State Atomic Energy Corporation Rosatom Performance in 2018
Total Page:16
File Type:pdf, Size:1020Kb
State Atomic Energy Corporation Rosatom Performance in 2018 State Atomic Energy Corporation Rosatom Performance in 2018 PERFORMANCE OF STATE ATOMIC ENERGY CORPORATION ROSATOM IN 2018 2 3 TABLE OF CONTENTS Chapter 7. Development of the Northern Sea Route 94 7.1. ROSATOM's Powers Related to the Development and Operation 97 Report Profile 4 of the Northern Sea Route 7.2. Performance of the Nuclear-Powered Icebreaker Fleet 97 and Development of the Northern Sea Route Chapter 1. Our Achievements 6 About ROSATOM 9 Chapter 8. Effective Management of Resources 100 Key Results in 2018 10 Key Events in 2018 11 8.1. Corporate Governance 102 Address by the Chairman of the Supervisory Board 12 8.2. Risk Management 109 Address by the Director General 13 8.3. Performance of Government Functions 116 Address by a Stakeholder Representative 14 8.4. Financial and Investment Management 119 Financial and Economic Results 15 8.5. ROSATOM's Production System 126 8.6. Procurement Management 128 8.7. Internal Control System 132 Chapter 2. Strategy for a Sustainable Future 16 8.8. Prevention of Corruption and Other Offences 134 2.1. Business Strategy until 2030 18 2.2. Sustainable Development Agenda 23 Chapter 9. Development of Human Potential 136 2.3. Value Creation and Business Model 27 and Infrastructure Chapter 3. Contribution to Global Development 32 9.1. Implementation of the HR Policy 138 9.2. Developing the Regions of Operation 150 3.1. Markets Served by ROSATOM 34 9.3. Stakeholder Engagement 158 3.2. International Cooperation 44 3.3. International Business 52 Chapter 10. Safety and Environmental Protection 164 Chapter 4. Clean Energy Generation 60 10.1. Nuclear and Radiation Safety; Occupational Safety and Health 166 10.2. RAW and SNF Management and Decommissioning of Facilities 177 4.1. Mining Division 62 Posing Nuclear and Radiation Hazards 4.2. Fuel Division 64 10.3. Environmental Safety 181 4.3. Mechanical Engineering Division 66 4.4. Engineering Division 67 4.5. Power Engineering Division 69 Chapter 11. Partnership for Sustainable Development 196 11.1. Public Reporting System 198 Chapter 5. Innovations and New Products 72 11.2. Dialogues with Stakeholders 201 11.3. Incorporation of Stakeholders' Proposals 201 to Improve the Quality of People's Life 11.4. Statement of Public Assurance 203 5.1. Research and Innovations 74 5.2. Business Diversification 79 Appendices 206 Chapter 6. Digital Transformation 86 List of Abbreviations 214 6.1. Uniform Digital Strategy of ROSATOM 89 6.2. Internal Digitization 90 Glossary 216 6.3. Digital products 90 6.4. Participation in the Development of Russia's Digital Economy 92 Feedback Form 222 6.5. Development of Digital Competences and a Digital Corporate Culture 93 Contact Details and Useful Links 225 PERFORMANCE OF STATE ATOMIC ENERGY CORPORATION ROSATOM IN 2018 4 5 REPORT PROFILE The Public Report of State Atomic Energy Corporation Rosatom (hereinafter referred to as the Corporation or ROSATOM) STAKEHOLDER ENGAGEMENT for 2018 (the Report) has been prepared on a voluntary basis and is intended for a broad range of stakeholders. To improve transparency and accountability and to determine the materiality of information to be disclosed, the Report The Report focuses on the contribution of Russian nuclear technology to improving the quality of people's lives and pre- was prepared in cooperation with stakeholders in accordance with international standards (AA1000SES, the GRI Stand- serving the environment; this topic has been selected by the top management and representatives of key stakeholders. ards and the International <IR> Framework). To identify material topics to be disclosed in the Report, a poll was carried out and two dialogues with stakeholders were held, including public consultations on the draft Report. The Report incor- porates key recommendations and requests voiced by stakeholder representatives during these dialogues. STANDARDS AND REGULATORY REQUIREMENTS For details on the Report and the process of determining its content, see Appendix 1. The Report has been prepared in accordance with: — The Public Reporting Policy and the Public Reporting Standard of ROSATOM and its organizations; — The International Integrated Reporting Framework (International <IR> Framework); — The Global Reporting Initiative Sustainability Reporting Standards (GRI SRS, Core option); — The АА1000 AccountAbility Standards (AA1000 AP 2018, AA1000 SES 2015); — The Conceptual Framework for the Development of Public Non-Financial Reporting in Russia; — The Recommendations of the Russian Union of Industrialists and Entrepreneurs (RSPP) for Use in Governance Practice and Corporate Non-Financial Reporting (basic performance indicators). OUR ACHIEVEMENTS ROSATOM is Russia's largest power generation company and a leading player on global markets for nuclear technologies. It is developing new businesses in order to improve the quality of people's lives. PERFORMANCE OF STATE ATOMIC ENERGY CORPORATION ROSATOM IN 2018 