TAIF GROUP
Sustainability Report 2012
Member of Russian Business Social Charter
www.nknh.ru Sustainability Report 2012 KEY FIGURES of 2012
RUB 125,2 billion sales of products
Over 500 thousand tons total value of rubber shipped for export
88% aggregate share of rubber and plastics sales in the export structure
102,7% industrial production growth rate
RUB 33 864 average wage of personnel (8.3% higher than in 2011)
209 business events to the amount of RUB 3 billion executed under the Ecological program for 2007-2015 (in 2012 – 76 business events for RUB 829 million)
In the past 6 years hazardous emissions to atmosphere were reduced by more than 16 thousand tons; waste water discharges in water basins decreased by 1,8 million cubic meters
RUB 128 million economic effect of the Company’s entrance to the electric power wholesale market
RUB 1,4 billion social benefits and transfers to the Company’s employee KEY EVENTS of 2012
45th anniversary of the first production
Completion of a number of projects for expansion of rubber production plants, and revamping of ethylene oxide plant, and construction of ABS- plastics production plant
Conclusion of first contracts under the largest project within the Strategic Program – construction of the new 1,000 kta olefins complex, including polyolefin facilities
Absolute fulfillment of commitments to the government under the state contract both in terms of creation of new elastomers, and in the project of the catalyst production for isoamylene dehydrogenation jointly implemented with Kazan State University
The Company is again among the leaders in the rating of the most efficient companies and enterprises of Russia
Several awards won for development of products with improved characteristics, for the introduction of energy-saving and environmentally friendly technologies, and for active work in the labor market
Development of the Corporate Social Responsibility
Certificate of the member of the Social charter of Russian business TABLE OF CONTENTS
ADDRESS OF THE CHAIRMAN OF THE BOARD OF DIRECTORS ADDRESS OF THE GENERAL DIRECTOR ABOUT THE REPORT
ABOUT THE COMPANY 10 12 Structure of the Company 14 Company’s development strategy 16 Economic efficiency 17 Products 19 World market standings
CORPORATE SOCIAL RESPONSIBILITY 22 25 Risk management 27 Interaction with stakeholders
THE COMPANY AND SHAREHOLDERS 32 34 Corporate management 34 Management bodies of the Company
THE COMPANY AND BUSINESS PARTNERS 36 39 The Company activities in the field of produce quality and safety 40 Practical approach to procurement activities 41 Customer satisfaction 42 Marketing communications
THE COMPANY AND EMPLOYEES 44 46 Personnel management 50 Personnel development system 57 Social partnership 60 Social programs for Company employees
SAFETY AND HEALTH OF EMPLOYEES 68 70 Occupational and industrial safety policy 71 Occupational and industrial safety training system 72 Employees’ life and health preservation is the Company priority 73 Program for improvement of working conditions and support of employees
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ENVIRONMENTAL ACTIVITIES 76 78 Environmental image of the Company 80 Arrangement of environmental activities 81 Main events relevant to environmental protection 88 Environmental monitoring 89 Results of environment-related activity
THE COMPANY AND COMMUNITY 90 93 Social programs developed jointly with the community 100 The Company and the science 103 45 events in honor of 45th anniversary of the first production output 110 Awards of the Company
INDEPENDENT AUDITOR’S OPINION ON CERTIFICATION 112 OF THE SUSTAINABLE DEVELOPMENT REPORT
116 TABLE OF STANDARD GRI ELEMENTS
121 FEEDBACK QUESTIONNAIRE
123 LIST OF ABBREVIATIONS
125 APPENDICES
128 CONTACT INFORMATION
3 ADDRESS OF THE CHAIRMAN OF THE BOARD OF DIRECTORS
Dear readers, colleagues, partners and friends,
Following the principles of corporate social responsibility, OAO Nizhnekamskneftekhim presents the Sustainability Report for 2012.
In implementing its strategic objectives, the Company fully understands that a prerequisite for sustainable and effective development of business in the long term is the unconditional adherence to the principles of social responsibility. The main mission of Nizhnekamskneftekhim is production of high-quality and competitive chemical products by the most environmentally friendly methods that are demanded at the global market, thus ensuring the growth of society welfare, and development of the regional economy, and improving the living standards of the Republic of Tatarstan and the Russian Federation in general.
The Company achieved the best ever results in the reporting year.
In spite of the favorable market environment, most of the credit for getting such high operating and financial performance should be given to the highly professional personnel of the Company. OAO Nizhnekamskneftekhim is now the largest petrochemical complex in Russia and Europe owing to commitment of all employees.
At the same time, though there was a tremendous increase in the volume of production for the last 10 years, the optimum balance between its export and supplies
4 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ADDRESS OF THE CHAIRMAN OF THE BOARD OF DIRECTORS
to domestic market is maintained, The Sustainability Report of OAO which is about 50/50. Increased Nizhnekamskneftekhim for 2012 production of high-quality and most presented to your attention contains all popular petrochemicals creates the detailed information about the synergetic effect – growth of domestic Company's activities in the field of market, development of small and social partnership with the employees, medium business enterprises, with residents of Nizhnekamsk and the strengthening the position of the Republic of Tatarstan, which is enterprises of our business partners inextricably linked to its production and our customers. New jobs are potential. created and social conditions are improved in our country, prosperity of Sustainable development of OAO the population of Russia and Tatarstan Nizhnekamskneftekhim based on trust is growing. This is our primary and cooperation, improvement of objective. transparency, greater public awareness of the Company's activities, increase in OAO Nizhnekamskneftekhim pays the quality and standard of living of special attention to participation in workers, residents of Nizhnekamsk, the social and charitable projects aimed at Republic of Tatarstan and the Russian development of education, and Federation, would in the future serve children and youth sports, and creative as a guarantee to achieve the strategic activities, the programs are goals and challenges for continuation implemented to improve the quality of of a dynamic and sustainable health services in the city of development of the Company. Nizhnekamsk, the issues of maximum preservation of the nature and the environment are of paramount importance.
During the reporting year, OAO Nizhnekamskneftekhim spent more than 3.7 billion rubles on social A. Shigabutdinov services, environmental protection, The Chairman of the Board of Directors charity, sponsored financing of OAO Nizhnekamskneftekhim preferential tariffs for thermal energy for the population. Nizhnekamskneftekhim group of companies paid more than 6.7 billion rubles into the consolidated budget of the Tatarstan Republic, which is about 5 times the amount of the wage fund of cultural workers of the Tatarstan Republic.
5 ADDRESS OF THE GENERAL DIRECTOR
Dear partners, colleagues and friends,
I would like to bring to your notice the Sustainability Report of OAO Nizhnekamskneftekhim for the year 2012, in which the Company has taken further steps in disclosure of information on various aspects of its activities in areas related to sustainable development.
During the reporting period, the Company has successfully fulfilled the production plan, and revenue from sale of products amounted to 125.2 billion rubles. Industrial production growth rate was 102.7 percent.
Production in excess of plan and the earned profit made it possible to pay in December the annual bonuses at year-end. Average salary in 2012 was 33,864 rubles, which is 8.3% higher than last year.
As part of the Company’s Strategic Development Program until 2020 the most significant events in the reporting period include the completion of a number of projects for expansion of rubber production plants, and revamping of the ethylene oxide plant. The most important of these is completion of ABS-plastics plant construction.
During 2012, the first license agreements for all technologies have been concluded as well as Basic Engineering and Extended Basic Engineering Contracts under the largest project within the Strategic Program – construction of the new 1,000 kta olefins complex, including polyolefin facilities.
While working on improving the efficiency of operations, we attach great importance to the social responsibility of business. Our priorities in the area of corporate social responsibility (CSR) are focused on five main areas: the environment, education, health, personnel and charity.
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ADDRESS OF THE GENERAL DIRECTOR
Preservation and development of the Company cooperates with the relevant The hockey team Neftekhimik is a environment is one of the top priorities institutions of higher and secondary special pride of the Company’s sports of the Company. We continuously special education, organizes life that plays in the Kontinental Hockey improve the system of environmental competitions of professional skills League, and 10 graduates of our management and technologies. In 2012, among young workers on all basic hockey school play in this main team. in addition to the air monitoring, the professional occupations, as well as for 17 graduates of our school play for automated monitoring was arranged for shift supervisors, process engineers various major league teams. the waste water. This year within the and design engineers. Training courses framework of the long-term ecological using modern technology and The Company is actively involved in the program, 76 activities were implemented advanced training programs are city's social programs and various to the amount of 829 million rubles. organized for workers and specialists. charity events, helping the sponsored educational institutions, public One of the key components of the In 2012, the Company continued to organizations. Company development within the successfully address social issues. reporting period was the energy saving Labor contract has been fulfilled to the I am confident that activities of policy. The automated measuring and full extent. Nizhnekamskneftekhim in the field of information system for electric power CSR, as reflected in the Report on fiscal metering was introduced in the Funding of the RT State housing fund sustainable development, will promote Company, the third energy saving continued for housing construction growth of social responsibility of Russian program for 2011 – 2015 is being under the system of social mortgage. business, and strengthen our partnership implemented with the prospect until Over the year 305 million rubles was with government and public agencies. 2020. Economic effect of 128 million transferred to the State housing fund. In rubles was achieved (inclusive of VAT) accordance with the current Regulation only at the expense of the Company’s on granting privileges under the entering the electric power and capacity housing program, 108 apartments were wholesale market. provided.
The objective assessment and the Spaseniye insurance company allocated deserved recognition of the Company's 190 million rubles in the reported year efforts in the sphere of safety and health for insurance of employees and retirees of the staff is the conformance to registered with Council of Veterans. OHSAS 18001:2007 international standard as evidenced by the verification Last year 1,800 children and 2,600 V.M. Busygin audit of safety and health conducted by parents and their children had their General Director the Czech specialists of IQNet vacations in the Company owned ОАО Nizhnekamskneftekhim certification company. Programs of children's recreation camp Yunost and mandatory and voluntary health a recreation center Dubravushka. insurance are used for health protection of workers, and of workers health Nizhnekamskneftekhim is one of the promotion in health centers and few petrochemical companies in the preventive clinics, and recreation centers, country that has always been focusing the system of industrial safety and on promotion of sports and physical accidents prevention is improved. education as the foundation of a healthy community. The annual This is self-evident for us is that the international qualifying tournament in improvement of production, financial and rhythmic gymnastics jointly with the economic activity of the Company is fund of Alina Kabaeva has become a impossible without development of tradition. Great attention is paid to the personnel. Costs of executive training sports for children and youngsters, and staff development last year about two thousand children are amounted to 35.3 million rubles. The members of Neftekhimik sports groups.
7 ABOUT THE REPORT
Period under report, the reporting cycle
LEVEL OF GRI G3.1 Self-assessment А Verification by third party А+
OAO Nizhnekamskneftekhim the previous year. The data in the Any questions regarding the Report or (hereinafter the "Company") continues Reports for the years 2011 and 2012 its contents may be referred to: (8555) the practice of publishing annual is comparable. The Company is aware 37-93-33, 37-71-81, 37-53-31, or at reports on sustainable development in of the necessity of providing the timely 423574, the Republic of Tatarstan, order to inform the public about the information in the Report, therefore, the Nizhnekamsk, OAO Nizhnekamsk- principles, objectives, practical results Report is published with the same neftekhim. You can send your and prospects of corporate social frequency once a year, and is questions by e-mail: [email protected]. policy and the Company's activities in synchronized with the publication of areas related to sustainable the Annual Report. Performance indicators and indicators development. of financial and economic activity For convenience of readers the Report contained in the Report have been This Sustainability Report (hereinafter includes a table showing the location submitted in the format of International "Report") is the fourth report and it of the issues and indicators in Financial Reporting Standards (IFRS). covers the period from January 1, accordance with the GRI Guidelines Indicators and information on 2012 through December 31, 2012. on page 116. economic and ecological activities, as Independent external evaluation based well as in the areas of occupational on the international standards was The concept of the Report is defined safety and product liability and performed by ZAO “Bureau Veritas by the concept of social responsibility personnel management and training Certification Rus”. of Nizhnekamskneftekhim. Accordingly, and social programs are presented the Company considers the interests with respect to OAO In preparation of the Report, the of society, assumes responsibility for Nizhnekamskneftekhim. Company established a working group the impact of activities on customers, whose task was selection of suppliers, employees, shareholders, By publishing the Report on information from reliable sources. The local communities and other sustainable development working group included managers and stakeholders of the public sphere. This Nizhnekamskneftekhim expects to specialists from different divisions of commitment goes beyond the statutory continue and expand the discussion of the Company that are responsible for obligations, and suggests that the issues of responsible business and the issues of corporate management Nizhnekamskneftekhim voluntarily take would welcome the recommendations and economic and social and additional measures to improve the of all stakeholders to improve its environmental impact. The working quality of life of employees and their activities in the field of sustainable group made considerable efforts for families, as well as local community development. involvement of stakeholders in the and society as a whole. Having taken process of discussion of such matters the responsibility for its impact on as determination of the format and society, the Company accounts for its contents of the Report and important actions and keeps records of same. subjects that need to be disclosed. The report has been subjected to Data on OAO Nizhnekamskneftekhim internal audit and the external analysis is used in the performance analysis of in the form of the survey of the parties Sustainability Report for 2011. Similar concerned including government approach was used in preparation of representatives, business partners and the Reports for previous years. civil society organizations to identify their information needs and the Information and performance indicators subsequent inclusion of this information of the Company were collected in in the Report. accordance with the procedures of corporate governance, and Russian Details of the financial and operating and international standards and the activities are presented in the Annual reporting requirements. There were no Report of OAO Nizhnekamskneftekhim significant changes in the field of for 2012, which is available on the measurement techniques compared to Company's website (http://www.nknh.ru).
8 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ABOUT THE REPORT
PREVIOUS NON-FINANCIAL REPORTS
2009 2010 2011 Social report Social report Sustainability report
1 Social Reports of OAO Nizhnekamskneftekhim for 2009 and 2010 are available on the corporate website www.nknh.ru. Previous reports of the Company are included in the National Register of non-financial corporate reporting of the Russian Union of Industrialists and Entrepreneurs (certificates Nos. 220.2.080.05.09, 265.2.080.05.10 and 343.01.080.05.11).
9 KEY FIGURES
75,055.3 mln RUB total value of assets
51 world countries export of products
134 foreign contracting parties
102.7% commercial production growth rate
POSITIONS IN THE WORLD
44% share of SKI-3 supplies to the world market (inclusive of the RF)
16 % share of butyl rubber and halobutyl rubber supplies to the global market
17% share of neonol supplies the global market
5.7% share of SKDN and SKD-L supplies to the world market ABOUT THE COMPANY ABOUT THE COMPANY
OAO Nizhnekamskneftekhim is a dynamically developing high-tech STRUCTURE petrochemical company making part of TAIF Group and is the main enterprise OF THE COMPANY in Nizhnekamskneftekhim group of companies2. oday Nizhnekamskneftekhim is one of the Tlargest petrochemical companies in Europe. The Nizhnekamskneftekhim Joint-Stock industrial complex of the Company includes 10 major production plants, as well as auxiliary shops, Company has been established under departments and centers (including the R&D and the Law of the Republic of Tatarstan design centers), located at two industrial sites and having the centralized transportation, power supply “On reorganization of state and municipal and telecommunication infrastructure. property in the Republic of Tatarstan (on denationalization and privatization)”, and in The functional structure is composed of the functions performed by units: compliance with the Nizhnekamskneftekhim Industrial Corporation privatization plan, the central office performs the function of coordination and organization of work of the approved by the Resolution No. 41, dated joint-stock company; August 11, 1993, of the State Property the plants perform the function of producing Management Committee, Republic of butyl and halobutyl rubber, polyisoprene and Tatarstan, and in accordance with the polybutadiene rubber, butadiene and Minutes of Meeting No.25 of the Board hydrocarbon feedstock, isoprene-monomer, ethylene, ethylene oxide, styrene and polyester of the State Property Management resins, oligomers, polystyrenes, polyolefins etc.; Committee, Republic of Tatarstan, dated divisions, centers and general purpose July 20, 1993, registered with the Ministry production shops carry out maintenance work in of Finance, Republic of Tatarstan, dated relation to the plants and production units.
August 18, 1993 and entered under No. All functional groups are united into the hierarchy 388 in the State Register of the Joint Stock and are subordinate to the managers of the central Companies established in the Republic of office. Tatarstan. The form of ownership is the mixed one.
2 Nizhnekamskneftekhim group of companies includes: Open joint stock company Nizhnekamskneftekhim employing 18,274 people and 20 branch organizations with 6,478 employees. The branch organizations include: OOO Polymer-NKNH, OOO Vtorresursy, OOO Polymerkholodtechnika, OOO Neftekhimagroprom, OOO UOP Neftekhim, OOO CHOP-NKNH, OOO PAP Transport-Express, OOO NKNH-Service, OOO Shop No.4100-NKNH, OOO Sports-and-culture complex Neftekhimik, OOO Trust Tatspetsneftekhimremstroy, OOO NKNH-Divinyl, OAO NefteKhimSevylen, OOO Mechanical repair plant-NKNH, OOO Motor transport department – NKNH, OAO SOV-NKNH, OY Nizhex Scandinavia Ltd., OOO Hockey Club Neftekhimik, OOO Neftekhimresurs-NKNH, OOO Pest. Nizhnekamskneftekhim group of companies performs its main activities in Russia. OY Nizhex Scandinavia Ltd. Operates in Finland (Helsinki). Number of affiliates and dependent organizations decreased compared to 2010 (OOO Khimik Garage Complex and ZAO Kaminterkhim ceased to exist). The structure of Nizhnekamskneftekhim group of companies is included in the Report at requests of the stakeholders.
12 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ABOUT THE COMPANY
Functional management structure of OAO Nizhnekamskneftekhim
Core activities of OAO Nizhnekamskneftekhim:
production of petrochemical and chemical products, operation of all types of electrical equipment; consumer goods, certain energy carriers and other products; training of personnel and staff training for the Company; start-up and commissioning of process systems; operation of production units, process trains (sections, stages), package units; erection, installation and construction works for construction and revamping of production units, shops, operation of individual process facilities which do not make part of the process units (process units, sections, individual units and big process projects; warehouses, storage facilities, gas holders, purification repair of chemical-engineering systems and manufacture works, units for waste utilization and neutralization); of equipment for repair and operation needs etc.
13 ABOUT THE COMPANY
COMPANY’S DEVELOPMENT STRATEGY
ustainable development is the basis of strengthening its position in the domestic and international SNizhnekamskneftekhim strategy. The Company creates markets as the manufacturer of a wide range of synthetic competitive advantages through establishment of a rubber; balance in economic, environmental and social responsibility. transformation into a major player in the Russian and CIS markets in the production and sale of a wide range of Until 2003 OAO Nizhnekamskneftekhim produced a narrow plastics, including their import; range of rubber products and petrochemical products with low added value (monomers and liquid intermediate refusal to sell low-processed products with low added products), which are characterized by high price volatility value. and relatively low marginality. However, the Company could see the opportunities that were presented by To achieve its strategic goals, the Company considerably actively emerging petrochemical markets in the world as intensified its investment activities for expansion of existing well as in Russia. Under this reality the Company’s and building new facilities. The following tasks were development strategy was established, focusing on: performed in the context of these activities:
Year Accomplished tasks 2003 A new 50,000 TPA polystyrene plant was commissioned, and its capacity was increased up to 100,000 TPA in 2005, and up to 150,000 TPA in 2008 (the actual capacity in 2012 was 191,000 TPA);
2004 A new 50,000 TPA neodymium catalyzed butadiene rubber plant was launched; The first Russian 30,000 TPA halobutyl rubber plant was put in operation, and it was expanded up to 50,000 TPA at the end of 2006;
2005 Start-up of the first Russian single stage isoprene synthesis plant – a new energy-saving technology allows to reduce by half the thermal energy consumption in the production of raw materials for a large-scale isoprene rubber facility, thus increasing its effectiveness;
2006 180,000 TPA polypropylene plant was launched (the actual capacity in 2012 reached 210,000 tons);
2008 The aggregate capacity of butyl and halobutyl rubber production reached 120,000 tons per year; A new plant for production of lithium catalyzed butadiene rubber was put in operation, with capacity of 50,000 TPA;
2009 A new 230,000 TPA polyethylene plant was commissioned;
2010 The start of total capacities expansion project on butyl and halobutyl rubbers up to 200 thous. tons / year;
2011 A new rubber drying and finishing line was set going, the works were completed on bringing the halobutyl rubber capacity up to 100,000 TPA.
Implementation of the Company’s strategic development program continued that was approved by the Board of Directors until 2020, that was elaborated in line with the main principles of the Presidential development program of the RT oil, gas and chemical complex. Strategic program of OAO Nizhnekamskneftekhim development provides for implementation of a large number of investment projects, and some of them have been completed already.
14 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ABOUT THE COMPANY
The following results have been achieved in 2012:
Objectives accomplished Compliance with development strategy Within implementation of the project for expansion of the total capacity of butyl Strengthening the Company’s position in the domestic and and halobutyl rubber up to 200,000 TPA, the production output came up to international markets as the manufacturer of a wide range of 163,000 tons, including 107,000 tons of halobutyl rubber. synthetic rubber.
Debottlenecking of the ethylene oxide production plant. After revamping the Refusal to sell low-processed products (ethylene) with low added capacity reached 230,000 TPA. value.
The production capacity of SKI-3 isoprene rubber was expanded up to 280,000 TPA. Strengthening the Company’s position in the domestic and international markets as the manufacturer of a wide range of synthetic rubber. SKD-L butadiene rubber plant was revamped. After revamping, the plant Strengthening the Company’s position in the domestic and capacity came to 50,000 TPA. international markets as the manufacturer of a wide range of synthetic rubber. SKD-N butadiene rubber production capacity was expanded up to 150,000 TPA. Strengthening the Company’s position in the domestic and international markets as the manufacturer of a wide range of synthetic rubber. The plant was constructed for production of a new product type – ABS-plastics Transformation into a major player in the Russian and CIS markets in with capacity of 60,000 TPA, and the first pellets of the new plastic were the production and sales of a wide range of plastics, including their produced. import.Refusal to sell low-processed products (styrene) with low added value.
Investment projects at various implementation stages
Long-term objectives Completion date Соответствие стратегии развития Construction of the 4th stage of 50,000 TPA polystyrene 2013 Transformation into a major player in the Russian and CIS markets plant. in the production and sales of a wide range of plastics, including their import. Refusal to sell low-processed products (styrene) with low added value. Revamping of alpha-olefins production plant 2014 Refusal to sell low-processed products (ethylene) with low added value.Transformation into a major player in the Russian and CIS markets in the production and sales of a wide range of plastics, including their import. Construction of a new olefins complex of 1 million tons of 2017 Transformation into a major player in the Russian and CIS markets ethylene per annum and integrated 600,000 TPA in the production and sales of a wide range of plastics, including polyethylene and 400,000 TPA polypropylene plants. their import.
The strategic program of development of OAO In 2013 and onwards OAO Nizhnekamskneftekhim will Nizhnekamskneftekhim corresponds to the basic principles of focus on further implementation of this largest-ever the approved Plan for development of the gas-oil-chemistry in investment project of the Company. Russia until 2030 which indicated an extremely acute shortage of domestic pyrolysis capacities as a restraining factor to The main stages of its implementation in 2013 will be: further develop the industry. The plan calls for cluster development of the Russian petrochemical industry and the completion of the extended basic engineering of the olefins project of Nizhnekamskneftekhim would be the anchor new production complex; for the Volga cluster. Substantial progress has been achieved arrangement of the project finance; by the Company in 2012 in implementation of this strategic project – license agreements have been signed for all required start of development of detail engineering production technologies and agreements for basic engineering documentation; and extended basic engineering of the olefins complex. ordering of long-lead equipment; As part of the arrangement of the project finance in 2012 the site preparation. working meetings were held with international and Russian financial institutions. Volumes and conditions of credits were defined on a preliminary basis.
15 ABOUT THE COMPANY
ECONOMIC EFFICIENCY
Competitive operation of the Company that is KEY FIGURES determined by the laws of market provides long-term economic benefit and growth. The business of OAO 84% of exported products (in USD terms) Nizhnekamskneftekhim has a significant economic impact – synthetic rubber on society. Operating and financial results achieved 73% of total rubber export volume in 2012 contribute to the growth of the Company – share of shipments to major foreign tire in accordance with the principles of sustainable companies (Michelin, Goodyear, Pirelli, Continental, Bridgestone and Belshina development and implementation of programs that are group) of major social and economic importance to the parties involved. Export volumes versus 2011
+7% of SKI-3 +36% of halobutyl +7% of SKDN
CONFORMANCE TO INTERNATIONAL STANDARDS
Company’s management system is certified by the following standards
ISO 9001 (quality) 2000
ISO 14001 (environment) 2003
OHSAS 18001 (occupational safety and health) 2007
GOLD CERTIFICATE of compliance with all management systems (IQNET Czech auditing company) 2010
60 internal auditors of the Company
In 2012: 33 internal audits in the departments of the Company
16 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ABOUT THE COMPANY
Proceeds from sales of petrochemical products
No. Description Meas. unit 2010 2011 2012 1. Commodity output mln RUB 90,487.3 121,268.6 121,579.2 2. Sales of products. total mln RUB 94,407.1 122,699.8 125,247.1 Including export sales of commodity products mln RUB 46,903.9 58,859.1 60,994.0 3. Expenses per 1 ruble of products sold copecks 86.05 83.31 84.23 4. Income before tax mln RUB 10,106.9 18,324.1 20,803.0
In 2012 the commodity products were produced to the sum of 121.6 billion rubles, which is 310.6 million rubles higher than last year. The index of actual industrial production volume in 2011 amounted to 102.7%. Sales of products and services amounted to 125.2 billion rubles.
Financial results of OAO Nizhnekamskneftekhim business activities for 2010 – 2012.
2010 2011 2012 Overall liquidity ratio 1.36 2.55 2.55 Quich ratio 0.8 1.55 1.47 Absolute liquidity ratio 0.26 0.55 0.47 Depreciation ratio 48.34 51.09 52.56 Coefficient of renewal 2.74 4.98 9.41 Retirement rate 0.18 0.19 1.35 Capital-labor ratio. thousand rubles 1,938.9 1,870.1 1,880.0 Monthly average productivity of one worker. thousand rubles 483.1 623.1 623.7 Net assets. million rubles 36,190.11 48 454.08 59,636.6
The values of liquidity ratios at the end of the reporting period are within the recommended standards which means. that the Company has sufficient resources to repay its short-term obligations.
PRODUCTS
The product slate includes more than one hundred The main products of OAO items. The following products form the basis of the Nizhnekamskneftekhim having the product mix: characteristics of the global presence in markets general purpose and special purpose synthetic rubbers; Export portfolio of OAO plastics: polystyrene, polypropylene and polyethylene, Nizhnekamskneftekhim is sufficiently ABS-plastics; diversified. The most heavy-tonnage products shipped for export are synthetic monomers, being the feedstock for production of rubber rubbers (isoprene, butyl, halobutyl and and plastics; butadiene rubber), polystyrene and neonol, cumulative share of which being equal to other petrochemical products (ethylene oxide, 89% of products exported. ethylcellosolve, ethylene glycol, propylene glycol, propylene oxide, alpha-olefins, surfactants, glycols etc).
ALL PRODUCTS HAVE BEEN CERTIFIED AND GUIDED BY THE REQUIREMENTS AND REQUESTS OF CONSUMERS.
17 ABOUT THE COMPANY
SYNTHETIC RUBBER
SKI-3 isoprene rubber For many years, OAO Nizhnekamskneftekhim has been supplying isoprene rubber SKI-3 to foreign markets. 44% – share of world market supplies The main competitors of OAO Nizhnekamskneftekhim in the overseas market are American company (inclusive of the RF) Goodyear, Russian companies Sintezkauchuk (Togliatti) and Kauchuk (Sterlitamak). Goodyear and OAO Nizhnekamskneftekhim are linked by strong partnership relations. In 2012, OAO Nizhnekamskneftekhim exported 75% of the total annual volume of SKI-3 output.
Butyl rubber In 2012, OAO Nizhnekamskneftekhim exported 96% of the total butyl rubber output. Export volume (BK-1675N, HBK) decreased by 15% against 2011 at the expense of increase of halogenated butyl rubbers production volumes. In 2004, upon startup of Halogenated Butyl Rubber Facility, OAO Nizhnekamskneftekhim became 16% – share of world market supplies the third largest producer and supplier of halobutyl rubber. Approximately 90% of halobutyl rubbers are used for production of tubeless tire liners. With a yearly-increasing tubeless tire production, the demand for HIIR is steadily growing at an average pace of 3.1% globally and by 6% per year in the fast-moving Asian region. Major consumers of OAO Nizhnekamskneftekhim’s butyl rubber are overseas large tire producers, and 85% of the total exported volume was shipped to them in 2012. The Company’s competitors in the overseas market are ExxonMobil (JV Japan Butyl Company inclusive), Lanxess, Sinopec Yanshan PC, Zhejiang Xinhui Synthetic New Material Co., Sibur. In 2012, OAO Nizhnekamskneftekhim exported 96% of the total HIIR produced.
SKDN Butadiene rubber In 2012, the Company exported 96% of the rubber output. Within the total SKDN export volume, 74% was 5.7% – share of world market supplies delivered to major overseas customers. Compared to 2011, SKDN export volume increased by 7%. The (SKDN, SKD-L) (inclusive of the RF) main competitors for SKDN in the world market are Goodyear, Lanxess, Kumho.
PLASTICS
Polystyrene The Company exported 16% of polystyrene produced in 2012. Compared to 2011, polystyrene export 1.9% – share of world market supplies volume reduced by 8% (due to increase of supplies to the Russian market). The main competitors in the overseas market are BASF, Dow, IneosNova, Versalis.
Polypropylene In 2012, the Company exported 5% of polypropylene produced. Export volume reduced by 36% in physical 0.4% – share of world market supplies terms owing to high activity of the Russian market players. Share of OAO Nizhnekamskneftekhim in supplies to the global market constituted 0.4%. The primary polypropylene export markets were Belarus, Kazakhstan, Ukraine, Uzbekistan. The Company’s principal competitors in the export markets are LyondellBasell, Borealis, Total PC, SABIC, Ineos, Stavrolen.
Polyethylene In 2012, basically the entire volume was shipped to the Russian market. 0.2% – share of world market supplies Share of OAO Nizhnekamskneftekhim in supplies to the global market constituted 0.2%. The principal competitors in the export markets are LyondellBasell, Ineos, Total PC, SABIC.
ABS-plastics ABS-plastics plant was put in operation at the end of 2012 at the cost of 4.3 billion rubles. During the pre-investment study, several ABS-plastics technologies were considered, and the Italian bulk polymerization technology was selected. The prime advantage of this technology is that emissions to atmosphere and waste water disposal would be 8 times lower compared to other process lines. The basic engineering has been made by Tecnimont. Kazan design institute Soyuzkhimproyekt prepared detail engineering on the basis of the basic engineering. Five main grades of ABS-plastics are intended for production – two extrusion grades and three injection molding grades. Currently two thirds of the total volume of ABS- plastics consumed in Russia is imported, primarily from South Korea. The forecast is that domestic consumption of ABS-plastics by 2015 will increase by 5% on the average. Information on production and volumes of shipped products will be provided in the next report of the Company.
OTHER PETROCHEMICALS
Neonol (nonylphenol ethoxylates) OAO Nizhnekamskneftekhim is the only producer of neonol in the Russian Federation and CIS, and one of 17% – share of world market supplies the leading players in the world neonol market. The main competitors are Dow, Honam, Huntsman, Oxiteno.
Production of basic products in physical terms
Description Meas. unit 2010 2011 2012 Synthetic isoprene rubber t 216,751 245,338 252,727 EPDM t 2,994 812 3,683 Polybutadiene rubber, SKD-N t 113,110 128,015 135,136 Polybutadiene rubber, SKD-L t 28,483 39,127 35,120 Butyl and halobutyl rubbers t 138,852 146,009 162,605 Butadiene t 103,798 117,368 177,552 Ethylene t 592,751 601,358 605,462 Propylene t 283,400 299,925 299,604 Benzene t 186,725 185,601 184,614 Styrene t 202,643 198,737 200,934
18 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ABOUT THE COMPANY
Description Meas. unit 2010 2011 2012 MEG t 95,053 96,156 92,636 Ethylene oxide t 212,064 191,589 167,334 Propylene oxide t 67,280 70,518 71,517 Polyethers t 76,092 82,374 83,791 Propylene trimers t 17,251 27,204 14,349 Propylene tetramers t 5,131 9,123 5,265 Neonols t 74,109 63,822 44,280 Polystyrene t 184,353 187,037 191,470 Polypropylene t 200,006 210,777 210,005 Polyethylene t 160,002 195,049 201,469 Polyethylene glycol t 31,884 21,247 15,561
WORLD MARKET STANDING
n 45 years of its production activity the Company Structure of export shipments* Ibecame the largest petrochemical complex in Europe. OAO Nizhnekamskneftekhim has high export 1Rubber 84% potential. The share of exports in total product sales 2Plastics 45% of the Company is 50%. In 2012 the Company 3 Monomers 2% exported its products to 51 world countries. 84.0% 4Glycols and ethers2% RUBBERS The major portion of exports in the structure of the 5 Oligomers 4% Company's products accounts for synthetic rubbers, 6Other 4% which are traditionally the largest segment of the Company's sales abroad.
The Company is successfully developing its synthetic rubber sector and has worked well in the Regional export structure* international market of these products. OAO Nizhnekamskneftekhim has been supplying its 1Europe 77.5% rubber to major international tire companies. In 2012 73% of the total export volume of synthetic rubber 2CIS 12.7% was shipped for them. 3 North America 3.8% 77.5% 4Asia 3.7% EUROPE The second important sector in the strategy of development of the Company is plastics, being the 5South America 1.6% production segment of the Company focused 6Africa 0.7% primarily on the rapidly growing domestic market. Nevertheless, OAO Nizhnekamskneftekhim also actively exports its plastics abroad. Export structure of OAO Nizhnekamskneftekhim in regions* Oligomers are the third largest segment of exports. Products in this segment are predominantly surfactants and raw materials used to produce them.
The diagram shows the structure of Nizhnekamskneftekhim exports in 2012 (the share of various types of products in total shipments to any given region of the world).
The supplies of synthetic rubber prevail in the most regions of the world where the products were exported to in 2012. Export to the CIS countries accounted for 30% of plastics, and oligomers were 36% of export to Asia. * In terms of dollars
19 ABOUT THE COMPANY
The next diagram shows the breakdown by export market sectors, where A high share of sales major portion is allocated to tires and technical rubber sector. All other through indirect sales sectors have significantly smaller share – from 1% to 4%. channels is dictated by the following aspects important In 2012 OAO Nizhnekamskneftekhim had export contracts with 134 foreign for the Company: partners. The structure of sales to customers is such that approximately ensure the timely receipt of 29% are direct sales to end consumers and 71% – through the traders funds on the accounts of and distributors. the Company (including the lending activities), minimizing the risk of money Market sectors serviced by exports indebtedness for shipped goods; 1 Tires and technical rubber articles 84% ensure uninterrupted export 2 Detergents 4% supplies and smooth 3Production of polymers 1% operation of the Company’s 4 Consumer goods, construction and 4% 84% production facilities; other TIRES AND create high quality service 5 Fibers, filaments and other 3% TRA for sales to final consumers 6Organic synthesis 3% in regional markets; 7Miscellaneous* 1% ability to provide products to * including gas, minerals and paint-and-varnish small customers (distribution). industries and other
DOMESTIC MARKETS
Sales of products/services of OAO Nizhnekamskneftekhim Sales of glycols of OAO Nizhnekamskneftekhim in 2012 in 2012 in the RF regions versus total domestic sales by (MEG, DEG, TEG) in the RF regions versus total domestic the Company (% of actual scope, TOP-10) sales of glycols by the Company (% of actual scope, TOP-10)
20 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ABOUT THE COMPANY
Sales of plastics of OAO Nizhnekamskneftekhim in 2012 Sales of polyethers of OAO Nizhnekamskneftekhim in 2012 in the RF in the RF regions versus total domestic sales of plastics regions versus total domestic sales of polyethers by the Company by the Company (% of actual scope, TOP-10) (% of actual scope, TOP-10)
Sales of rubber of OAO Nizhnekamskneftekhim in 2012 in the RF regions versus total domestic sales of rubber by the Company (% of actual scope, TOP-10)
21 KEY FACTS
Code of corporate social responsibility adopted Certificate of Member of Social charter of the Russian business Implementation of risk controlling system based on IT-solutions under SAP EPM&GRC
3 non-financial reports
11 social programs for Company employees
11 joint social programs with Nizhnekamsk community
5 priorities in the corporate social responsibility: - Ecology - Education - Health - Personnel - Philanthropy
IN 2012, THE BOARD OF DIRECTORS ADOPTED THE CODE OF CORPORATE SOCIAL RESPONSIBILITY OF OAO NIZHNEKAMSKNEFTEKHIM, WHICH REFLECTS THE MISSION, BASIC PRINCIPLES, COORDINATION OF ACTIVITIES IN THE FIELD OF CORPORATE RESPONSIBILITY, SUSTAINABLE DEVELOPMENT MANAGEMENT SYSTEM, THE PRINCIPLES OF INTERACTION WITH STAKEHOLDERS, BASIC SOCIAL PROGRAMS OF THE COMPANY ETC. THE CONTENTS OF THE CODE OF CORPORATE SOCIAL RESPONSIBILITY OF OAO NIZHNEKAMSKNEFTEKHIM COULD BE FOUND ON THE CORPORATE WEBSITE: HTTP://WWW.NKNH.RU/SOCIAL.ASP CORPORATE SOCIAL RESPONSIBILITY CORPORATE SOCIAL RESPONSIBILITY
The Company's mission is to ensure the satisfaction of approved requirements, and, in the course of continuous development, exceed the customer expectations in the domestic and foreign markets, the development of new and development of existing markets, improving the competitiveness of petrochemical products, receive sustainable profit for further growth of Nizhnekamskneftekhim economic status, raising the living standards of workers, satisfaction of requirements of shareholders and investors.
The social mission of the Company is to produce the necessary public goods in the most efficient and safe manner, thereby contributing to the social welfare of society and to sustainable development of the territory and well-being of population, and improve the living standards of employees and their families. The social mission of the Company is closely linked to corporate social responsibility.
