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Social Responsibility and Corporate Sustainability Report

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2014 Social Responsibility and Corporate Sustainability Report 1 Federal of Unified Formula Grid Company Energy System for Corporate Sustainability 2014 Social Responsibility and Corporate Managing Economic Contribution to the Environmental Sustainability Report Impacts Development of Society Impacts + + Federal Grid Company’s formula for corporate sustainability is based on three key components — aspects of corporate social responsibility: managing economic impacts, contribution to Social the development of society, and environmental Responsibility impacts. Constant focus on the above aspects enables us to meet all our commitments to stakeholders. 2 3 Contents Key Performance Indicators 6 5. Special Areas of CSR 6.3. Managing 112 Appendices Environmental Impacts 2014 Key Events 8 Management Appendix 1. 141 61 6.3.1. Environmental Impact 112 12 5.1. Ensuring Reliability and Implementation Statement from the Chairman Management System of the Company’s CSR of the Management Board Uninterrupted Operations of UNEG 6.3.2. Environmental 117 and Sustainable About this Report 14 Performance Developmnet Plans 5.2. Energy Efficiency and 71 and Commitments in 2014 16 Awards and Achievements Energy Management Appendix 2. GRI G4 Content 144 5.3. Import Substitution 76 7. Stakeholder Index – Electric Utilities Sector Supplement 1. About our Company Engagement 154 125 Appendix 3. The List 1.1. Company Profile 19 7.1. Stakeholders and of Specially Protected Stakeholder Engagement 1.2. Company’s Role within 26 6. Core Areas in Sustainable Natural Areas where Mechanisms Federal Grid Company Стратегия Технологии Управление Персоналthe Industry and Region Development 133 Operates 79 7.2. Public Hearings 6.1. Managing Economic on 2014 Report Impacts Appendix 4. Total Number 158 Стратегия Технологии Управление Персонал 137 of IUCN Red List Species 2. Governance System 79 7.3. External Assurance 6.1.1. Economic Performance Statement and National Conservation 31 2.1. Strategy 6.1.2. Anti-Crisis Initiatives 85 List Species and Understanding and their Impact on of Sustainable Development Stakeholders 34 2.2. Corporate Governance 6.1.3. Tariff Setting and its 86 2.3. Risk Management 40 Transparency for Consumers Glossary and Abbreviations 159 2.4. Ethics in Governance 42 6.1.4. Procurement 88 Contacts 161 2.5. Anti-Corruption Activities 44 6.2. Contribution to the 90 Development of Society 6.2.1. Human Resource 90 3. Materiality of Disclosures 48 Management 6.2.2. Health and Safety 100 4. Power Supply for 2014 6.2.3. Social and Youth Policy 107 Winter Olympic Games 52 6.2.4. Taking Care 110 in Sochi of Veterans 6.2.5. Charity and Sponsorship 111 4 5 Key Performance Indicators Technological Connection: Share of Equipment Summary Data: Operational Employee Turnover, % Training Hours Per Total Number of Employees Number of Contracts Procured from Russian benefit of Energy Saving Employee, Average, Injured at Company’s Facilities, Not exceeding Completed Manufacturers, % Initiatives, as of 31 December 10% hours/person persons 2014, tonnes of fuel equivalent 8 329 7 298 306 7.8% 273 95% 28 28 27,028.1 6.3% 6.5% 18 18 3 44.5% 48% 12,557.8 11,821.8 30.5% 50 49 40 40 17% 2012 2013 2014 2015 2012 2013 2014 2015 2030 2012 2013 2014 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 forecast plan plan plan plan Administrative, managerial and support personnel Operating employees Process Disturbances Average Length of Electricity Average Employee Accident Rate at Voluntary Medical Housing Programme Costs, Outages, Pp Age, years Company’s Facilities Insurance Costs, mln RUB mln RUB 39.6 185.7 39.1 39.3 172.2 180.6 0.319 351.59 2,596 331.29 334.03 330.34 0.285 2,286 0.0482 0.0475 0.046834 Plan 117.6 1,956 Fact 0.124 0.0241 0.0199 0.01992 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2015 2012 2013 2014 2015 plan plan Non-Governmental Pension Payment of Taxes Current Environmental Costs, mln RUB Programme Costs, mln RUB to Budgets 20,156.2 of Various Levels, 55.0 98.8 mln RUB 89.6 320.7 327.3 327.3 5,119.7 306 73.2 13,081,9 37.2 22.3 60.3 9,980,2 73.5 Local 20.6 7.7 3,229.6 11.3 for protection of water bodies 70.7 Regional 16.5 4.8 2,954.3 14,981.5 4.3 for air protection Federal 50.1 9,778.8 41.6 44.5 for protection of land resources from production and consumption waste 35.6 6,955.2 for implementation and certification of an environmental management system 3.2 4.2 7.8 3.9 3.0 1.6 1.7 other 2012 2013 2014 2015 2012 2013 2014 2012 2013 2014 2015 plan plan 6 7 2014 Key Events JANUARY MARCH APRIL Credit rating Energy efficiency AUGUST Preparations for the Olympic Communication with the Key performance indicators International rating agency S&P lowered The Company approved the Energy Saving Investment programme Games Customer Council its long-term foreign and local currency and Efficiency Programme for 