9 ABOUT ROSATOM ROSATOM TODAY No.1 No.1 No.2 in the world in terms of the number of NPP in the world in terms of uranium in the world in terms of uranium resources power units in the portfolio of foreign enrichment (36% of the global market) (520,700 tonnes in Russia and 197,100 tonnes projects (36 power units) abroad) and production (7,289 tonnes) ROSATOM’S VALUES No.3 RUB 9.2 bln in the world in terms of nuclear fuel expenditure on corporate social EFFICIENCY fabrication (17% of the global market) programmes for employees in 2018 O N E S M T A E E P T A E H N E O A D R E S Y P T E E C F T A S RE Y SPONSIBILIT FO T R THE RESUL RUB 24.2 bln 255,400 expenditure on environmental protection employees in 2018 1 Within the scope The world's only 1 of consolidation of ROSATOM as of Q4 2018 (not including State Atomic Energy Corpora- nuclear-powered tion Rosatom). 335 18.7% organizations and enterprises within the share in power generation in Russia icebreaker fleet Corporation PERFORMANCE OF STATE ATOMIC ENERGY CORPORATION ROSATOM IN 2018 10 11 2 ROSATOM2 is a diversified corporation owning assets and possessing ROSATOM is also developing new businesses outside its core produc- KEY EVENTS IN 2018 ROSATOM’s status, the competencies at all stages of the nuclear production chain: uranium tion and process chain (electricity generation at large NPPs). These goals of its establish- exploration and mining, uranium conversion and enrichment, nuclear include wind power, nuclear medicine, composite materials, additive ment and operations, its functions and powers fuel fabrication, mechanical engineering, NPP design and construction, manufacturing, digital products, infrastructure solutions for towns and Power unit No. 4 of Rostov NPP and power unit No. 1 of Leningrad NPP-2 started commercial operation. are determined by power generation, decommissioning of nuclear facilities, spent nuclear cities, etc. Federal Law No. 317-FZ on State Atomic Energy fuel and radioactive waste management. The first criticality stage was completed at the reactor units of the Akademik Lomonosov floating nuclear power plant, Corporation Rosatom The Corporation's research activities are aimed at developing new followed by a ramp-up to 10% of their capacity. dated December 1, 2007. The Corporation comprises over 300 enterprises and organizations, solutions for the power industry and innovative technologies that will including research institutes, the Nuclear Weapons Division and the improve the quality of people's lives. ROSATOM's key project in the Electricity output at 37 power units of 10 operating NPPs totalled 204.3 billion kWh, reaching a new all-time high in the world's only nuclear-powered icebreaker fleet. ROSATOM is tasked sphere of nuclear power is the Proryv (Breakthrough) project, which is history of Russian nuclear power generation. The share of NPPs in Russia's energy mix totalled 18.7%. with implementing a uniform government policy on nuclear power and aimed at demonstrating the possibility of closing the nuclear fuel cycle fulfilling Russia’s international commitments related to the peaceful use using fast neutron reactors and developing the relevant technologies. Concreting started at the sites of power unit No. 1 of Kursk NPP-2 in Russia, power unit No. 2 of Rooppur NPP of nuclear energy and maintaining the non-proliferation regime. A closed nuclear fuel cycle will significantly improve the efficiency of (Bangladesh) and power unit No. 1 of Akkuyu NPP (Turkey). usage of natural uranium and will help solve the problem of nuclear ROSATOM is Russia's largest power generation company and a leading waste accumulation and provide humankind with a reliable long-term The power start-up of power unit No. 4 at Tianwan NPP in China was completed. player on global markets for nuclear technologies (NPP construction, source of clean energy. uranium enrichment services, nuclear fuel fabrication, decommission- 8 intergovernmental agreements and 20 major interdepartmental agreements were concluded. ing, etc.). ROSATOM carries out numerous large-scale international projects abroad and generates substantial overseas revenue. A historic package of documents on four high-priority areas of cooperation in the nuclear power industry was signed with China. A legal framework was established at the intergovernmental level for NPP construction in Uzbekistan. KEY RESULTS IN 2018 Under a newly adopted federal law, ROSATOM was assigned the functions of the infrastructure operator of the Northern Sea Route. INDICATOR 2016 2017 2018 2018/2017 3 Mass production of MOX fuel for the BN-800 fast neutron reactor began. Calculated as net cash KEY PERFORMANCE INDICATORS SET BY THE SUPERVISORY BOARD flow from day-to-day A Uniform Digital Strategy and a Road Map for the Digital Transformation of the Russian Nuclear Industry operations adjusted 3 for proceeds from the Adjusted free cash flow of ROSATOM , RUB billion 263.6 308.7 321.5 +4.1% were approved. The first replicable digital product was unveiled: Logos Aero-Hydro, an industrial 3D disposal of non-core modelling tool.