In implementation of its mission, OAO Nizhnekamskneftekhim relies on the three basic corporate merits:
Professionalism Reliability Sustainable development Following the high standards Focusing on long-term mutually Implementation of strategic in everything, continuous beneficial relations with business initiatives, provision of labor development and improvement partners, employees and all safety in accomplishment of being the basis for successful stakeholders, execution of production activities, limitation of fulfillment of the Company’s commitments undertaken, and negative impact on the obligations. responsibility in transaction of environment, implementation of business being the permanent social programs for employees guidelines for the Company’s and population being the basis activities and the guarantee of for strengthening the current its high reputation. and future potential of the Company.
Company’s priorities in CSR
enhancement of ecological efficiency making contribution to maintaining the stable high level of national and international economic achieving and maintaining the status of advanced development and employment of population, high-performance and socially responsible development of competitive markets and creation of Company based on the assessment of the key new jobs stakeholders promotion of the society social progress establishment of the production environment to promote the quality of the working life of goal-oriented activity for formation of the well- employees (including the issues of production consolidated, socially protected, creative and control, safety and health regulations, improvement economically motivated team of the Company’s of ecological state of production facilities, specialists, that would in the best way help cleanliness of industrial premises, advancement of coordinate the goals and priorities of the Company moral environment in the Company’s departments) and its employees.
24 OAO Nizhnekamskneftekhim | Sustainability report | 2012
CORPORATE SOCIAL RESPONSIBILITY
RISK MANAGEMENT
isk management is an integral part of the corporate SAP EPM & GRC solution correlates business opportunities Rmanagement system of the Company, and it provides for with the influence of financial, legal and operational factors active participation of departments and employees in that help minimize the potential losses in case of force identification and assessment of risks, and continuous majeure. Introduction of SAP EPM & GRC promotes efficient expansion of studies of potential threats and opportunities, and sustainable development of the Company while the systematic use of information about risks when taking providing the following advantages for strategic management managerial decisions. purposes:
Risk management at Nizhnekamskneftekhim represents a automation based on key risk indicators and actions for continuous and evolving process encompassing the entire responding to risks; Company. Risk management at Nizhnekamskneftekhim is scalable support of risk management procedures of the exercised by employees on all levels of the Company. The Сompany; results of management are used to adjust the strategy and tactics of the Company, and are aimed at selection of the preliminary reports on the status of the Сompany’s risks; most effective possible ways of development taking into conformity to various models of risk management (ISO account the available resources to achieve the general goal 31000, ASNZ 4360, COSO). of Nizhnekamskneftekhim.
In order to ensure a reliable insurance coverage of production facilities and property interests of shareholders, Implementation of risk controlling using SAP EPM & GRC Nizhnekamskneftekhim concluded the contracts of would mean: Company’s property insurance for the cost of a full recovery from fire, explosion, natural disasters, illegal acts of third coordination of the principal risks and their threshold parties, aircraft crashes and other dangers. Considerable values; part of risks is successfully placed by leading insurance identification of the Company’s key risks; companies in foreign reinsurance companies. carrying out of the qualitative and quantitative analyses; Due to the fact that operation of hazardous production arrangement of the efficient strategy to respond to the facilities is the licensed activity of Nizhnekamskneftekhim, main risks; and also there are production facilities of other business entities in the territory of the Company (which may be prevention of impact on the business through continuous damaged), Nizhnekamskneftekhim has insured its civil liability monitoring of the key risk indicators and the control for operation of 200 hazardous industrial facilities. efficiency.
To date, Nizhnekamskneftekhim has no provision for property underinsurance in order to arrange proper insurance scheme. Foreign reinsurance companies pay particular attention to arrangement of insurance activities in the companies, and there are special requirements to the quality of substantial risk, as in the case of loss (loss occurrence) reinsurance companies will need to fund the losses in full, The major risks of OAO Nizhnekamskneftekhim are i.e. on actual expenditures for the restoration of the facility. presented in the Annual report of the Company. The most significant risk groups that could have a material effect on Voluntary accident insurance was arranged for employees in fulfillment of social obligations by the Company would be performance of their duties, and also insurance against environmental, financial and social risks. harm to health of disablement for all employees of OAO Nizhnekamskneftekhim. Financial risks Giving special consideration to the problem of minimizing the risks, OAO Nizhnekamskneftekhim systematically Exposure of the Company to risks associated with change implements the project on creation of the risk controlling of the interest rates, exchange rate of foreign currencies, in system by using IT-solution SAP EPM & GRC. This IT- connection with business of the Company or in connection solution will be fully integrated into the automated system of with hedging, conducted by the Company for the purpose enterprise resource planning ERP SAP ERP that is of reduction of adverse consequences of impact of the introduced in the Company. above risks.
25 CORPORATE SOCIAL RESPONSIBILITY
Environmental risks These risks include: air pollution risk at the industrial site and in the neighboring population areas, risk of water body pollution.
Social risks The main social risks are: the risk of provision of the production facility with the personnel of required quality, risks of workers’ occupational safety and health.
26 OAO Nizhnekamskneftekhim | Sustainability report | 2012
CORPORATE SOCIAL RESPONSIBILITY
INTERACTION WITH STAKEHOLDERS
ealizing its social mission and strategy, ROAO Nizhnekamskneftekhim takes into account the views of all parties concerned. Working in close dialogue with stakeholders allows the Company to quickly learn about the expectations of all stakeholders and society in general and respond to their needs. The Company regularly examines the opinion of key stakeholders through interviews and consultations, round tables, and communicates with them in the form of talks, working groups, standing committees, meetings and conferences on specific issues, etc. The basis for the identification of key stakeholders is to analyze the degree of mutual influence and closeness of interaction, the importance of respecting their interests for the Company, performed on the basis of dialogue with the management of the Company. List and priorities of stakeholders are defined by the extent of their influence on Nizhnekamskneftekhim business, and the degree of influence of the Company on them, and evaluation of these impacts in the future.
The most important stakeholders are the employees and their families, business partners, shareholders and investors, local communities (including local authorities, public and non-governmental organizations), media, professional organizations, stakeholders at the federal, regional and international levels. Methods of communication, feedback and interaction have been developed and implemented for each group.
OAO Nizhnekamskneftekhim aligns its interaction with stakeholders on the following fundamental principles: respect for and consideration of interests, opinions and preferences; openness and transparency; trust and sincerity; unconditional compliance with the law and international and Russian accounting standards; responsible fulfillment of the commitments, respect for history, culture, traditions, lifestyle and heritage of the residents of the business area. The Company strives to choose the most efficient, convenient and mutually beneficial forms of cooperation with each of the parties concerned.
27 CORPORATE SOCIAL RESPONSIBILITY
Stakeholders rating map*
* The rating map is based on the interview results of top managers of OAO Nizhnekamskneftekhim
System of informing the stakeholders
Information transmission channels Target groups
Corporate mass Newspapers Neftekhimik has been published from 1968 in Russian, once a week, media circulation is 11,986 copies, on-line version htth:/www.nknh.ru.
Khezmettesh avazy has been published from 1992 in Tatar, once a week, Population of town and circulation is 2,642 copies. region
Departmental television TV programs in Russian and in Tatar 5 times a week, the audience is Company employees studio Neftekhim 120,000 people. Shareholders Deparmental radio studio Broadcast in Russian and in Tatar 3 times a week, and daily on-air Neftekhim broadcasting from 7:00 to 23:00, the audience is 17.5 thousand of petrochemists and town people.
Federal, Print media “Rossiyskaya gazeta”, “Kommersant” “Izvestiya”, “Respublika Tatarstan”, Population of Russia, republican, town “Vatanym Tatarstan”, “Nizhnekamskaya pravda”, “Tugan yak”, “Vasha Republic, town mass media Gazeta”, “Nizhnekamskoye vremya” Business community Television media TV channels “TNV”, GTRK “Tatarstan”, TV companies – “NTR” and “Efir”
Electronic data - with consumers via Elemica Consumers interchange - with participants of trade platform ONLINECONTRACT
SAP ERP system Functional modules introduced: • CO (Controlling); • MM (Material management); • SD (Sales); • РР (Production planning); Shareholders • PS (Project system); • FI (Finance and accounting); Top management of the • QM (Quality management); Company • PM (maintenance and repair of equipment); • HR (Human resources); • НСИ (Reference data); • Basis (Functioning of technical infrastructure SAP ERP); • ABAP (Programming).
On-line purchases Placement of POs at ONLINECONTRACT trading platform Suppliers
28 OAO Nizhnekamskneftekhim | Sustainability report | 2012
CORPORATE SOCIAL RESPONSIBILITY
Stakeholder Mode and frequency of interaction
Employees and their families - collegiate bodies of employers and employees (permanent commissions for the collective agreement, labor safety and labor disputes); - permanent reception on the production issues and weekly reception on social and labor issues; - annual corporate forum; - social monitoring (annually); - monthly corporate cultural and sports events; - constant interaction with the trade union committee and other unions of workers; - regular interviews of employees of the Company (once per month); - a permanent “hot line” for employees.
Business partners - business meetings and discussions as needed; - selection of suppliers on a competitive basis; - a permanent record of the views of consumers about the quality of products; - development of standards for the marketing of products; - regular market research; - participation in exhibitions; - continued involvement in electronic trading on the manufacturers' websites; - procurement using electronic trading platform; - regular business conversations by telephone.
Shareholders and investors - regular meetings of the Company's management with shareholders and investors; - participation of the Company's management in the Russian and international conferences on invitation; - general meeting of shareholders (at least once a year); - responses to the applications of shareholders and investors (constantly); - trips to the Company's facilities (if necessary); - disclosure of information on the Company’s business in accordance with the requirements of the legislation (quarterly).
Local community - constant participation in working groups and commissions created by the administration of the business area; - continued cooperation with the institutions of professional education; - regular public opinion polls; - conducting public hearings and consultations, as necessary; - participation in regional exhibitions and forums (depending on business needs); - continued involvement in the implementation of social programs in cooperation with community of Nizhnekamsk; - continued cooperation with educational institutions (sponsorship, meetings, polls, reviews of graduates that have become young specialists).
Mass media - permanent placement of information about important events of the Company; - visits of Company’s production facilities by media representatives; - invitation of the media representatives to press tours, press conferences, the celebrations and sports events held at Nizhnekamskneftekhim; - press coverage of annual conferences of the labor collective.
Professional organizations - participation in thematic meetings, conferences whenever they are organized; - representation and participation in РТК activities; - continued cooperation with the Academy of Sciences; - permanent representation and participation in working groups of associations and employers (RUIE, Coordination Board of employers association of Russia, АМР etc); - continued cooperation with institutions of higher education.
Federal and regional - continued participation in governmental working groups, socially significant events, conferences and forums; authorities - annual agreements on cooperation with regional authorities; - Constant participation in the work of the Russian Union of Industrialists and Entrepreneurs. In 2012 the Company did not lobby the national policy.
International organizations** - Continued involvement In the work of international НКО; - representation in relevant international organizations; - continuous cooperation with МОТ, МОР.
* OAO Nizhnekamskneftekhim is a member of the following organizations: • Chamber of Commerce and Industry; • Association of gas turbine technology for power generation and industry; • The Russian Union of Chemists; • The Russian Union of Industrialists and Entrepreneurs; • Association Sintezkauchuk; • Association of enterprises and entrepreneurs of the Republic of Tatarstan; • Self-Regulatory Organization Regional Non-Profit Partnership "Builders Community of the Republic of Tatarstan.
** OAO Nizhnekamskneftekhim is a member of the following international organizations: • International quality management academy; • Association of self-identification UNISCAN /GS1 RUS; • International Robber Study Group (IRSG); • International institute of rubber producers.
29 CORPORATE SOCIAL RESPONSIBILITY
Stakeholder Key corporate documents governing the interaction
Employees and their Personnel management policy families Occupational health and safety policy Internal work rules Regulations on personal data of Nizhnekamskneftekhim employees Company standard "Certification of managers and specialists of Nizhnekamskneftekhim" Company standard "Selection, placement and adaptation of staff. The procedure for determination and preparation of reserve staff for the posts of managers and specialists of Nizhnekamskneftekhim” Company standard "Procedure of preparation and development of personnel at Nizhnekamskneftekhim” Regulations on awarding workers of Nizhnekamskneftekhim Regulations for incentive of Nizhnekamskneftekhim employees for the work and contribution to development Regulations on bonus payment for Nizhnekamskneftekhim employees based on the main results of economic operations for one month Regulation on the competition for vacant positions at OAO Nizhnekamskneftekhim Regulation on the organization of training and examination of the workers of Nizhnekamskneftekhim Regulation on the moral and material incentives of labor protection and industrial safety at OAO Nizhnekamskneftekhim Regulations for the organization of training on labor protection and verification of knowledge of labor protection requirements at OAO Nizhnekamskneftekhim The collective agreement between workers and management of Nizhnekamskneftekhim for 2011 General policy of development of physical culture and sports at OAO Nizhnekamskneftekhim Regulations on payments of social nature to NKNH employees The main directions of youth policy at NKHH Regulations on Committee for occupational safety at Nizhnekamskneftekhim Regulation on the procedure of registration, examination, and use of innovative proposals and payment of compensations
Business partners Instruction "On the procedure for acceptance of goods for industrial purposes and consumer goods by quantity" (approved by Resolution of the USSR State Arbitration of 15.06.65, No. P-6 (as amended on 29.12.1973, 14.11.1974, and 22.10.1997) Instruction "On the procedure for acceptance of goods for industrial purposes and consumer goods by quality" (approved by Resolution of the USSR State Arbitration of 25.06.1966, No. P-7 (as amended by provisions of the USSR State Arbitration No. 81 of 29.12.1973, No. 98 of 14.11.1974, and No. 18 of 22.10.1997) Implementation provisions for internal control for the purpose of combating money laundering and terrorist financing Regulation procurement using electronic trading facility Provision on operating procedures of Department for chemical and hydrocarbon feedstock supply Regulation on contractual tender committee Regulations on drawing up documents for payments against contracts and control of settlements Guidelines on the order of contractual work Standard “Procedure of taking corrective and preventive measures” Provisions on the procedure for receiving foreign delegations and individual foreign experts coming to Nizhnekamskneftekhim, and departure of the Company’s representatives to foreign countries and to negotiations in other cities of Russia Regulations for the registration, handling and storage of documents containing commercial secrets at Nizhnekamskneftekhim and when working with other organizations Standard “Analysis of inquiries and responses to commercial proposals of potential buyers and analysis of the execution of contracts for sale of products in the domestic market” Standard “Guidelines for complaints management of external consumers. Monitoring and analysis of satisfaction” Standard “Procedures of claim administration” Standard “Requirements planning, purchase of spare parts for equipment, bearings and tools according to the nomenclature of the chief mechanical engineer office, and evaluation of suppliers” Standard “Procedure of concluding contracts to perform R & D and services. Organization of control of the execution of work under the contracts and the introduction of their results in the production” Instruction “Procedure of shipment by motor transport” Regulations on access and interplant modes Instruction “Procedure of work of Nizhnekamskneftekhim departments, services and divisions with business units located in the territory of the Company”
Shareholders and Charter of OAO Nizhnekamskneftekhim investors Regulations for executive powers Regulations for the Board of Directors of OAO Nizhnekamskneftekhim Regulations for the General Shareholders Meeting of OAO Nizhnekamskneftekhim Provision for operating procedure of the Audit Commission of OAO Nizhnekamskneftekhim Provision for information policy of OAO Nizhnekamskneftekhim Regulations for dividend policy of OAO Nizhnekamskneftekhim Provision for independent directors of OAO Nizhnekamskneftekhim Code of corporate ethics of the OAO Nizhnekamskneftekhim Board members Code of corporate conduct at OAO Nizhnekamskneftekhim Code of corporate social responsibility Regulation on the Committee of auditing of OAO Nizhnekamskneftekhim Board of Directors Regulation on the Personnel and Reward Committee of the Board of Directors of OAO Nizhnekamskneftekhim
Local community Ecological policy of OAO Nizhnekamskneftekhim Occupational health and industrial safety policy Information security policy of OAO Nizhnekamskneftekhim Guidelines for waste management at OAO Nizhnekamskneftekhim Collective agreement between employees and management of OAO Nizhnekamskneftekhim for 2011
30 OAO Nizhnekamskneftekhim | Sustainability report | 2012
CORPORATE SOCIAL RESPONSIBILITY
Identification of aspects that need to be disclosed in the financial statements
In preparation of the Report for 2012 in collaboration with participation of the Company in implementation of the stakeholders the topical issues were defined for stakeholders All-Republican Ecological program; that are comparable to current topics of the Company. enlargement of section “Company’s development strategy”; The degree of attention to particular subjects in the Report for 2012 is proportional to the significance and the interest more detailed description of environmental monitoring; and wishes of stakeholders. In particular, after a preliminary provision of complete information for public of the area discussion of the content the following issues were included concerning environmental issues. in the Report for 2012:
Relevant topics revealed in the course of interaction with stakeholders
31 KEY FIGURES
11 people members of the Board of Directors, including:
5 independent members of the Board of Directors 10 meetings of the Board of Directors in 2012 THE COMPANY AND SHAREHOLDERS THE COMPANY AND SHAREHOLDERS
CORPORATE MANAGEMENT
elations of OAO Nizhnekamskneftekhim with shareholders Department of corporate property and strategic development Rare based on the principles of direct constructive of OAO Nizhnekamskneftekhim is responsible for interaction dialogue in accordance with applicable law and generally with shareholders and investors. accepted international practice. The Company seeks to maximize the transparency of its activities and provides OAO Nizhnekamskneftekhim in its corporate activities is equal and timely access of shareholders to information guided by the Code of Corporate Conduct of OAO about the Company. Nizhnekamskneftekhim, approved by the Company’s Board of Directors on September 28, 2012. List of corporate Business management information system was introduced documents effective in the Company, information about the using SAP tools of ERP-system, which allows top authorized capital and on the share capital structure management to improve competitiveness and investment including the list of OAO Nizhnekamskneftekhim attractiveness of the Company by optimization and shareholders owning five or more percent of its shares is standardization of business processes with the use of global reflected in the Annual Report of the Company and in the best practices and provision of transparency of the operating quarterly reports of the Company for 2012 (see corporate and financial performance and application of IT-tools. The site http://www.nknh.ru) use of this system provides the ability to manage the Company on the basis of the constantly reliable and . relevant information necessary for making sound decisions. The Company has Department of Internal Control.
MANAGEMENT BODIES OF THE COMPANY
he current system of corporate management of Principles of corporate management of the Company are TNizhnekamskneftekhim is focused on compliance with based on the regulatory and legal framework that includes accepted international standards and is aimed at effective legislation of the Russian Federation and internal documents implementation of the Company’s business. Corporate policy of OAO Nizhnekamskneftekhim approved by the General and business processes are based on the principles of Meeting of Shareholders and the Board of Directors of the maximum transparency and openness to all stakeholders, Company. and prevention of the risks of conflict of interests. General Meeting of Shareholders Management of the Company pays particular attention to improvement of corporate governance, it constantly studies and Under the Federal law “About joint stock companies” and Charter adapts the best Russian and international practices in this area. of OAO Nizhnekamskneftekhim, the supreme management In accordance with the Charter of Nizhnekamskneftekhim the authority of the Company is the General Meeting of Shareholders. Company’s management bodies are as follows: General The issues which can’t be delegated to the Board of Directors, Meeting of Shareholders, the Board of Directors, the General Director or Management Board of the Company fall Management Board, General Director. Albert Shigabutdinov, within the competence of General Meeting of Shareholders. General Director of PSC TAIF, is the Chairman of the Board of Directors of OAO Nizhnekamskneftekhim. The Management One extraordinary general meeting was held this year (March 6, Board is headed and managed by Vladimir Busygin, the 2012) where the issue of OAO Nizhnekamskneftekhim General Director, elected by the Board of Directors. The restructuring in the form of OAO NKNH-Divinyl takeover was General Director reports to the shareholders and the Board of discussed and the General Meeting of Shareholders (June 14, Directors on the implementation of development strategy and 2012). The following issues have been discussed at this regular financial results of the Company’s business. meeting:
34 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND SHAREHOLDERS
Approval of the annual report, annual financial statements Progress of implementation of the project for including profit and loss statement of construction of OAO Nizhnekamskneftekhim grassroots OAO Nizhnekamskneftekhim by 2011 results; olefins complex EP 1000 and derivatives; Allocation of profit of OAO Nizhnekamskneftekhim Progress of implementation of the environmental program covering payment (declaration) of dividends by the results of OAO Nizhnekamskneftekhim in 2007 – 2015; of 2011; Review of results of financial and economic activities, Election of the Board of Directors of and implementation of the plan of utilization and OAO Nizhnekamskneftekhim; financing of capital investments of OAO Nizhnekamskneftekhim, and of the group of Election of the Revision Committee of Nizhnekamskneftekhim companies in general in the first OAO Nizhnekamskneftekhim; half, 9 months of 2012 and for 2013; Approval of the auditor of OAO Nizhnekamskneftekhim; Marketing activities, current and future raw materials Introduction of modifications and amendments to the supply for OAO Nizhnekamskneftekhim, and formation of Charter of OAO Nizhnekamskneftekhim and approval of the pricing policy of OAO Nizhnekamskneftekhim when its revised version. dealing with product consumers etc. Shareholders are entitled to coordinate the activities of the Payments to members of the supreme governing body, supreme management authority of the Company through representatives of top management and senior their representatives in the Board of Directors. Employee can management are based on the performance of the give their recommendations to the supreme management Company. authority by reports of the Company’s management at the Board of Directors, at the Personnel and Rewards There is a provision on bonus payments at OAO Committee, Audit Committee, by consultations. Nizhnekamskneftekhim for the employees by the results of economic performances on a monthly basis with due account of interrelation between the payments and results Board of Directors of operations, including social and environmental activities. The Board of Directors is the regulatory body of the The amounts of monthly premium payments to executives Company. It has overall charge over the Company business of OAO Nizhnekamskneftekhim are assigned in clause 4.4 except for the issues resolution referred to the competence of this regulation. Under the Code of Corporate Conduct of of General Meeting of Shareholders by the Federal law and Nizhnekamskneftekhim the remuneration of Board of the Company Charter. Directors members shall be determined based on an assessment of their contribution, and depend on the The members of the Board of Directors are elected by performance of the Company, as well as the activity Annual Meeting as set forth by the Federal law for the appraisal of each member of the Management Board. The period till the next Annual Meeting. 11 members form the Company's annual report reflects information on the total Board of Directors of the Company (including one woman). amount of remuneration and compensation paid to Number of independent members is 5 (all men). members of the Board of Directors and members of the Management Board. For preliminary review of the most important challenges facing the Company the Board of Directors forms the following committees: on personnel and rewards and the Audit Committee. If necessary, the Board of Directors may establish other committees. The committees operate on the basis of regulations approved by the Board of Directors. Members of the Committees are formed by the Board of Directors. Committees of the Board of Directors shall hold the meetings in accordance with the plan of work approved by the Board of Directors or as required. Committees may hold joint meetings.
10 meetings of the Board of Directors of the Company were held in 2012. More than 60 issues were discussed at the meetings, such as:
Review and approval of the updated business plan as part of the strategic program of Nizhnekamskneftekhim development including implementation of the investment project for construction of EP 1000 olefins complex;
35
THE COMPANY AND BUSINESS PARTNERS THE COMPANY AND BUSINESS PARTNERS
he Company seeks to deal with business partners, In order to achieve competitive advantages and Tsuppliers and customers based on the principles of strengthening business relations with strategic transparency, fairness and impartiality in compliance with consumers of finished products, works on the the ethics of business. The Company embodies a socially organization of automatic exchange of electronic data responsible approach to selection of suppliers and between the ERP systems of Continental Company and consumers. The Company searches potential partners on OAO Nizhnekamskneftekhim through Rubber Network the basis of market research with due regard to public portal. Today, OAO Nizhnekamskneftekhim has all reputation of companies in terms of compliance with technical posibilities to integrate with the rest of global human rights and their shared principles of corporate consumers of chemical products, participants of governance and social responsibility. OAO Elemica trade platform (Michelin, Goodyear, Pirelli, etc.). Nizhnekamskneftekhim performs prequalification of bidders for supply of goods and services, paying special attention In order to avoid damage to packaging integrity and to suppliers’ business ethics. products safety, container transportation make up a significant proportion of the total cargo transportation The Company carries out procurement of essential within the country. Assessing the dynamics of container resources consumed on a tender basis, guided by the transportation development in Russia and abroad, OAO principles of transparency of procurement procedures. Nizhnekamskneftekhim calculated shipping options of rail cars and containers, the Company Management The Company determines the range of consumers of its took the decision to implement the scheme of products on the basis of selection criteria, taking into "container shipments." In 2008, a container site was built account reliability rating of purchasing companies and their and put into operation. Implementation of containet reputation in the world market. The Company develops its transportation schemes with loading of ship containers relations with the customers through elaboration of at OAO Nizhnekamskneftekhim had significant impact standards for marketing relevant to consideration of on the cost and safety of transportation. This is consumer claims, assessment of their satisfaction. The especially important for plastics (polystyrene, Company, based on the Company Standard carries out polypropylene, polyethylene) transportation due to annual surveys of all customers in the domestic and maximum load of containers without reloading goods at foreign markets in order to identify their views on delivery the ports, which prevents damage to the goods (earlier terms, product quality, and packaging. In order to improve used scheme rail car – reloading to containers – cooperation performance with consumers and ensure maritime transportation had extremely negative impact awareness of interested parties, electronic databases of on the integrity of packaging and cargo safety). customer complaints are created and maintained for all types of the Company's products and inconsistencies associated with the supply of goods. In 2012, the Company was not subject to proceedings in connection with opposing to competition, no legal actions were considered with regard to practical approaches to prevent monopolistic practices and their outcomes.
Business principles
conduct of business practices in compliance with maintaining fair competition principles ethical norms based on the principles of integrity and observance of human rights fairness, honesty in relationships with partners and competitors preventing use of child and forced labor non-proliferation, directly or through third parties, of false no discrimination in any form and unverified information adherence to the principles of fair pricing and anticorruption activity and liquidation of corruption advertising faithful observance of Russian Federation laws respect for property rights, including intellectual property right. maintaining reputation of OAO Nizhnekamskneftekhim as a responsible taxpayer, contributing to strengthening of financial stability of the Russian Federation
38 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND BUSINESS PARTNERS
THE COMPANY ACTIVITIES IN THE FIELD OF PRODUCE QUALITY AND SAFETY
ustainable Development Strategy and social mission of Safeguarding of the Company assets and property; the Company require guarantees of high quality of S Monitoring and analysis of satisfaction of customers and produce supplied and reliability of its deliveries. To do this, other stakeholders – shareholders, government, society OAO Nizhnekamskneftekhim undertakes activities in the and the Company employees. following areas: The Company is very active in achievement of specified Implementation, enforcement and continuous improvement Objectives and performance of undertaken voluntary of compliance with the requirements of international commitments with regard to implementation of Quality and standards for quality management, environmental Environment, Occupational and Industrial Safety Management management, occupational and industrial safety Systems, using the whole possible range of effective management, information security management; methods and tools in accordance with the requirements of International Standards ISO 9001: 2008, ISO 14001:2004, Evaluation of impacts of the Company produce and OHSAS 18001:2007. services on health, safety and environment;
Evaluation of Company Impact on Health, Safety and Environment
In order to ensure the required – both by domestic and assignments to existing process instructions / maps of international legislation – level of human health and operational parameters for specific processes and environment protection, establishment of mandatory operations, including permit-like documents (licenses, SDSs, requirements to produce / services safety, all the life cycle expert opinions, etc.). stages pass the procedure of assessment of the potential adverse impact on human health and environment. Information about installed consumer properties of produce, including safe / dangerous properties, is contained in the Requirements to safe implementation of manufacturing regulatory, technical and contractual documents for specific processes for production, transportation, sale of products types of produce. Compliance with the established and rendering services are formalized in the Company in the requirements is confirmed through produce quality control relevant technical documentation – from design technical accompanied by formalization of required documents.
System of Mandatory Requirements to Produce Safety Produce impact on health and safety is assessed, and safety data sheet according to the RF legislation, Customs information on the established requirements provided for Union and REAH regulations, as well as in line with the laws 100% of significant products manufactured by the Company. of Canada, Japan, USA, ISO 11014, Taiwan, Korea. Warning, Deliveries of produce are accompanied by MSDSs (Material product handling marks and danger signs are indicated on Safety Data Sheets), mandatory in the countries of EU, the the transport packaging in accordance with the regulations USA and others, which set out safety measures when associated with specific products in line with Directive EC handling a product. The task of MSDS is to spread 1272/2008 (LCP), UNO Recommendation, and CGC. In this information on the product safety, including possible regard, no incompliances with regulations and voluntary dangerous aspects. codes related to impact of products and services on health and safety have been registered. In turn, both products sold All products of OAO Nizhnekamskneftekhim are dangerous and packaging materials are not returned to OAO NKNK for for the environment and intended for industrial processing by processing. In 2012, no incompliances with regulatory consumers in accordance with the licenses for certain types requirements relating to information and labeling of produce of activities. The customer is provided with the approved properties have been recorded.
39 THE COMPANY AND BUSINESS PARTNERS
In total, under REACH Regulation, 28 substances was Life cycle stages, for which mandatory safety registered (salable products and monomers in polymer requirements are set with regard to products / composition). All registered products were issued services and possible impact on consumer health certificates confirming registration by the European evaluated with a view of their future improvement Chemicals Agency. Those certificates allow OAO • Development of produce / services concept Nizhnekamskneftekhim to continue free export of chemical products to the EU market and maintain its • Research and development competitiveness. At the second stage of registration, • Certification before June 1, 2013, the Company intends to register 10 more chemicals related to substances supplied to the EU • Production market in quantities not exceeding 1,000 tons. Preparation • Marketing and promotion of technical dossiers is in progress for chemicals intended for delivery to EU countries without pre- • Storage, distribution and supply registration, as pre-registration deadline ended on • Use and maintenance December 1, 2008. • Disposal of, reuse or recycling In 2008, a less complicated CLP Regulation was adopted relevant to classification and labeling of chemical substances being circulated in EU. All products supplied Types of information about produce safe properties to EU have been completed with safety data sheets • Sources of produce components elaborated in accordance with REACH and CLP Regulations. Next year, OAO Nizhnekamskneftekhim plans • Composition to continue activities on registration of its products within • Safe use of produce the framework of REACH. As a dynamic developing company, OAO Nizhnekamskneftekhim is constantly • Disposal of produce and impact on the environment/ working over increase of sales volume. society
PRACTICAL APPROACH TO PROCUREMENT ACTIVITIES
AO Nizhnekamskneftekhim cooperates with the major In 2008, OAO Nizhnekamskneftekhim adopted the ORussian companies such as OAO Gazprom, OAO LUKOIL, Information Security Policy. Safety functions within the OAO NK Rosneft, OAO NOVATEK, etc. The Company is a Company are performed by the staff at the Company's own regular participant of the Inter-Republic Cooperation Program security service (192 people), as well as by the security supervised by the Government of the Republic of Tatarstan affiliate (572 employees, including 73 managers, specialists aimed at 100% production capacity utilization in the Republic. and officers, and 510 workers). Therewith, functional In 2012, 50% of raw materials delivered to OAO responsibilities of the security staff do not involve any Nizhnekamskneftekhim fall on the producing companies of the methods of forced action with regard to violators. Republic of Tatarstan. Local suppliers deliver: naphtha in the Suppression of order violations using force is exclusively amount of 100%, propane-propylene fraction – 100%, propane within the competence of the staff of the security company, and butane – 100%, packaging film for rubbers – 100%, among which 96.7% of guards (553 employees) have been isobutane – 37%, phenol – 20%, etc. trained on aspects of human rights and have standard form certificates. OAO Nizhnekamskneftekhim is guided in its activities by the most advanced global requirements and standards. Constant In order to resist corruption, contracts with suppliers, evaluation of suppliers is ongoing in terms of such contractors, consumers and other partners which arrive for significant indicators as quality of materials supplied, price of approval, are checked at OAO Nizhnekamskneftekhim. goods, services. The Company specialists carry out external Checked are the contracts of all departments, business audits of suppliers for compliance with the international units, which authorities include conduct of contract activity. standards, issue recommendations on improving the Quality Contracts are checked by specialists of the Department for Management System at such enterprises. study of partners, who have been trained in the profile of
40 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND BUSINESS PARTNERS
economic security. Training of security personnel to anti- into account all the risks, including corruption. Candidates for corruption practices is mainly carried out within travelling management position are also checked for loyalty. The subject seminars and conferences on economic security. In Company has the practice in place for monitoring and 2012, nine employees were trained to anti-corruption analysis of reports received by "hotline". In 2012, the practices, in 2011 and 2010, ten employees were trained. A Company was not subject to proceedings in connection with complex of evaluation activities includes searching for opposing to competition, no legal actions were considered information on the founders and managers of the with regard to practical approaches to prevent monopolistic counterparty in various data bases. Terms of signing a practices. contract are determined by the Tender Commission, taking
CUSTOMER SATISFACTION
he Quality Management Policy of the Company is undertake annual survey of consumers in the domestic Tdirected at maximum meeting the consumers’ demands. and foreign markets to determine their wishes in terms of In accordance with the Company requirements, customer produce quality and Company services. Questionnaires in wishes and satisfaction are studied and evaluated using the order to determine the degree of satisfaction with product following methods: quality and service level make it possible for the Company management to define how the customers preparation to awarding contracts for produce supply; perceive OAO Nizhnekamskneftekhim and to what extent they are willing to pursue and develop cooperation with yearly questioning of produce consumers; the Company in future. In 2012, the questionnaire covered 85 companies consuming the products. analysis of customer satisfaction; The customers’ satisfaction was evaluated based on the development, implementation and evaluation of following criteria: produce quality, delivery time, possibility effectiveness of measures aimed at increasing the to choose, reliability, price, responsiveness, availability and customer satisfaction. customer loyalty.
At various stages of produce movement from the According to the study results, the Company strategy aimed manufacturer to the consumer, the required control is at complete customer satisfaction, continuous improvement of undertaken over fulfillment of customer requirements related product quality and development of creative collaboration to packaging, delivery dates, formalization of required with suppliers based on mutual benefit, promotes the documents, etc. The comments received are analyzed in Company positive image in the domestic and international accordance with the documents which regulate conduct of markets for petrochemical products. End-users who business with the customers and corrective and preventive participated in the annual survey, praised the cooperation measures of the Company QMS (Quality Management with OAO Nizhnekamskneftekhim in eight areas. System). In order to improve cooperation performance with consumers The comments received are resent to the manufacturer and and ensure awareness of interested parties, electronic analyzed with subsequent elaboration (if necessary) of database of customer complaints are created and maintained corrective and preventive measures. One of the methods of for all types of the Company's products and inconsistencies implementing the principle of "customer focus" in the associated with the supply of goods. All these actions are Company is to maintain feedback with the produce related to the Company's corporate social responsibility to consumers and monitoring their degree of satisfaction. consumers and contribute to its sustainable development. OAO NKNK pays great attention to consumers’ privacy and The Company Sales and Export Departments, as well as data security about them. In 2012, no complaints from the the Laboratory of Sociological and Psychological Research consumers thereabout have been reported.
41 THE COMPANY AND BUSINESS PARTNERS
MARKETING COMMUNICATIONS
mong methods of informing consumers about the types Speaking as an advertiser, during design, development, Aand properties of the products sold by OAO advertising campaigns OAO Nizhnekamskneftekhim Nizhnekamskneftekhim, are presentation of products for applies to dedicated advertising companies authorized to domestic and foreign companies, participation in dedicated deal with such activities and which undertake to comply national and international exhibitions, distribution of product with the Russian Federation laws on advertising, catalogs, brochures, publication of information in the media. regulatory legal acts of the President of the Russian The website of OAO Nizhnekamskneftekhim is regularly Federation, regulatory legal acts of the Government of the updated – http://nknh.ru. Promotional activities in order to Russian Federation, the orders of the authorities that create a favorable public opinion about industrial, social and regulate certain aspects of advertising. In 2012, no environmental policy of OAO Nizhnekamskneftekhim are incompliances with regulations relevant to marketing conducted in accordance with the Russian Federation Law communications, including advertising, promotion, and (namely, according to Federal Law of the Russian Federation sponsorship were observed. dated March 13, 2006, № 38-FZ "On Advertising", other federal laws and regulations).
42 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND BUSINESS PARTNERS
Executives of the Company’s Sales and Export Department During 2012, participation of OAO Nizhnekamskneftekhim regularly monitor the customers’ feedback and quality was organized in the international trade exhibitions and estimate of products sold, intentionally study current and presentations, which attracted a lot of attention of future customer demands. In order to maintain the government delegations, representatives of business circles, attractiveness of OAO Nizhnekamskneftekhim image, over local and foreign companies. High level poster design, 2012 the Advertising Department developed and deployed professional performance of poster specialists (specialists of means of outdoor advertising. Thematical street banners the Advertising Department, representatives of commercial (associated with production and social topics, as well as and technical departments), availability of various advertising dedicated to professional, international, and national holidays, and informational printed matter, reflecting various social visits of government delegations, etc.) were placed. activities, were the basis for the success of OAO Nizhnekamskneftekhim's exhibits at the exhibitions – winning almost all nominations and awarding prizes and highest rank honorary diplomas.
Date of Place of Completion Event Description of Event Result
January Moscow, 15th Dedicated International Exhibition The Company’s stand have traditionally attracted attention of a large number 2012 Expocenter of plastics and rubbers "Interplastic of potential users of Nizhnekamsk plastics. Altogether, stands of more than 2012" 800 companies were represented at the exhibition. About 21,000 people from 30 countries familiarized themselves with innovations in the field of plastics and rubbers.
April Moscow Moscow International Energy Forum The Company was awarded: 2012 "Fuel and Energy Complex of Russia - Golden Diploma and a valuable prize "For significant and sustainable results in the XXI Century" in the field of energy and resource conservation among the companies of the petrochemical complex of the Russian Federation"; -Golden Diploma "For development and implementation of a comprehensive program for implementation of energy- and resource-saving activities"; - Golden Diploma "For demonstration of effective energy-saving equipment and technologies at the exhibition."