2015-2019. On 15 April 2014 the Board of Directors rating on Federal Grid Company to RUB595 million will be allocated for this The Ministry of Energy approved a Federal A meeting of a Command & Control The first meeting of the Customer Council adopted the Company’s business plan BBB– with a Negative outlook. The rating programme, and its process and economic Grid Company’s investment programme Centre for Power Supply to Sports and (uniting the customers of Federal Grid for 2014, projections for 2015-2018, revision followed a similar revision of the effect will be equivalent to 32,400 tonnes for 2014. According to this document, City Facilities in Sochi during the 2014 Company’s services) was held in Moscow. and a methodology for the calculation sovereign credit ratings on the Russian of fuel equivalent. the Company should complete the Olympic Games (headed by Alexander Public associations, small and medium and evaluation of the Key Performance Federation. construction of several large facilities Novak, Russian Minister of Energy) stated businesses, energy selling organisations Indicators (KPIs) for the top managers Energy management by year-end, such as 330 kV Pulkovskaya that Federal Grid Company had fully and the Company’s largest customers of Federal Grid Company. The approved MAY substation, 220 kV OPS-11, and four power met its obligations to prepare energy participated. The meeting discussed KPI methodology is targeted at the Federal Grid Company received a transmission lines for ESPO-1 oil pipeline, infrastructure facilities in Sochi to the the key activity areas of the Council improvement of operational efficiency and Building HR capacity certificate confirming the consistency of its including the transmission line from the Winter Olympics. and the Company in 2014 and medium reliability of services, higher capitalisation environmental management system with Neryungry HPP. term, including actions of the Company’s and better investment attractiveness About 2,100 students from 34 higher the requirements of international standard investment programme. Twenty-two of Federal Grid Company. KPIs include education institutions and 3 specialised ISO 50001:2011. The certificate confirmed Council members were elected. operational, financial and economic secondary schools of Russia took part in the Company’s commitment to the global indicators, among others such advanced the annual Day of Federal Grid Company. governance principles and organisation Cooperation with WWF Russia ones as ROIC (return on invested capital) Graduates learned about vacancies in of energy saving and energy efficiency and TSR (total shareholder return). the Company, and first and second year initiatives, as well as successes of its Federal Grid Company took part in the students learned about electric power energy policy. annual action “Earth Hour” organised by Reduction of accident rate industry professions for which the demand the World Wide Fund for Nature (WWF is the highest. Russia). The Company turned off lights JULY for one hour at its facilities, in the office The Global Energy Prize buildings in its headquarters and regional international award Student construction teams branches. The fifth season of Federal Grid Company’s International cooperation FEBRUARY student construction teams opened. The opening ceremony was held in the A delegation of Federal Grid Company Open hearings on the Company’s Company’s office building in Moscow. Ten headed by Andrey Murov, Chairman of the investment programme student construction teams had been Management Board, took part in the 45th formed. They include 123 students of CIGRE session in Paris. At this forum, the Public hearings at the Russian Ministry the Moscow Energy Institute. The teams Company’s Research and Technical Centre of Energy reviewed the draft investment worked on 9 facilities in 5 Federal Grid signed several agreements with Alstom programme of Federal Grid Company for At the Russian National Meeting “On the Company’s branches. Grid and KEMA, international producers 2015-2019. The format of public hearings Outcomes of Autumn and Winter Period of hardware and software. The Company’s made it possible for all stakeholders, of 2013-2014 at Electric Power Facilities” management also took part in a discussion including the Customer Council and the management of Federal Grid Company of cooperation between Russia and EU industrial companies, to take part in the reported that the number of accidents at members and localisation of production in discussion and offer their proposals about the Company’s facilities dropped by 17.8% A ceremony of awarding The Global Russia. the Company’s plans. Credit rating as compared to the previous autumn and Energy Prize (which Federal Grid Company winter period. Relative to the 2011-2012 co-founded) was held at the International International rating agency Fitch Ratings autumn and winter period, the reduction Economic Forum in St.
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