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Report on the Sustainable Development of The Federal Hydro-power Generating Company RusHydro JSC Company RusHydro Generating Hydro-power Federal 2013 RusHydro Report on sustainable development of RusHydro Group for 2013 Report on sustainable development of RusHydro Group for 2013 for Group of RusHydro development Report on sustainable © 2014, JSC RusHydro, all rights reserved. 2013 REPORT OF THE RUSHYDRO GROUP'S SOCIAL RESPONSIBILITY Section 2. Sustainable development 33 3.3 Social partnership 69 of the hydro-power generation in operating regions AND SUSTAINABLE DEVELOPMENT technical system Support for the Victims 70 2.1 Reliability and safety – the basis 33 of the Far East Flood of sustainable development Contents The Social Partnership Program 70 Responsibility. External Control System 34 in Khakassia and Liquidating the Social Consequences of the Sayano- Internal Control System 34 Shushenskaya HPP Accident Sustainability. RusHydro – 10 years of 2 sustainable development The Hydrological Situation 36 Charity and Sponsorship 71 Development. and Operating Regimes About the Report 4 of Hydro-Power Plants The “Involvement” Charity Fund 71 Report Scope 4 HPPs Disasters and Emergency 38 Corporate volunteering 73 This non-financial report reflects the analysis Preparedness of the RusHydro Group’s companies (the RusHydro Company Profile 5 Section 4. Environmental 75 Group) strategy on corporate social responsibility Occupational Safety and Production 38 responsibility Supervision and sustainable development, as well as essential Selection Criteria for Inclusion the 5 Issues to the Report 4.1 Environmental safety as the 75 facts and 2013 operational results in labor 2.2 Energy efficiency – the 41 criterion of sustainable development management, health protection, occupational and Forward-looking Statements 5 potential of clean energy environmental safety, responsible stakeholder Assessment of the Projects’ 77 engagement and participation in the socio-economic Approach Regarding External 5 The Concept of the Energy Efficiency 42 Environmental Impact Confirmation Improvement Program development of the regions. Environmental Impact and 77 Section 1. Energy of sustainable 7 Comprehensive Modernization 42 Environmental Load Decrease development Program Initiatives: the RusHydro Holding The RusHydro Group in 2013 7 Energy Efficiency Measures and 44 Global Climate Change and 80 Achieved Results Environmental Responsibility 1.1 Clean energy – benefit 8 of sustainable development Optimizing Water Resource Usage 44 Responsible Interactions with 82 Stakeholders in Respect of The RusHydro Holding in 2013 8 2.3 Innovation – a quick path 46 Environmental Issues to sustainable development Key Features and Competencies 10 4.2 Development of the power 84 of JSC RusHydro Innovation and Sustainable 47 industry in the Far East – the Development preservation of the region’s natural resources Development and Use of other RES 10 Implementing Innovative 47 Development Projects Assisting the Social 84 Geographic Footprint 11 and Economic Development of the Regions of Operation Sustainable Development: 14 Creating an External Innovative 48 Environment 2013 Key Events RAO Energy Systems of the East 85 Interconnection of Strategy and 19 Development of Small-Scale 50 Hydro-Generation Development of the Power 86 Sustainable Development Goals Industry in the Far East and Environmental Responsibility 1.2 Growth of shareholder value – 22 Section 3. Social responsibility 53 sustainable development strategy Environmental Impact 88 3.1 Responsible interaction – 53 and Measures to Decrease the condition of corporate Accountability: the Board of Directors 24 the Load of RAO ES of the East Contact information: social responsibility Due Diligence: the Management Board 24 Development by the RusHydro 91 Analysis and Improvement of Social 54 Group of Renewable Energy Open Joint Stock Company Federal Hydro Responsibility Practices Authorized Capital Increase 25 Sources in the Far East Generating Company (JSC RusHydro) in 2012-2013 Interaction with Stakeholders 55 Glossary 94 Fairness: the Dividend Policy 26 3.2 Development of human resources – 64 Statement: GRI Application 96 Telephone: a guarantee of long-term growth Mailing address: Transparency and Financial Discipline 27 Level Check 7 Malaya Dmitrovka Street, 8 (800) 333-80-00 RusHydro's Social Policy 64 Moscow, Russia, 127006 Ratings and Awards 29 Independent Limited Assurance 97 Report to the Directors of Open Fax: HR Management – processes aimed 65 Fair Business Practices 29 Joint Stock Company Federal Hydro Location of offices: +7 (495) 225-37-37 at employees attracting and retaining Generating Company (OJSC RusHydro) 7 Malaya Dmitrovka Street, Risk management system 29 Moscow, Russia, 127006 Corporate website: Training and