April Kazan XII Dedicated Exhibition "Education. Based on the results of the exhibition the Company was awarded the 2012 Career" diplomas: "For active position in the labor market as an employer," "For exclusive and complete presentation of the Company on the stand and professional work of the Company managers on the stand."
September Kazan III Dedicated Exhibition "Plastic and Based on the results of the exhibition the following diplomas were obtained: 2012 rubber», VI Dedicated Exhibition - Grand Prix Diploma in the competition "For best exhibit, best design or best "Environmental Technology and technical solution presented at the exhibition" in the nomination "Product with Equipment of XXI Century" new or improved properties" for technology development for polybutadiene rubber (SKD-L) production; - First Degree Diploma in the nomination «Energy-Saving Technologies and Equipment» for introduction of reduction cooling devices on pyrolysis furnaces of the Ethylene Plant; - for the best design solution of the stand and a wide range of high quality petrochemical products presented; - Grand Prix Diploma in the nomination "Innovative environmentally friendly technologies" for transition to the of one-stage isoprene production system; - for best presentation of environmental activities on the Company’s stand.
December Kazan XIV Dedicated International Exhibition Based on the results of the exhibition the following diplomas were obtained 2012 "Energy. Resource Saving – 2012” within participation in the contest "Energy efficient equipment and technologies": - First Degree Diploma in the nomination "New Products" – "SKD-L finishing line at the Synthetic Rubber Plant"; - Second Degree Diploma in the nomination "Energy-efficient technologies and equipment" – "Application of double flow valve disks with fixed valves at the Divinyl and Hydrocarbon Feedstock Plant"; - Third Degree Diploma in the nomination "Energy Efficient Products" – "Application of power factor correction (PF correction) units in electric power grids of OAO Nizhnekamskneftekhim.”
43 KEY FIGURES
623.72 thou. RUB – monthly average labor efficiency of an employee
18,274 employees in the Company
39 years average age
33.2% employees having higher education
3.83% turnover of staff
498 graduates from educational institutions were recruited to the Company
1,526 students undertook production internship
35.3 mln RUB costs for staff training
103 hours average number of training hours per one employee per year
9,366 employees were trained
30 contests of professional skill THE COMPANY AND EMPLOYEES THE COMPANY AND EMPLOYEES
OAO Nizhnekamskneftekhim in its current activities and future development plans takes into account the fact that the Company's most important resource is its people. The Company implements high standards of occupational safety and encourages development of employees’ competencies, improvement of their skills, including through mechanisms of internal staff rotation.
PERSONNEL MANAGEMENT
n 2010, the Company adopted the Human Resource Management Policy, which is a part of its entire management and Iproduction policies. It is the human capital assets, and not just equipment and modern technologies, which constitute the main factor of the Company competitiveness, economic growth and efficiency. In general, the Company effectiveness depends on the qualifications of employees, their arrangement and utilization.
The Human Resource Management Policy of System of Additional Benefits under Collective OAO Nizhnekamskneftekhim is aimed at: Bargaining
respecting rights and provision of social guarantees for employees in line with the requirements of the Payment of expensive types of treatment and labor and pension legislation and Collective social support of multi-child families and parents Bargaining; having disabled children improving quality of production by involvement of skilled employees having higher and secondary professional education and continuous professional Vouchers to the Company’s health resort for training of personnel; treatment and purchase of health resort vouchers for treatment at other medical and preventive rejuvenation of the Company staff; treatment institutions based on the beneficial conditions liberation of women of childbearing age from work in hazardous and dangerous conditions;
consolidation of staff by creating environment for Vouchers for children to recreation camps professional growth and increased wages; unity of wage system and labor motivation for the Company subdivisions; Regular preventive medical examinations use of flexible systems of bonuses for the most complete account of individual staff contribution; establishment of working environment which favor Voluntary medical insurance and voluntary accident insurance, for all employees stability of the socio-psychological climate in order to increase stability of the Company personnel. The Company Human Resource Management Policy also Non-state pension provision ensures social protection for workers. In this regard, the Company developed and operates the Collective Bargaining, which establishes the system of additional social benefits. The package of social programs is Payment of lump-sum benefit to employees generated and changed in the light of industrial tasks, achieved pension age financial condition and current objectives of the Human Resource Management Policy. In the management of social programs, the balance of the Company and Financial aid for child birth employees interests is maintained.
The purpose of the Human Resource Management Policy is creation of the labor collective, which would in the best Participation interest in the corporate VMI way help to combine the goals and priorities of the (voluntary medical insurance) network Company and its employees.
46 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND EMPLOYEES
Compliance with Company Ethical Standards Company Labor Capital The Top Management has formulated and supports Staffing policy support is based on modern technology of corporate values and ethical standards. Based on the staff training, selection and adaptation of young workers, Mission, the Top Management generates the basic principles search of highly qualified specialists, training of staff reserve, of business culture and rules of conduct for all managers working with focus staff groups, development of corporate and employees. The managers have developed documents culture and internal communications. Hiring local population which set out standards of business ethics in the internal is the established practice for the Company. and external communications, such as: Maintaining by the Managers using their own example, ethic standards and At OAO Nizhnekamskneftekhim, 18,274 employees with more values, implementation of the principles that form the than 300 occupations (men – 11,145, women – 7,129) are Company value system, is realized with participation in employed. social programs, widely reported in the media – the departmental newspaper "Neftekhimik" and television studio Of the total number of employees of OAO NKNK, 17,674 “VTC-Neftekhim”, in personal messages and interview with employees are employed under an employment contract for the General Director, Company chief specialists, Plant an indefinite period, that is, on the ongoing basis (96.7%), Directors, managers of all levels of structural units to the the number of employees employed under the fixed-term Company employees and other interested parties. employment contract, that is, for a certain period, is 600. (3,3%). In addition, the Company provides the opportunity to Internal informing of the staff is effected in accordance with work and provides work for the employees of its subsidiaries, the requirements of the Company regulations. Created and as well as construction companies. implemented is the electronic database of regulatory documents, which includes: Company standards, general The Company Human Resource Management Policy plantwide instructions, certificates on integrated system of provides activities to work with different social groups: in management quality, international standards, specifications, terms of age, education, gender, socio-professional building codes, regulations on subdivisions and plantwide belonging. job descriptions. The base is periodically updated and renovated. Currently, more than 800 employees of OAO In 2012, the Company had 40 candidates and 3 doctors Nizhnekamskneftekhim (division managers and specialists) of sciences (in 2011 – 42 employees having science have access to the electronic data base of regulatory degree, in 2010 – 41 employees). During the reporting documents. The Company has electronic document flow year compared to 2011, the trend of staff intellectual level system "Delo" in place. growing persists: in the Company the number of employees having higher education equals to 33.2%, In 2011, in order to protect privacy of employees, Regulation secondary vocational education – 20.4%. "About Personal Data of OAO Nizhnekamskneftekhim Employees” was approved, which determines the procedure A minor number of managers having basic vocational of processing personal data of employees, as well as education is defined, first of all, by functions performed methods and techniques of personal data protection, rights (e.g. Storeskeeper – Manager), and secondly, the and liabilities of officers and employees of OAO Company intention to retain experienced managers being Nizhnekamskneftekhim on the matters relating to processing good practitioners and having considerable experience, personal data. who are capable to transfer their knowledge to young workers. The Company sociologists continually evaluate the socio- psychological climate in the units, including relationships that The trend of intellectual level growth of employees is are taken into account in further work by Managers of maintained: over 3 years, the share of managers having Departments in development of measures focused on higher education increased by 5% to 81%, that of improvement of stability in the collective. The quality of specialists increased by 6% to 87%, and that of workers working life in different social groups is being monitored, – by 4% to 13%. OAO Nizhnekamskneftekhim employees including minority groups. For the Republic of Tatarstan, two having higher education in the workplace constitute a dominant ethnic groups are characteristic – Tatar and reserve for advancement to the manager and specialist Russian. At the same time, representatives of national positions. minorities, such as the Chuvashes, Germans, Ukrainians, Belarusians, Maris and others are also pleased with ethnic Among workers, 1,620 employees have higher education. relations and equal conditions for everybody. Based on the Availability in the workplaces of employees with higher results of sociological studies, it was revealed that education is justified by several factors: introduction of satisfaction with ethnic relations in 2012 was 92%. modern information systems, automated workstations,
47 THE COMPANY AND EMPLOYEES
formation of reserve of competent specialists and managers The average age of employees in the Company is 39 years. having manufacturing experience. Thus, it is necessary to The average age of managers is 42 years, and that of take into account the general tendency of young specialists specialists and workers – 38 years. The number of young striving to pursue higher education in the country. people under 30 years old tends to grow and equals to 5,609 people or 30.7% of the total headcount. This is facilitated by purposeful work on recruitment.
Personnel of OAO Nizhnekamskneftekhim
2010 2011 2012 Personnel grade persons % persons % persons % Managers 2,235 12.7 2,254 12.7 2,345 12.8 Specialists 2,586 14.7 2,639 14.9 2,786 15.3 Officers 267 1.5 265 1.5 291 1.6 Workers 12,532 71.1 12,607 70.9 12,852 70.3 All grades 17,620 100 17,765 100 18,274 100
Personnel Structure of OAO Nizhnekamskneftekhim by Education Level (persons) Education Personnel main common grade higher avg. vocational initial vocational secondary general (lower secondary) 2010 2011 2012 2010 2011 2012 2010 2011 2012 2010 2011 2012 2010 2011 2012 Managers 1,749 1,800 1,897 416 388 375 44 44 52 25 22 20 1 0 1 Specialists 2,149 2,244 2,411 374 341 315 28 24 27 34 30 33 1 0 0 Officers 112 115 135 62 56 62 52 52 56 40 41 37 1 1 1 Workers 1,178 1,401 1,620 2,987 2,945 2,984 5,801 5,841 5,955 2,342 2,211 2,097 224 209 196 All grades 5,188 5,560 6,063 3,839 3,730 3,736 5,925 5,961 6,090 2,441 2,304 2,187 227 210 198
Personnel Structure of OAO Nizhnekamskneftekhim by Gender (persons) men women Personnel grade 2010 2011 2012 2010 2011 2012 Managers 1,789 1,805 1,881 446 449 464 Specialists 725 748 807 1,861 1,891 1,979 Officers 1 1 0 266 264 291 Workers 8,106 8,224 8,457 4,426 4,383 4,395 All grades 10,621 10,778 11,145 6,999 6,987 7,129
The ratio and representation of men and women in various categories of personnel has been retained at the same level for several years.
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THE COMPANY AND EMPLOYEES
Age Personnel Composition of OAO Nizhnekamskneftekhim Number by age groups Personnel grade Up to 30 years old 30-50 years Above 50 years old 2010 2011 2012 2010 2011 2012 2010 2011 2012 Managers 275 268 279 1,213 1,234 1,338 747 752 728 Specialists 733 732 786 1,344 1,367 1,440 509 540 560 Officers 116 111 116 102 102 113 49 52 62 Workers 4,128 4,280 4,428 5,249 5,044 5,052 3,155 3,283 3,372 All grades 5,252 5,391 5,609 7,908 7,747 7,943 4,460 4,627 4,722
Turnover of Employees
In 2012, among all retired employees due to employee turnover, 82% were men, 18% – women.
Dynamics of dismissals demonstrates changes in the labor market in Nizhnekamsk – similar profile companies emerged. Therefore certain measures were undertaken that resulted in reduction of staff turnover by the end of 2012. Regulations on bonuses were reviewed, an agreement on corporate partnership was discussed and signed between petrochemical companies, some changes were introduced in corporate payouts at retirement, etc.
Analysis of retirement reasons by means of sociological survey revealed that the most mobile category retires more often – young employees who were not prepared for the existing labor conditions at the plant and production requirements, with overstated expectations from work.
Data on Age of Employees Retired Due to Personnel Turnover
Number Retiree by Age Groups Total from 18 from 20 from 25 from 30 from 35 from 40 from 45 from 50 from 55 above Year persons to 20 to 25 to 30 to 35 to 40 to 45 to 50 to 55 to 60 60 2010 647 13 184 180 90 72 49 39 10 7 3 2011 447 3 133 121 72 56 22 16 19 5 - 2012 671 8 231 169 92 78 42 26 21 4 -
Personnel Selection Personnel is carefully selected, which determines compliance In 2012, 1,144 employees were tested, each was issued of objective characteristics of the applicants with the recommendations to improve psychological security, that is production needs, including through psychodiagnostic testing ability to avoid provoking and in the event of emergency to of current employees and re-employed workers moving to respond appropriately. At OAO Nizhnekamskneftekhim, the the shops, whose activities are related to the operation of Regulation on Competition for Substitution of Manager dangerous industrial facilities. For this purpose Vacancies is also in place. psychodiagnostic tests are performed.
49 THE COMPANY AND EMPLOYEES
PERSONNEL DEVELOPMENT SYSTEM
Within OAO Nizhnekamskneftekhim’s Human Resource Management Policy, Code of Corporate Social Responsibility and certain values of the Company: "professionalism", "reliability", "sustainable development", the system of OAO Nizhnekamskneftekhim’s personnel development is in place. The system is aimed at employees of OAO Nizhnekamskneftekhim, students and pupils of dedicated educational institutions, students of sponsored schools, residents of Nizhnekamsk and other interested parties.
Scope and objectives Measures Stipulated in Personnel Development System staffing industries, maintaining the existing workforce capacity and advancing its faster development in future; Measures within the Personnel Development System create conditions for vocational training, retraining and advanced training of workers, the development and training of managers of all levels and specialists of the Company subdivisions; employees, increase of human potential of the Company, as the basis for collective creating conditions for development of skills and education formation, able to solve high-tech throughout the professional career of employees, which are intended innovative problems of modern production. to maintain employee compliance with current requirements; Measures are implemented per certain arrangement and control over practical training of students and disciplines, such as: cooperation with pupils; educational institutions, arrangement of coaching works and personnel training, formation of labor potential of the City of Nizhnekamsk and practical training of young people at the Nizhnekamsk Region focused on meeting the staffing needs of Company, personnel appraisal, work with OAO Nizhnekamskneftekhim. reserve.
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Entering into Agreements with Municipal Educational Institutions Employment of Graduates from Educational Institutions Upon requests of the Company subdivisions, plans are approved for hiring young specialists, on their basis agreements are concluded with higher schools to train specialists. At the moment, contracts are in force for the period up to 2015, according to which OAO Nizhnekamskneftekhim obtains trained staff.
Through many years, the main sources of the Company replenishment with young specialists and workers are the basic institutions of the City of Nizhnekamsk: Nizhnekamsk Institute of Chemical Technology (KNITU); Nizhnekamsk Petrochemical College; Nizhnekamsk College of Technology; Graduates from higher schools Secondary Technical School of Petrochemistry and Refining. Graduates from primary professional schools Graduates from vocational schools In 2012, 498 graduates (in 2011 – 351 graduates) were employed altogether, among them 103 graduates from higher schools, 105 graduates from vocational schools, 290 graduates from primary professional schools. Growth of the number of employed graduates in 2012 is due to commissioning of new plants.
Within the framework of regional laws about quotas and reservation of jobs for disabled and people with particular need of social protection (RT Law № 60-ZRT of 24.07.06), OAO Nizhnekamskneftekhim hires graduates from primary and secondary vocational institutions seeking job for the first time (in 2012 – 395 employees were hired) and citizens who have returned after military service (in 2012 – 161 employees).
In 2012, 2 persons were employed with the recognize physical disability. The number of employees of this category in staff was 125 people.
Students with basic education, most distinguished in studies, socially useful labor and sport are paid scholarships. Over 2011 and 2012, 192 scholarships were paid for the total amount of 384 thousand rubles..
Besides, to motivate admissions of turners to study, a dedicated agreement was signed with Nizhnekamsk Secondary Technical School of Petrochemistry and Refining for 2012-2013 for training with payment of additional scholarships in the amount of 2.5 thousand rubles to each student monthly with further employment in the Company.
Student Internship Organization OAO Nizhnekamskneftekhim provides an opportunity for practical training of Number of Students and Pupils students of basic education institutions and Republic of Tatarstan. In 2012, 1,526 Admitted for Internship students and pupils of educational institutions undertook internship. Each year, contracts are entered into with educational institutions with regard to internship.
Peculiar feature: on the basis of OAO Nizhnekamskneftekhim, "Federal experimental platform" NHTI was established on contractual basis and is functioning for 12 years. The students of the 5th graduating year are employed for one year by the Company and undertake an internship. At the Company training center, they receive a certificate of working profession. The Company pays for student interns leave and, together with the departments of the institute, selects topics for graduation projects with due consideration of specific industries. The experiment allows to solve a number of tasks: improvement of quality and relevance of the final qualifying works of students associated with the production problems and solution of important social objectives – employment of higher +76 education establishment graduates. In the 2011-2012 school year, 46 students Students and pupils, were involved in the experiment under the agreement. Since the beginning of the admitted for internship experiment, 654 students of NHTI undertook internship in the workplace. compared to 2010 In line with the Collective Bargaining, all the students and pupils undergoing internship at the Company, are provided with protective garment and personal protective equipment.
51 THE COMPANY AND EMPLOYEES
Coaching System Personnel Training (persons) To achieve successful education and training of young workers within all subdivisions of OAO Nizhnekamskneftekhim, coaching is organized. Young men and women under the age of 23 years, for first time employed, are assigned to mentors.
Mentoring is paid in the form of surcharge of 15% of the base salary of the mentor.
System of Personnel Education
OAO NKNK personnel education system includes various courses. advanced training of workers Further training is conducted both at the Company and at the (in the production-technical courses, special purpose courses, courses for retraining and branch and interbranch further training institutes. learning the second profession)
For managers and specialists, the Company provides the following advanced training of managers and specialists types of training that will ensure its continuity: systematic self-training of a worker (self education); short-term training; +1,759 long-term training; Employees were trained internship at the progressive enterprises, in the leading scientific compared to 2011 organizations and educational institutions; study in the target post-graduate studentship, doctorate; retraining – obtaining a new profession.
Within the framework of development of human resources together with the Tatarstan Regional Branch of Management Training over the period from 2000 until now, 40 prospective managers of the Company, who received degrees in certain disciplines, were trained within the annual program: management, marketing, financial management.
Priority in training is a form of intra-company training, as it involves less distracting employees from production processes, to a higher extent Personnel training costs (mln RUB) takes into account the needs of companies and encourages personnel.
The Training Center is functioning at OAO Nizhnekamskneftekhim for training personnel, which is licensed by the RT Ministry of Education for preparation and training on 100 professions and fields.
The Company has two training platforms for training both the Company employees and students of educational institutions.
Information about training of OAO Nizhnekamskneftekhim employees is recorded in the corporate automated SAP ERP system
Evaluating the efficiency of an employee's training by his/her management enables to determine the quality of digestion of knowledge by an employee and ability to apply them in the workplace, as well as allows to continue +11.2 improvement of work of organizers of the training courses. mln rubles were allocated for Staff training is financed in accordance with the annual estimated costs of personnel training compared training. The average number of training hours per employee per year was to 2011 as follows: for workers – 103 hours, managers and specialists – 38 hours.
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OAO Nizhnekamskneftekhim personnel training system Professional Skill Contests includes the following: general education at high schools, In 2012, within OAO Nizhnekamskneftekhim, more than colleges, vocational schools, training within the President's 30 Competitions of professional skill were held among program, training of personnel reserve of the Company; young workers having basic professions. Participants in advanced training of managers and professionals, retraining such competitions are employees of subdivisions under of managers and specialists (second higher education); the age of 30, winners and awardees of factory training of workers, retraining of workers, development of the professional skill competitions. The next step to increase second (related) profession. professional skills and demonstrate skills abilities are citywide competitions: In 2012, 1,912 employees had on-job training in various educational institutions, 400 employees of the Company in September 2012, there was a contest for the title of obtained a diploma of higher education, all of them were "Best in Profession" among young drivers of the city. provided for school holidays. As part of the project "Internet- The first place went to A. Khaerov, the third place – to longevity", approved by the Ministry of Education and A. Erundov (both are employees of UAT-NKNH Science of the Republic of Tatarstan, the Training Center subsidiary of OAO Nizhnekamskneftekhim); organized courses for learning the basics of computer literacy for workers from among pensioners, persons close in November, 2012, young welders – representatives of to retirement and old age people with the aim of personal OAO Nizhnekamskneftekhim – won all three prizes: the development, social adaptation, preserving their living first prize – R. Karimullin (Trust "TSNHRS", LLC), the position, promotion of opportunities to obtain public services second – I. Mercuryev (RMZ-NKNH, LLC), the third – in the electronic form. In 2012, 24 people were trained. R. Vasyakin (Ethylene Plant, Workshop 2103). An excellent level of training was shown by OAO Upon completion of training in 2012, 766 employees Nizhnekamskneftekhim employees – members of national increased their grades; 1,690 managers and specialists were competitions of professional skills. So, Cyril Kubanov trained for industrial, energy, and occupational safety, 3,409 (R&DC) became the winner of the contest "Young employees were trained to implement Quality Management, Innovator and Inventor of the Republic of Tatarstan" in the Human Resource Management, Occupational, Industrial, and nomination "Chemistry", the first place and the title of Environmental Safety Management Policies. 1,912 employees "Best Professional in RT" in the nomination "Electric of the Company study at higher and secondary special Welder" was won by Roman Vasyakin (Ethylene Plant), the educational institutions based on full-time and part-time third place in the nomination "Milling Machine Operator" forms. was given to Vadim Kalmykov (Polystyrene Plant).
53 THE COMPANY AND EMPLOYEES
To promote creative orientation to developments focused on External Resources for Personnel Development solving problems associated with reducing cost of Further training is conducted both at the branch and production and improving quality of manufactured products, interbranch further training institutes. Annually, the list of cost of raw material, material and energy resources, the educational institutions and organizations involved in contest of young innovators is performed every year. The teaching and assessment of OAO Nizhnekamskneftekhim number of the Company young innovators grows from year personnel is approved. to year: their share among innovators and inventors amounted to 33.8% in 2012. More than 20 managers and specialists participate as chairmen and members of evaluation committees while Annually OAO Nizhnekamskneftekhim takes part in the taking public examinations and defence of graduation works. competition, which is held by the Russian Union of Scientific In 2012, 16 specialists of the Company held classes as and Engineering Organizations, the International Union of teachers. Scientific and Engineering Associations, the Academy of Engineering named after A.M. Prokhorov, Interregional Public The teachers are appointed from among the managers and Foundation for scientific and technical progress support. specialists of OAO NKNK having higher education in the Altogether, there are 84 OAO Nizhnekamskneftekhim training field. For employees involved in carrying out lessons, representatives in the elite Corps of Engineers of Russia. series of lectures, consultations, seminars to explore the topical issues of economic and scientific-technical policy, To implement social adaptation, each year competitions are best practices, teaching the foundations of education and held between shops and plants in various sports, tourist psychology are organized. When training the staff, the rallies, amateur contests, KVN games. Management of the Company applies innovative (active) teaching methods. 373 personnel professional and social adaptation contributes to OAO Nizhnekamskneftekhim specialists were trained, that are personnel restraint and reduces the risk of staff turnover. involved as teachers.
Major educational institutions, engaged to train the staff of OAO Nizhnekamskneftekhim in 2011-2012.
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Vocational Guidance at Schools Work with Reserve The Company does not lose touch with the schools: One of the most important areas of work with the staff is career 20 schools of the city are assigned to the Company development and assessment of its efficiency. business units. This interaction creates favorable conditions for comprehensive development of younger generation, Great importance is paid to formation of OAO NKNK taking full advantage of the educational potential of labor Management, for which purpose the personnel reserve has been groups, strengthening connection between families, schools, composed. and the Company. 667 employees were put on the list of management reserve for 2009-2013, which is annually updated and approved by the General Director. Individual work is being performed with each Work is conducted in accordance with agreements on joint employee, being on the reserve list, and tests carried out to activities (strengthening the material-technical base, joint determine its managerial and professional potential. The reserve cultural and sports events, etc.). Students of 11th forms of is trained over target areas, in accordance with approved Technological Lyceum № 35 with chemical focus undertake programs. Regarding this group, career development is constantly internship in the R&D Center as laboratory assistants for assessed. In 2012, 164 employees were advanced from the chemical analysis. Such work is focused on the future, on reserve, including 151 employees as managers, 13 employees as shaping interest in the profession of a petrochemist in specialists. 421 Employees were advanced from the reserve from pupils. 2009 to 2011.
Personnel Evaluation Formation of Individual Approach to Employees of The entire staff of OAO Nizhnekamskneftekhim is OAO Nizhnekamskneftekhim constantly evaluated in terms of results related to common objectives set forth in the corporate regulations: At OAO Nizhnekamskneftekhim, great attention is paid to internal "About bonus payment to OAO NKNK employees for aspects of personnel management, therefore, in addition to main outcomes of operations based on results of the professional skills, knowledge in the field of personnel last month" and "About promotion of employees for labor management becomes demanded. The fundamentals of and contribution to development". At the same time, individual relation to the employee’s personality are tought at the appraisal of managers and specialists is constantly in training courses for workers and specialists upgrade in the place to validate their compliance with the position Training Center of OAO NKNK, this area is also demanded at the occupied, certification for occupational and industrial Trade Union School. safety and health, knowledge assessment of operating personnel (workers) by way of admission examination, At the same time, OAO Nizhnekamskneftekhim performs analysis that contributes to the staff skill management, and, of the Company employees’ needs using several ways: interview finally, to the development of the Company human prior to employment, meetings, brief meetings, where mutual assets. Target performances and evaluation criteria have exchange of information between management and staff takes been communicated to all OAO NKNK employees. place, case studies in various fields, which identify the needs of all staff on the whole, as well as certain age, gender and In 2012, the share of specialists who have undergone socio-professional groups, and analysis of the degree of the evaluation procedure for compliance with the position interaction between social and professional groups. occupied amounted to 20%, managers – 17.8%. Opinion polls reveal the employees' attitude to various aspects of In 2012, assessment commissions issued 762 the Company life, to community events, politics, the Company recommendations on further professional growth and management, provide information support for management development of personnel. The results of implementation decisions on different aspects. On the whole, in 2012, 7,441 of recommendations issued to the managers and employees participated in various studies. specialists from 2010 to 2012, were as follows: among those who were issued recommendations, now, 53% Including, by areas: were trained in training courses, 56% changed their Study of the quality of working life. In order to determine position (upward trend), 71% experienced increase in the quality level of the working life at OAO wages. Nizhnekamskneftekhim, employee satisfaction with various aspects of working life is being monitored. In 2012, 1,336 As a result of appraisal for compliance with the position employees were interviewed in this respect. In the occupied, a rating list of managers is generated, that subdivisions, meetings have been held based on the allows to reasonably compose the personnel reserve. results of the study. Study of Public Opinion. In 2012, 11 social studies were conducted (the total number of respondents – 6,105 people).
55 THE COMPANY AND EMPLOYEES
Topics of Social Research in 2012: Findings of surveys were reported to customers. According to the research results, activities, social Electoral activity of OAO Nizhnekamskneftekhim programs of labor collectives development are employees (Elections in 2012); elaborated. Study of the information space at OAO Nizhnekamskneftekhim (activities of the corporate media, Staff relations within the Company were repeatedly highly including newspapers "Neftekhimik" and "Hezmettesh valued at the federal and regional levels, and OAO Avazy"); Nizhnekamskneftekhim was awarded honorary diplomas and certificates: Attitude of workers to their health; Role of OAO Nizhnekamskneftekhim in public life (in Honorary diploma of the winner of the 8th All-Russian connection with the 45th anniversary of the first product Contest "Best HR Service – 2012" for successful output); operation in the field of efficient personnel policy based on the results of the period 2011-2012. “Assessment of satisfaction of Russian and foreign consumers with sales and export of OAO NKNK’s Diploma for active position in the labor market as an products"; employer on the basis of the 12th dedicated exhibition "Education. Career-2012”, held on April Analysis of reasons for staff dismissal in 2011-2012; 11-13, 2012, at OAO Kazan Fair. The exhibition was Quality of services in the resort Korabelnaya Roshcha; attended by 120 organizations, including enterprises and companies from 10 regions of the Russian Main conditions of involvement of employees (within the Federation, as well as companies from Ireland and 12th Dedicated Exhibition "Education. Career"; Israel. Evaluation of training efficiency; OAO Nizhnekamskneftekhim personnel satisfaction with housing and community amenities services; Express interview about plans and feelings of petrochemists before the New Year holidays.
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SOCIAL PARTNERSHIP
he Company recognizes the right of and conditions of employment. During Tworkers to union and establishment 2012, the Company did not initiate any KEY FIGURES of organizations representing their new substantial activities or projects in interests, which is an integral part of the field of human rights. Annual conclusion of the the right to freedom of association and The Company is monitoring violation of Collective Bargaining bargaining. human rights through the active Commission on Labor Disputes. In the Company, the system of 1961 the year of representation of interests of workers in Coordinated work of the Company's establishment of the Trade the social and labor sphere is in management and Trade Union is Union Organization place. Trade Unions intervene in the based on the principles of partnership, (since 2012 – OPO OAO social dialogue with the employer. such as equality, voluntariness, priority Nizhnekamskneftekhim RHP) ranking, social justice, reconciliation of OAO Nizhnekamskneftekhim creates all interests. necessary conditions for the Trade about Unions organization, providing Social partnership in the Company is necessary premises with all equipment, implemented in the forms of Collective people 32,000 heating, lighting, cleaning, as well as bargaining on drafting collective the headcount of vehicles, communications equipment bargaining, agreements and their Trade Unions and stationery free of charge. It conclusion, mutual consultations guarantees to elected and full-time (negotiations) on the issues of 17,711 people employees of the Trade Union regulation of labor relations and other Trade Union members organization on a par with OAO relations directly linked to them, (97% of the total Company Nizhnekamskneftekhim employees, guaranteeing workers' labor rights and headcount) provision of all the rights and benefits improvement of labor legislation, relevant to bonuses, payouts, extra workers' and their representatives’ payments, compensations and other participation in the Company 11 commissions benefits provided to the Company management, the participation of of the Trades Committee employees. Upon expiration of the representatives of workers and term of powers of the elected trade employers in pre-trial settlement of union, the workers are provided their labor disputes. 2,100 employees previous or equivalent job, during the were trained on human rights period of education and advanced Trade union organization, with due training the average salary of the Trade account for interests of union Union core group is maintained. members, aims at solving social and
57 labor issues, legal and economic primary trade union The Collective Bargaining in force in protection of union members, providing organizations, registered with the Company has a long tradition in them with appropriate incentives and the Trade Union regulation of relations in the social and guarantees. It conducts collective labor sphere. The Collective Bargaining bargaining, concludes collective 215 regulates the employee rights (right to agreements on behalf of and in the Workshop Committees work, education, freedom of interests of workers, carries out trade expression, social protection, attainable union control over observing by health standard, etc.). All OAO NKNK employers and officials labor law, has 1,085 employees are involved in the the right to demand rectification of Trade-Union groups Collective Bargaining. revealed violations.
In the Company, local regulations are It also coordinates establishment within 3,421 employees in place governing provision of the organization of wage systems, are in the Trade Union employees with benefits, guarantees, forms of material incentives, wage front line and compensations. The Collective rates (salaries), labor standards, Bargaining Commission is a permanent arrangements for social protection of body of social partnership in the union members, provides for union people 31 Company. The system of privileges control over employment and compose the Trade Union established by the Collective compliance with legislation in the field Committee Bargaining applies to all employees of employment and protects the rights and does not depend on the status and interests of members of Trade
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Union organizations associated with working conditions Informing Trade Unions Members and safety at work (in workplace), compensation for The collective agreement includes the procedure for damage caused to their health at work (in workplace), as informing employees about significant changes in the well as on other issues of safety and environmental organization activities. Thus, the Company shall notify the protection in accordance with federal laws, organizes, Trade Union Committee of upcoming headcount using existing features and tools, sanitation and spa reduction and possible termination of employment treatment of trade union members and their families, contracts no later than two months before the start of additional insurance of union members, provides appropriate activities. necessary financial support to union members. Besides, it creates a favorable climate in the collective, carries out Information about joint activities of OAO recreational and cultural work. Nizhnekamskneftekhim administration and Trade Union Committee is regularly communicated to labor collectives In order to maintain the ratio between the standard wage at the meetings and conferences, highlighted in national, of the initial level and established minimum salary in the regional and corporate mass media. The Internet portal region of the Company operation, para 3.3. of the of OAO Nizhnekamskneftekhim Trade Union is functioning Collective Bargaining of OAO Nizhnekamskneftekhim sets (http://www.nknh.ru/profkom/). forth the following: "The Employer agrees … to maintain the base rate of the first rank of RSOT, OAO NKNK, not Improvement of mechanisms of social partnership in the less than the minimum subsistence level, and the level of Company is provided by way of development of direct the minimum wage – not less than the minimum dialogue between employees and employer, direct consumer budget of the Republic of Tatarstan, and communication of employees with the management, maintain this level within the term of the Collective which allows to promptly take decisions on vital issues Bargaining". directly at the levels of their occurrence. In the Industrial Agreement between the Tatarstan Republican Organization of the Russian Federation Trade Union of Workers in the Chemical Industry, the RT Ministry of Industry and Trade, the RT Employers and Undertakings Observance of Employee Rights and OAO Tatneftekhiminvest Holding, para. 4.8, Section 4 OAO Nizhnekamskneftekhim affirms its commitment to "Wages" sipulates that the base rate of the 1st grade human rights in accordance with the RF Constitution and worker operating under normal working conditions should RF legislation. On the basis of commonly recognized be established above the subsistence minimum of international principles and norms, the legal regulation of able-bodied population in the Republic of Tatarstan, and labor and other associated relations in the Company are the minimum wage level (with additional payments, effected in accordance with the standards of the allowances, bonuses, etc.) in the sectorial companies – up International Labour Organization and Russian Federation to the level of the minimum consumer budget (MCB) per legislation. The Company ensures protection of workers' a typical family member and maintains this level during rights, which are an integral part of the rights to freedom the term of the agreement. In 2012, the subsistence of association and bargaining. minimum in the RT amounted to 5,822 rubles; the base rate of the 1st rank at OAO Nizhnekamskneftekhim Each OAO Nizhnekamskneftekhim employee has equal amounted to 6,240.7 rubles. For 2012, MCB was set at the opportunities to exercise their labor rights regardless of level of 9,734 rubles, the minimum wage at OAO gender, race, nationality, origin, material, social, and Nizhnekamskneftekhim – 10,297 rubles. employment status, age, residence, religion, political beliefs, as well as of other circumstances not associated The Collective Bargaining of OAO Nizhnekamskneftekhim with the employee’s professional qualities. provides the following: warranties and social benefits in the field arrangement of wage payment, working and leisure The Company aims to provide all employees with time, guarantees of occupational safety, health and legal equal opportunities to realize their potential in the protection, guarantees of protection of socio-economic workplace, impartial and fair assessment of the results interests of workers, guarantees of growth of professional of their work, selection and promotion of official skills of workers and protection of socio-economic interests workers solely on the basis of professional abilities, of young people, creating conditions for development of knowledge and skills. OAO Nizhnekamskneftekhim mass-cultural and sports-recreation activities. Agreements complies with the requirements of the RF Labor Code, are accepted and lists are approved as follows: which prohibits employment of persons under the age of 18 years old for works with harmful and (or) “Agreement on Occupational Safety between dangerous labor conditions, as well as observes the Management and Trade Union Organization"; rules prohibiting employment of women for jobs with “The list of professions, shops, positions, having the difficult and dangerous conditions in the refining right to shorter working hours"; industry. “The duration of annual leave by departments and In its activities, the Company is guided by provisions categories"; of declarations and conventions of international “Rules of Internal Work Order”. organizations, the RF Constitution regarding prohibition
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of forced labor. The Company has a system of prevention, detection and, if necessary, taking actions to address violations of economic and social rights of workers.
The instrument for regulation of relationship is the Labor Dispute Committee. In 2012, no appeals and complaints on the part of workers to the Labor Dispute Committee were reported. Violations of human rights were not identified, including the rights of native minorities.
Anti-discrimination policy is one of the main requirements of international agreements, social legislation and relevant guidelines. No lawsuits, complaints, and claims officially registered by the organization or competent authorities, as well as no violations identified by the organization by means of procedures established at OAO Nizhnekamskneftekhim have been reported. Human rights issues are covered in the training of union members; in 2012, 2,100 employees were trained. To better represent the interests of workers, 11 Commissions of the Trade Union Committee and 3 joint with administration Committees are permanently in force.
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SOCIAL PROGRAMS FOR COMPANY EMPLOYEES
n view of importance of work in the field of corporate social responsibility Ias well as in effort towards sustainable development, the Company is KEY FIGURES pursuing an active policy focused on better meeting direct demands of labor collective, its former employees and younger generation. This policy 33,864 RUB contributes to creation of a highly qualified team, capable to work effectively average salary under conditions of tough competition.
mln RUB Relations with the employees are built on the basis of existing, but at the 322.7 same time constantly developing social partnership system in place in the compensation to the Company Company. OAO Nizhnekamskneftekhim recognizes the right of workers to employees based on the results unite and establish organizations to represent their interests. Sources of of the year information for employees and managers are briefings, meetings, e-mail, Internet, departmental media, orders, directives, scientific and technical 185.3 mln RUB papers, documents, developed at the Company. Each year, at the Company holiday payments press conference, major plans are announced, Annual General Meetings of Shareholders are held. Full information is available on the website of OAO 427 thou RUB Nizhnekamskneftekhim. The system of internal communications aimed at sign-on bonus to those back informing employees about the Company's development strategy, bringing to from the military service them goals, objectives, long-term and current plans, results of production of OAO Nizhnekamskneftekhim and its business units, identifying opinions and interests of workers. 71.6 mln RUB lump-sum allowance at the time The Company has a laboratory for sociological and psychological research of retirement and analysis, the function of which is study of social well-being of employees, their level of job satisfaction and various aspects of working life. 8.5 mln RUB Knowledge of opinion of the collective, individual socio-professional and the amount of payments to off demographic groups allows to work with the staff purposefully, take into the job pensioners for holidays, account interests and needs of each worker, develop measures on Senior Citizens Day, Victory Day, improvement of work with the staff. etc.
