying to improve the production efficiency the Company also ensured the execution of planned activities in the field of occu- management never forgets that the production achievements pational safety and increase of professional level of petrochemists should have a direct influence on the life quality of employees and and youth policy. the citizens both in terms of reducing the environmental load and in health care, education and social infrastructure development. The Company continued to give its relentless attention to the popu- lar sports and the children's sports, creating the conditions for the Protection of the environment continues to be one of the priority preparation of highly skilled athletes, and it actively participated in scopes of activities of the Company. The work in this area was car- addressing urban social programs, treating this activity as an in- ried out in accordance with the stated environmental policy and tegral part of corporate culture. The total social burden for Nizh- the long-term ecological program. During the year more than 20 nekamskneftekhim at year-end amounted to more than one billion business events were executed under this program. Landscap- rubles. ing of sanitary protection zone of biological treatment plants was conducted at the expense of the Company, that is 194,000 pine In 2011 Nizhnekamskneftekhim has launched a new Strategic De- seedlings were planted in the area of 51 hectares. In recent years, velopment Program, which provides for expansion of the base for emissions have been reduced by half, and the quality of treated ef- raw material supply for the Company, and increase of production fluents discharged into the river Kama was improved on all counts. capacities of rubber, and construction of new plastics production
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