Development 67 Opinion of RSPP’s Non-Financial 98 www.RusHydro.ru Reporting Council on the Results of Human Rights 67 Considering the 2013 Report on RusHydro 51 Arkhitectora Vlasov Group Sustainable Development for the Street, Moscow, Russia, Purpose of Public Assurance 117393 1 Message from the Сhairman of the Management Board - General Director JSC RusHydro The fact that in the reporting year we sustainable development”. In the opinion 65% of water inflow in their reservoirs RusHydro – 10 years of sustainable development were elected the Chairman of the Glob- of Russian power engineers, this topic and seriously reduced potential impacts al Sustainable Electricity Partnership reflects the main modern challenge, as on human settlements, the national (GSEP) for a one-year term shows the addressing sustainable development is economy and people of the region still international recognition of RusHydro’s impossible without innovation. suffered significant damage. Under these responsible attitude to sustainable circumstances, the RusHydro Group development. Among events, 2013 will be marked by launched a large-scale social support abnormal flooding in the Far East. Our program for victims. In total, to eliminate The main focus of the partnership for hydro-power infrastructure has stood the flood consequences, the Company has this term stated by RusHydro is “In- test. Despite the fact that the Zeyskaya channeled more than RUR 245 million to novations, as a quick path to global and Bureyskaya HPPs kept more than the neediest regions of the Far East. The Far East will remain in the Company’s focus: the priority power grid modernization task has been implemented here. It is not just business. We have assumed major social obligations, because seven out of ten kilowatt hours produced here are consumed by the population and social infrastructure. The main asset of RusHydro, which first time in Russian higher education, we consider a transparent informa- allows us to confidently move forward, the establishment of a new chair has tion policy and regular reporting, is our employees. The balanced sce- been funded from the own funds of to be a pre-condition for corporate nario for the Company`s development, members of the Company’s Manage- social responsibility. which includes commissioning 22.2 ment Board through the Charitable Dear Colleagues, In 2014, we celebrated our tenth anniversary. GW of new capacity by 2020, requires Fund “Involvement”, which operates On behalf of the Company, I thank 2004 is a year of the Company’s formation, constantly attracting new professional under the auspices of RusHydro. everyone, who has been and has I am pleased to present the sixth personnel. That was why in October remained with us these ten years, non-financial report of RusHydro, one and a starting point of the RusHydro Group’s 2013 the Company opened a Chair of Responsibility to the society and for their support and loyalty. of Russia’s largest energy holdings, sustainable development. the Hydro-power Industry and Renew- the shareholders guarantees the which is a part of the group of global able Energy Sources in the Moscow reliability and efficiency of our hy- We will do our best to justify leaders in renewable energy. Power Engineering Institute. For the dro-power facilities. In this case, it in the future. Since 2004, our corporate social to the consumers in distant regions of Under current conditions, the social responsibility guarantees sustaina- our country every year and to make a responsibility concept for a large public ble development and helps us look to significant contribution into improved company is becoming comprehensive. the future with confidence. Today, our Russia’s social and economic develop- Not so long ago, this responsibility understanding of social responsibility ment and Russian people’s quality of covers all key areas of the RusHy- life. This is also a great representation was perceived as providing relatively Yours sincerely, comfortable working and living con- dro Group. This is dynamic innovative of Russia’s interests in recognized ditions for employees, reasonably development, and construction of new international organizations and inter- Evgeny Dod, active participation in charity and electric energy facilities allowing us governmental energy projects. Сhairman of the Management Board - environmental protection. to increase electric energy supplies General Director 2 3 About the report Subsidiary companies 20. JSC Geoterm 26. JSC Pavlodolskaya HPP 32. JSC ChirkeyGESstroy 21. JSC Kolymaenergo 27. JSC Chuvash Energy Retail Company 33. JSC ESCO UES This Report on corporate social respon- JSC RusHydro has adopted an annu- The Report is prepared with regard to 22. JSC Verkhne-Mutnovskaya GeoPP 28. LLC Energy Supply Company of Bash-
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