3,600 families Staff Motivation in bachelorettes Since 1995, OAO Nizhnekamskneftekhim has a rank salary system in place. canteens and All professions and positions are distributed according to ranks, depending 30 on labor complexity and intensity. The basis of salary calculation is 18 snack-bars composed of rank coefficient assigned to each workplace and basic norm rate. The rank payment system excludes discrimination in labor payment 363 concerts based on any features: gender, age, etc. The Collective Bargaining sets within cultural-educational surcharges and allowances to the basic salary: for work in particularly events hazardous working conditions, work during night hours (from 22 pm to 6 am), overtime in excess of schedule, high professional skills of workers, multi-skilling, expansion of service area, foremanship, inter-rank difference in 962 mln RUB individual piecework, mentoring, personal stigma, scientific degree, used for maintaining sports base proficiency and car washing. Extra payments are used for fulfillment of duties and sports support of a temporarily absent employee (sick leave, business trip, administrative leave, annual leave with no substitutions) to workers, engineers. 9,140 thou RUB financial support at child birth In 2011, Regulations on Bonuses for Employees of OAO Nizhnekamskneftekhim were introduced for the main outcomes of operations based on results of last month. The Regulations were introduced in order to
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improve material interest and encourage employees to achieve performance, that Salary Fund in 2012 ensure compliance by the Company, as a whole, with monthly plans of income, sales of products, reduction of cost of production, including reduction of consumption rates of raw materials, energy resources, as well as saving other types of material, labor and financial resources, trouble-free operation, fulfillment of contractual obligations to supply products, achievement of labor quality, ensuring production of competitive products and sustainable profit. The salary fund is the source of bonus payment. 56.8% In addition to the Collective Bargaining, based on approved provisions, payments WORKERS are made by the anniversary dates of employees and in connection with the first marriage. Remuneration payments are made on the basis of the year outcome; the Provision is adopted relative to the material assistance for leave. In December, 2012, employees of OAO Nizhnekamskneftekhim were paid remuneration based on the year outcome for the year in the amount of 322.7 million rubles. Financial assistance in addition to leave according to the appropriate Provision amounted to 185.3 million rubles. In 2012, there was an increase of 20% of the premium for the 1workers 56,8% basic results of operations, working starting from rank 4, and shift supervisors of the process plants, UZHDT, UES, shop № 1122 and № 1163 – starting from 2 managers 27,1% August 1, 2012, and for the Power Plant, UETP, CA – from October 1, 2012. 3specialists 15,2%
4officers 0,9% The average salary in the Company in 2012 amounted to 33,864 rubles.
Average Salary with Grade-Wise Split (rubles)
Personnel grade 2010 2011 2012 In 2012, 357 employees were awarded the title of "Hero of Managers 54,371 64,032 70,097 Labor of OAO NKNK; Specialists 29,030 34,178 35,951 32 employees were displayed Workers 21,976 24,996 27,037 on the Company Board of Honour, 1 employee was Officers 17,582 20,377 20,594 brought into the Book of Honor, 5 employees were encouraged Tariff rates for the same type of positions for men and women do not differ. by a letter of thanks of the General Director; 970 employees were awarded a diploma, 231 employees were issued Ratio of the minimum employee rate and the level of minimum monthly wage gratitude. Awarded by the state, (MMW) in the key regions (Nizhnekamsk) in 2012 departmental and municipal awards, are a total of Occupations Minimum rate (3 grades MMW* MMW with hazardour working exceedance, 71 employees, including those conditions) % assigned the honorary title of the "Honoured Chemist of RT" Operator 9,066 4,611 196.6 – 6 employees, awarded the Machine operator (pump and medal “For Merits in the compressor stations) 9,066 4,611 196.6 All-Russian Population Census Repairman 9,066 4,611 196.6 in 2010” – 30 employees, Certificate of Merit and Gratitude * The minimum monthly wage (MMW) is established as of June 1, 2011, in the of the RT and RF Ministry of amount of 4,611 rubles per month, Federal Law № 106-FZ of June 1, 2011. Energy – 10 employees, Certificate of Merit and Gratitude of the Manager of Nizhnekamsk Municipal Area – 16 employees, encouraged by letters of thanks: RT President – 3 employees, RT In order to improve motivation to work, at OAO Nizhnekamskneftekhim, the Provision Cabinet of Ministers – about award of OAO Nizhnekamskneftekhim employees is in place. 5 employees.
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Youth Policy Pension Program Implementation of targeted youth policy has become one The major component of the Company Corporate Policy is of the priorities of OAO Nizhnekamskneftekhim’s maintaining the high level of quality of life for workers and Management and Trade Unions. Developed and veterans of the Company. OAO Nizhnekamskneftekhim has implemented are the basic directions of the Company always been focused on maintaining such values as youth policy, the department of work with youth is charity, family support, worthy living standards. functioning. Interests of more than 8,000 retirees are represented and The Collective Bargaining provides for a number of benefits work with them is performed by the Council of war and for young people. Every year 150 Company employees go labor veterans (among them disabled – 1,440 people., to the army service and come back. Employees returning Great Patriotic War veterans – 26 people., veterans real after the army service are paid allowance in the amount of area – 335 people.). The "youngest" retiree is 45 years old, 5,000 rubles, and new employees recruited within three the oldest – 94 years old. The average age of veterans is months after army service are paid appointment allowance 71 years old. The Council consists of 15 members, three in the amount of 3,000 rubles. In 2012, OAO of them are full-time employee, others work on a voluntary Nizhnekamskneftekhim allocated 427 thousand rubles for basis. allowances of those returned to the Company after the army service. Young families are given loans in the amount The Company has developed a number of regulations for of 50,000 rubles to purchase essential goods. In 2012, provision of former workers with welfare and social such allowances were paid in the amount of 10 million assistance. rubles.
In 2012, the Department of work with young people held Benefits and payments to pensioners: over 80 events: Starting from April 1, 2001, the Regulation entered into professional skills competitions on major occupations force "About Non-State Pension Coverage of OAO (more than 30 competitions); Nizhnekamskneftekhim Employees", which defined the terms and conditions of appointment of non-state youth forum “Future begins today!”; pensions, formed at the expense of the Company military-technical race, dedicated to the 45th Anniversary funds. Non-state pension is granted to employees, of the First Product, where 34 teams participated; retired after reaching the retirement age (women – 55 years old, male – 60 years old). The amount of a competition of patriotic songs, the festival of amateur non-state pension depends on seniority and wages. performances of OAO Nizhnekamskneftekhim dedicated In 2012, the Company allocated 50 million rubles for to the 45th anniversary of the first product; monthly supplements to pensions (including monthly trip of search group "Neftekhimik" is organized to hold bonuses to the pensions of employees laid off prior the Memory Watch; to 2001). the group "Island of Courage" is organized on the basis Lump-sum allowance at the time of retirement. of the pioneer camp "Yunost"; The amount of allowance depends on the labor input. entertaining parties and parties honoring veterans of the In 2012, such allowances were paid in the amount of Great Patriotic War and labor; 71.6 million rubles. parties of communication and acquaintance in the Tatar Bonus by holiday dates: Victory Day, Day of language, corporate leisure parties; Fatherland Defenders, Day of Old People, by Anniversaries. The total amount of payments to games “What? Where? When?», «KVN», «Meeting of pensioners by holiday dates amounted to 8.5 million generations», the Day of memory of victims in local rubles. wars, tourist meeting; Within the action «Kind phone» mobile phones with smart club, the club of young scientists, literary club, emergency call buttons were bought for single etc. are functioning. pensioners. For the purpose of engaging in active production and Health care of retirees at the expense of the social activities, solving problems of young families, the Company. Pensioners and veterans are assigned to Committees for work with young people are organized in the hospital for medical care at the expense of the the Company subdivisions. In 2004, the Youth Organization Company. In 2012, such allowances were paid in the of OAO Nizhnekamskneftekhim was recognized the best in amount of 3 million rubles. Veterans get preferential the Republic of Tatarstan, and since then every year it vouchers for sanatorium-and-spa treatment. Annually, confirms the title of winner of the republican competition various tours are organized for veterans; in 2012, 80 "The Best Implementation of Youth Policy of the Republic veterans got treatment in the sanatorium "Uva", visited of Tatarstan". the city of Elabuga.
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THE COMPANY AND EMPLOYEES
According to the Collective Bargaining, in the event of death of a pensioner all the funeral services are paid at the expense of the Company, financial assistance is paid. In 2012, payments totaled 3.3 million rubles. Every year, the annual free subscription to large- circulation newspapers "Neftekhimik", "Hezmettesh Avazy" is organized for the veterans. All veterans-pensioners are insured with the insurance company ZAO Medical Insurance Company “Spaseniye”.
Maintaining the quality of life of former workers at the decent level is an integral part of the traditions existing in the Company. Care on the part of the Company and Trade Union administration encourages the elderly people, they are happy to take part in rehearsals and concerts of the Veterans Chorus “Nadezhda”, take an active part in the leisure parties, organized in the House of Folk Art for them. "Varzi-Yatchi", "Zvyozdochka", "Zelyonaya Roshcha", etc.), The Veterans Council liaises with the communities where where climatotherapy, treatment with natural mineral pensioners worked before retirement. And one of the best waters are carried out based on specially developed traditions of the Company is when the divisions of its former treatment programs. employees are invited to all events and holidays. 2,617 employees and their families had a rest at the recreation center "Dubravushka" during the season. The Company skiing lodge "Almash" was attended by Staff Rehabilitation and Recreation approximately 12,000 petrochemists and their families To ensure high-quality and timely treatment of employees, during winter season, 1,894 children of the Company OAO Nizhnekamskneftekhim’s Management concluded employees rested in the children's camps. treaties of compulsory and voluntary health insurance with ZAO Insurance Medical Society "Spaseniye”.
At the cost of the Company profit, the recreation center Mortgage Program "Dubravushka” and children's health camps "Yunost" and OAO Nizhnekamskneftekhim’s Management pays great "Olimpiyets” are supported. attention to solution of critical social problems – provision of comfortable housing to its employees. OAO Nizhnekamskneftekhim has always paid the utmost importance to the issues of health resort treatment and rest For temporary accommodation of employees, the of its employees. In 2012, 2,222 petrochemists and their Company has on its balance sheet hostels designed for families had a rest and improved their health in the 3,600 families. sanatorium OAO "Korabelnaya Roshcha”. The Company employees have an opportunity to attend preventive The peculiar feature of the Company is not only treatment in sanatoriums of the Republic of Tatarstan and availability of housing stock for temporary Russia ("Uva", "Zhemchuzhina", "Bakirovo", "Izhminvody", accommodation, but also funding of construction of apartments for employees waiting on list by the Company. Employees purchase apartments built under terms and conditions of the Social Mortgage (term of installment payment is up to 20 years at the rate of 7% per annum; for workers living in the hostel, a loan is issued in the amount of up to 30% of the cost of purchased housing).
Starting from 2005, 1,032 apartments were sold to employees in need of housing, including 402 apartments within the Company own program, 630 apartments – according to the system of Republican Social Mortgage. In 2012, in view of social support, 66 families of employees who do not have their own housing and living in the hostels, were issued loans for the total amount of 27.4 million rubles for purchase of apartments.
63 THE COMPANY AND EMPLOYEES
With the purpose of financial support of workers, in 2010, a Anniversary celebrations dedicated to the 45th new "Regulation on provision of benefits under the housing anniversary of the Company were organized and held at program at OAO Nizhnekamskneftekhim" was developed the high level. The grand show in the "Ice Palace" was and approved; five years after acquisition of the apartment visited, among honored guests, by R.N. Minnehanov, the which includes annual transfer of 20 thousand rubles in President of the RT, and foreign guests. payment for social mortgage housing or "write-off" of that amount under the internal regulation, or "write-off" from the Meetings and concerts in the relationship clubs "For loan amount given to the employee to pay a down those who are beyond...", "Ochrashu-tanyshular" and payment under mortgage. In accordance with such veterans are of great success among the Company Regulation petrochemists are granted benefits for the employees. Employees and groups of HFA have amount of 10.19 mln. rubles, including in 2012 – 5.62 mln. traditionally taken an active part in organizing and rubles. conducting a series of events dedicated to the Day of Victory in the Great Patriotic War and International Day for Provision with housing is one of the main factors of stability the Elderly. More than 60 concerts and entertainment of the labor collective and social attractiveness of the programs with the participation of groups of HFA were Company. prepared for the petrochemists and their families in the sanatorium "Korabelnaya Roshcha" and at the recreation center "Dubravushka". Catering System on Production Site of Young workers of OAO Nizhnekamskneftekhim OAO Nizhnekamskneftekhim participated in the Republican festival of amateur Catering of all employees is performed in 30 canteens, performances of young workers and won I, II, III degrees located in the industrial area and in 18 refreshments in in four categories. At the Republican propaganda teams remote sites.The existing catering system on the production competition, OAO Nizhnekamskneftekhim’s team from the site is the largest one not only in the Republic of Tatarstan youth theater "Art Comedians" won the cup and the Ist but also in the petrochemical industry in Russia. The place of honor. Company's employees who work directly in the primary production area, are provided with free healthful and dietary meals (HDM). HDM menus are composed based on Program of Sports and Recreation Activities at recommendations of the Institute of Nutrition of the OAO Nizhnekamskneftekhim Academy of Medical Sciences, and their price is revised as far as food-stuff becomes more expensive. Each year the At OAO Nizhnekamskneftekhim, favorable conditions are order of the General Director determines the scope of created for development of mass sports and sports and repair works of canteens. In 2012, three canteens were recreation activities, and the program "Main Directions of renovated (at the SPS Plant and in the Central Office) and Development of Physical Culture and Sport" approved by in the flour workshop. Currently renovation works are under the General Director is in place. way in one more canteen. In the focus of attention of the Company management among the priority directions of development, there is always popularization of mass sports and physical Program of Cultural and Educational Work at culture as the basis of forming a healthy collective able OAO Nizhnekamskneftekhim» to solve high-tech innovative tasks of modern To organize cultural and educational work at OAO production.. Nizhnekamskneftekhim, the House of Folk Arts (HFA) possibilities are actively used. The leaders of all creative Sports Base groups are experienced professionals, nine of them were At the disposal of the Company are powerful sports awarded the title of "Honored Worker of Culture of the facilities intended for organization and conduct of Republic of Tatarstan". During the year 2012, creative recreation activities: groups of HFA organized 366 concerts and performances for petrochemists and residents of the city (among them Sports Complex "Neftekhimik" (which includes a 278 activities were of travelling character, while 88 activities football field, weight lifting room, aerobics room, were held on the stage of HFA). fitness center); In order to promote achievements of OAO two Ice Sports Palace (with 5,000 and 2,000 seats); Nizhnekamskneftekhim, housel of petrochemists to active Sports Complex "Druzhba" (which includes a labor and social life of the Company, development and swimming pool, gym, sports hall, chess and checkers promotion of artistic and creative activity, innovation of club, football and hockey court with plastic boards). In young workers, the Trade Unions jointly with the Department 2012, the reconstruction of the athletic stadium was on work with youth, HFA and Corporate Events Department performed, modern cover "ELASTUR" was laid. The of the Company held the festival of artistic creativity of stadium has 8 covering tracks, besides, there are two petrochemists “Nizhnekamskneftekhim – Yesterday, Today, sectors for the long and triple jumps, Steeple Chas Tomorrow” devoted to the 45th Anniversary of the first pit, sector for shot put); product of OAO Nizhnekamskneftekhim.
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THE COMPANY AND EMPLOYEES
gym "Fakel" with the health-recreation center; Sports of Records training base "Almash" (young sportsmen have The material base of the Company allows to support and finance year-round training meetings here, during two professional teams: the team "Neftekhimik" playing in the winter period the ski lodge is used). At the ski Continental Hockey League and the team having the same name base "Almash", both interplant competition and which plays in the Second Division of the football championship primacy of the Company for skiing, family of Russia. On the basis of the sports club "Neftekhimik" the sports competitions and sports events are Center of Higher Sports Skill is established. held; sports camp "Olympiyets" (during summer Work Sports season it accepts young sportsmen from 17 professional instructors and 17 sport and physical training sports schools of the sports club voluntary teachers are working at OAO Nizhnekamskneftekhim. "Neftekhimik". Under the guidance of coaches Physical training is introduced in the work day schedule (industrial a continuous training process is in place that gymnastics, micropauses, physical culture minutes, physical allows for 600 sportsmen to achieve good culture breaks, which are broadcasted on the internal radio from results during 3 shifts. For organization of the 10.10 to 14.10) in order to increase efficiency and productivity. training process, 3 football fields, 2 volleyball courts, a tennis court, 2 outdoor swimming In many Company subdivisions, sports corners and mini-rooms pools, sector for recreative gymnastics, are arranged and constantly functioning, where competitions are recreation center, ski-roller track) are provided. held on darts, checkers, chess, arm-wrestling, table tennis and The total area of sports halls and rooms is other sports. The Company has organized 11 sports groups 35,453 sq. m, swimming pool and mini-pools (football, men’s and women’s volleyball, cross country skiing, – 750 sq. m, indoor sports facilities – 38,545 athletics, checkers, chess, basketball, swimming, weightlifting, sq. m, the number of sports grounds equals table tennis). to 7 pcs., the area of sports grounds – 17,825 sq. m, the stadium with stands for 1,500 seats During more than fourteen years, the team of OAO – 7,700 sq. m; "Nizhnekamskneftekhim" is an absolute winner of the sports contest of the Trade Union of workers of chemical industry in the other sports facilities, including adapted Republic of Tatarstan. As a rule, the strongest athlete- premises (ski resorts – 2 pcs., a shooting petrochemists, are part of ricked teams of the city to participate range – 1 pc.). in national competitions.
65 THE COMPANY AND EMPLOYEES
Formation of Healthy Lifestyle Children Sports One of the most striking examples of promoting the idea Great attention is paid to the children and of healthy lifestyle through physical activity is the annual teenage sports in the Company. Totally, more sports competition among OAO Nizhnekamskneftekhim than 1,977 children from all over the city attend employees. In 2012, the program of Spartakiad included different sports groups of the Children Sports 57 types of competitions, 7,530 people participated in it. School and other sports facilities. For organization In subdivisions parallel competitions and tournaments are of year-round training sessions, an artificial football held within plants and workshops, besides annual military field was constructed on the basis of the technical relay and tourist meetings are held for young Children’s and Youth Sports School, artificial petrochemists. football field was laid at the stadium "Druzhba" within the program of Foundation "National In order to encourage activity in physical culture and Academy of Football" and Russian Football Union sports, annually the review-competition "The best "Grant Stadium to Children" for training sessions of organization of mass sports and recreation activities" is young football players, championships of OAO held among the Company subdivisions during which the Nizhnekamskneftekhim, as well as training of plant best athlete of OAO Nizhnekamskneftekhim is recognized. and workshop teams. Children are trained by Winners and prize-winners of these competitions are qualified coaches, most of which have the awarded with cups and give bonuses when the Chemist’s highest qualified category. A total of 56 coaches Day is celebrated. and sport instructors carry out sports sections at SK "Neftekhimik". A lot of training lessons take Petrochemists demonstrate good mass scale in the place on the basis of city schools. national sports movement as well. In 2012, 560 petrochemists participated in the start of the All-Russian run day "Cross of Tatarstan", and 115 people took part in "Nizhnekamsk Ski-Run". 2,000 employees and their families Mother and Child Welfare attended the annual ski competitions of OAO At OAO Nizhnekamskneftekhim, 39% employees Nizhnekamskneftekhim under the motto "Everybody to are women. Many of them work in the Company Ski-Run!". more than one year, have families and children. Given the special role of a woman in the society, up-bringing of children, the Management and Trade Union Committee endeavor to ensure more favorable conditions of work and leisure for them.
At OAO Nizhnekamskneftekhim, women are provided with one-off welfare assistance: — at birth of a child – in the amount of 10 thousand rubles;
— at birth of two children at a time (twins) – in the amount of 70 thousand rubles;
— at birth of three children at a time (triplets) – in the amount of 100 thousand rubles.
Mothers with children under the age of 16 years are granted a one day leave each month with the 50% payment. During school holidays the vacation sanatorium "Korabelnaya Roshcha" and recreation centers operate in the mode of "Mother and Child", which is very convenient for the women employees. All Company subdivisions are provided with women’s hygiene bathrooms. Employed women can make use of the Breast Center services (consultations, surgery, treatment) and the Center of Family Planning at the Company costs. Money payments for birth of children in 2012 amounted to 9,140 rubles.
The number of employees on maternity leave, leave for child care as of December 31, 2012, amounted to 615 employees (all women), which is 3.2% of the authorised staff size.
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THE COMPANY AND EMPLOYEES
Every day, transportation companies deliver OAO Nizhnekamskneftekhim employees in three shifts via different routes. Bus circulation is also provided in the Company territory.
The employees' satisfaction with transport services is constantly monitored. Wishes of employees are transferred to carrier companies. Most of petrochemists are satisfied with the transportation services, both between the city and industrial zone, and in the Company territory. Solution of transport issues is an indicator of daily care of the Administration and the Trade Union about employees.
Program of Medical Support of OAO Nizhnekamskneftekhim Personnel The Company has insurance practice in place relevant to its employees and retirees who are registered with the insurance company "Spaseniye" within the Company Council of Veterans based on the systems of mandatory The Company has a lot of family dynasties, the total work and voluntary medical care insurance. experience of which exceeds 100 years. Every year, Christmas gifts are bought for children of employees, New In the hospital workers and pensioners get free treatment Year performances are organized for the Company at the expense of the Company. In addition, at the employees and their families. Celebration is organized in the expense of the Company, funds are allocated for Company subdivisions in connection with the International medicines required for treatment of petrochemists or Women's Day, the 8th of March with gifts distribution to the pensioners outside the hospital. After hospital treatment, employed women, mothers with many children, women, petrochemists are sent to the sanatorium based on the caring for foster children and children with disabilities. doctors’ recommendations. Annually, OAO Nizhnekamskneftekhim purchases new types of modern medical equipment for the hospital and sanatorium. In addition, each plant and the Company Headquarters have Organization of Transportation Service for their own health centers. Every year, several items related OAO Nizhnekamskneftekhim Personnel to health care are included in the Collective Bargaining. Provision of transport services is a significant component of The current system of medical support of OAO social welfare of petrochemists. Annually, OAO Nizhnekamskneftekhim personnel allows to obtain timely Nizhnekamskneftekhim allocates funds for free shipment of medical care by the employees and retirees, including the employees to/from the working place and in the territory of most complex and expensive operations at the Company the Company. costs in all medical institutions of Russia.
67 KEY FIGURES
627 mln RUB Occupational Safety Costs
1,690 managers and specialists were certified according to health and safety standards
242 members of non-professional emergency teams
10,652 employees passed regular medical examination
7,700 employees were vaccinated
124 activities within the complex program for prevention of drug addiction, 12 thou. participants
272 labour protection agents SAFETY AND HEALTH OF EMPLOYEES SAFETY AND HEALTH OF EMPLOYEES
OCCUPATIONAL AND INDUSTRIAL SAFETY POLICY
he Company strives to continually improve and develop the Company monitors and measures occupational and Tits activities in the field of occupational and industrial industrial safety parameters, publicly demonstrates plans safety on the basis of regular monitoring and control over and results of such activity, including through the results. Company reports available to interested parties. Developed and put into effect is the Company standard Policy of OAO Nizhnekamskneftekhim in the field of "Safety Management System", set are objectives and occupational health and safety and Program of occupational targets for monitoring risks and reduction of their level, health and safety management for 2010-2012 are available developed is the "Occupational and Industrial Safety on the corporate website of OAO Nizhnekamskneftekhim. Management Program for 2010-2012."
Besides, in order to monitor implementation of the Occupational Safety Costs (thou. rubles) complex of measures aimed at ensuring safe operation 2010 2011 2012 of dangerous industrial facilities, as well as prevention of accidents, incidents, elimination of their Occupational Safety Costs 362,080 499,177 626,955 consequences, the Commissions of Production Control has been set up at OAO Nizhnekamskneftekhim, which through monthly meetings, summarizes the results of work of subdivisions in terms of industrial safety, and OAO Nizhnekamskneftekhim is fully aware of its responsibility hears the leaders, in the subdivisions of which for preservation of life and health of employees. That's why incompliances were admitted.
70 OAO Nizhnekamskneftekhim | Sustainability report | 2012
SAFETY AND HEALTH OF EMPLOYEES
OCCUPATIONAL AND INDUSTRIAL SAFETY TRAINING SYSTEM
s part of occupational and industrial safety training, (Ufa), State Educational Institution of Further Education, AOAO Nizhnekamskneftekhim regularly carries out training Novomoskovsk. seminars for pre-qualification training followed by certification of the Company managers and specialists for the Annually, at OAO Nizhnekamskneftekhim, competitions are occupational and industrial safety rules and regulations. held according to the approved Regulations about OAO Nizhnekamskneftekhim management training is Conduct of Competitions among Fire Prevention Brigades arranged in dedicated educational institutions. In 2012, of Plants, Divisions of OAO Nizhnekamskneftekhim. 1,690 managers and specialists of the Company were In August, 2012, final exercises were conducted between trained. the best teams of fire-prevention units of plants and divisions on the training ground of Fire Station No. 33. The In 2012, in accordance with the plan of training and teams that won the first five places were awarded money advanced training of the Company employees within the gifts. In September 2012, on the training ground of IP-4, course of "Occupational and Industrial Safety Management final trainings were carried out between NASF teams of per OHSAS 18001 and Internal Audit", 51 employees were plants and administrative departments. trained from among newly hired engineers, senior authorized and re-trained experienced specialists in the field In order to test the ability of employees to provide first aid, of occupational safety and 25 employees – among chief training and subsequent competition are carried out specialists of plants, centers, offices, general purpose between sanitary brigades of the Company at OAO shops – within the course of "Improvement of the Company Nizhnekamskneftekhim. In particular, in 2012, OOO Safety Management System". Educational Medical Center "First Aid" (Kazan) trained 1,500 Company employees to practical skills in first aid. In 2012, 242 members of the contingency rescue units The sanitary brigade of OAO Nizhnekamskneftekhim won (NASF) were trained. NASF members are trained by the Cup and Certificate of Honor for the first place in teachers of OOO Center of Environmental Certification, national competitions for contingency rescue units in 2011 Insurance and Auditing (CESSA, Kazan), NPOU IC Tekhnika and the third place in 2012.
71 SAFETY AND HEALTH OF EMPLOYEES
EMPLOYEES’ LIFE AND HEALTH PRESERVATION IS THE COMPANY PRIORITY
n 2012, in order to ensure timely and full provision of centers in the territory of the Company) are equipped with IOAO NKNK’s employees with overalls, safety footwear, physiotherapy equipment and fitted with qualified medical and other personal protective equipment, a complex of personnel. In accordance with the agreement, attendance of programs for automatic purchase plan, accounting and petrochemists is free of charge, on the basis of the provision of overalls and safety footwear, in SAP ERP insurance policy under which payment for medical services system, has been put into commercial operation. is guaranteed. Particular attention is paid to the health of women working at OAO Nizhnekamskneftekhim. OAO Nizhnekamskneftekhim’s management pays great attention to employees’ opinion about personal protection In order to prevent tuberculosis, biennial fluorographic equipment. Thus, systematic public opinion polls show examination of workers is conducted in the clinic, which is that satisfaction with provision of personal protection located in the Company territory. Fluorography is conducted equipment is still very high. by low dose photofluorograph.
Collectives of subdivisions that achieved good results in As part of ensuring occupational safety, the Commission for ensuring production control over industrial safety and prevention of drug addiction and formation of healthy occupational health, had no violations of labor and lifestyle has been established in the Company . Developed production discipline, were given cash bonus. and approved is a comprehensive program for prevention of drug addiction with an appropriate series of lectures held in In order to prevent occupational diseases for the all OAO NKNK subdivisions. In 2012, over 12,000 employees categories of employees exposed to harmful production took part in 124 events. Complete ban on smoking in factors, a strict procedure has been established for administrative buildings of OAO Nizhnekamskneftekhim is in mandatory medical examination during employment, and place. Regular informing about the facts of detention of periodical medical examinations during regular activities. workers with symptoms of alcohol intoxication via In 2012, 10,652 Company employees were examined, the departmental TV-channels "VTS-Neftekhim", visual coverage amounting to 100%. In 2012, experts of FBUN propaganda is in place in the form of stands, sanitary "Ufa Research Institute of Occupational Medicine and bulletins in the factory clinic and in health centers at the Human Ecology" carried out an in-depth medical plants. During visits to the plants, workshop physicians hold examination using a variety of functional and laboratory lectures, discussions, debates on prevention of drug methods of examination of staff of OAO addiction, alcoholism and smoking addiction. Nizhnekamskneftekhim subdivisions exposed to harmful substances and production factors. Totally, 349 workers In accordance with the requirements of the Federal Law were examined. Besides, annual vaccination of workers is "About Sanitary and Epidemiological Welfare of Population", in place. To vaccinate employees of OAO production control of the factors of industrial spheres is Nizhnekamskneftekhim, vaccine "Vaksigripp" was underway in the workplaces of personnel by sanitary and purchased. 7,700 employees of OAO industrial laboratories, and laboratories of gas rescue Nizhnekamskneftekhim were vaccinated. brigades.
During 2012, in comparison with 2011, in terms of per All divisions of the Company engineering and medical 100 workers, total disease incidence decrease was noted commissions (EMC) have been established. Specialists from for all groups in days of loss of labour capacity by the technical departments of the divisions, workshop 2.31% (from 846.39 days to 826.87 days). Reduction was physicians, representatives of Trade Union organization, and identified for the following groups of deseases: workers participate in EMC work.
musculoskeletal system in terms of cases – by 6.71% In 2012, at the meetings of EMC with the representatives of (from 1.64 to 1.53 cases), in days of disability – by administration, Trade Union, OOO Medical Company 2.91% (from 19.26 to 18.70 days); "Spaseniye”, results of periodic medical examinations, x-ray screenings, analysis of morbidity, morbidity status, working alimentary system in terms of cases – by 31.90% conditions, progress reports of EMCs of the divisions, (from 1.16 to 0.79 cases), in days of disability – by implementation of proposals given in final acts of medical 33.17% (from 14.20 to 9.49 days); examination results (including provision with vouchers for health resort treatment) are reviewed. The Company took According to the agreement on health insurance of part in a meeting with the sanitary epidemiological employees with the insurance company "Spaseniye", commission of the City of Nizhnekamsk "Focused on diversified health care has been organized for all measures to reduce the incidence of influenza and acute employees. All health centers (in total there are 16 health respiratory viral infections." For personnel social protection in
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SAFETY AND HEALTH OF EMPLOYEES
the sphere of health care, in the 2012, vouchers were In the Company divisions, Occupational Safety Committees allocated to the sanatorium "Korabelnaya Roshcha" for the are functioning, that are created on a parity basis with the Company employees. equal number of representatives of the administration and staff employees. Share of personnel represented in the All the preventive work on occupational safety at OAO official joint Committees on health and safety with Nizhnekamskneftekhim is conducted with the active participation of representatives from the management and participation of trade union organization representatives. The employees involved in monitoring and development of Company has the authorized the system of labor protection recommendations with regard to programs on health and agents, when a specifically authorized employee, through safety in the workplace equals to at least 20%. study and observation of labor conditions offers (binding) improvements. For such purposes, the Company Trade The Occupational and Industrial Safety Management Union chose the 272 delegates, who check implementation System of OAO Nizhnekamskneftekhim finds public of labor protection measures under the collective bargaining, recognition and regularly takes part in different events. verify the correctness of using protective equipment by the According to the results of the IV Republican contest "Best operating personal, compliance with legislation relevant to OSH specialist – 2012", held in Kazan in February, 2012, provision of benefits and compensation to workers for the chief of the Health and Safety Bureau of the harmful occupational factors. Department of Energy Supply, OAO Nizhnekamskneftekhim, E.A. Shremzer was awarded the 2nd place for the best In 2012, at the proposal of the authorized labor protection knowledge of occupational health issues, the contestants agents, 3,587 activities were performed aimed at the above – occupational safety engineers N.V. Smirnova and R.F. objectives. It assumes the International Standard OHSAS 18001 Khakimov were granted certificates for active participation (section Communication, Partnership, and Advice) as well. in the competition.
PROGRAM FOR IMPROVEMENT OF WORKING CONDITIONS AND SUPPORT OF EMPLOYEES
Through detailed analysis and regular adjustment, OAO As part of study of the quality of working life in the Nizhnekamskneftekhim is constantly improving performance Company divisions, annual interviews are held about the indicators in the field of occupational safety. Management quality of work of health centers, health services in the means a process that begins with the prediction and Company. Most often, workers are treated for vaccinations, assessment of major risks to employees’ life and health, injections, first aid, as well as physical therapy. Specialists of risks of accidents, as the Company is fully aware of its health centers know from their practice about the problems responsibility for performance of measures on occupational of employees of supervised plants and promptly undertake safety, environmental protection and industrial safety. preventive measures. The results of social studies were discussed in collectives and published in the corporate Implementation of social programs, including through newspaper. Interviews were also held relevant to services improving working conditions of petrochemists, is reviewed provided by the sanatorium "Korabelnaya Roshcha". Interest annually when the results of fulfillment of the Collective of “Korabelnaya Roshcha” management in improvement of Bargaining are summarized. At the same time, to ascertain the sanatorium performance, feedback from resting people, the wishes of employees, petrochemists are interviewed. have positive results. Over recent years, the sanatorium has been offering an extended range of provided services, new Feedback, attention to the labor collective wishes on the specialists have been employed, the children's playground part of administration allow to continuously improve activities has been fitted. Most of resting people do not experience on health care, working conditions, support of the Company any difficulties in obtaining vouchers and are completely employees. satisfied with treatment in the sanatorium. Services and life
73 SAFETY AND HEALTH OF EMPLOYEES
in the sanatorium "Korabelnaya Roshcha" is constantly Activities included in the "Agreement on Occupational improved. In comparison with 2011, overall assessment of Safety", are developed taking into account suggestions of all aspects of health-spa vacation by resting people supervising authorities, employer, and employees based improved. Expectations as to rest in the sanatorium on analysis of the causes of occupational accidents and "Korabelnaya Roshche" are satisfied in most resting people occupational diseases, based on the results of as evidenced by the desire to visit the sanatorium again. examination of the technical condition of manufacturing equipment, as well as on the basis of the results of Simultaneously with the study of the quality of medical appraisal of jobs in terms of working conditions for services, satisfaction with production environment factors is compliance with occupational safety requirements. monitored. Separately, the level of satisfaction of garment and personal protective equipment provision is monitored. According to the Collective Bargaining, OAO Monitoring has been in place for 20 years. Every year, up Nizhnekamskneftekhim provides compensation of moral to two thousand of petrochemists are involved in such damage to the Company employees, caused to him/her in research. For a certain number of working condition connection with an accident at work or occupational indicators, satisfaction of petrochemists exceeds 80%: light, disease in accordance with the degree of disability of the aesthetics of workplaces, quality and frequency of insured person: for permanent disablement – based on equipment maintenance, cleanliness and tidiness of the amount of 85,000 rubles, for temporary disability – in working places, ventilation of industrial premises, room the amount of 100 rubles per each day, but no more than temperature. 15,000 rubles. In case of employee death as a result of accident at work, moral damage is compensated with the amount of 100,000 rubles.
Social Benefits Set Forth in the Collective A family member (husband, wife) of the person died at Bargaining work as a result of an accident, is annually paid lump sum material assistance by the Chemists Day in the Activities on improvement of working conditions and amount of an average monthly salary across the occupational safety of employees, their health care, Company. Thus, in 2012, by the Chemist's Day, 49 families addressing other social issues are conducted within the were paid a lump sum amount of 28,820 rubles per each Collective Bargaining. victim. In accordance with the Law "About Collective Bargaining Starting from 2006, no accidents have been registered at and Agreements", the Draft Collective Bargaining is OAO Nizhnekamskneftekhim. In 2010, three cases of discussed in all the Company divisions. A separate section occupational injuries were registered at the Company of the Collective Bargaining "Guarantees on Occupational facilities (one – with fatal outcome), in 2012 – two cases Safety, Health and Legal Protection" has been added with (one – with fatal outcome). The main reason for the the "Agreement on Occupational Safety", which includes aforementioned deaths was non-observance of labor measures aimed at prevention of occupational diseases, discipline by workers themselves. Since 2009, cases of accidents in the working place, improving conditions and occupational diseases have not been registered at OAO occupational safety, sanitary and domestic support of Nizhnekamskneftekhim (on the whole 19 occupational workers. diseases are registered at OAO Nizhnekamskneftekhim).
Data on Occupational Accidents Status
№ Parameter 2010 2011 2012 1 Number of accidents, including 3 (3*) 3 (0*) 2 (1*) 2 Frequency ratio 0.18 0.17 0.11 3Severity ratio 34.7 115.33 8.5 4Injury ratio 6.25 19.6 0.94 5 Disability 104 346 17
* – among them women
74 OAO Nizhnekamskneftekhim | Sustainability report | 2012
SAFETY AND HEALTH OF EMPLOYEES
Achievement of goals in the sphere of occupational safety in 2012
Goal Report of Goal Achievement
Positive dynamics in • A comprehensive occupational health program was implemented. According to the approved "Program of labor the number of protection and safety management at OAO Nizhnekamskneftekhim for 2010-2012", in 2012, 23 activities were planned; indicators in the field all activities were performed in full. of occupational health • Occupational Health Agreement was entered into. A separate section of the Collective Bargaining "Guarantees on Reduction of the Occupational Safety, Health and Legal Protection" has been added with the "Agreement on Occupational Safety", which number of jobs includes measures aimed at prevention of occupational diseases, accidents in the working place, improving conditions involving harmful and occupational safety, sanitary and domestic support of workers. In 2012, 30 activities were planned and carried out factors to improve working conditions and occupational health of employees for the amount of 19,452 thousand 900 rubles During the implementation of such activities, labor conditions of 1,657 employees were improved, including 636 women. Improvement of All activities were completed in full. workers labor • Improvement of Safety Management System was continued. In March, 2012, specialists of CQS «IQNet» Company conditions (Prague, Czech Republic) held a work-through audit of OAO Nizhnekamskneftekhim Safety Management System on compliance with the Directive of the International Standard OHSAS 18001:2007. Upon completion of audit, the Certification Body evaluated compliance of OAO Nizhnekamskneftekhim Safety Management System with the International Standard OHSAS 18001:2007. • Implementation of the centralized system for procurement of overalls and personnel protective equipment was completed. • Certification of work places was carried out based on working conditions in line with new legislative requirements. • Competitions were conducted to verify preparedness of fire-prevention teams of subdivisions to extinguish possible fires and their ability to use primary fire extinguishing means at OAO Nizhnekamskneftekhim according to approved "Regulations on fire – prevention teams in place at the plants and administration of OAO Nizhnekamskneftekhim” • Competitions were held on qualification of members of non-professional emergency-response teams in performing rescue operations according to the approved "Regulations on competitions between members of emergency rescue teams in place at the plants and administration of OAO Nizhnekamskneftekhim.”
The objectives in the field of occupational health for 2013 are mainly related to the continuation of achieving the goals of positive dynamics of the number of indicators in the sphere of occupational safety, reduced number of jobs involving hazard factors, improvement of occupational safety conditions of workers.
75 KEY FIGURES
2.8 bln RUB costs of environmental protection in 2012
224 activities for the amount of 3 bln RUB were implemented within the Environmental program for 2007-2015 (in 2012 – 76 activities for the amount of 829 million rubles)
Volume of waste waters discharge is 3,364 thou. m3 less than in 2011
From 2006 to 2012, the specific weight of pollutants was reduced by 58.8%, while the total net discharge of pollutants was reduced by 38%
8,508 pieces of trees and bushes, 26 ,600 pieces of fir-tree planting stock were planted in 2012 ENVIRONMENTAL ACTIVITIES ENVIRONMENTAL ACTIVITIES
ENVIRONMENTAL IMAGE OF THE COMPANY
Operating costs of maintaining environmental facilities in 2012 totaled 2.19 billion rubles. Industrial and municipal waste water from all companies and city are treated at the biological treatment plant (put into operation in 1966, capacity – 213 thou. m3/day).
Storm water, snow melted, blow-down and clean surface runoff from the industrial site of the first and second industrial areas are treated in the buffer ponds on the Tungucha River. Clean surface runoffs from the facilities in the north-western part of the site in the first area and Biological Treatment Plant (BTP). Secondary source wastewaters from water treatment facilities are purified in the buffer pond on the Strelochny Log River.
Concentrated wastewaters are incinerated in the waste water incineration facilities. Heavily contaminated wastewaters, prior to discharge to chemically polluted sewer, are previously neutralized at the local wastewater treatment plants: at the biological treatment of industrial wastewaters; at the facility for treatment and disposal of sulfur-caustic wastewaters (SCW). Besides, there are stripper intended for removal od organic contaminants from wastewater.
Most of off-gases are released into the atmosphere after treatment or neutralization in the flares (21 pcs.): Workshop 2509 (SPS Plant). regeneration gas afterburner, catalytic gas afterburner, unit Catalytic Gas Post-Combustion unit, title 120/3 for condensation and absorption of process vents, electric filters of dehydrogenation units (6 sets), scrubbers for sanitation of gas emissions (13 sets), dust-trapping units (61 sets), biofilters.
By-products generated in the process of main product production are disposed of as raw material for other products, steam, or used as a fuel at the plants: disposal of the liquid waste waters disposal plant, thermal treatment of waste waters, thermal treatment of liquid wastes, or neutralized at the unit for thermal treatment of liquid wastes and in the sludge incinerator. Solid and pasty wastes, for disposal or treatment of which no suitable technologies are available, are deposited on the Company’s own landfill (3rd PKZ-1. Air Monitoring Station and 4th hazard class) or transferred to dedicated companies. There is a deep sludge dewatering plant after the biological treatment unit.
Sludge reservoirs are provided for settling and temporary storage of municipal and industrial sludge generated during biological waste water treatment and wastes formed during water treatment, wastes of reagent waste water treatment.
Since 2008, the automated air pollution monitoring system has been in place: four stationary air monitoring stations were installed in the sanitary protection zone and along the perimeter of the industrial area of OAO Nizhnekamskneftekhim. BTP. Unit for Sludge Dewatering
78 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ENVIRONMENTAL ACTIVITIES
Environmental Social Responsibility
Being an environmentally and socially responsible negative forecast from the Ministry of Energy relevant to Company, OAO Nizhnekamskneftekhim covers hydrological and water situation in the Republic of environmental issues in a variety of media, working with Tatarstan due to aridity conditions remaining at the community organizations, rating agencies. As one of Volga-Kama cascade. Costs amounted to approximately the methods of implementation of environmental 160.2 million rubles. In 2011, construction of the programs, environmental issues are regularly covered in departmental park "Neftekhimik" was completed within the media. Over the year 2012, 42 publications on the the limits of the city. environmental topics were placed in periodicals, including 12 synopsis on TV. Publications were placed OAO Nizhnekamskneftekhim promptly responds to in such magazines as: "Industrial and Environmental complaints of citizens and workers. For example, along Safety", "Gaznefteprom", "Stroyekspertiza", "Top Builder", with the planned analytical air quality monitoring in the "Tatarstan", "Tekhnadzor", "Environment 2030", in such city of Nizhnekamsk in the Vakhitov Prospect and in newspapers as: "Rossiyskaya Gazeta" "Republic of human settlements (Alan, Martysh, Prosty, Afanasovo), Tatarstan", "Elite of Tatarstan", "Vatanym Tatarstan", personnel of sanitary and industrial laboratories of the "Tugan Yak", "Vahsa Gazeta", "Arguments and Facts", Technical Control Department of OAO "Nizhnekamsk Pravda," supplement to "Kommersant", Nizhnekamskneftekhim visited the sites and performed "Tatar-Inform". On TV "TNV" synopsis were shown in the analyzes on the complaints received. following programs: "Habitat", "Seven Days", "News Release". Environmental weekly summary is published Control over observation of the environmental legislation in the departmental newspaper of the Company is carried out in the course of audits conducted both "Neftekhimik". by inspection bodies, and by the Company: by environment and industrial control divisions, in the OAO Nizhnekamskneftekhim is an active member of course of individual audits, audits of the EMS. Over the Interagency permanent working group on 2007-2012, 75 inspections were conducted by environmental safety in the development of inspection bodies, including in 2012 – 21 inspections. Nizhnekamsk industrial complex, approved by the Administration of Rosprirodnadzor for the Republic of Resolution of the Cabinet of Ministers of the Republic Tatarstan carried out 16 inspections, including from of Tatarstan dated 08.06.2010, № 904-r. Well aware of 03.05.12 to 15.06.12, when a scheduled complex importance of environmental issues for the residents of inspection was carried out to verify compliance with the the city of Nizhnekamsk, the management of OAO Russian legislation in the sphere of nature management Nizhnekamskneftekhim is taking serious measures to and environmental protection, observance of the further mitigate impact of operations on the requirements and implementation of measures to environment, which is reflected in the long-term prevent environmental damage. During such inspection Republican target program "Environmental Protection of 26 orders was issued, 17 of which have been fulfilled Nizhnekamsk and Nizhnekamsk Municipal District for (the remaining are in the process of implementation). 2012-2015." The target program provides for implementation by the Company of 21 measures, which From 2006 to 2010, the Company was recognized as is 24.4% of the total number of activities for the amount the winner of the National Environmental Award "Eco of 3,626.1 million rubles, representing 28% of the total World", in 2009–2010 – awarded the diploma of the 1 planned costs for implementation of said program. degree winner, in 2011 – won the award "Eco World." In Under the program in 2012 11 activities were funded September 2012, the Company participated in the VII for the amount of 447.81 mln rubles. Inter-regional exhibition "Environmental Technology and Equipment of the 21st century", which was held in the Back in 2007, on the initiative of the General Director of exhibition center "Kazan Fair" with the support of the the Company, by efforts of OAO Nizhnekamskneftekhim, President of the Government of the Republic of a long phase was finished for construction Tatarstan, the Ministry of Environment & Mineral Nizhnekamsk potable water treatment unit. Currently, the Resources of the Republic of Tatarstan, the Ministry of city has a unique water purification system that allows Industry and Trade of the Republic of Tatarstan. the city residents to obtain drinking water of good According to the results of the contest, OAO quality. In 2011, for the purpose of uninterrupted water Nizhnekamskneftekhim was awarded the diploma of supply of the industrial complex and the city of Grand Prix in the category "Innovative environmentally Nizhnekamsk, works were completed for reconstruction friendly technologies", and was awarded a diploma "For of the village of Krasny Klyuch, which were promptly best representation of environmental activities on the started in September 2010, following receipt of the Company’s poster."
79 ENVIRONMENTAL ACTIVITIES
ARRANGEMENT OF ENVIRONMENTAL ACTIVITIES
OAO Nizhnekamskneftekhim focuses its efforts on Environmental Program of production activity, and at the same time pays increased OAO Nizhnekamskneftekhim and its Implementationn attention to environmental protection. All environmental OAO Nizhnekamskneftekhim implements the precautionary activities of OAO Nizhnekamskneftekhim are aimed at principle, carefully evaluating possible consequences when implementation of Environmental Policy adopted in 2003, taking certain decisions, in order, if possible, to avoid the main objective of which is improvement of serious or irreversible environmental disturbances. Due to environmental efficiency. The Environmental Management rapid growth of production, the planned program of strategic System functions in accordance with the International development of OAO Nizhnekamskneftekhim for 2008-2012, Standard ISO 14001:2004. to ensure sustainable development of the Company, the prospective Environmental program has been developed for The Company has the required basic regulatory 2007-2015. Among specific tasks solved by the program are documents in place. In 2012, the major part of increase of environmental efficiency and emergency approvals was updated. tolerance of production, development of environmental protection facilities, establishment of the effective system for Environmental monitoring is carried out by departmental monitoring and improving the environmental management laboratories of the Technical Control Department system, solution of environmental problems of Nizhnekamsk accredited to emission and environmental control. The municipal formation. Company has all the necessary environmental protection facilities. Over the period from 2007 to 2012, 224 measures (including 76 – in 2012) were implemented, as part of the Perspective environmental program and environmental action plans; the costs amounted to 2 billion 977 mln Rubles (including 829 mln rubles in 2012). Revised Regulatory Documents Validity License to collect, use, neutralize, transport 01.03.12 – perpetual In 2012, the costs for environmental protection amounted to and disposal of hazardous wastes, 2,845,316 thou. rubles3. № 16-00083
Document of approval of waste generation 12.09.12 – 31.12.15 norms and their disposal quotas, № L 43.467.12 List of wastes and their handling operations 12.09.12 – 31.12.15 (limits), № L 43.467.12
Permit of Rosprirodnadzor Department in the 16.02.12 – 29.12.16 RT to discharge harmful substances into the atmosphere, № V.43.94.12.60
Draft standards of allowable quantities of 31.10.12 – 27.09.17 substances and microorganisms discharged with waste waters into surface water bodies of OAO Nizhnekamskneftekhim
Permit to discharge pollutants alongside with 28.09.12 – 28.09.15 fugitive superficial run-off, № S.43.967.12.36
Permit to discharge pollutants alongside with 31.10.12 – 27.09.17 waste waters into the surface water bodies
Decision to grant use of a water body (the 7.12.12 Kama River for discharge of waste and drainage waters)
3 Detailed information is given in Appendix 1
80 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ENVIRONMENTAL ACTIVITIES
MAIN EVENTS RELEVANT TO ENVIRONMENTAL PROTECTION
Energy Saving —reduction of energy losses in the steam, heat and electric grids; OAO Nizhnekamskneftekhim is the largest utilities consumer among industrial companies of the Republic of Tatarstan, — increase of thermal protection of buildings; and consumes 9.2% of electricity and 29.2% of heat — reduction of auxiliary energy consumption; energy generated by the entire energy system of the Republic of Tatarstan. — replacement of lighting networks for up-to-date energy-saving lights; The energy sources of OAO Nizhnekamskneftekhim are — introduction of accounting information systems; Nizhnekamsk Power Station and Nizhnekamsk substation. Heat supply sources are as follows: branch of OAO — improvement of utilization of secondary energy "TGK-16" Nizhnekamsk HPP-1 and Nizhnekamsk CHP LLC. resources; —provision of production facilities with their own Natural gas is supplied to OAO Nizhnekamskneftekhim energy resources; from the main gas pipelines of OOO Tattransgaz via MDSs (main distribution stations) № 2, № 3. In 2012, OAO — use of variable speed drives; Nizhnekamskneftekhim consumed 2.39 billion kW/h of — columns reconstruction; electricity, 12.81 million Gcal of heat energy, and 510.5 million m3 of natural gas. The amount of indirect use — replacement of catalysts having higher efficiency of energy in the form of electricity consumption for lighting and selectivity. and electric heating at OAO Nizhnekamskneftekhim is monitored. The Company makes efforts to careful use of energy in this area. Efforts for systematic monitoring of indirect energy consumption allow to significantly reduce such consumption, for example, by means of careful In 2012, within the third Program, 62 energy saving selection of energy efficient materials, services and measures were implemented, including the following: production capacities, substitution of trips with telephone and video conferences. Butyl Rubber Plant: revamp of vents system in Shop No. 1306, replacement of lamps in lighting In order to further implement energy saving to reduce systems of the BR Plant for less energy-intensive energy consumption on the basis of Federal Law № items manufactured by PHILIPS, replacement of the 261-FZ of November 23, 2009, "About Energy Saving and catalyst in the dehydrogenation unit, pos. 1010-3 Energy Efficiency Improvement and about Amendments to instead of converter on the agitator drive pos. 78/2; Certain Legislative Acts of the Russian Federation" and Synthetic Rubber Plant: revamp of lighting system Energy Strategy of Russia until 2020 at OAO at the outside process facilities, manufacturing Nizhnekamskneftekhim, the third Energy Saving Program buildings using energy saving lamps, replacement comes into effect for 2011-2015 with the perspective up to of power equipment of units LK-8/1, LK-8/2, LK-8/7 2020. It includes 246 energy-saving measures planned. It for Simoreg converters, use of finned coils in the is assumed to save: 367 million kWh of electricity, 878 water heater pos. P-3/1 of IP-6 loop; thousand Gcal of heat energy, 47.5 thousand tons of fuel equivalent. Isoprene-Monomer Plant: Replacement of lights on IF-7, 8, 9, 16, 17 for the lights with energy saving lamps manufactured by Philips; Ethylene Plant: Revamp of E-VA 122 pyrolysis Perspective Trends of Energy Saving Program: furnace, SRT-VI type, replacement of the upper row — replacement of equipment that worked out its service of the module for raw materials of convection coils life for less energy-intensive equipment; on the pyrolysis furnace E-VA-103, SRT-II type; — reduction of specific consumption of electric and Water Supply, Sewage and Waste Water Treatment thermal energy for production;; Department: Revamp of the system of synchronous motor with transition to digital excitation system — improvement of energy efficiency at the existing VTE-315-11 CE in workshop number 3405 at the II facilities; water supply station on the motor SDN-15-49-6, — introduction of advanced energy saving technologies; with the capacity of 1600 kW pos. N-8.
81 ENVIRONMENTAL ACTIVITIES
Saved: 114.38 thou. Gcal of thermal energy, 18.84 million including using new Czech cell-type cooling towers; kW/h of electricity, 2.48 thousand tons of fuel equivalent. the costs amounted to 713.8 million rubles. In 2012, The economic effect of implementation amounts to 125 four towers were renovated and put into operation, the million rubles. amount of expenses equaled to about 230 million rubles. OAO Nizhnekamskneftekhim is working to address the problem of a rational system of power supply, Water discharge optimization of the reactive power flows being one of its focuses. Completion of this work will significantly reduce Pollutants are discharged into water bodies on the losses, increase the throughput capacity of the system basis of the "Draft regulations on permissible content elements. The task of improving reliability and technical of substances and micro-organisms discharged and economic efficiency of distribution systems and together with waste waters into surface water bodies", power grids based on reactive power flow control and "Permits for discharge of pollutants into water bodies" voltage level stabilization is defined at OAO and "Permits to use water bodies." Nizhnekamskneftekhim as a priority. For example, during preparation and issuance of technical specifications for All contaminated industrial and household sewage power supply of newly built plants within the capital effluents of the Company jointly with effluents from construction program, one of mandatory requirements is other companies and municipal effluents are treated at maintaining the tg factor within the desired range by the biological wastewater treatment plants owned by installing compensating devices. OAO Nizhnekamskneftekhim. For pre-treatment or decontamination of extremely polluted effluents directly In 2011, in order to maintain the required amount of in the process shops, dedicated local treatment plants reactive power factor at the electrical installations are provided. Rain and melt waters formed in the (transformer substations) in OAO Nizhnekamskneftekhim’s territories of petrochemical plants, before being divisions, such as Polystyrene Plant, SPS Plant, Oligomer discharged into the water courses are also clarified in Plant, Ethylene Plant, Synthetic Rubber Plant, after survey buffer ponds and at the dedicated station. performed and equipment selected, 22 RPC installations having total capacity of 5,525 kvar were installed and Downstream biological treatment plants, waste waters put into operation to achieve the estimated savings of are discharged to the Kama River, downstream purge 2,303 kWh per year; besides, an RPC unit with the water treatment unit with the buffer ponds on the capacity of 500 kvar was installed at TP-1205 within the Tungucha river – to the Avlashka River, downstream newly commissioned rubber unit Welding-3 (Synthetic the buffer pond – to the Stelochny Log Brook, via the Rubber Plant). In 2012, 18 RPC units were put into Stelochny Log Brook – to the Kama River. operation with the total capacity of 4,600 kvar, including 8 units installed in electric rooms of the new ABS Plant In 2012, the volume of waste waters discharge of OAO and SKD-L Plant. Currently, 111 reactive power Nizhnekamskneftekhim to water bodies after four 3 compensation units are installed at the Company having discharges amounted to 43,698.3 thou. m, that is 3 total capacity of 35.740 MVA. 3,364 thou. m less than in 2011. The quality of treated waste waters in all the discharges in 2012 improved compared to 2011, that Water consumption is confirmed by the pollution index. Water pollution The source of water supply is surface water of the index (WPI) is an integral indicator of water quality Kama River and ground waters from artesian wells in the assessment, which is calculated as the average of the recreation center "Dubravushka", hunt society "Osha". ratio of actual contaminants and their MAC in the OAO Nizhnekamskneftekhim consums water under the fishery waters. Contract for water utilization with the Department of Water Resources for RT NVBVU and licenses4. Specific In 2012, no spills of chemicals occurred that can have water consumption in 2012 decreased by 2.4% a negative impact on the environment, posing a compared to 2007. potential threat to soil, water, air, biodiversity and human health. The advanced system of water recycling system of OAO Nizhnekamskneftekhim allows to reduce the demand for Improvement of runoff quality can be attributable to fresh water used as coolant. OAO Nizhnekamskneftekhim improved effluent quality discharged from OAO is constantly working on improvement of efficiency of Nizhnekamskneftekhim plants and more efficient recycled water utilization through introduction of operation of treatment plants in 2012 due to activities advanced technologies of water treatment and undertaken in the Company divisions to improve the reconstruction of cooling towers. Over 2007-2012, number of facilities at the treatment plants. reconstruction and complete repair of ten towers,
4 Water consumption for the Company needs is given in Appendix 2 5 See Appendix 3
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ENVIRONMENTAL ACTIVITIES
Atmospheric emissions Initiatives on Reduction of Greenhouse Gas Emissions and Reduction Achieved OAO Nizhnekamskneftekhim continuously undertakes activities on reduction of pollutant emissions into One of the methods of implementation of atmosphere. As of the end of 2012, at OAO the Environmental Policy is rational use of Nizhnekamskneftekhim, inventoried are 2,863 sources of natural resources and reduction of negative pollutant emissions into atmosphere. impacts on the environment. At OAO Nizhnekamskneftekhim, advanced In 2012, 34 measures were introduced at the Butyl technologies are introduced and activities Rubber, Divinyl benzene and Hydrocarbon Feedstock, developed that reduce greenhouse gas Synthetic Rubber, Isoprene Monomer, Polystyrene, Styrene emissions. For example, use and and Polymer Resin Plants and facilities of the Water and development of one-stage isoprene synthesis Wastewater Treatment Plant to reduce emissions of air allowed to reduce specific feedstock pollutants, including 15 measures implemented at the consumption for the production of isoprene Divinyl benzene and Hydrocarbon Feedstock, Ethylene, by 15%, specific heat energy consumption Synthetic Rubber Plants aimed at reduction of butadiene twice, specific fuel gas consumption 3 times, emissions. the amount of waste waters twice, amount of harmful emissions into the atmosphere As a result of works performed, the overall emissions 10 times, reduction of greenhouse gas 6 from 2006 to 2012 decreased by 16 thousand 942 tons emissions by 80 kt of CO2 equivalent per (38%), specific emission of pollutants decreased year. by 58.8%.
The total harmful emissions into the atmosphere, based Waste Generation and Handling on the reporting data for 2012, is 27.289 thou. tons, Currently, 310 wastes are generated at OAO being 0.9 million tons more than over the same period in Nizhnekamskneftekhim, including the 2011, that can be due to ABS Plant, PBR-Li Plant startup following types of wastes: I hazard class – and HBR Plant capacity extension, as well as increase in 5 wastes; II hazard class – 23 wastes; output. III hazard class – 163 wastes; IV hazard class – 73 wastes; V hazard class – 46 wastes. Wastes are generated in the Total Direct and Indirect Greenhouse Gas process of production, as well as through Emissions with Mass Indicated use of materials and products purchased At OAO Nizhnekamskneftekhim, greenhouse gas from third parties. emissions are kept recorded that generate as a result of production activities. Most of the resulting liquid and solid wastes (catalysts) do not require temporary storage, The main direct greenhouse gas emissions7 are formed as being removed from the production cycle at OAO Nizhnekamskneftekhim as a result of: fuel burning from time to time, and process equipment is (natural gas, fuel oil) during generation of electricity and used for temporary storage. Dedicated heat energy at its own plant GTU-75 and during steam facilities and grounds are arranged for generation at the installation: liquid waste disposal, IP-4 temporary storage of other wastes. III and V/2 (condensate re-volatalization unit) and boilers of water IV Hazard Class solid and slimy wastes are supply, sewage and wastewater treatment, and social placed on its own landfill for industrial development departments; fuel burning (natural gas, wastes. Receipt of wastes to the landfill is blowdowns) during produce manufacture; fuel combustion provided from third parties in accordance by vehicles; leakages in the production of ethylene, with the license. For liquid waste styrene; disposal of wastes on the industrial wastes decontamination, the Company has special landfill; biological treatment of wastewaters. units. The main part of liquid wastes generated is used as fuel at own facilities. Increase of direct emissions of greenhouse gases in 2012 OAO Nizhnekamskneftekhim has no waste compared to 2011 by 389.4 thou. tons was due to recycling facilities, and therefore wastes being reorganization of the DBO affiliate through its integration secondary resources (ferrous and nonferrous with the IM Plant, OAO Nizhnekamskneftekhim. metal scrap, waste paper, waste polyethylene and polypropylene, etc.) are delivered to the The main source of indirect emissions of greenhouse dedicated companies. Part of wastes is gases at OAO Nizhnekamskneftekhim is fuel burning transferred to third parties for during energy generation by OAO Generating Company decontamination: mercury-containing – Power Plant, from which heat and electricity are products, transformers with oil containing purchased for OAO NKNK needs. biphenyls and terphenyls, batteries, etc.
6 Dinamycs of gross pollutant discharges to the atmosphere is presented in Appendix 4 7 Direct emissions of greenhouse gases are given in Appendix 5
83 ENVIRONMENTAL ACTIVITIES
Total Weight of Wastes Split by Type and Handling Method In 2012, OAO Nizhnekamskneftekhim generated 78,557.48 tons of liquid and solid wastes. Among them: 77% was used, including 23% were used for own production; 54% was transferred for use by third party organizations; 18% was neutralized and landfilled, including 10% was neutralized and landfilled at own plants and facilities, 8% was neutralized by third party organizations; 5% was allocated at storage facilities.
The share of wastes generation by hazard class versus the total weight of wastes generated in 2012 is as follows: I hazard class – 0.006%; II hazard class – 10.21%; III hazard class – 24/374%; IV hazard class Existing landfill area, preparation of cell No. 42 – 55.81%; V hazard class – 9.6%. for hydroinsulation II hazard class waste formation was reduced from 45.4% to 10.21% compared to 2006. This is due to increase in sale of marketable products, which, in turn, led to decrease in waste quantity used at own plants as fuel.
Since 2006, formation of nonutilizable wastes8 reduced by 1,597 tonns or by 17.5%; specific formation of nonutilizable wastes reduced by 45%.
Share of Materials that Represent Processed or Recycled Wastes
The beginning of construction and installation works to increase production capacity of polybutadiene rubber and continued works on ABS-plastics site resulted in increase in the amount of hazard Class IV Existing landfill area. wastes (construction wastes) in 2011 compared to Laying the 1-st layer of geomembrane “Karbofol” in cell No. 47 2006 from 24.3% to 31.8% which led to increase in share of wastes transported for use by third-party organization. Construction wastes are used for reclamation of T-1 pit as a filler.
Share of recycled wastes is calculated based on the ratio of the total weight of recyclable wastes at own units to the total weight of raw materials used, and amounts to the following: in 2006 – 2.1%, in 2007 – 1.8%, in 2008 – 1.7%, in 2009 – 1.8%, in 2010 -1.3%, in 2011 – 0.8%, in 2012 – 0.05%. Reduction of the share of reused wastes is be attributable to decrease of wastes quantity generated.
In 2012, works were continued on removal of polymer wastes from the existing pits of the industrial waste landfill by outside organizations for further processing.
In 2012, 200 tons of rubber were removed, in 2011 – 610 tons, in 2010 – 1800 tons, in 2009 – 230 tons, Existing landfill area. Laying the 2-nd layer of geomembrane in 2008 – 320 tons, in 2007 – 210 tons, in 2006 “Sekuteks” in cell No. 48 – 190 tons.
8 Formation of unusable wastes is described in Appendix 7
84 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ENVIRONMENTAL ACTIVITIES
Efficient use of land Great importance is given to efficient use of land. In particular development of production is carried out without involvement of additional land resources. A new 60 KTA ABS-plastics production, a new 230 KTA polyethylene plant and a new 180 KTA polypropylene plant were launched in 2012, 2008 and 2006 respectively without involvement of additional land resources.
The Company is constantly working on conservation and restoration of natural landscape. Lands disturbed during repair of underground facilities are restored with application of fertile soil layer; coffins are reclamated and filled with construction waste with following backfilling and tree- planting.
Environmental impact of transportation 47, 48 were carried out with the application of modern The main environmental impact of transportation of raw waterproofing materials. In 2012 works for handling of oil materials and NKNK’s employees is associated with air sludge from the territory of industrial waste disposal site emissions and possible soil contamination, as were carried out with the assistance of specialized transportation of products, feedstock and materials is organizations: 2 thousand 145 cubic meters of oil sludge carried out mainly by road, railway and by pipelines, are removed from the waste cell №7. In 2012 work for while transportation of workers is carried out by motor increasing the capacity of collector for drain water pumped transport. Motor vehicles are used based on contracts out of the territory of industrial waste disposal site to with specialized transportation organizations: for Biological treatment plant. passengers – TransExpress, for product transportation – Trasko and Kamatraks. The organizations ensure annual maintenance of vehicles with checking exhaust gas toxicity. Within OAO Nizhnekamskneftekhim there is Natural landscape maintenance. Planting of a Railway Transport Division which provides relevant greenery services on its own and with the assistance of specialized companies. Every year in warm season the workers of the Company carry out clearing of suburban forest sector assigned by direction of Nizhnekamsk city authorities, planting of flowers, trees and bushes instead of lost ones and in the newly built-up territories of the city and the Company. Initiatives aimed at mitigating environmental impact of products and services and degree of Great attention is paid to planting of greenery in the impact mitigation territory of the Company and the city. In 2007-2012 the In 2012 OAO Nizhnekamskneftekhim has developed and workers of OAO Nizhnekamskneftekhim planted 8508 trees partly realized (according to the set term) activities for and bushes were planted on the area of 51 hectares on 2012-2017 for mitigating of negative effect of pollutant the north-east of the biological treatment plant in direction emissions (ammonia, formaldehyde, divinyl, ethylene oxide, (including 386 pieces in 2012 г), 3,3 million flower plant chromium oxide, sodium hydroxide) to atmosphere. (including 460 thousand pieces in 2012 г), permanent grass seeds on the lawns in the area of 131 ha (including In 2012 the Company continued the works started in 30 ha, 3095 kg in 2012). The forest area «Korabelnaya 2011 for evaluation of the environmental effect of existing Roshcha» was cleared. industrial waste disposal site by engineering surveys: geodesic, geological (OOO «Stroiproyektiziskaniya»), In 2011-2012 plantation of the sanitary protection area environmental and hydrometeorological (OOO (SSZ) of the biological treatment plant was carried out in «Ekologuiya»). In 2012 technical design specification was the area of 51 ha in direction of Nizhneye Afanasovo with issued and design institute «Soyuzkhimproyekt», Kazan, the assistance of GBU Nizhnekamskles at the expense of has developed a project of bringing the existing waste OAO Nizhnekamskneftekhim; 193,800 of young pine trees disposal site into accordance with the standards. were planted on the area of 51 hectares; and in 2012 planting of greenery in SSZ near the village of Prosti was In 2012 in industrial waste disposal site the works for carried out; 26,600 of young fir-trees were planted on the waterproofing reinforcement of three waste cells №№ 42, area of 7 ha.
85 ENVIRONMENTAL ACTIVITIES
acetonitrile, surfactants, formaldehyde, phenols, ethyl benzene, methanol and aromatics in treated wastewater discharged into the Kama River was reduced and TBOD value was improved in 2012 as compared to 2011.
In 2012, the divisions of OAO Nizhnekamskneftekhim continued works for improving the quality of water drained to the systems of chemically contaminated and storm water sewage.
In 2012, the works were completed for erection of waste water cooling circuits downstream the vessels Е-AD-701 in the shop 2104 and Е-DA-411 in the shop 2106 of ethylene production plant and erection of cooling circuit for off-spec steam condensate in production of propylene terpolymers upstream of pumping out to chemically contaminated water collector in the shop № 2807 oligomers production plant.
Waste water treatment services Biological wastewater treatment plants of OAO Nizhnekamsk- neftekhim are used for treatment of household and industrial wastewaters of OAO Nizhnekamskneftekhim, of all industrial enterprises and municipal drainage of Nizhnekamsk. Blowdown water from OAO NKNK cooling towers and storm water runoff from facilities of OAO NKNK and OAO TGK-16 are treated in blowdown water treatment unit with buffer ponds on the Tungucha River.
In 2012, in order to improve quality of the effluent to the Kama River the works were continued on modernization of certain units of the biological treatment plant.
In 2012 financing of work on Biological treatment plant facilities accounted about 26 million roubles:
• repair works were completed on the primary settling tank sludge scraper item O9/2, settling pond is put into operation; • overhaul repair of two secondary settling ponds was carried out; • water-proofing of three chambers of chemical drain sand traps was carried out; • repair of gravel-filled filters and filtration plant ducts of the biological treatment plant filtration station was carried out; • repair and replacement of air distribution system of two aerotanks was completed; • repair and removal of alluvial soil from two waste water sparger to the Kama River downstream biological treatment plant. In 2012, the work was carried out for removal and transfer to the specialized organization of previously accumulated wastes from the territory of biological treatment plants in the amount of more than 2 thousand tons. As a result of the work on improvement of certain facilities of biological treatment plant concentration of petroleum products, ammonium ions, nitrites, ferrum, manganese, titanium,
86 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ENVIRONMENTAL ACTIVITIES
Conservation of biodiversity Environmental training The Company’s production facilities are located outside OAO Nizhnekamskneftekhim pays great attention to the the natural area of preferential protection created or personnel training. Ecological training of personnel is reserved for this purpose based on decisions of the carried out with the assistance of teachers if high-school Government or regional public authorities of RF. They of RF and RT and specialists of the Company accredited are equally not located on wetlands of international for training. In the Company a tutorial and environmental importance, main ornithological areas or particularly training programs are developed for workers, managers sensitive sea areas and areas of sea mammals’ and specialists. General instruction on ecological protection and have no impact on them. protection is in operation; such instructions are developed in all the shops including service shops. With the assistance of specialized organizations and educational Production improvement in order to enhance institutions in 2007-2012, 260 managers and specialists environmental friendliness improved their qualification at the course «Ecological For the purpose of improvement of ecological efficiency Management» (including in 2012 – 80 people), 298 people of production facilities there were carried out activities (including in 2012 – 70 people) were trained for permit to for renewal and modernization of production equipment, hazardous waste products handling, 53 specialists – were application of state-of-the-art technologies, use of flare trained for radiation security issues (including in 2012 – 8 abgas as fuel, optimization of technological processes people). modes.
In accordance with the applicable laws during development of any new project the Company takes into account nature and severity of all potential impacts of future facilities on the environment and public health, carries out assessment of ecological, economic and social consequences of such impacts and considers the possibility of their preventing or mitigation. The environmental impact assessment is based on the principle of presumption of potential ecological hazard of any planned activity. Based on the assessment results the Company takes environmentally oriented managerial decisions also taking into consideration stakeholders’ opinion.
Mastering one-stage isoprene production resulted not only in 230 t/y reduction of emissions and 200,000 m3/y reduction of waste water amount during isoprene production but also in higher purity isoprene with lower content of impurities which in its turn improved butyl rubber production polymerization process and helped to reduce by-products generated in the process.
Within the framework of the future-oriented development program for 2008-2012 OAO Nizhnekamskneftekhim is increasing production of synthetic butadiene rubber on lithium catalyst (SKD-L) and halobutyl rubbers. Nizhnekamskneftekhim’s halobutyl rubbers are having a great run among tire producers (Michelin, Goodyear, Pirelli, and OAO Nizhnekamskshina). Use of halobutyl rubber instead of butyl rubber allowed to increase the cure rate and to reduce the cure temperature making the curing process less energy-consuming which in its turn has a positive effect on natural resources conservation. Use of halobutyl rubber in tubeless tire liners due to high gas impermeability helps to increase service life of tires (aging time) and to reduce waste.
Use of SKD-L in polystyrene production ensures high impact resistance which ultimately leads to the increase of service life of products made of high-impact polystyrene and reduction of waste.
87 ENVIRONMENTAL ACTIVITIES
ENVIRONMENTAL MONITORING
n the enterprise there is a well-arranged environmental In the atmosphere air of Nizhnekamsk in Vakhitov avenue Imonitoring which is carried out by accredited and certified the content of ethylene oxide is less than 0.0005 mg/m3, laboratories of Research-and-Development Center. and the content of divinyl is less than 0.0005 mg/m3 in 293 cases from 299 measurements, in 6 cases it is higher that In May, 2008, the first stage of automated air pollution the referent concentration (0.002 mg/m3) but less than monitoring system was put into operation. There are fixed maximum concentration permissible for the atmosphere air air control stations in the sanitary protection zone which of residential areas (3 mg/m3). check the content of hazardous substances in the air along the perimeter of the industrial zone of the enterprise In 2012, 15885 analyses of the atmospheric air quality were in the direction of neighboring locations. The results of carried out in the residential areas for 27 values and only in analysis are transferred on a 24-hour basis through the 15 cases (0.09% of total number of analysis) there were communication system to monitoring center located in the discovered nonconformance with normative standards of sanitary-and-industrial laboratory, to the environmental maximum permissible concentrations; at that only in two protection department and to the Central Dispatch Room cases the direction of wind is connected with the industrial of OAO Nizhnekamskneftekhim. site effect. There were recorded 10 cases (1.16%) of formaldehyde content excess from 864 researches and 2 The automated monitoring system allows for fast access to cases (0.23%) – of ammonia content excess from 864 information, identifying the sources of air pollution and researches in Vakhitov avenue; 1 case (7%) of phenol taking timely measures in order to prevent environmental standard content excess from 14 researches in Ishtiryakovo pollution, as well as receiving unbiased information village; 1 (1.7%) – of formaldehyde content excess from 60 regarding the environmental impact of the Company's researches and 1 – of ammonia content excess (1.8%) from activity. 55 researches in Prosti village. The results of atmosphere contamination monitoring in the other residential areas did In the process of automated monitoring system not exceed Maximum One-Time MPC norms. It is necessary modernization in subsequent years besides the atmosphere to note that control post in Vakhitov avenue, 13, is located monitoring in the sanitary protection zone there was in immediate neighborhood of motorway and excess of established continuous monitoring of catalyst fines formaldehyde content is connected with intensive road traffic. emissions from dehydration assemblies on the shops of synthetic rubber and isoprene monomer production shops Total number of researches carried out by sanitary-industrial with transfer of analysis results to the shop operators laboratory of Technical Control Department of OAO rooms. For monitoring of contamination level of chemically Nizhnekamskneftekhim accounts 120,256 including contaminated drainage water pumped to biological monitoring of atmosphere – 35,740, waste water – 27,400, treatment plant, an organic impurity content analyzer was physical factors – 55,194, drinking water monitoring – 1,922. installed on the outlet from the industrial site territory with Totally Biological treatment plant laboratory of Technical transfer of analysis results to the dispatch room of water Control Department of OAO Nizhnekamskneftekhim collected and wastewater treatment department and to environmental 26,449 samples and carried out 75,285 analysis of incoming department. and rectified drains, water from the wells controlled, water in Kama river 500 m upstream and 500 m downstream the In 2011-2012, works were carried out to implement an outlets. automated system of monitoring the quality of wastewater discharged from OAO Nizhnekamskneftekhim’s plants: equipment is installed and there is carried out automated monitoring of waste water quality drained from coproduction of propylene oxide and styrene and from production of isoprene monomer. Data are transferred to corporative system of analytical control.
Within the framework of monitoring system modernization in 2011 sanitary-industrial laboratory of Technical Control Department is equipped with Helium Mass Spectrometer that in 2012 allowed to mature more sensitive methods of priority contaminating agents detection (from the point of view of population health risk assessment): divinyl, ethylene oxide, propylene oxide in the atmosphere air of residential areas. Analysis of data received from July till October, 2012, shows that the content of ethylene oxide and divinyl in the villages of Alan, Martish, Prosti is less than the sensibility of the method (0.0005 mg/m3).
88 OAO Nizhnekamskneftekhim | Sustainability report | 2012
ENVIRONMENTAL ACTIVITIES
RESULTS OF ENVIRONMENT-RELATED ACTIVITY
Every year the Company proves compliance with To bring the landfill up to the requirements of standards and regulations the international standard of ISO 14001:2004 To finish the works for creation of the system of in the course of compliance audit. In 2012 trouble proof sludge removal from buffer pond №2 Czech quality association carried out the re- on the Tungucha river and to carry out clearing of accreditation audit. Tasks and objectives set for the pond 2012 are fulfilled in the whole. To finish revegetation of closed landfill To continue works for modernization of waste water quality monitoring system To continue works for development of recycling Objective Achievements water supply system ecological efficiency improvement expressed in + specific units (in prices of 2004) To continue repair-and-renewal operations in underground systems reduce of specific flow rate since 2006 till 2012: + To correct and continue execution of «Ecological - drinking water by 11% program of OAO Nizhnekamskshina for 2007 – 2015». - electrical power by 17% To participate in execution of the Republican target - thermal energy by 22% program «Environment protection of Nizhnekamsk - specific emissions to atmosphere by 59% and Nizhnekamsk municipal region for 2012-2015» In connection with changes in process to get the - specific waste water discharge by 24% new получить authorization documentation in the - specific nonutilizable production waste generation by 45% sphere of environment protection
beginning of work for landfill cell hermetization; +
getting authorization documentation in the sphere of Positive results of environmental activities of OAO environment protection in connection with expiry of + validity period; Nizhnekamskneftekhim are noted by the government bodies of Russian Federation and Republic of carrying out the re-accreditation audit + Tatarstan:
carrying out the personnel training in the sphere of waste handling, radiation safety, ecological + since 2005 till 2012 according to the results of management; all-Russian competition every year OAO Nizhnekamskneftekhim confirms the title of «Leader proceeding the works for realization of the Republican target program «Environment protection of environmental activity in Russia». In July, 2012, for + of Nizhnekamsk and Nizhnekamsk municipal region the first time OAO Nizhnekamskneftekhim for 2012-2015»; participated in international forum «Human health and ecology» taken place in Moscow upon an Intensification of work for coverage of environmental activities in mass media + initiative of the State Duma Committee of RF on health protection and the Company was awarded by honorary diploma «Leader of high tech in the sphere of health and environment protection». Main tasks and objectives in the sphere of since 2005 OAO Nizhnekamskneftekhim participates environmental protection for 2013-2015: in the annual republican competition «EcoLeader» established by the government of RT; it is the Enhancement of ecological effectiveness repeated diploma winner and once and again To carry out the reconstruction of biological treatment awarded by diplomas дипломами in different plants nominations: works for decrease of contamination; for implementation of resources-saving technologies; To lay the 2nd pipeline of chemically contaminated for effective ecological program; for effective collector from the production site ecological management. In 2007 the Company was To carry out the reconstruction of water supply system for acknowledged as the absolute winner of the supply of clarified water to EP-1000 republican competition «EcoLeader».
89 KEY FIGURES
11.9 bln RUB are transferred to the budget
443.9 mln RUB maintenance of social objects
962 mln RUB physical training and sport
8.9 mln RUB charitable and sponsor support
140 mln RUB housing and nonindustrial building construction
80.7 mln RUB financing of social events
49.9 mln RUB are directed for agricultural sector support
261.4 mln RUB are directed for the Company workers health improvement
149.8 mln RUB non-state pension provision and support of pensioners and handicapped people THE COMPANY AND COMMUNITY THE COMPANY AND COMMUNITY
OAO Nizhnekamskneftekhim interacts with thousand of people and affects the society in different ways. OAO Nizhnekamskneftekhim invests funds to economical and social development of the territories of presence using partnership with the main groups of the parties concerned (local authorities, municipal and public organizations, charity funds, national associations, educational, culture and sport organizations etc.) as the basic mechanism.
Information of payments to budged, thousand roubles
2011 2012 Name Assessed Transferred Assessed Transferred Budget of Russian Federation 5,640,396 5,617,056 5,628,175 5,797,985 including customs duties 368,401 404,980 164,819 112,828 Budget of the Republic of Tatarstan including target budget funds 5,007,983 4,666,928 4,871,291 5,298,474 Budget of Kazan 5,682 4,510 5,984 5,864 Budget of Nizhnekamsk 654,948 646,419 774,242 760,992 Other constituents in the Russian Federation 26,620 26,901 25,451 25,588 Total 11,335,629 10,961,814 11,305,143 11,888,903
The approach of OAO Nizhnekamskneftekhim to town problems. Nearly all the respondents are well organization of interacting with the groups concerned is informed about the activity of OAO Nizhnekamskneftekhim based on the dialogue in all the stages of production (97% noted that they know about the activity of OAO). cycle. New production building is followed by First of all such information is received from television, consultations with the representatives of local society of newspapers, the Company workers, friends, Nizhnekamsk. Cooperative making of decisions of acquaintances, relatives, internet, corporate site and radio. social-and-economic planning and necessary According to the opinion of the majority of respondents infrastructure construction takes place. Successive for the personnel the most important is such achievement development of business and improvement of social and as stability of work and salary, significance of social economic conditions of local society are two inseparably protection of the workers on the base of Collective associated processes. OAO Nizhnekamskneftekhim Employment Agreement, additional social insurance supports the society through the programs of (payment of non-state pensions, voluntary health cooperation, sponsor support and charitable gifts. OAO insurance, support of veterans etc.). Nizhnekamskneftekhim is an active participant of all the social programs of Nizhnekamsk. According to the opinion of the citizens in the course of the years of its work OAO Nizhnekamskneftekhim made In present-day conditions township-forming enterprises the largest contribution to development of petrochemical play a special role: they become the center of stability branch of the country. Every third noted participation of and functioning of the town, in other words, they acquire the enterprise in beautification of the town, clearing of the a special social responsibility. The effectiveness of assigned territories (maintenance of the road part obligations declared by OAO Nizhnekamskneftekhim in «Sobolekovo road», construction and maintenance of «Park 2012 was defined by the research of the opinion of the of the petrochemists»), and every forth considers that citizens of Nizhnekamsk about the role of the Company development of industrial and innovation potential of the in the live of society (930 people were questioned). For town, region and republic is directly connected with the the half of respondents OAO Nizhnekamskneftekhim is joint stock company. The largest contribution of OAO associated with stability, one third of citizens connects Nizhnekamskneftekhim the citizens see in provision of the enterprise with stable development, progress, worthy quality of life for petrochemists and citizens, in professionalism. For majority of respondents OAO support of sport, development of the town infrastructure, Nizhnekamskneftekhim is a township-forming enterprise. accommodation construction, enforcement of environmental People are aware that welfare of the town depends of protection measures (construction and reconstruction of the Company stability; that the management of OAO water supply intake, construction of biological treatment Nizhnekamskneftekhim participates in salvation of the plants and water purification plans, planting trees, etc.).
92 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND COMMUNITY
OAO Nizhnekamskneftekhim together with the citizens of Company also cooperates with the public organizations Nizhnekamsk is justifiably proud of members of Sports which perform their activity on the territory of club «Neftekhimik» (members of the Center of the highest management including the organizations representing sportsmanship). Among them there are Aliya Iksanova interests of socially vulnerable population groups. (master of sports for ski race, participant of world championship among the juniors of 2004, repeat winner Cooperation of OAO Nizhnekamskneftekhim with local and winner of championships and competitions for the regional bodies of executive power is based on Cup of Russia; she has got two gold and two silver social-and-economical cooperation agreements. medals in World Student Games of 2011, a bronze medal of championship of Russia in the relay of 2011; silver Representatives of the Company take part in the winner of Cup-final of Russia of 2012, bronze winner of activities of work groups and commissions established Cup-final of Russia of 2012); Ekaterina Volkova (Honored by the authorities of Nizhnekamsk on the social politics Master of Sports for track and field, champion of world problems, within the framework of which the activity of of 2007, bronze winner of Olympic Games of 2008); government bodies is coordinated. For the third calling Anna Protasova (international master of sport for clay in succession (since 1999 till present) target shooting, bronze winner of team World Cup of Nizhnekamskneftekhim Director General V.M.Busyguin is 2005, champion of Europe team championship of 1998, the deputy of the State Council of Tatarstan Republic; repeat champion and winner of championships and Cups he works in the committee on ecology, management of of Russia) etc. The sportsmen from the local hockey club natural resources and agrarian issues. The sample of « Neftekhimik» play in Kontinental Hockey League. All cooperation of the Company and local authority is the citizens can employ the services of the sport facilities. participation of the Company managers in the weekly Every month the matches of football and hockey teams meeting of municipal administration of Nizhnekamsk are attended by about 25,000 spectators. district «Business Monday», work in standing commission of Nizhnekamsk city Council on the issues The activity of Company in the sphere of social and of Reglament of local government and deputative economic development of local societies is performed ethics. within the framework of cooperation with local government bodies, regional government bodies and public Cooperation with professional organizations constantly organization. takes place for discuss of important issues. The Company Director General V.M.Busyguin is the member Taking into account the interests of community and of Board of Russian Union of Industrialists and territories of management OAO Nizhnekamskneftekhim Entrepreneurs; he is a member of Commission on realizes the target programs which assist the development chemical industry. Workers of OAO of social sphere of territories – education, public health, Nizhnekamskneftekhim are represented in the housing and communal services, transport and Committee on ecological, industrial and technological communication. safety as the experts.
SOCIAL PROGRAMS DEVELOPED JOINTLY WITH THE COMMUNITY
ACTIVITIES OF THE COMPANY IN 2012
Participation in social mortgage loans and housing Science and education support program improvement The Company considers it necessary to develop high Since the beginning of 2005 Nizhnekamskneftekhim quality education in the territory of presence of its participates in financing of the republican program of social enterprises; in connection with it in 2012 the following mortgage loans. 305 million roubles were transferred to the activities were carried out: State housing fund under the President of RT in 2012. 45% of Rendering the beneficent help within the framework of the housing built with this money is intended for the republic-wide campaign «Help to prepare for school»; employees of the enterprise, 45% – for the employees of budgetary organizations, 10% – for people with urgent Payments of scholarships for excellent performance in requirement in housing. academic and social activities;
93 THE COMPANY AND COMMUNITY
Corporate assistance for educational institutions of Allocation of money to the Fund on support of creatively Nizhnekamsk: schools №№ 7, 8, 10, 21, 23, 26, 27, 29, able children and youth "Sozvezdiye" for arrangement of 31, Tatar gymnasium № 2, gymnasium № 25, the XII Open republican television youth festival of gymnasium № 32, lycee № 35, Technical college for variety art " Sozvezdiye -Ioldyzlyk-2012"; petrochemistry and oil refining of Nizhnekamsk, Allocation of money to the Fund on support of social- Nizhnekamsk Technological College, Petrochemical and-economic development of Laishevo municipal College, Lycee -hostel № 24, Ecology-and-biology district of RT for arrangement of the jubilee XX Russian Center, Center of tourism and travelling for children and folklore festival "Karavon" which makes a significant young people etc.; contribution to popularization of traditional artistic Corporate assistance for the children of Mendeleyevsk performance, attraction of youth to saving of traditions; special boarding school; Allocation of money to the Fund "ASSISTANCE" for Assignment of a NKNK employee (with absolute release arrangement of national celebration Sabantuy, from the primary job at his full salary) to Nizhnekamsk arrangement of sport events and competitions with Cadet boarding school to take the position of a deputy children and teenagers, charity events with invalids and head of the office of the Troopers’ Union of Russia in other low-income citizens; order to enhance martial and patriotic education of Allocation of money to the Fund "ASSISTANCE" for students; arrangement of New year celebrations, cultural and sport Allocation of money to OOO «Center for innovative events in Sabinsky district in urban-type village Bogatye technology» for publication of popular science journal Saby; "Scientific Tatarstan" (for Academy of Sciences of RT); Allocation of money to the Social Fund of culture and Transfer of money to Russian geographical society for art development of Nizhnekamsk, RT, for arrangement of performance of statutory activity of Regional division of national celebration Sabantuy for the citizens of All-Russian social organization “Russian geographical Nizhnekamsk; society” in RT on the issues of distribution and saving Allocation of money to the Fund "Innovation", Kazan, for of geographical information, support of ecological creation of feature film "Kurban-roman"; activity, development of scientific and ecological tourism and confirmation of positive image of RT. Financial assistance to municipal public institution “Executive Committee of Sosnovka village” of Nizhnekamsk municipal district for purchase of musical and light equipment, scene costumes in connection Culture support program with completion of Culture Center construction. Arrangement of concerts of pop stars of RF and RT in Financial assistance to Journalists Fund under the social Ice Palace and House of Folk Art for the children from organization "Creative Union – Union of Journalists of large and needly families; RT" for honoring of the journalists – veterans of press of the Union of Journalists of RT who made contributions Arrangement of New Year performances for the workers into the social-economic development of RT. of enterprise and the members of their families, purchase of New Year presents for the workers of enterprise; Celebrations: «New Year» with decoration and equipping of the assigned area, «Seeing off Winter», «Chemists Day», «Sabantuy», «Day of Republic» and «Day of the Town», «Mother’s Day», invalids decade etc.;
Dear Mister Busygin! OOO Yelabuga UkurPlust, the All Russia Association of the Blind, express thanks to you for understanding of our problems and positive help. We, on numerous occasions, stated that your help allows us to employ visually handicapped, in the cities of Naberezhnye Chelny, Menzelinsk, Nizhnekamsk, Zainsk, Bugulma. That helps them to find themselves having the same rights as other citizens in their social adaptation and being useful to the society. Now, 97 visually handicapped citizens in these cities are employed as homeworkers. Products, manufactured from raw material, supplied by the OOO Nizhnekamskneftekhim (polysterene, polypropylene), namely: massage hairbrushes and clothespins, are widely presented in local retail, as well as in the home market of the country which embrace practically all regions of Russia. Our products manufactured today are unique in this market segment of the Russian Federation, and this is Vladimir Mihajlovich, mainly to your credit! The wholsale prices for your polymers allow us today to successfully market our products. May you have further success in solution of complex industrial problems, strong health, interesting plans and their successful implementation, personal happiness and further prosperity of the Company. We look for further fruitful cooperation. Bazarov N.А., General Director, ООО Yelabuga UkuprPlust
94 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND COMMUNITY
Spiritual resurgence programs — Arrangement of ceremonial dinners for war veterans and homefront workers; Beneficent assistance to «Cadet boarding school »; — One-time payout to veterans of the Great Patriotic War With the purpose of martial and patriotic upbringing of in the honor of Fatherland Defenders’ Day; young people in OAO Nizhnekamskneftekhim a voluntary searching group «Neftekhimik» was formed; — Free annual subscription for the veterans of the twice a year the members of the group come to the enterprise for the newspapers « Neftekhimik », Leningrad and Smolensk Regions to participate in «Khezmettesh avazy»; «Remembrance Quests». The voluntary searching — Arrangement of beneficent treatment in the sanatorium- group «Neftekhimik» was awarded letters of preventorium «Korabelnaya Roshcha» for the veterans of appreciation and recognition. Many members of the the Great Patriotic War of OAO Nizhnekamskneftekhim; team have got the Lapel Pin «For active search» and medal «Patriot of Russia»; — Assistance to the Council of the war veterans of the town; Upon an initiative of Youth Activity Department of OAO Nizhnekamskneftekhim a Martial-patriotic Club — Arrangement of celebration dedicated to International «Naslediye» was created and is attended by about Day for the Elderly in the House of Folk Art with a 150 children of the workers of OAO tea-party; Nizhnekamskneftekhim and citizens. In 2012 with the — One-time payout to pensioners registered in the help of this club a specialized session «Island of Council of veterans of the enterprise. courage» was organized on the base of summer camp «Yunost». support of invalids Financial assistance to Ministry of civil defense and — Creating new columns, making up news-items, emergency situations for arrangement of celebrations programs dedicated to the Invalids Day in the corporate dedicated to 80th anniversary since establishment of mass media; civil defense of RF; — One-time payout to invalids registered in the Council of Allocation of money to publishing house "Guzel" for veterans; producing a book " honorary freemen "; — According to collective labor agreement for 2012 (item Financial assistance to Assembly of the 5.14) the Company workers having handicapped representatives of people living on the territory of RT children and persons disabled from childhood (up to 18 for fitting the House of the People friendship with years old) once a year on the International Invalids Day necessary equipment and modern means of are paid out the financial assistance in the amount of communication. minimum rate of payment for labor established in RF for each child; — Allocation of vouchers for recreation and rehabilitation to the sanatorium-preventorium «Korabelnaya Roshcha»; Program of social assistance for the community of the Republic of Tatarstan: — Allocation of funds to the Fund "ASSISTANCE" for arrangement of arrangement of national celebration support of the war veterans and elderly people Sabantuy for the citizens of Nizhnekamsk националь- —Excursions, concert programs; ного праздника Сабантуй, arrangement of sport events and competitions with children and teenagers, — One-time payout to veterans-participants of the Great charity events with invalids and other low-income Patriotic War; citizens.
Dear Mister Busygin! Dear Mister Busygin! On behalf of the Ministry of Industry and Trade of the Republic of I thank you and all collective body of the OAO Nizhnekamskneftekhim Tatarstan I thank you for participation and rendered assistance in for the help which has been rendered to my Welfare Fund in organizing preparation and holding the 19-th International Exhibition “Petroleum, and carrying out the international qualifying competitions “Alina–2012”. Gas. Petrochemistry–2012” and functions at the exhibition. In many As it was in the previous year, sportsmen of your Company made their respects their success became possible thanks to active support of your utmost for the tournament to be performed at a high level. Very special Company and you personally. My bet is that such arrangements are the thanks for perfect preparation of the place for competitions – ice cooling effective tool in services and product promotion of the oil-and-gas, at "Petrochemist" sports club. Also I am very grateful to the organizing petrochemical and related sectors of the industry of the Republic, give a committee for the well co-ordinated work on accomodation, training chance to establish new business contacts and enter into profitable sessions, transfers, catering, security and medical services for participants. contracts and agreements. All guest sport teams honored high quality of the organization and Bagmanov Kh.А., Deputy Minister for the Ministry of Industry thanked for the created conditions. and Trade of the Republic of Tatarstan Kabaeva A.M., General Director of the Welfare Fund
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Program for maintenance and development of sport In 2012, members of public order squad and facilities FORPOST together with policemen prevented and solved 3 crimes, brought to justice 92 persons for Financial assistance is rendered to Chess Federation of administrative offences, checked 52 juvenile offenders RT, Kazan, for arrangement of championship of and 14 suspected. Privolzhsky Federal district, team championship of Europe for schoolchildren and also for preparation to Universiada 146 raids to dormitories, public places and educational 2013. establishments were carried out during major public events. Financial assistance is rendered to Badminton Federation for preparation to successful participation of badminton Material and moral incentives are provided for members players of RT in the competitions within the framework of of public order squad in the Collective Agreement. Student Games of 2013 and also for the further In 2012, OAO Nizhnekamskneftekhim became the development of badminton sport in RT. winner of the Republican contest “The Territory of Law” The funds are allocated to OOO «Variety Theatre Salavat, in nomination “For significant contribution to law Kazan» for arrangements of annual beneficent auto racing enforcement support”. Salavat Cup prize fund of which is transferred to Tchelny Allocation of funds to the Department of the State Orphanage. Traffic Safety Inspectorate of Ministry of Internal Affairs in Financial assistance is rendered to Weight-lifting RT for purchase of child safety seats within the Federation of RT, Kazan, for preparation to successful framework of campaign "Safety seat for children!" participation of sportsmen in the competitions within the Allocation of funds to Nizhnekamsk Fund of Supporting framework of Student Games of 2013 and also for the Law Enforcement Activity “Pravoporyadok” for further popularization of weight-lifting. arrangement of honoring of veterans, patriotic At the expense of petrochemists in Nizhnekamsk there upbringing of young employees and awarding of are constructed and maintained: the stadium distinguished persons on account of celebration of the «Neftekhimik»; 2 ice sport palaces; sport complex Day of State security bodies official. «Druzhba» with gym halls, swimming pool, football field and hockey court; sport gym «Fakel»; 8 hockey rinks for schoolchildren in the micro-districts of the town; youth sport school for football, sport-and-health camp Program of transportation of people to their «Olimpiyets», training grounds for football and hockey gardens teams «Neftekhimik». Almost every family in the city has a garden. OAO Nizhnekamskneftekhim participates in financing Program of law enforcement and prevention of transportation of the city residents to their gardens in violation of law among the population summer. For this purpose in 2012 the Company allocated 5 million roubles. This program helps to improve the OAO Nizhnekamskneftekhim is a base for 5 public law quality of the city residents’ family recreation, to habituate enforcement stations and young workers’ public young people to work and to prevent delinquency among organization for maintenance of public order FORPOST. children and teenagers during summer vacations. The All public law enforcement stations were renovated and Program covers about 120 thousand people. equipped with office equipment and necessary communication facilities. OAO Nizhnekamskneftekhim’s public order squad has a motor transport.
Dear Mister Busygin! Dear Mister Busygin! Department of the Ministry of Internal Affairs of the Russian On March 4th, 2012 our country made an important choice, Federation in Nizhnekamsk District expresses thanks to you, and having defined a direction of development aimed to renovation and employees of the private security company NKNK, called-up for policing modernization of Russia, to improvement of life quality of each citizen! during preparation and election complain of the President of the In Nizhnekamsk Municipal District voting and election campaign , Russian Federation over March 2 to March 4, 2012 period. We observe have passed at a decent level. In many respects it became possible compleat professionalism, discipline, and responsibility to official duties. owing to your personal responsibility and professionalism of your team. Sadykov A.A., Head of Department of the Ministry of I express thanks for the effective and well co-ordinated work, for the Internal Affairs of the Russian Federation in help in organizing of presidential elections at electoral district. Nizhnekamsk District, Colonel of Police Metshin А.R., Head of Nizhnekamsk Municipal District
96 OAO Nizhnekamskneftekhim | Sustainability report | 2012
THE COMPANY AND COMMUNITY
Ancillary farm development program Program for solving social problems of the area OAO Nizhnekamskneftekhim has a well developed The work for maintenance and recovering of natural ancillary farming enterprise comprising 9 settlements of landscape is constantly performed. Every year in Nizhnekamsk district. The farmland area is 15.9 warm season the workers of the enterprise carry out thousand hectares. The cattle stock counts 3,742 clearing of suburban forest sector assigned by animals, pigs – 11,016, horses – 59, sheep – 150, etc. direction of Nizhnekamsk city authorities, planting of The farming products are supplied to the Company’s flowers, trees and bushes instead of lost ones and in canteen network. In 2012, the Company’s catering the newly built-up territories of the city and the system received 273 tons of meat products for the enterprise. amount of 34 million rubles. Currently the purpose of In 2012 the workers of OAO Nizhnekamskneftekhim the farming enterprise is not only to produce but also planted 460 thousand flower plants, permanent grass to support native agricultural producer. seeds on the lawns in the area of многолетних трав In 2012, OAO Nizhnekamskneftekhim allocated на газонах площадью 30 ha (3,095 kg of seeds), 49.9 million rubles to principal activities of the farming 386 trees and bushes. There were carried out the enterprise and purchasing new agricultural machines. works for redevelopment of territory of the enterprise This money helps to support the farming enterprise and objects of leisure of the town residents, renewal itself, social infrastructure of remote villages and, most and reconstruction if the lawns including the lawns in important, to provide jobs for 1000 farm people. sponsored park «Neftekhimik» located within the town, Thanks to OAO Nizhnekamskneftekhim rural population construction of which was finished in 2011. In 2011 is provided with everything required for agricultural the Company allocated 23.3 million rubles to work and sustainment of settlements. construction of social objects (sponsored park «Neftekhimik»). According to the opinion of the residents the new town park is the best object in Small business support program Mira Avenue. In the park there is an entertainment For the purpose of small and medium-sized business complex for children: seesaws, merry-go-rounds and support on November 26th 2004 Resolution of the Cabinet chutes. The representatives of all the Company of Ministers of Republic of Tatarstan No. 509 was adopted divisions took part in construction of the park the on High priority measures for establishment of Nizhnekamsk area of which is 10 ha. Industrial District. On May 25th, 2005 a non-profit 54 ha of the forest area “Korabelnaya Roshcha” was organization Nizhnekamsk Industrial District Association was cleared. formed for the purpose of mutually beneficial industrial cooperation, creation of area of stable consumption of In 2011-2012 the sanitary protection area (SSZ) of the polymer products of the main enterprise being the basis for biological treatment plant was carried out in the the district formation – OAO Nizhnekamskneftekhim and north-east in direction of Nizhneye Afanasovo with the 13 small and medium-sized polymer processing enterprises. assistance of GBU Nizhnekamskles at the expense of The main objective of the Association is assistance to OAO Nizhnekamskneftekhim; 193,800 of young pine development of polymers and petrochemicals processing trees were planted on the area of 51 hectares. small and medium-sized enterprises sector. In 2012, In 2012 planting of greenery in SSZ near the village enterprises of Nizhnekamsk industrial district manufactured of Prosti was carried out also with the assistance of products for the amount of 7,305 million rubles and GBU Nizhnekamskles; 26,600 of young pine trees converted 66,000 tons of plastics produced by OAO NKNK. were planted on the area of 7 ha. As of the end of 2012, 2,850 jobs were created in Nizhnekamsk industrial district.
Dear Mister Busygin! Educational administration of Executive Committee of Nizhnekamsk Municipal District, RT expresses to you our sincere appreciation for the rendered assistance in performing of socially significant project in aducation – support to the gifted children. Such a sophisticated Dear Dear Mister Busygin! understanding of importance of development intellectual potential of I am glad and grateful to you for having responded to our request young generation gives a solid grounding of well-being of the future to render financial help to subsidize Sabantui festival, sport games and generations. Your support will allow talented schoolchildren to grasp the cultural festivities in Sabinsk Municipal District. Your help enabled us to importance of received knowledge and intellectual work as a whole, joyfully selebrate Sabantui. In the same way, owing to your help, we shall becomes a new step in development of personality of each of them. We perform sports, cultural events with children and teenagers, charitable thank you for sustainable relations of partnership! We wish your sessions with disabled persons and needy categories of citizens in 2012. Company dynamical development without loss of achievments, sound On behalf of population of Sabinsk Municipal District and on my own health, well-being and success! behalf I express words of gratitude for disinterested aid. Shakirov R.M., Deputy Head of Executive Committee, Minnikhanov R.N., Head of Sabinsk Municipal District, RT Nizhnekamsk Municipal District, RT, Head of Educational Department
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Targeted social assistance Dear Mister Busygin! Transfer of the funds to Russian Red Cross as the Pedagogical collective of the secondary school No.8 expresses to assistance for the victims of flood in Krymsk in 2012; you sincere gratitude for paternalism in development of education and material and technical support of secondary schools of our city. Our Financial support to families in difficult straits; sponsors- Railways Transport Division of your Company – traditionally assist in all respects of teaching and educational activity of our school. Organization of targeted assistance to NKNK This year, our school was included into the Republican program of employees’ children with disabilities, the Company’s major overhaul. But during preparation of school for the new academic veterans; year the necessity to do some kinds of additional work cropped up which were carried out quickly and with good quality by workers of Charity events for children and families in difficult the sponsors’ organization. By the 1st of September, thanks to joint straits; efforts of the contractor company NK-STANDARD, our sponsors – Railways Transport Division of your Company, school personnel and Targeted financial support (purchase of invalid carriage parents the school was ready to meet schoolchildren. We ask you to etc.). convey our thanks to our sponsors and personally to the Head of the Railways Transport Division, Mister Ajrat Ibragimov for the help and Transfer of the funds to Charity Fund "AK BARS cooperation in education and mentoring the on-coming generation. SOZIDANIYE" for realization of socially important Sergeev A.S., Director of the secondary school No. 8 objects intended for administration of seriously ill patients. Dear Mister Busygin! On behalf of the Council of Nizhnekamsk Municipal District of the Republic of Tatarstan, I express to you and to your Company workers Interaction with the political parties, politicians, sincere gratitude for efficient, fruitful work in preparation of social organizations educational institutions of primary, secondary, or higher vocational level for the new 2012-2013 period. I'm glad to see that for you and Allocation of funds to Regional employers' association for the collective headed by you, an important goal is to support "Association of enterprises and businessmen of pedagogical community, all-round promotion to education and Republic of Tatarstan" for statutory activities of mentoring the on-coming generation. It is difficult to overestimate association; significance of cooperation in strengthening material and technical base of schools. Thanks to the well-organized, persevering teamwork There was no financial and natural donation of the there is a comfortable environment for an increase of educational level politic parties, politicians and organizations connected on which quality of a manpower directly depends, and, hence, and the state of the economy and the industry of our country. with them in 2012. I warrant, that you, in the further, will give high priority to the issues of education support. I wish success and all the best to you and your team of specialists. Metshin A.R., Head of Nizhnekamsk Municipal District Interaction with the religious organizations Arrangement of beneficent treatment in the Acknowledgement sanatorium-preventorium “Korabelnaya Roshcha” for Dear Mister Busygin! imams of Nizhnekamsk district within the framework of Мukhtasibat of Nizhnekamsk and Nizhnekamsk District, on behalf seminar dedicated to Alcoran of all imams of Nizhnekamsk District and Aqsaqals expresses to you sincere gratitude for a possibility to have recreation in sanatorium Allocation of funds to Orthodox religious organization Karabelnaya Roshcha (Ship grove). The year 2012 was declared a Year «Curacy of God Mother’s Shroud Church» for repair of of the Koran in the Republic of Tatarstan by Spiritual Management of the roof of Sunday-school building in the village Muslims RТ. In this connection the seminar of this year has been Bolshoye Afanasovo devoted to the Sacred Book. During the recreation period imams could improve state of health, improve academically and charge themselves Financial support to Kazan seminary «Kazan eparchy with positive energy for further activity for good of our peoples. Let of the Russian Orthodox Church» for development the Most High God will endue you and your colleges with sound health, and support of activity family happiness and well-being. Yusuf Khazrat Davletshin Financial support to Charity Fund "Social and Economical Development of Novosheshminsky district" for reconstruction of the Blessed Trinity church in the From the stuff of Management of Public Catering and from myself village Novosheshminsk and finishing of construction personally, I wish to express words of gratitude to the Management of OAO Nizhnekamskneftekhim for good, duly reconditioning of flour shop. of the chapel in the village Gorshkovo. The improved working conditions have allowed us to raise productivity and quality of our products. Natalia Kutilina, Chief of flour shop, Manager of the central canteen
Presidium of the Russian Red Cross organization commemorates OAO Nizhnekamskneftekhim for the help given to flood victims in Krasnodar region, for outstanding achievements in humanism and charity. Lukuttsova R.T., Chairwoman RRC
98 OAO Nizhnekamskneftekhim | Sustainability report | 2012
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Five years ago, without any exaggeration, took place a historical The Automotorcycle Sports Federation of the Republic of event for the citizens of Nizhnekamsk – the Nizhnekamsk water Tatarstan herewith expresses sincere thanks to the General Director purification plant has been put on stream. The general sponsor of the of OAO Nizhnekamskneftekhim, Mr.Busygin, for productive contribution plant construction was OAO Nizhnekamskneftekhim. Under the firm to the promotion and popularization of automotorcycle sports in the and all-round control of specialists of different of OAO Nizhnekams- Republic of Tatarstan. kneftekhim the water purification station has turned into a modern Egorov I.M., President of the Automotorcycle Sports water purification plant. We are grateful to OAO Nizhnekamskneftekhim, Federation of the Republic of Tatarstan Company specialists of all departments involved in construction and start-up of the water purification plant. We feel this support even today as well. Vacations in a field camp Akhmetov R., Director of OOO WPP-NKNK In 2005, teenages оf the search party, the first members of Nizhnekamsk Search Movement, decided to organize a military- patriotic club "Heritage" in our city. They addressed with this idea to the youth department of OAO Nizhnekamskneftekhim where they Souls’ comfort found full support. They wrote a Charter and were allocated a A Journey to Raif Monastery was confined to several dates in one premise at school No.7 which they have repaired and converted in an go: to 45-th anniversary of OAO Nizhnekamskneftekhim, to the Day excellent shooting gallery. They invited children and tought them to of Trade Unions of the Republic of Tatarstan and to the beginning of technique of hand-to-hand fight, to shooting from pneumatic rifles, to classes at the College for trade-union activists. Being in the territory assembele and disassemble a sub-machine gun. Since 2006, the of Raif Monastery we admired magnificence of temples, experienced "Heritage" club began to work in line with the Russian program an invisible energy flowing out from their gilted domes. Certainly, "Aurora" focused on preventive work against drug and alcoholization everyone got into the spirit of that extraordinary beauty, and also among youth in cooperation with Russian Federation Federal Agency felt something new and useful. That journey left ever lasting for Drug Control in the Republic of Tatarstan. In the same year the impressions. It was a very picturesque place! Probably, people need first field camp was organized in the area of the Beriozovzya Griva. to be closer to the nature, is more often enreach themselves The first shift was only 15 days duration but those were nice days! spiritually, because, in fact, in everyday life we often forget about it. The 50 children from seven to fourteen years of age decided then to Thanks to the organizers of that journey – to the trade-union test their abilities – children lived in a tent camp, in the conditions committee and to administration of OAO Nizhnekamskneftekhim. very much similar to those in the army. The camp completely Ethylene oxide and Olygomers Plants’ Workers simulated the life of a military unit in which there was a system of ranks and posts. At that time, without financial support of the youth department and the trade-union organization of OAO Nizhnekams- kneftekhim it would be hardly possible for the young cadets to learn Symbol of Tolerance by experience fundamental principles of a soldier's life and so the The year 2012 was declared the Year of Russian history. In the children lived in the real army tents, ate the real soldier's porridge Republic of Tatarstan it was declared the Year of preservation of a coocked in the field kitchen. In 2010, for the first time our profile historical and cultural heritage. A unique literary monument of our shift was located in a children’s camp "Zariya" (Dawn), and in 2011 epoch are Moabit note-books written by Musa Jalil, personality of the and 2012 – in the camp "Youth". But the number of those wishing to poet is also unique. For two years which Musa Jalil was in confinement spend time in the camp did-not-reduced at all – the number of of torture chambers of Моаbit prison, he wrote 125 poems. All the children only grows every year. Especially pleases that among them verses written in small, palm-size note-books, were devoted to Life there are those who come to us again for the second and even for despite of the death sentence. Enthusiasm for Life, strong-willed kind, the thired time. faith in Future were inherent in the great Tatar poet, the same now All our commanders and deputy commanders of platoons are the is embodied and symbolized in the monument to him installed near workers of OAO Nizhnekamskneftekhim, therefore I wish to express the House of Folk Art. This event – is not just an unveiling the gratitude to the administration of OAO Nizhnekamskneftekhim, to the monument to the great poet and soldier, it is a symbol of tolerance, management of Social Development, to the management of isoprene- unification of peoples living in the territory of Tatarstan. I wish to monomer plant, of polystyrene plant and styrene-and-polyether resin thank all those who generated an idea of this monument, who plant. They understand all importance and necessity of our work and participated in creation of this monument, to thank people who are release the employees to the camp almost for the whole month. not indifferent to the culture of our nation – primarily to A.Zijatdinov, А. Sabanayev, Head of the Heritage club, R.Valeev, OAO Nizhnekamskneftekhim, and personally to the General electrician shop No. 2502, SPS Plant Director V.M.Busygin and creative team of architects, sculptors and founders. Aydar Metshin, Head of Nizhnekamsk Municipal District and Mayor of the City of Nizhnekamsk Dear Mister Busygin! Educational Authority of the Mendeleevsk Municipal Region expresses to you and to all workers of the OAO Nizhnekamskneftekhim our sincere gratitude and thanks for the help rendered in training, Rejoicing of dear people education and development of cognitive interests of children with Being now on the well deserved rest, I do not sit on my hands, special educational needs. During many years you are helping us to on the contrary – I do work for the community. I am a member of bring up our pupils in harmony with nice and wonderful. You apply the Regional Public Organization of Veterans of Labour. During the many efforts in order that children still had bright reminiscences of last years of work there was no time be bored for lack of an the childhood. The love to children, deep respect for their personalities occupation either – I was a chairwoman of the shop trade-union is your motivation in charitable activity in relation of our pupils. We committee at the Quality Control Department. I am very grateful to wish to you and to your workers new creative successes, prosperities, the management OAO Nizhnekamskneftekhim which remembers us, happiness and well-being. gives us such such companionship for pleasure. Gajfullina R.A., Head of Educational Authority of the Мuzaya Zamilova, member of Council of Veterans Mendeleevsk Municipal Region of Labour
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THE COMPANY AND THE SCIENCE
KEY FIGURES
24.3 bln RUB volume of sales of innovative products for 2008-2012 period
1,100 innovator and inventors
34% a share of young innovators
42 candidates and 3 doctors of sciences
409 patents for inventions
62 patents for useful models
42 certificates for trade marks
83 representatives of the Company are in the Big League of the Corps of Engineers of the Russian Federation
Scientific and Technological Cooperation at ОАО Nizhnekamskneftekhim The engineering policy of OAO Nizhnekamskneftekhim is A considerable volume of research and development activity oriented to assurance of competitiveness of the Company. for creation of new domestic catalysts for monomers’ In doing this OAO NKNK rest upon its own scientific and polymerization processes is done by OOO Catalysis in technical potential of specialists of the Science and Kazan, KFU in Kazan; OOO PNPCO in Kazan does Technology Center, the Planning and Design Center, plants appraisal of the projects and Emergency Response and departments, as well as engages on a contractual Assistance Plans, as well as OOO Expert bureau in Kazan, basis specialists of scientific-research institutes and design the Engineering Center of Examination and Diagnostics in institutes, high schools and other organizations. In 2012, Kazan; OOO Scientific and Technological Center OAO NKNK had about 60 contracts with outside PromTechExpert in Volzhsk; OOO ExpertProject in organizations. Leninogorsk; OOO Institute of Technologies in Kazan.
The 23 organizations (half of them are located in Tatarstan) OAO NKNK closely сcooperate with Voronezh branch FGUP NIISK are partners of OAO NKNK in conducting contractual works, and with FGUP GNICHTEОS in Moscow in the field of including conducting research-and-development activity for development and technology modernization for rubber production; creation of new kinds of products and technologies, in with OOO NPO EURUCHIM (St-Petersburg) in sophistication of rendering scientific and technical services, services on isoprene from formaldegyde and isobutylene technology by the examination of Emergency Response Assistance Plan. method of a direct synthesis and isobutylene of polymerizing
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purity; with OOO PIK (Sterlitamak) in purification of harmful gas effluents and others. Indications Target Actual Number of high technologies introduced to Now the basic source of financing of innovative activity practice 34 regarding financing of research-and-development activity Number of patents issued as a result of the and all other contractual works is the own income of intellectual activity and received within the framework of fulfilment the projects (invention, OAO NKNK. In 2007, the Company, for the first time, useful model, industrial model, selection was awarded a state-guaranteed order assuming achievements) 68 financing of the most important innovative project to – including those in foreign countries -- come from the federal budget under the Federal target program: Researches and development in the priority Number of publications as a result of the intellectual activity and received within the directions of evolution of a scientific-and-technological framework of fulfilment the projects 18 23 complex of Russia over the 2007-2012 period. Beginning from November, 2007 specialists of OAO NKNK carry out – including those in foreign countries -- research work under the state-guaranteed contract for the “Development of technology and organization of Volume of the new and revised hi-tech products manufactured as a result of fulfilment the production of elastomers for import substitution, projects (sales – proceeds from sales), improvement of export potential and assurance of millions RUB 5,370.0 17,795 competitiveness of Russian-made products in rubber, automobile, electro technical and other industries. In Export volumes of the new and revised hi-tech September, 2011 the work on development of the new products manufactured as a result of fulfilment the projects, millions RUB 1,297.5 9,339 competitive elastomers, financed from the federal budget, have come to the end with production of new EPDM Number of the new jobsite created within the framework of fulfilment the projects for highly grades, and in 2012 OOO NKNK put into operation a skilled workers, persons 1,291 328 new ABS-plastics production unit. Within the framework of this project OOO HighTech Consulting, Kazan, designed and installed a production line for manufacturing composite materials, commercialized production of polybutadiene rubber with lithium catalyst and production of polystyrene with application of PBDE-L instead of imported rubber of Buna company. A pilot executed by the Kazan Federal University, and preparatory plant for production of EPDM rubber was installed at the work started in the synthetic rubber plant at isoprene Science and Technology Center. facility for the use of the catalyst under development. The project is very efficient because it allows ОАО NKNK to The main indication of successful project is the volumes get off dependence from catalyst supplies and bring of innovative products sold, sales for the 2008-2012 down costs of polyisoprene rubber production. Three period (PBDE-L, high-impact polystyrene with PBDE-L phases out of five planned are already completed under application, the KM-elastomers, EPDM) made 24.295 this project. In 2012 the sum of the subsidy from the billion RUR. Ministry of Education and Science has made 100 million rubles. Besides, the State contract organization stipulates other indications to be met. Application of Science in the Industry In 2010 the joint venture project of OAO Science and Technology Center of today is a Nizhnekamskneftekhim and Kazan (the Volga region) multipurpose research and development division of a very Federal University became the winner of the open public high scientific potential. It provides for successful operation contest for selection of organizations for the right to of other departments of OAO NKNK. Organizational receive subsidies from the state for implementation of breakdown structure of ОАО Nizhnekamskneftekhim multipurpose projects on creation of a hi-tech production includes Science and Technology Center which consists unit. Such project is to be executed with participation of of 16 research laboratories and experimental-industrial unit a Russian higher educational institution (the Russian for production of hydrocarbons and their compounds. Federation Government Regulation No. 218). According to The Science and Technology Center is staffed with the results of the contest, of OAO NKNK concluded with 360 members out of which 133 engineers who are the Ministry of Education and Science of the Russian engaged in research and development, including Doctors Federation the Contract about conditions of allocation of Sciences – 1, Masters of Sciences – 24, candidates и and use of the subsidy, within the limits of which the aspirants – 15. Numerous developments of the R & D Kazan Federal University will develop a technology for Center research laboratories are patented in the Russian production highly effective ferric potassium Federation, exhibited at national and international dehydrogenation catalysts for isoamylenes. Modernization conferences and symposiums, published in scientific of industrial production of catalysts is planned to be journals. The Science and Technology Center work closely carried out in the ethylene oxide plant to manufacture with research organization like Kazan (Volga region) this catalyst at OAO NKNK. The catalyst proper will be Federal University, Institute of Catalysis at Siberian Branch practically used in isoprene facility in the synthetic rubber of the Russian Academy of Sciences (Novosibirsk), NIISK plant. By now, the first stage of research work is (Voronezh).
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Innovation and efficiency drive Considerable contribution in development of the petrochemical Certificate of Laureate of the 13-th All-Russia Contest industry of the Republic of Tatarstan is made by inventors at “Engineer of the Year 2012” in the nomination “Professional ОАО NKNK. There are about 1100 rationalizers and innovators Engineers”, Laureate Silver Medal of the Contest, in the Company. Every year they develop dozens of inventions “Professional Engineer of Russia” lapel badge and and useful models, produce more than 400 proposals for “Professional Engineer of Russia” Certificate were presented technical improvement. More than one hundred of inventions, to the Manager of the Automation Center Management useful models and 300 proposals for technical improvement Davletshin I.A., to the Head of Laboratory of the Science are introduced in different production facilities of the Company. and Technology Center Sharifullin R.R., Deputy Head of Department at the Plant of Divinyl and Hydrocarbons As of 31st December 2012, in accordance with copyright Feedstock Facility Burykin А.D at the festive occasion in the protection Norms for technical inventions and means of Hall of Fame of the Russian Union of Scientific and individualization the ОАО Nizhnekamskneftekhim received Technical Public Organizations in Moscow. 409 patents for inventions, 62 patents for useful models, 42 certificates for brand marks, 9 certificates for computer In the nomination “Professional Engineers” the “Professional programs. Engineer of Russia” Certificate and “Professional Engineer of Russia” lapel badge were presented to the Chief Engineer Number of young innovators in the Company grows every of the Olygomers Plant Gimadiev K.S., to the Chief Power year: in 2002 their share among rationalizers and innovators Engineer of the Butyl Rubber Plant Khalaimov A.M., to the was only 9%, in 2012 it exceeded 34%. Contests among the Head of Laboratory of the Technical Control Division young innovators became a tradition at the Company and are Zemlyanovoy E.V., to the Chief of Section of the Isoprene- held with the purpose to have young specialists involved in Monomer Unit Shcherbakov V.A., to the Deputy Head of the solution of production objectives by way of development and Shop at the Styrene and Polyether Resins Vafin D.V., to the introduction of innovations in the industry. In 2013 the contest Deputy Head of the Shop at the Synthetic Rubber Plant will take place for the 6th time. Vinogradov A.V., to the Head of Department of the Design- Construction Design Office Pshenichnikovoy F.G. In the Every year the ОАО NKNK take part in the contest held by the nomination “Engineering of Young Specialists” took part a Russian Union of Scientific and Technical Public Organizations, programmer engineer of the Synthetic Rubber Plant by the International Union of Scientific and Technical Public Merzlyakov A.N., shopfloor foreman of Polystyrene Plant Associations, by the Academy of Engineering Sciences named Sorokin S.I. Totally, there are 83 representatives of OAO after А.М. Prokhorov, by the Interregional Public Fund for Nizhnekamskneftekhim (72 persons in 2011, 62 persons in Advance of the Scientific-and-Technological Progress. 2010) in the Russia Big League of Engineers.
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45 EVENTS IN HONOR OF THE 45-TH ANNIVERSARY OF THE FIRST PRODUCTION OUTPUT
PRODUCTION ACHIEVEMENTS
January February March • Revamp of the water intake • Prizes of the government of the • The integrated control system at covering a requirements of industrial Russian federation of 2011 in the field OAO Nizhnekamskneftekhim meets facilities of the Company in river of science and technics are awarded requirements of the international water is completed. According to to the General Director of OAO standards – this is the result of the the design documentation, Nizhnekamskneftekhim Vladimir integrated audit summarized at the necessary works for deepening of Busygin, the Chief Engineer of the meeting under presidency of the the bottom of water area, installation Company Mr. Khamit Gilmanov, and Chief Engineer of the Company. of the system for filling suction also to the group of specialists of the chambers with water are carried All-Russia Scientific Research Institute out. of Petrochemical Processes and the Russian State University of Oil and Gas of named after I.M.Gubkin.
103 THE COMPANY AND COMMUNITY
April June • A one million ton of polypropylene is produced in the polyolefins plant. In the • Freight station purpose of implementation of the attractive project oriented to manufacturing of «PREDCOMBINATSKAYA» of the polymeric products, in 2003 OAO Nizhnekamskneftekhim signed a number of Kuybyshev Railways which contracts with the foreign companies for construction of polymers producing construction began in 2008 was facilities in Nizhnekamsk – polypropylene unit as part of a new polyolefins inaugurated. The station is intended complex. From the date of commissioning this unit it produces 49 brands of for reception of railway tankcars, polypropylene. shipping of finished products of petrochemical plants and oil refining • The Head of the Company V. Busygin and President of Lummus Technology complexes. Later the meeting took Heat Transfer M. Bassem Tolba signed the License Agreement and the contract place at the office building of the for the basic engineering of the Olefins complex of one million tons of ethylene Company where were discussed capacity a year. A selected production technology for the new plant meets prospects of development of the requirements of the modern standards regarding power saving, preservation of railway infrastructure of the Kamsk the environment and industrial safety. The advanced equipment will be supplied industrial cluster. to the site. • The General Director of OAO NKNK Vladimir Busygin and Vice-President of Linde AG Company (Germany) Roland Walzl signed the License Agreement and Contracts for Basic and Detailed Engineering, delivery of the equipment under the investment project ‘Modernization of linear alpha-оlefins plant (LАО), Alpha-Sablin process with recovery of C4-C6.
July September • OAO Nizhnekamskneftekhim is the • The general director of OAO Nizhnekamskneftekhim Vladimir Busygin was winner in the nomination «The leader awarded with two Grand prix in the competition «For the best exhibit, the best of high technologies in health design or the best technical solution», dated to inauguration of the 19-th protection and ecology of Russia», at International Exhibition «Oil, Gas. Petrochemistry»: the first Grand prix – for the first All-Russia competition development of technology for butadiene rubber SKD-L, and the second Grand among the industrial enterprises, the prix – for introduction of one-phase isoprene production process. the stand of medical and social organizations and OAO Nizhnekamskneftekhim has been recognized by one of the best. municipalities which was held in Depository of awards of the Company has replenished also with the first class Moscow within the framework of the diploma in the nomination «Energy saving technologies and equipment». First International Forum «Human Health and Ecology».
Оctober November December • At R & D Center of OAO • General Director of ОАО • Five years ago «Water treatment Nizhnekamskneftekhim an Nizhnekamskneftekhim V. Busygin plant –Nizhnekamskneftekhim» was international conference “Innovative took part in inauguration of the first put on stream with the participation petrochemical technologies – 2012”. in Russia Engineering Centre of of chief executives of Russia, The scientific forum has collected Elastokam ( Joint venture of BASF Tatarstan and Nizhnekamsk more than hundred representatives Polyurethanes GMBH and ОАО municipal region. To – day the plant of the branch research institutes and Nizhnekamskneftekhim). is able to take in and condition universities, companies and the 141 thou. cubic metres of water • An agreement has been signed for organizations of Russia, the CIS, daily. construction of Polypropylene Plant Germany and Italy. 400,000 MTPY production capacity. • License Agreement for polyethylene technology, 600 thou. t/per annum capacity has been signed.
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PARTICIPATON IN THE SOCIAL LIFE
January • General Director of ОАО • The 25-th jubilee charitable trip was for the guests. Drawings and crafts Nizhnekamskneftekhim V. Busygin made by ОАО Nizhnekamsk- displays, pride of teachers and was honored with the citation of the neftekhim employees to students were offered to the guests. president of the Republic of Tatarstan Меndelyeevsk special school. At the end of festal day school at conventional announcement of Management and trade union children handed over letter of results of Republican competition committee of ОАО Nizhnekamsk- thanks and self-made souvenirs to «Leader of the year». neftekhim have always rendered the Company representative. Acknowledgement of the President of assistance in trip arrangement. the Tatarstan Republic is a new Company employees have award, put into practice for the first customarily collected clothes and time as part of that competition. footwear, toys, stationery and books Chairman of the Board of Directors, for school pupils. Sports club ОАО «NKNH», General Director, ОАО «Neftekhimik» made a donation of «ТАIF», A. Shigabutdinov was also skates to children. Company honored with the award. management has allotted sweet handsels. Trade union financed the • Members of the youth sport school of repair of school fitter's shop. School hockey club «NEFTEKHIMIK» P. Кulikov veterans and participants of first and N.Yakupov as part of Russia youth corporate charity act took part in select team (under 20 years old) festive occasion, dedicated to became world championship silver outstanding date. Both school prizewinners, held in Vancouver (Cаnada). children and teachers waited edgily
105 THE COMPANY AND COMMUNITY
February March • Miss. N.Belavina, representative of • On the eve of International Women's that henceforth, school of free ОАО Nizhnekamskneftekhim became Day traditional meeting of Company calisthenics will be opened in one of victresses of zonal round of head, Vladimir Busygin with Nizhnekamsk», concluded notable republican contest «Woman of the enterprise women took place. sportswoman. year. man of the year: Women's V. Busygin stressed that today there • Company departmental теlevision view» in nomination «My fate is my are no so called male professions studio (VTS) became laureate of All profession. Woman at the plant». left in the Company: women work in – Russian contest in corporate video: N. Belavina works as deputy head of many departments of the complex information program «Occurrences of planning and design center and often are the best ones in the the day» was recognized to be the mechanization department, being sections. best in nomination «Television general designer, manages • Team of club for the eggheaded program». The contest was held on development of working and quick-witted (KVN) «Оligarches» February 29, 2012 in multimedia documentation in regard to ОАО Nizhnекамsкnеftekhim took part center RIA NEWS within the supplementary production in semifinals of КVN «League of framework of the first festival «The technology. working youth» of Tatarstan, which best corporate video», arranged by • Conventional military – technical relay were held in Naberezhnye Chelny on Аssociation of communication race, arranged by joint trade union March 24, 2012. Eleven teams directors and corporate media of organization of ОАО demonstrated their programs Russia. Forum became polemical Nizhnekamskneftekhim of Russia consisting of business card, photo platform for discussions of corporate Chemists’ Trade Union, Company and video clips lead-in. Five teams video trends and demonstration youth department, sports club got into the final, including КVN place of the best patterns of this «Neftekhimik», ROSTO at OAO NKNK team «Оligarches». sector. 133 projects and 68 was conducted. It was dedicated to companies were represented there. • Under the patronage of deputy State the 45-th anniversary of the first Duma of R.F. оf the Tatarstan plant product output and Defender Republic, fabulous woman-gymnast of the Fatherland Day. 34 teams Аlina Каbayeva for the second time (more than 250 persons), despite in succession the International biting frost played in the relay race. satellite tournament for children’s Each team submitted theme-based festival of free calisthenics «Аlina», performance to judge’s jury. Contest timed to the day of children winners and runners – up were protection was held in Nizhnekamsk. awarded diplomas and cash bonus. «I am much obliged to the management of ОАО Nizhnekamskneftekhim for the conditions created for us. I hope,
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April May • Outcomes of artwork festival of the M.Z.Kalmykov officer of municipal • Traditional meeting of Company Company employees named formation Glinkov region took part. For management and veterans of the «Nizhnekamskneftekhim: the job performed the search party Great Patriotic war, workers on the yesterday,today, tomorrow», dedicated was awarded with thanks letter «For home front was held in the Folk Art to the 45-th anniversary of the first the contribution to memory Centre on the eve of the Victory product output were summarized. perpetuation of soldiers perished in Day. All in all 29 veterans and 361 Workers of 26 Company divisions as Great Patriotic War and activities for workers on the home front were well as affiliates and sponsored patriotic youth mentoring». Four registered in the veterans educational establishments members of the search party, administration. participated in the event. The festival Company employees were awarded • In Sports – Cultural Centre «Ice was held with the view to outreach for exceptional services in carrying out Hockey Stadium» ОАО NKNK , long ОАО NKNK achievements, search and military historic work, – awaited event of the year, which development of art and creative medals «For cherishing historic combined all Company employees initiative, improvement of Company memory». within its walls to celebrate at once young social group work . In the • Radio «Nеftekhim-Rетrо FМ» ОАО two outstanding dates – the programs featured in the contest, Nizhnekamskneftekhim became the chemist’s day and 45-th anniversary enterprise historic time of winner of annual All-Russian cоntest ot the first product output was held. establishment and development, its «The best cоrpоrате меdia of The R.T. President R.Minnikhanov future, petrochemist contribution to Russia-2012» in nomination and deputy of R.F. State Duma Tatarstan and Russia economics «Cоrporate Media. Rаdio». Altogether A. abayeva have arrived to were reflected. Performances were 38 R.F. corporate radio studios congratulate the Company accompanied by video materials, participated in this nomination. The employees. newsreel on petrochemists’ daily winner was decided in the followup work. • Final City Mind Games «WHAT? of www.corpmedia.ru. site visitors WHERE? WHEN?» were held on May • Spring «Remembrance watch – 2012» voting. 23 at Nizhnekamsk lyceum No 35. was conducted in the area of 28 teams participated in the game. Bolyshoe Tishovo village, Glinkov Petrochemists’ team successfully region, Smolensk oblast in the places played at all season championship of fierce fighting of the Great Patriotic stages of 2011-2012, having won in War 1941-1945. Here representatives of 4 stages and being the second in 3 14 regions of Russia, 62 search stages. With results of all parties, 584 persons gathered. Among championship stages taken into them there were 22 Nizhnekamsk account OAO Nizhnekamskneftekhim citizens, group surveyors «Neftekhimik» team became winner of final games. ОАО Nizhnekamskneftekhim (unit Соntest within the frame work of leader Olga Lantsova). For 10 days these mind games are held in they found 518 solder remains, Nizhnekamsk for more than 10 years. identified 44 names, found relatives of Over the 2011-2012 period 64 24 perished, 38 documents were sent games of 8 different subgroup for examination. In formal meeting stages took place.
107 THE COMPANY AND COMMUNITY
June July • In sports – health camp «Оlimpiets» • Hockey team «Nеftekhimik» became • ОАО Nizhnekamskneftekhim, town free style wrestling tournament winner of Chelyabinsk oblast governor youth took part in the action. dedicated to the memory of cup. Municipal tourism gathering of the Honoured Master of Sports, two-time working youth took place from July • On June 22, 2012 action Memory world European champion on belt 13, 2012 till July 15, 2012 near Candle dedicated to the 71-st wrestling, Sh.Sadriev was held. Sheremetyevo village. Seven teams, anniversary of the Great Patriotic War Young boys sport school of Olympic representatives of enterprises, beginning took place near the victory reserve «Neftekhimik» on teenager organizations and establishments of monument. This action was carried out wrestling participated in the contest. Nizhnekamsk municipal region by search party «Neftekhimik» members The day before, Memory evening participated in the competition. under the support of youth department was conducted. Mission objective is healthy lifestyle of NKNK. Representatives of promotion. Gathering program • Collective show of creative works Nizhnekamsk search parties consisted of variety contests and dedicated to the Company jubilee «Neftekhimik», «Poisk», public organization competitions. Participants opened in the museum of ОАО «Russia Union of Cossacks», chairman demonstrated their own skill in NKNK. The exhibit consisted both, of of Veteran organization ОАО NKNK bivouacs improvement. ОАО currently active petrochemists’ Тrifinov B.E., senior citizens, those who Nizhnekamskneftekhim team was creations, and company veteran remember severe war years, youth represented by 10 persons. Having ones. Works made in different department. successfully participated in all genres, methods and materials, stages, group of petrochemists was attached special colouring and the second one. importance to the exhibition.
Аugust • Sculpture of the Great Tatar poet Karelia. This area is unique in regard • The annual tourist meeting of young Мusa Dzhalil was put on pedestal to that not only the Great Patriotic workers of the OAO on august 27, 2012 in the square War (1941-1945) but also the Nizhnekamskneftekhim took place on near Folk Art Centre ОАО NKNK. Soviet-Finnish war 1939-1940 took August 19, 2012 in the territory of General Director of the Company place there. At the invitation of sports camp Olympian. V. Busygin put forward an initiative to search expedition the Head of Petrochemists have devoted their fix up a monument in the area «Suoyarvsk foothold» search party achievements to the 45th anniversary where public events and folk festivals «Neftekhimik» took part in diggings of the first production at the are held. V. Busygin and other of that area. In spite of difficulties Company. Formal opening of the Company leaders were present searchers managed to dig out meeting was accompanied by during the monument set up. Creator remains of 117 soldiers, a great making the colors of the OAO of poet imagery was Rais Safin, number of Soviet rifle cartridges, Nizhnekamsknrftekhim. The program NKNK woodcarver of artwork section, аrtillery splinters and shells, of the tourists’ meeting included and employees of machinery and cartridges of Finnish and Soviet rifles tourist relay race, competitions on repair plant poured details out of were found. On August, 25th on a sports orientation and competition of bronze and assembled them into a brotherly memorial cemetery a amateur performances. Independent monument 3.5 m high. Company burial-service and solemn dumping referees – representatives of industrial affiliated, trust Tatspetsneftekhimrem- of remains of 225 victims took place. climbers’ team have been invited stroy specialists fixed up the To the strains of military salute they from Yelabuga for making judgment monument. Formal opening was held have been committed to the earth of the most difficult stages of on August 30 during festive events for eternal rest. For courage and the competitions. Winners and prize- in honor of the Republic and Town self-denying work, shown at carrying winners have been noted by Days. out of inter-regional search diplomas and money premiums. expedition within the limits of • «Neftekhimik» search group All-Russia «Watches of Memory – participated in expedition «Suоyarvsk 2012», four members of the search foothold» in Karelia. Regular group "Petrochemist" have been interregional Memory Watch was held noted by Letters of Thanks. The from August 6 till August 27, in the commander of the group, Lantsova area of Suоyarvsk region east of Olga, was awarded a medal «For Коllasyarvy lake in the Republic of active military-patriotic work».
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September • The combined team of the OAO among workers of the companies in carry out guardianship over Nizhnekamskneftekhim for the fourth chemical industry. grandsons. Special attention has time on end took the first place been given to children, whose • Members of search group according to the results of the parents work in the country side "Petrochemist " participated in the XII XVIII-th Spartakiada Games of (workers of the Neftekhimagroprom Festival of seazrch groups which Tatrescoma Roschem Trade union farm). for an elementary school – a took place in Seagull camp in among workers of the companies in kindergarten of a compensation kind Kazan. This event was organized chemical industry. No. 71 where children with poor with the purpose of support and eyesight are brought up, stationary • Traditional competitions on the track activation of activity of search and office goods were bought, and field athletics dedicated to the movement in the Republic of training board games are acquired, memory of trainer V.G. Sazonov have Tatarstan, revealing the physical of office equipment was serviced. taken place in stadium «Friendship». fitness level, endurance of The future first-graders have received It is the 17-th in succession participants, spiritual-and-moral status as a gift from collectives of divisions competition dated for the official Day of the youth. "Petrochemist" group not only satchels and school of the City and to inauguration of held the 1-st place in passage of a accessories, but also a trip over the the recently laid modern racetrack search strip and has been awarded city by an excursion tram, a meeting the world standards. A the main award – Grand Prix with performance about traffic rules pleasant surprise for all became a citation of a challenge cup of the including fairy-tale characters. For visit of the Olympic Games-2012 festival. children from partial and large championess in London Julia • The recipient-oriented help was families, children-invalids trips are Zaripova. Legendary championess rendered by workers of OAO organized to a delphinarium in the has assumed, that, probably, this Nizhnekamskneftekhim during the city of Naberezhnye Chelny and the racetrack would become for republican charitable action "Help to zoo in the city of Izhevsk, family someone a start in a greater sports get ready for school". Material aid film-viewings at "Zhalyl" cinema. In life. and support have been rendered to total, during the charitable action • The combined team of the OAO families of dependent children; to the "Help to get ready for school " the Nizhnekamskneftekhim took the first families which are being in a difficult help from petrochemists have place according to the results of the vital situation; to families where received 1014 persons. XVIII-th Spartakiada Games of parents-invalids bring up minor Tatrescoma Roschem Trade Unions children; to veterans-pensioners who
109 THE COMPANY AND COMMUNITY
Оctober November • The meeting of veterans of OAO Nizhnekamskneftekhim • During the first in history youth meeting «Future begins dedicated to the day of elderly persons took place. today» in sanatorium-preventorium “Ship grove” a meeting Veterans were congratulated by the Deputy of the General of young workers of the Company with representatives of Director for staff and social issues V.Shuisky and by the administration and leaders of the trade-union organization Chairman of the Trade-Unions organization of OAO has taken place. During «a round table» issues of Nizhnekamsknrftekhim A.Khajrullin. preventive actions against drug addiction and formation of a healthy way of life at the enterprise were discussed with • Propaganda team of OAO Nizhnekamskneftekhim is the Deputy Head of the Federal Drug Control Service of awarded with a cup and the diploma for a victory in the the Russian Federation in the Republic of Tatarstan in third republican competition of propaganda teams. In НМР Mrs. Habibullina G.F. All events at this meeting competition which was organized this year by the prepared by the department for the work with the youth Federation of Trade unions of the Republic of Tatarstan with support of the trade-union organization of OAO under the slogan «For the decent work!», participated Nizhnekamskneftekhim have been focused on perfection eight propaganda teams, representing the enterprises and of corporate values of the Company, on an increase of areas of Tatarstan. In opinion of judges, performance of the role of the youth in an industrial and public life of the representatives of the Company has been precisely Company, on the increase of intellectual, creative potential maintained within the limits of "advertising material" which of the youth. call for joining the trade unions. Thus, the amateur actors from Nizhnekamsk behaved themselves on the platform as professionals in a vocal and choreography genres. Natalia Mernenko, the director of the youth theatre ART of the House of People’s Art of petrochemists, has rehearsed the propaganda team for performance.
AWARDS OF THE COMPANY
February 2012 Аpril 2012 Vladimir Busygin – Doctor of Economics, General Director ОАО Nizhnekamskneftekhim are awarded with “golden” of ОАО NKNK, the Chief Engineer Khamit Gilmanov and a certificates: “Certificate in Significant & Sustainable Energy group of specialists from the All-Russian research institute and Cost-effective Use of Resources Among Enterprises of petrochemical processes and Russian State Univercity of Petrochemical Industry of the Russian Federation”, of Oil & Gas named after I.М.Gubkin are the prizewinners “Certificate in Development and Implementation of of the Government of the Russian Federation in 2011 in Comprehensive Energy Saving Programme and Cost- the field of science and technology for scientific and effective Measures in Use of Power Resources”, technical activities, creation and industrial development of “Certificate in Demonstration Effective Energy Saving innovative, ecologically safe, energy-safe "know-how" of Equipment & Technologies” following the results of isoprene production and a package of associated exhibition “Fuel and Energy Complex оf Russia in high-quality petrochemical products; XXI century” within the framework of the X-th International Energy Forum “Fuel and Energy Complex оf Russia in XXI ОАО NKNK is awarded a Diploma of the republican century” in Moscow. contest « Person of good works – 2011» in the nomination «Longstanding partnership»; ОАО Nizhnekamskneftekhim are awarded with a Certificate for active position in the employment market as an At the 15-th specialized International exhibition employer following the results of the 12-th specialized «Interplastics-2012», a wide assortment of plastics exhibition «Education. Career–2012», held over 11-13 April presented by ОАО NKNK and an original design of the period at ОАО «Kazan Fair». Company stand are awarded with Certificates of organizers of the exposition ООО «Messe Dusseldorf Moscow».
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July 2012 December 2012 ОАО Nizhnekamskneftekhim is a winner of the All-Russian ОАО Nizhnekamskneftekhim are awarded with a First contest «The Leader of High Technologies in the Field of Place Diploma in the nomination «New Products» following Health & Environment Protection», held at the First the results of the contest «Energy Efficient Equipment & International Forum «Human Health & Ecology». Technologies» within the framework of the 14-th International specialized exhibition «Power-generating September 2012 equipment & Technologies. Hydro-, Thermo-, Electric power industry. Non-conventional energy sources & ОАО Nizhnekamskneftekhim are awarded with two Small-scale power generation. Resource-saving & Energy- Grand-prix Diplomas and with one the first place Diploma efficient technology & Equipment»; following the results of “The Best exhibit, Project or Technical solution” contest at the 19-th International Industry-sponsored telecasting studio «Neftekhim» ОАО exhibition «Oil, Gas. Petrochemistry–2012», at the 7-th Nizhnekamskneftekhim is awarded with three Diplomas specialized exhibition «Eco-Technology & Equipment of the following the results of the republican contest among the ХХI Century» and at the 3-rd specialized exhibition mass media (MSM) on advertising fulfillment of the «Plastics and Rubber», held it the exhibition center «Kazan long-term purpose-oriented programs «Energy Saving & Fair». A Grand-prix Diploma in the nomination «Products of Enhancement of Energy Efficiency in the Republic of new or improved quality» is awarded for development of Tatarstan over the 2010-2015 period and further on till the polybutadiene rubber production technology with lithium year 2020». It took the first places in the nominations «The catalyst (SKD-L), Grand Prize in the nomination «Innovative Best News and Information Service» and «The Best TV & Ecology Safe Technologies» – for switchover to the spot» and the second place – in the nomination «The one-stage technology of isoprene production. The First Best TV company»; Place Diploma is awarded to the Company in the nomination «Energy Saving & Equipment» for The Company Radio Studio is awarded with a First Place implementation of the reduction coolers on the pyrolysis Diploma in the nomination «The Best Radio Story», and heaters at the Ethylene Plant. the two Second Place Diplomas are awarded to the «Neftekhimik» newspaper office stuff – «The Best Printed The combined team of the OAO Nizhnekamsknrftekhim Word Media» and «The Best Publication in Printed Press». took the first place according to the results of the XVIII-th Spartakiada Games of Tatrescoma Roschem Trade union among workers of the companies in chemical industry having confirmed once again the highest level of sports movement at the Company.
Оctober 2012 ОАО Nizhnekamskneftekhim once again is among the leaders of Companies of Substantial Effectiveness in Russia, according to the Eco-Energy Rating Agency “Interfax-ERA.
November 2012 Propaganda team of OAO Nizhnekamskneftekhim is awarded with a Cup and the Diploma for a victory in the third republican competition of propaganda teams organized by the Federation of Trade unions of the Republic of Tatarstan.
ОАО Nizhnekamsknrftekhim are awarded with an Honorary Diploma «Leader of Environmental Conservation Activity in Russia-2012». This is the 7-th victory of the Company in such contest: title of the leader in the field of Environmental protection the Company won in 2005-2008, 2010 и 2011 as well.
111 INDEPENDENT AUDITOR’S OPINION
INDEPENDENT AUDITOR’S OPINION ON CERTIFICATION OF THE SUSTAINABLE DEVELOPMENT REPORT
Addressed to: ОАО Nizhnekamskneftekhim
Introduction Present independent audit certification relates to «Sustainability prospects for further development, personnel training and report of ОАО Nizhnekamskneftekhim for 2012» (hereinafter management, environmental protection, оccupational safety, service Report). The report is made by ОАО Nizhnekamskneftekhim and product quality assurance, power supply, water treatment and which bears responsibility for data collection and presentation of etc. have been reviewed. all information in the Report. “Bureau Veritas Certification Rus” is • Verification of meeting goal objective in the field of sustainability in charge of working results on Report certification merely to for the year 2012. ОАО Nizhnekamskneftekhim and assumes no responsibility to any party for decisions taken or slugged on account of the present • Verification of documents and data characterizing performance of certification. management systems of socioeconomic, environmental and innovative aspects operating at Nizhnekamskneftekhim • Records of compliance audit of Quality Management System, Certification content and criteria Environmental management, Occupational and Industrial Safety 1. Appraise the category and Company observance level of Management System certified according to ISO 9001, ISO 14001 inclusion, significance, respond principles to AA1000 and OHSAS 18001 international standards requirements. Accountability Principles Standard (APS) 2008. • Verification of data gathering, handling, recording, transmission, 2. Appraise information reliability and disclosure quality in the аnalysis, selection and consolidation processes used in the field of Company sustainability (based on АА1000 Assurance Company, to be included in the Report. Standard 2008). • Verification of adequacy of a number of presented in the Report 3. Appraise quality of interested parties involvement into affirmations, propositions and data during testifier’s direct visit to reporting procedure according to AA1000 Stakeholder ОАО Nizhnekamskneftekhim, Nizhnekamsk in February 2013. Engagement Standard (SES) 2011. • Аnalysis of mass media data selection and third parties statements 4. Appraise report correspondence to level A+ (Company published to specify Company adherence to values in the realm self-esteem) according to Global Reporting Initiative of sustainability as references for statement validation in the Sustainability Reporting Guidelines, version G3.1, 2011. Report. 5. Apply certification level «reasonable», provided by the standards • Verification of Report and data conformity published on corporate for activities on АА1000 Assurance Standard (AS) 2008 and site to AA1000AS, AA1000SES standards and GRI recommendations. International Standard on Assurance Engagement ISAE-3000. • While certifying the Report information published on Company 6. Give recommendations on corporate governance within social corporate site www.nknh.ru, different promotional publications, reporting. newspapers “Rossiyskaya Gazeta” ,”Kommersant”, «Реpublic Tatarstan», «Nizhnekamskaya pravda», «Vasha gazeta», Methodology «Nizhnekamskoye vremya», corporate newspapers «Neftekhimik» and • Interview of Nizhnekamskneftekhim top managers about significant «Khezmatesh аvаzy», TV programs of republican and town economic, sоcial and ecology aspects of Company activity aspects, channels («ТNV», GTRK «Таtarstan» teleompany «NTR» and «Efir»), in- intents, оbligations, priorities and goals in the field of complex telestudio «VTS-Neftekhim», in-complex radio «Neftekhim», sustainability, means and degree towards this end. аs well as ОАО Nizhnekamskneftekhim Charter, labour contract for 2012 ,standards and other сorporate documents were taken • Аnalysis of ОАО Nizhnekamskneftekhim approach to involvement into account. and public hearing and expectations of interested parties by interviewing persons in charge of dialogue with these parties, • Appraisal of Report availability for all stakeholders and efficiency holding meetings with representatives of several parties concerned of specified feedback mechanism. and on the basis of studying adequate documentation selection to confirm such interaction in 2012. Certification limits • Both top management (First Deputy General Director - Chief • Certification was not performed in relation to deliverables Engineer, Deputy General Director for Personnel and Social Issues stepping over timebounds of current reporting cycle 2012. and Company management in charge of different kind of activities • Statements expressing opinions, persuasions or intents of OAO (P.S plant director and shop heads, director and chief engineer Nizhnekamskneftekhim to take any actions in future have not on construction and ABS plastics production, R&D deputy director, been accounted for by the certification. technical director and section head, personnel, trade union such as in particular economics, training and education of employee, • Certification at operating level was limited by visits to different QMS head as well as personnel, locals, Nizhnekamsk production facilities, Company divisions and departments as administration representatives were interviewed. In particular such well as by a number of social objects belonging to it issues as economics and petrochemical production peculiarities, (February 2013).
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Certification level and our opinion frame organizations, local authorities, local population, the parties Report information selectively verified within reasonable level of involved of federal, regional and international levels. certification assures smaller guarantee level for certification • ОАО Nizhnekamskneftekhim cooperates with related parties on compared to full check of all data («high level). Certification the following basic principles as respect for interests, opinions work was built upon assertional information provided by ОАО and preferences; openness and transparence; trust and sincerity; Nizhnekamskneftekhim management and its structural departments, super law compliance; taking into account of international and аs well as stakeholder’s representatives, on data from available Russian standards; good fulfilment of obligations undertaken; sources and analytical confirmation methods. The work performed history, culture, traditions awareness of way of living and can not be considered as sufficient for revelation of all potential heritage of economic management entity residents. near data in regard to numeric information placed in the Report. • Information presented and objective and indirect evidence Nevertheless data collected in the course of work are sufficient received show that stakeholders’expectations and needs basis for forming our conclusions with reasonable certification regarding Company business are considered at all stages of level in regard to the nature and degree of conceiving being social process. inclusive, emphasis, AA1000 Accountability Principles Standard 2008 requirements principles and GRI recommendations by the • With each of the parties involved the Company strives to Company. choose the most effective, convenient and mutually profitable information sharing, feed back and communication forms. Positions of interested parties, аs well as concerns of next- About the Company generations and environment protection are becoming clear by 1. ОАО Nizhnekamskneftekhim is one of the major European organizing and improving meaningful dialogues. In report petrochemical companies. Company manufacturing complex making for 2012 in the course of cooperation with the comprises 11 main production plants as well as auxiliary stakeholders relevant topics for the parties involved comparable shops, departments and centres (including R&D, planning and to those of the Company have been defined. design) located on two Nizhnekamsk production areas. • Attentiveness to certain report topics for 2012 is adequate to 2. The strategic program of development of ОАО relevance as well as а concerns and requests of stakeholders. Nizhnekamskneftekhim corresponds to the basic principles of In particular, following preliminary discussions of the contents, the Plan for development of the gas-oil-chemistry until 2030. 2012 report was supplemented by the Company participation in The Plan covers in particular, project for new olefin complex the Republican ecology program; section extension «Сompany construction of 1 mln t. annual ethylene capacity together development strategy»; more detailed description of environment with plastics produce integrated. monitoring presentation of more complete information for the 3. The Company is successfully developing its synthetic rubber area population in regard to ecological issues. sector and has worked well in the in the international market of these products. ОАО Nizhnekamskneftekhim supplies its • Basic methods to inform and interact with stakeholders are rubbers to major international tire companies. In 2012 73% of public hearings, press-releases, press-conferences, mass media the total export volume of synthetic rubber was shipped to publications, informational messages distribution (letters, them. booklets and brochures), corporate Web-portal, consultations, 4. ОАО Nizhnekamskneftekhim is the only producer of neonol in negotiations, inquiries, working groups, standing commissions the Russian Federation and CIS countries and one of core and etc. Other source information for employees and leaders is players in the international market for this product. briefings, conferences, electronic mail, Internet, departmental 5. In 2012 the Company exported its products to 51 countries of mass media, orders, ordinances and scientific and technical the world. documents; papers developed in the Company. 6. Five basic lines such as: ecology, education, health, personnel • With the view to obtaining additional competitive advantages and charity are Company focused priorities in the area of and consolidation of business contacts with finished products corporate social responsibility. strategic partners, works to arrange Electronic Data Interchange between ERP systems of «Cоntinental» and ОАО Our inference Nizhnekamskneftekhim via Internet portal Rubber Network have 7. In general the Report adequately covers ОАО been performed. Currently ОАО «Nizhnekamskneftekhim » has Nizhnekamskneftekhim performance from corporate social full technical integratability with the rest of the world reporting position. consumers of chemical products, participants of trading platform 8. The Report is set forth in clear and luminous form, it is Elemica (Michelin, Goodyear, Pirelli and etc). inerratic, objective and informative. • Mass media efficiently highlights decisions, resolutions of the 9. ОАО Nizhnekamskneftekhim is the Company having efficient meetings of the Company Management Board (weekly), Board management systems enabling to specify significant socio- of Directors. Yearly by the shareholder's meeting annual report, economic, environmental and innovative activity aspects, plan, accounting balance-sheet, income satement, nonfinancial manage and develop processes pertaining to them, define accounting are being published. stakeholder’s expectations in relation to these aspects and • In 2012 ОАО Nizhnekamskneftekhim started implementation of respond to them. new strategic development program providing for expansion of 10. On the part of Company management, monitoring systems of complex raw materials base, expanding rubber production social reporting process are supported to the full extent by capacity and construction of new plastic lines. the mission and strategy, its policy makers and resources, as well as with conformity of its operation to principles of • Carrying-out social programs pointed at employee quality life «Social Charter of Russian business». bettering, their families and local population сreates favourable conditions for business sustainability. Report consistency with three AA1000 APS principles • ОАО Nizhnekamskneftekhim is a member of the following institutions: chamber of commerce & industry; Аssociation of Principle 1. Being Inclusive gas-turbine technologies for power engineering and industry; • ОАО Nizhnekamskneftekhim cooperates with extensive sweep chemists of Russia Union, Union of Industrialists and of stakeholders. The most significant among them are Entrepreneurs; association «Sintezkautchuk»; association of shareholders, investors, business partners, clients, suppliers, undertakings and entrepreneurs of the Republic of Tatarstan; subcontrators, employees, trade union, service and product SRO Regional noncommercial partnership «Builder’s community consumers, governmental authorities, mass media, public of the Republic of Tatarstan», аs well as being a part of
113 INDEPENDENT AUDITOR’S OPINION
international organizations: International Academy of quality improved feature products, implementation of energy saving management; Аssociation of automatic identification «UNISKАN/ and environmentally benign technologies, labor-market active GS 1 RUS»; International Rubber Study Group (IRSG); work; commemorated with winner's certificate of Republican International institute of rubber producers (MIPSK). competition «Charity provider of the year” in nomination «For longstanding partnership». Principle 2. Information value presented • Interests and expectations of employees are considered by • The report presents balanced and reasoned summary of acceptance of the Collective agreement between ОАО essential socio-economic, environmental and innovative activity Nizhnekamskneftekhim and trade-union committee. aspects defining sustainability figures of ОАО • The right of population to favorable environment is provided Nizhnekamskneftekhim. with Company planned environmental activity within the • All important information including info on material facts framework of OAO NKNK Ecology program for the period among them major transactions with Company assets is placed from 2007 to 2015. on official corporate www portal. • Health and safety Impact Assessment of the products and • The report discloses important info on retrieval of sustainability reporting of data according to the specified requirements is and investment program development, gives self-appraisal of performed for 100% significant production line of the prospective tasks fulfillment of sustainability and social Company. Product supplies are accompanied by MSDS obligations undertaken for 2012, reflects evaluation of social documents (Material Safety Data Sheet), mandatory in EC and regional importance of investment projects, allots tasks of countries, USA and et alias, where product handling safety system optimization on public reporting. precautions are indicated. The purpose of MSDS is to distribute information on product safety including potential dangerous • The report contains prospective tasks of sustainability for 2012 aspects. and for the period up to 2020. • In 2012 ОАО Nizhnekamskneftekhim was honored with Grand • If necessary, collection process, handling, transmittal and Prix diploma in nomination «Innovative environmentally friendly presentation of information on important aspects of Company technologies», аs well as with certificate «For the best sustainability might be traced. presentation of environmental activity on the Company booth • Based on report data evaluation and interviews neither of at the conclusion of the competition held at VII interregional essential aspects sustainability specified by the Company can exhibition «Ecotechnology and equipment of the 21 century». be mentioned, which could be overlooked by Company • Works on reinforcing of existing hydraulic seal industrial wastes management or unreasonably excluded from the reporting. The polygon are one of major environmental measures taken in Report covers all GRI performance indicators applicable to the 2012. As consequence heavy drop of harmful substances Company and substantiates lack of detailed information on GRI emissions into the atmosphere has been achieved and amount separate indicators, irrelevant to Company business. of wastewater discharged into the basin has been reduced. • ОАО Nizhnekamskneftekhim risk management is a continuous • For the fiscal period energy saving policy remained to be the and developing process covering the whole entity. Risks are key integral part of enterprise development. Automated data managed by employees at all Company levels. Control effects measuring system of commercial electricity was formed, the are used in adjusting Company strategy and approach and third program of energy saving for 2011-2015 with perspective aimed to choose the most efficient out of all possible up to 2020 is under implementation. ОАО development paths with available resources for achievement of Nizhnekamskneftekhim corporate management system is aimed ОАО Nizhnekamskneftekhim objectives. at compliance with accepted international standards and • The info presented in the Report and corporate site is directed to the Company efficient performance. Corporate meaningful for the parties concerned as it might influence their policy and business–processes are based on principles of future decisions and behavior in regard to the Company. maximal transparency and openness for all parties involved, • The Report contains sufficient information on Company’s conflict of interest risk aversion. observation of Russian law, international standards, statutory • Views and expectations of stakeholders are accounted for by instruments and substandards of petrochemical sector. principles of ОАО Nizhnekamskneftekhim corporate management», including general meeting of shareholders. Principle 3. Respond to stakeholder’s expectations • Requirements of customers are provided with scheduled • At present such areas are not known to us which could be performance of works of the guaranteed quality. In creation of disclosed, but were not disclosed in the Report where the competitive advantage of the Company adjusted product quality Company would be incapable to respond to sound inquiries of control system, high level of employees professionalism, stakeholders. arranged work with suppliers and subcontractors play an increasing role. • Responsiveness to regional needs is realized by financing and implementation of a number of social projects. ОАО • Realization of the social programs directed to improvement of Nizhnekamskneftekhim realizes sports, educational, cultural quality of employees’ life, their families and local population, programs, brings the contribution to development of a social creates favorable conditions for steady development of business. infrastructure on which condition quality of life both employees Increase of an educational level of the personnel, decrease of and their families, and all population of regions of activity morbidity and industrial traumatism, improvement of a social depends. climate in the regions of activity became the program results. • The Company respects public interests, assumes responsibilities • High standards of industrial health service are developed in the of business impact upon consumers, suppliers, employees, society, employee advancing, their training and education are stakeholders, local public and other concerned parties of social promoted. sphere. This obligation steps over the statutory bounds and • Human rights violation is monitored in the Company under supposes that ОАО Nizhnekamskneftekhim voluntary takes provisions of acting labour disputes commission. supplementary steps to improve the quality of life of • Given that hazardous facility is the licensed activity for ОАО employees and their families, аs well as local community and Nizhnekamskneftekhim, аnd due to that production departments society as a whole. and other entity installations (which could incur losses) are • ОАО Nizhnekamskneftekhim is ranked again among rating located in the Company territory, ОАО Nizhnekamskneftekhim leaders of basic performance of Russian companies and insured its legal liability for operation of 200 hazardous enterprises; it has been conferred award for development of production facilities.
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Report conformity to GRI recommendations The report is executed with GRI 3.1 (2011) guidelines recommendations applied on reporting in relation to sustainability, it contains information on reporting components and GRI performance indicators meeting level А+ reporting.
Cooperation quality with stakeholders according to АА1000SES (2011) Public reporting process in general complies with AA1000SES (2011) recommendations. This refers to stakeholder’s identification, initial specifying of meaningful issues, determination of strategy, goals and the number of involved, making up a plan, forms and schedule of structured involvement, engagement arrangement, respond to involvement call.
Recommendations on corporate management development of social reporting • Work out performance indicators list representing particularities of petrochemical sector together with stakeholders. • Develop efficiency appraisal criteria of social programs and Company projects. • Work out management system guidance on public reporting process. • Include public reporting into corporate management quality, ecology, labour protection system as essential part of appraisal element »on the side of management». • Transfer experience of the Company on steady development and the social responsibility of business to developers of the Branch appendix to GRI Guidance for the enterprises of petrochemical sector.
“Bureau Veritas Certification Rus” application about independence, impartiality and competence ZAO “Bureau Veritas Certification Rus” is an independent professional international company specializing in rendering services in the area of accredited certification of various systems of management (in particular, management quality systems, occupational health and safety, environmental activity, social responsibility, etc.). “Bureau Veritas Certification Rus” formally states that Opinion represents an independent appraisal of the third party auditor. “Bureau Veritas Certification Rus” has no commercial interests in ОАО Nizhnekamskneftekhim activity except for certification services provided.
ZAO “Bureau Veritas Certification Rus” February 28, 2013
Lead Auditor Georgiy Кlenov
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TABLE OF STANDARD GRI ELEMENTS (GLOBAL REPORTING INITIATIVE)
This Report incorporates indicators recommended by The Guide for LEGEND: Reporting in the Sphere of Sustainable Development of the Global Reporting Initiative, ver. GRI-G3.1. - reported fully - reported partially
Comments and Description of GRI indicators Reported Report Section Page references 1. Strategy and Analysis 1.1 Statement from the most senior decision-maker of the organization (for example, Address of the Chairman of the Board of 4-5 chief executive officer, chairman or equivalent position) regarding the importance of the Directors sustainability for the organization and its strategy. Address of the General Director 6-7 1.2 Description of key impacts, risks and opportunities. Address of the General Director 6-7 Company’s Development Strategy 14-15 Risk Management 25-26 2. Profile of the Organization 2.1. Name of the organization About the Company 12 Contact Information 128 2.2. Primary brands, products and/or services About the Company 13, Please refer to OAO 17-19 NKNK’s corporate web site, Production Section at http://www.nknh.ru/ The entire product mix is presented at ONLINECONTRACT (http:// www.onlinecontract.ru/) 2.3. Operational structure of the organization, including main divisions, operating About the Company 12-13 companies, subsidiaries and joint ventures 2.4. Location of organization’s headquarters Contact Information 128 2.5. Number of countries in which the organization operates, and names of countries About the Company 12 with either major operations or that are specifically relevant to the sustainability issues covered in the report 2.6. Nature of ownership and legal form About the Company 12 Contact Information 128 2.7. Markets served (including geographic breakdown, sectors served, and types of About the Company 18-21 customers/beneficiaries) 2.8. Scale of the reporting organization About the Company 12 2.9. Significant changes during the reporting period regarding size, structure, or About the Company 12 ownership 2.10. Awards received in the reporting period The Company and Community 103-111 Please refer to OAO NKNK’s corporate site, Awards Section at http://www.nknh.ru 3. Report Parameters 3.1. Reporting period for information provided. About the Report 8 3.2. Date of most recent previous sustainability report. About the Report 8 3.3. Reporting cycle About the Report 8 3.4. Contact point for questions regarding the report or its contents. About the Report 8 Contact Information 128 3.5. Process for defining report content. About the Report 8 Interaction with Stakeholders 31 3.6. Boundary of the report About the Report 8 3.7. State any specific limitations on the scope or boundary of the report. About the Report 8 3.8. Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced About the Report 8 operations and other entities that can significantly affect comparability from period to About the Company 12 period and/or between organizations. 3.9. Data measurement techniques and the bases of calculations, including assumptions About the Report 8-9 and techniques underlying estimations applied to the compilation of the indicators and other information in the report. 3.10. Explanation of the effects of any re-statements of information provided in earlier About the Report 8-9 reports and the reasons for such re-statements (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). 3.11. Significant changes from previous reporting periods in the scope, boundary, or About the Report 8-9 measurement methods applied in the report.
3.12. Table identifying the location of the standard elements in the report Table of Standard GRI Elements 116 3.13. Policy and current practice with regard to seeking external assurance for the report About the Report 8-9
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Comments and Description of GRI indicators Reported Report Section Page references 4. Governance, Commitments, and Stakeholders Engagement 4.1. Governance structure of the organization, including committees under the highest The Company and Shareholders 34-35 Please refer to OAO NKNK’s governance body responsible for specific tasks annual report for 2012 at the Company’s corporate web site http://www.nknh.ru 4.2. Indicate whether the Chairman of the highest governance body also covers an The Company and Shareholders 34 executive role (in this case, indicate the functions within management and the reasons for this structure). 4.3. For the organizations which have a unitary board structure, state the number of The Company and Shareholders 34-35 members of the highest governance body who are independent and/or non-executive. 4.4. Mechanisms available to shareholders and the employees for providing The Company and Shareholders 35, 73 recommendations or directives to the highest governance body. 4.5. Linkage between compensation for members of the highest governance body, The Company and Shareholders 35 senior managers and executives (including departure arrangements) and the organization’s performance (including social and environmental performance). 4.6. Processes in place for the highest governance body to ensure conflicts of interest The Company and Shareholders 34-35 are avoided. 4.7. Processes for determining the qualifications and expertise of the members of the The Company and Shareholders 34-35 highest governance body for directing the strategy of the organization in relation to the economic, social and environmental aspects (of sustainability). 4.8. Mission, values, codes of conduct, and principles relevant to economic, Corporate Social Responsibility 24-31 environmental and social performance developed internally and the status of their implementation. 4.9. Procedures of the highest governance body for overseeing the methods for The Company and Shareholders 34-35 identification and management of economic, environmental, and social performance, including relevant risks and opportunities and the compliance with internationally agreed standards, codes of conduct and declared principles. 4.10. Process for evaluating the highest governance body’s own performance, particularly The Company and Shareholders 34-35 with respect to economic, environmental and social performance. 4.11. Explanation of whether and how the precautionary approach or principle is Corporate Social Responsibility 25-26 addressed by the organization. Environmental Activities 80 4.12. Externally developed economic, environmental, and social charters, principles, or Corporate Social Responsibility 22 other initiatives to which the organization subscribes or endorses. 4.13. Membership in associations and /or national/international advocacy organizations. Corporate Social Responsibility 28-29 4.14. List of stakeholder groups engaged by the organization Corporate Social Responsibility 27-29 4.15. Basis for identification and selection of stakeholders with whom to engage. Corporate Social Responsibility 27 4.16. Approaches to stakeholder engagement, including frequency of engagement by Corporate Social Responsibility 28-29 type and by stakeholder group. 4.17. Key topics and concerns that have been raised through stakeholder engagement, Corporate Social Responsibility 31 and how the organization has responded to those key topics and concerns, including through its reporting. 5. Performance Indicators: Economic Aspect: Economic Performance EC1 Direct economic value About the Company 16-17 EC2 Financial implications and other risks and opportunities for the organization’s Environmental Activities 83 activities due to climate change Appendices. GRI indicators in the field of 125-127 environment protection and use of materials. EC3 Coverage of the organization’s defined benefit plan obligations The Company and Employees 62 The Company and Community 95 EC4 Significant financial assistance received from the government The Company and Science 101 Aspect: Market Presence EC5 Range of ratios of standard entry level wage compared to local minimum wage at The Company and Employees 58 significant locations of operation. EC6 Policy, practices, and proportion of spending on locally-based suppliers at The Company and Business Partners 40-41 significant locations of operation. EC7 Procedures for local hiring and proportion of senior management hired from the The Company and Employees 47 local community at significant locations of operation. Aspect: Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided The Company and Community 90-111 primarily for public benefit through commercial, in-kind, or pro-bono engagement. EC9 Understanding and describing significant indirect economic impacts, including the The Company and Community 90-111 extent of impacts. 6. Performance Indicators: Environment Aspect: Materials EN1 Materials used by weight or volume. Environmental Activities 81-82, Please refer to OAO 85 NKNK’s annual report for 2012 at the Company’s corporate web site http://www.nknh.ru
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Comments and Description of GRI indicators Reported Report Section Page references EN2 Percentage of materials used that are recycled input materials Environmental Activities 84 Aspect: Energy EN3 Direct energy consumption by primary energy source Environmental Activities 81-82 EN4 Indirect energy consumption by primary source Environmental Activities 81-82 EN5 Energy saved due to conservation and efficiency improvements. Environmental Activities 81-82, 126 EN6 Initiatives to provide energy-efficient or renewable energy-based products and Environmental Activities 82 services, and reductions in energy requirements as a result of these initiatives. EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Environmental Activities 81 Aspect: Water EN8 Total water withdrawal by source. Environmental Activities 82 EN9 Water sources significantly affected by withdrawal of water Environmental Activities 82-83 EN10 Percentage and total volume of water recycled and reused. Environmental Activities 82-83 EN11 Location and size of land owned, leased, managed in, or adjacent to, protected Environmental Activities 86-87 areas and areas of high biodiversity value outside protected areas. ЕN 12 Description of significant impacts of activities, products, and services on Environmental Activities 86-87 biodiversity in protected areas and areas of high biodiversity value outside protected areas. ЕN13 Habitats protected or restored Environmental Activities 86-87 ЕN14 Strategies, current actions, and future plans for managing impacts on biodiversity. Environmental Activities 86-87 ЕN 15 Number of IUCN Red List species and national conservation list species with Environmental Activities 86-87 habitats in areas affected by operations, by level of extinction risk. EN16 Total direct and indirect greenhouse gas emissions by weight. Environmental Activities 83 EN17 Other relevant indirect greenhouse gas emissions by weight. Environmental Activities 83 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Environmental Activities 83 EN19 Emissions of ozone-depleting substances by weight. Environmental Activities 83 EN20 NOx, SOx, and other significant air emissions by type and weight. Environmental Activities 83 EN21 Total water discharge by quality and destination. Environmental Activities 82 EN22 Total weight of waste by type and disposal method Environmental Activities 84 ЕN23 Total number and volume of significant spills. Environmental Activities 82 ЕN24 Weight of transported, imported, exported, or treated waste deemed hazardous Environmental Activities 83-84 under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. EN25 Identity, size, protected status, and biodiversity value of water bodies and related Environmental Activities 86-87 habitats significantly affected by the reporting organization’s discharges of water and runoff. Aspect: Products and Services EN26 Initiatives to mitigate environmental impacts of products and services, and extent Environmental Activities 85 of impact mitigation. EN27 Percentage of products sold and their packaging materials that are reclaimed by The Company and Business Partners 39-40 category. Aspect: Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for Appendices. GRI indicators in the field of 125 noncompliance with environmental laws and regulations environment protection and use of materials Aspect: Transport ЕN29 Significant environmental impacts of transporting products and other goods and Environmental Activities 85 materials used for the organization’s operations, and transporting members of the workforce. Aspect: Overall EN30 Total environmental protection expenditures and investments by type. Environmental Activities 76 Appendices. GRI indicators in the field of 125 environment protection and use of materials. 7. Performance Indicators: Labor Practices and Decent Work Aspect: Employment LA1 Total workforce by employment type, employment contract, and region, broken down The Company and Employees 47-48 by gender. LA2 Total number and rate of new employee hires and employee turnover by age group, The Company and Employees 49 gender, and region. LA3 Benefits provided to full-time employees that are not provided to temporary or The Company and Employees 57-58 parttime employees, by significant locations of operation.
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Comments and Description of GRI indicators Reported Report Section Page references Aspect: Labor/Management Relations LA4 Percentage of employees covered by collective bargaining agreements. The Company and Employees 57 LA5 Minimum notice period(s) regarding significant operational changes, including The Company and Employees 58 whether it is specified in collective agreements. Aspect: Occupational Health and Safety LA6 Percentage of total workforce represented in formal joint management-worker health Safety and Health of Employees 73 and safety committees that help monitor and advise on occupational health and safety programs.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total Safety and Health of Employees 74 number of work-related fatalities, by region and by gender. LA8 Education, training, counseling, prevention, and risk-control programs in place to Safety and Health of Employees 71-72 assist workforce members, their families, or community members regarding serious diseases. LA9 Health and safety topics covered in formal agreements with trade unions. Health The Company and Employees 58, 74 and safety topics covered in formal agreements with trade unions. Aspect: Training and Education LA10 Average hours of training per year per employee, by gender, and by employee The Company and Employees 52 category. LA11 Programs for skills management and lifelong learning that support the continued The Company and Employees 50-54 employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular performance and career development The Company and Employees 55 reviews, by gender. Aspect: Diversity and Equal Opportunity LA13 Composition of governance bodies and breakdown of employees per employee The Company and Employees 47-49 category according to gender, age group, minority group membership, and other indicators of diversity. LA14 Ratio of basic salary and remuneration of women to men by employee category. The Company and Employees 61 LA15 Return to work and retention rates after parental leave, by gender. The Company and Employees 66 8. Performance Indicators: Human Rights Aspect: Investment and Procurement Practices HR1 Percentage and total number of significant investment agreements and contracts The Company and Business Partners 38 that include clauses incorporating human rights concerns, or that have undergone The Company and Employees 47, human rights screening. 58-59 HR2 Percentage of significant suppliers, contractors, and other business partners that The Company and Business Partners 38 have undergone human rights screening, and actions taken. HR3 Total hours of employee training on policies and procedures concerning aspects of The Company and Employees 59 human rights that are relevant to operations, including the percentage of employees trained. HR4 Total number of incidents of discrimination and corrective actions taken. The Company and Employees 59 HR5 Operations and significant suppliers identified in which the right to exercise freedom The Company and Employees 58-59 of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights. HR6 Operations and significant suppliers identified as having significant risk for incidents The Company and Employees 59 of child labor, and measures taken to contribute to the effective abolition of child labor. HR7 Operations and significant suppliers identified as having significant risk for incidents The Company and Employees 59 of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor. Aspect: Security Practices HR8 Percentage of security personnel trained in the organization’s policies or procedures The Company and Business Partners 40 concerning aspects of human rights that are relevant to operations. Aspect: Indigenous Rights HR9 Total number of incidents of violations involving rights of indigenous people and The Company and Employees 59 actions taken. HR10 Percentage and total number of operations that have been subject to human rights The Company and Business Partners 40-41 reviews and/or impact assessments. HR11 Number of grievances related to human rights filed, addressed, and resolved The Company and Employees 58-59 through formal grievance mechanisms. 9. Performance Indicators: Society Aspect: Local Communities SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the The Company and Community 90-111 impacts of operations on communities, including entering, operating, and exiting. Aspect: Corruption SO2 Percentage and total number of business units analyzed for risks related to The Company and Business Partners 40 corruption.
119 TABLE OF STANDARD GRI ELEMENTS
Comments and Description of GRI indicators Reported Report Section Page references SO3 Percentage of employees trained in organization’s anti-corruption policies and The Company and Business Partners 40-41 procedures. SO4 Actions taken in response to incidents of corruption. The Company and Business Partners 41 Aspect: State Policy SO5 Public policy positions and participation in public policy development and lobbying. Corporate Social Responsibility 29 SO6 Total value of financial and in-kind contributions to political parties, politicians, and The Company and Community 98 related institutions by country. Aspect: Anti-Competitive Behavior SO7 Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly The Company and Business Partners 40-41 practices and their outcomes. Aspect: Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for Please refer to OAO noncompliance with laws and regulations. NKNK’s annual report for 2012 at the Company’s corporate web site http://www.nknh.ru SO9 Operations with significant potential or actual negative impacts on local Environmental Activities 82-85 communities. Appendices. GRI indicators in the field of 125-127 environment protection and use of materials. SO10 Prevention and mitigation measures implemented in operations with significant Environmental Activities 78-82 potential or actual negative impacts on local communities. Appendices. GRI indicators in the field of 125 environment protection and use of materials 10. Performance Indicators: Product responsibility Aspect: Customer Health and Safety PR1 Life cycle stages in which health and safety impacts of products and services are The Company and Business Partners 40 assessed for improvement, and percentage of significant products and services categories subject to such procedures. PR2 Total number of incidents of non-compliance with regulations and voluntary codes The Company and Business Partners 39 concerning health and safety impacts of products and services, by type of outcomes. Aspect: Product and Service Labeling PR3 Type of product and service information required by procedures, and percentage of The Company and Business Partners 39-40 Please refer to NKNK’s significant products and services subject to such information requirements. corporate web site at http://www.nknh.ru PR4 Total number of incidents of non-compliance with regulations and voluntary codes The Company and Business Partners 40 concerning product and service information and labeling, by type of outcomes. PR5 Practices related to customer satisfaction, including results of surveys measuring The Company and Business Partners 41 customer satisfaction. Aspect: Marketing Communications PR6 Programs for adherence to laws, standards, and voluntary codes related to The Company and Business Partners. 42-43 marketing communications, including advertising, promotion, and sponsorship. PR7 Total number of incidents of non-compliance with regulations and voluntary codes The Company and Business Partners. 42 concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes. Aspect: Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy The Company and Business Partners 41 and losses of customer data. Aspect: Compliance PR9 Monetary value of significant fines for non-compliance with laws and regulations Information is provided in concerning the provision and use of products and services NKNK’s annual report for 2012 at the Company’s corporate web site http://www.nknh.ru
120 OAO Nizhnekamskneftekhim | Sustainability report | 2012
FEEDBACK QUESTIONNAIRE
FEEDBACK QUESTIONNAIRE
Dear Valued Reader, Thank you for reading OAO Nizhnekamskneftekhim’s Sustainability Report for 20129. We are very much interested in hearing your opinion of this document. Your feedback is of great importance to us since it will help us to make the next report of OAO Nizhnekamskneftekhim more practicable and informative. To evaluate a report, please underline (or circle) the version of the answer, which corresponds to your opinion. Thanks in advance for your feedback!
1. What is your opinion about Nizhnekamskneftekhim’s 2012 Sustainability Report? (maximum 5 points, round-off score in each line):
Completeness of information 5 4321 Reliability and objectivity 5 4321 Design and graphics 5 4321 Ease of reference 5 4321 Representation and style of narration 5 4321 General assessment 5 4321
2. Has the Report influenced your attitude towards OAO NKNK’s activity? • Yes • Slightly • No • I do not know
3. What did you find most interesting in Nizhnekamskneftekhim’s 2012 Sustainability Report? (please, fill in the blank)
4. In your opinion, what needs to be updated in the Report? (please, fill in the blank)
5. What areas of OAO Nizhnekamskneftekhim's activity as per your opinion require improvement in terms of enhancing social responsibility? (please, fill in the blank)
6. What information do you expect to see in Nizhnekamskneftekhim’s 2013 Sustainability Report? Please, determine topics, significant for you and to be reported.
9 Please find the Russian and English versions of the Sustainability Report at the web site of OAO Nizhnekamskneftekhim (http://www.nknh.ru/soc_rep.asp, http://www.nknh.ru/sus_rep_en.asp)
121 FEEDBACK QUESTIONNAIRE
And now, please, fill in data about yourself:
Company’s name: Your interaction with OAO NKNK: Your name, surname: Your position : Telephone: Fax: Е-mail:
To what group of persons concerned do you belong to? Please, put «+» Federal, regional government authorities Local public (including local authorities, population of Niznnekamsk city, social organizations, educational institutions etc. ) Shareholders Investors Business partners (consumers) Business partners (suppliers) Employees of ОАО NKNK and their families (including ex-employees) Mass media Representatives of interested persons’group (please, write down)
Please send your comments in the most convenient way: OAO Nizhnekamskneftekhim, Nizhnekamsk, Republic of Tatarstan, 423574; fax: 8(8555) 37-93-33; е-mail: [email protected]
Your comments and suggestions will be greatly appreciated.
122 OAO Nizhnekamskneftekhim | Sustainability report | 2012
LIST OF ABBREVIATIONS
LIST OF ABBREVIATIONS
IQNET International Certification Network MSDS Material Safety Data Sheet OHSAS Occupational Health and Safety Management System SAP ERP Enterprise Resource Planning software GRI Global Reporting Initiative ABS-plastics Acrylonitrile butadiene styrene (ABS-based high impact technical thermoplastic resin) АIMS Automated information and measurement system MA Managers association АDCS Automated dispatching control system BK Butyl rubber BTU Biological treatment units GPW The Great Patriotic War SAEI SPE The state autonomous educational institution of secondary professional education HBR Halobutyl rubbers GOST State standards SAEI HPE The state autonomous educational institution of higher professional education SEI APE The state educational institution of additional professional education GDS Gas-distribution station GTU Gas turbine unit DV HCF Divinyl and hydrocarbon feed HFS House for foreign specialists ITD Informatiom technology department DMFA Dimethyl formamide FAH Folk Art House VFB Voluntary fire brigade CJSC Closed joint-stock company MEC Medical Engineering commission IM Isoprene monomer IP Isoprene – propylene ISO International Standartization Organization К(P)FU Kazan (Privolzhskiy) Federal University CMI Club of the Merry and Inventive I&А Instumentation and Automation CSR Corporate social responsibility CB REA Coordinating board of Russian Employers’ Association CCoefficient HDM Healthful and dietary meals SPRAL Social psycology research and analysis laboratory IOE International Organisation of Employers ILO International Labour Organization IAS International Accounting Standards NFERT Non-professional emergency response teams NVWBA RT Nizhevolzhsk water basin authority, RT VAT Value added tax R&DA Research-and-development activities PS&RB Pupils’ scientific and research body RFTC Rusian Federation tax code NKNH Nizhnekamskneftekhim NCO Noncommercial organization NGEI Non-governmental educational institution R&DC Research and development centre NCHTI Nizhnekamsk Chemical and Technological Institute
123 LIST OF ABBREVIATIONS
ОАО Open Joint-Stock Company UGRB United Gas Rescue Battalion UNO United Nations Organization LLC Limited Liability Company LS Labor Safety GPT General physical training PATE Passengers’Automobile Transportation Enterprise US Urban-type settlement MAC Maximum allowable concentration PL Professional lyceum ERP Emergency response plan FD Fire department RAS Russian Academy of Sciences M&S Management and specialists RUIE the Russian Union of Industrialists and Entrepreneurs RPS Ranking payment scheme RT Republic of Tatarstan RTC Russian trilateral commission for the regulation of social and labour relations RTS Russian Trading System RF Russian Federation PPE Personal protective equipment SR Synthetic rubbers SKD (N) Butadiene rubber SKD-L Lithium polybutadiene rubber SKI Synthetic isoprene rubber EPDM Ethylene propylene diene synthetic rubber MM Mass Media QMS Quality Management System MIS Medical Insurance Society CIS Commonwealth of Independent States SNiP Construction codes and regulations WTS Water treatment station TACCR Tatar Autonomous Soviet Socialist Republic TPS Thermal power station RWTA Railway transportation administration HIP High impact polystyrene CHCFSD Chemical and hydrocarbon feed supply department TCD Technical control department LWUU Liquid wastes utilization unit MICEX Moscow Interbank Currency Exchange SE Stock exchange HC Hockey club EC Electronic computer UNESCO United Nations Educational, Scientific and Cultural Organization
124 OAO Nizhnekamskneftekhim | Sustainability report | 2012
APPENDICES
APPENDICES
Appendix 1. Environmental protection costs in Year 2012
Costs Thou. RUB Current costs connected with: 2,187,064 - atmospheric air protection 219,048.33 - collection and treatment of sewage 1,923,478 - waste management 26,577 - protection and rehabilitation of land, surface and underground water 12,958.12 - conservation of biological diversity and natural territories 4,913.17 - ensuring environmental radiation safety 90 Costs for overhaul of fixed assets relevant to the environmental protection 518,335 Payment for environmental services 78,440.58 - fee for negative impact on the environment amounted to: 60,708.67 - penalties 768
Appendix 2. Water consumption of OAO Nizhnekamskneftekhim
Source of water supply: Units 2007 2008 2009 2010 2011 2012
Total water consumption: thou. m3 54,811.720 54,226.728 57,276.362 71,022.536* 71,889.506** 72,038.01** 1. The Kama River thou. m3 54,811 54,226 57,275 71,018.8 71,881.8 72,034.1 2. Artesian wells thou. m3 0.720 0.728 1.362 3.755 4.706 3.910 including: 2.1 Recreation center “Dubravushka” thou. m3 0.479 0.454 1.083 3.473 4.553 3.763 2.2 Guests’ House “Korabelnaya plugging of the thou. m3 0.114 0.132 0.139 0.72 well has been Roshcha” made 2.3 Hunt Society “Osha” thou. m3 0.127 0.142 0.140 0.210, 0.153 0.147 Consumption of clarified water for make-up of recycling water supply systems thou. m3 27,054.34 30,062.47 33,751.53 43,727.45 47,330.19 46,592.47 Recycle water consumption mln m3 1,444.70 1,546.09 1,503.28 1,632.55 1,740.61 1,826.65
* Increased water consumption is associated with increase (by 9,975.9 thousand m3) of fresh water used as make-up for recycling water systems (due to increase of drop entrainment from cooling towers due to abnormally hot summer of 2010 and change in the accounting system of water consumption); increase in water consumption for domestic and potable needs of employees (by 868.7 thousand m3) due to hot summer; increase of water consumption for process purposes (by 1,270.5 thousand m3), as well as the expansion of the recreation center "Dubravushka" and increase of the number of holidaymakers.
** A slight increase (by 1.2% in 2011 and by 0.2% in 2012) of water consumption from the Kama River, due to tincrease in produce output.
125 APPENDICES
Appendix 3. Quantity of Treated Wastewaters Discharged into Water Bodies
Units 2007 2008 2009 2010 2011 2012 thou. m3 41,944* 37,562 37,157 47,096** 47,062** 43,698
* – due to increased runoff downstream the pond on the Strelochny Log River due to increase of wash and blow-down water discharge in the process of preparation of the water treatment plant for start-up by OOO SOV-NKNK.
** – due to increased water consumption due to abnormally hot summer in 2010 and increase of produce output in 2010-2011.
Appendix 4. Trend of Total Emissions of Pollutants into Atmosphere
Unit 2006 2007 2008 2009 2010 2011 2012 2012–2006 Authorized emissions of pollutants thou. t 46.629 46.6296 28.588 28.5096 27.928 27.928 27.364 -19.265 into atmosphere Actual emissions of pollutants from thou. t 44.231 39.832 27.657 26.484 26.832 26.375 27.289 -16.942 stationary sources, including: Sulfur dioxide thou. t 0.103 0.133 0.167 0.165 0.150 0.169 0.166 0.063 Carbon monoxide thou. t 5.038 4.873 5.091 5.144 5.080 4.965 4.893 -0.145
Nitrogen oxide (as NO2) thou. t 4.053 3.829 6.689 6.493 7.018 6.996 4.089 0.036 Hydrocarbons without VOC thou. t 4.2698 3.500 2.097 1.674 1.786 1.066 1.453 -2.816 Volatile organic compounds (VOC) thou. t 29.0396 26.019 12.665 12.225 11.961 12.155 15.599 -13.44 Other gaseous and liquid materials thou. t 0.645 0.557 0.300 0.269 0.279 0.361 0.063 -0.582
Appendix 5. Direct greenhouse gas emissions
Name of pollutant Units 2007 2008 2009 2010 2011 2012
СО2 thou. t 2 ,047.03 2 ,253.30 2 ,422.2 2 ,393.75 2 ,307.04 2 ,698.78
СН4 thou. t 3.28 3.23 3.2 3.55 3.21 3.07
N2О thou. t 0.02 0.023 0.02 0.022 0.02 0.023
HFC (in СО2– equivalents) thou. t ------
РFC (in СО2– equivalents) thou. t ------
SF6 thou. t ------
Total emissions (in СО2-equivalents) thou. t 2 ,122.28 2 ,327.65 2 ,496.09 2 ,474.86 2 ,380.99 2 ,770.34
Appendix 6. Dynamics of Prevention of Greenhouse Gas Emissions through Introduction of Energy Saving Measures
Saving: Units 2007 2008 2009 2010 2011 2012 - heat energy thou. Gcal 1, 537.4 937.8 324.1 182.4 190 114.38 - electric energy mln kW/h 35.8 38.9 16.04 10.10 19.2 18.85 - fuel tons of fuel equivalent 16,294 15,653 5,283 13,943 30,800 2,480.1
126 OAO Nizhnekamskneftekhim | Sustainability report | 2012
APPENDICES
Appendix 7. Formation of non-utilizible wastes of production
Year 2006 2007 2008 2009 2010 2011 2012 2012–2006 2012–2006 t/y 9,144 8,989.7 8,191 7,600 9,614 9,155.3 7,547 -1,597 17% t/y 0.0055 0.0051 0.0044 0.004 0.004 0.004 0.003 -0.0025 45% t/mln RUB 0.264 0.235 0.204 0.185 0.205 0.182 0.146 -0.118 45%
Appendix 8.
Impact on the environment
Emissions of harmful substances Generation of unusable waste Discharge of waste waters in atmosphere * ( t / mln RUB) ( t / mln RUB) in the water basin ( m3 / RUB)
Increase of non-utilizable wastes in Years Waste water volume increase in year 2010 is a 2010-2011 compared to Years 2008-2009 can be result of increased fresh water consumption due explained by low load running/partial outage of to abnormally hot summer. some production units at the end of the year 2008 and at the beginning of the year 2009.
Household water consumption Power consumption ( m3 / person) ( thou. kWh / mln RUB)
In 2010, consumption of domestic/potable water increased due to abnormally hot summer.
127 CONTACT INFORMATION
Full Name of the Company: — in Russian – открытое акционерное общество «Нижнекамскнефтехим»; — in Tatar – «Нижнекамскнефтехим» Ачык Акционерлык Жэмгыяте; — in English – ОАО Nizhnekamskneftekhim.
Short Name of the Company: — in Russian – ОАО «Нижнекамскнефтехим» («Нижнекамскнефтехим»); — in Tatar – «Нижнекамскнефтехим» ААЖ; — in English – ОАО Nizhnekamskneftekhim.
Registered Address:
Nizhnekamsk, the Republic of Tatarstan, 423570
Postal Address:
ОАО Nizhnekamskneftekhim, Nizhnekamsk, Republic of Tatarstan, 423574
If you have any questions concerning the Report or its content please contact us at telephone no.: (8555) 37-93-33, 37-71-81 and 37-53-31 or at the address: OAO Nizhnekamskneftekhim, Nizhnekamsk, 423574, Republic of Tatarstan. You can send your questions by e-mail at: [email protected]
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www.nknh.ru Sustainability Report 2012