Autumn 2018 Safety, Health,Environment&Security urban mining, waste recycling, transport security. urban mining, waste recycling, transport security. With AEB updateson:safetyleadership, climate policy, AEB Business Quarterly | Autumn 2018 Introduction |

Dear readers,

Welcome to the Autumn 2018 Business Quarterly!

We commence a new business season with a publication related to the safety, health, environment and security (SHES) issues. There is no need to elaborate on the utmost significance of this topic—it speaks for itself. SHES problems affect each of us in various ways, and we should strive to take appropriate measures to tackle them.

Nowadays, more and more businesses have to be engaged into development of up- to-date technologies and innovative solutions to address a myriad of safety, health, environment and security issues.

The articles included in the magazine cover a broad range of SHES topics. To be more specific, they explore the evolu- tion of the safety leadership concept, study companies’ investment in safety as a way to increase productivity, review the benefits of behaviour based safety approach to be used at workplaces, analyse new digital tools enhancing industrial production management, and scrutinise legal aspects of medical inspections for employees.

Another bunch of articles provides extra insight into specifically environmental matters. The authors grab readers’ atten- tion by introducing the notion of urban mining, describe selection criteria of electronics waste recyclers, and reflect on trends in the climate change policy with regard to the Paris and the Kyoto Agreements.

A separate article deals with security challenges within the transportation industry and cargo theft in particular.

I would like to express genuine gratitude to the members of the AEB Safety, Health, Environment & Security Committee for their efforts invested in the publication. I hope it will be an impressive read!

As always, the magazine comprises news items covering the AEB most recent events and Committees’ activities. Likewise, updates by member companies are shared. Traditionally, information about new members which joined the AEB this sum- mer is provided. I am pleased to welcome new member companies on board and look forward to a fruitful cooperation.

Enjoy your reading!

Frank Schauff Chief Executive Officer, Association of European Businesses | Introduction AEB Business Quarterly | Autumn 2018

Dear readers,

It is my pleasure to introduce the third edition of the Business Quarterly magazine dedicated to safety, health, environment and security (SHES) issues.

The world is changing. Protectionism, trade wars, unfair competition, sanctions, and geopoli- tics are becoming the main drivers of decision-making in the international arena, which has a clear impact on economic development and business growth. It also has an impact on the decisions that countries and businesses are making in the space of SHES.

For example, such essential aspects of longer-term societal development like the circular economy—including urban mining, which is an environmentally responsible, economically viable, and profit-making market niche—are getting lower priority or limited attention in the current environment. Recent develop- ments in the climate policy agenda, including the US withdrawal from the Paris Agreement and slow or no action from the side of the main emitters, just re-confirm how quickly priorities are shifting in the turbulence of the modern world. On the other hand, those foreign companies which are still underinvesting in safety and environment and thus demonstrate a negative track record in the area of fatalities, serious injuries, and pollution are becoming increasingly scrutinized by governments, and are vulnerably exposed to losing their “license to operate” in a region or state of presence in case if their SHES performance does not improve— which is sometimes used as a competitive advantage by national companies which operate under different “rules of play”.

This edition of Business Quarterly magazine covers a selection of the aforementioned and other topics within the context of the mission of the AEB SHES Committee—which is to promote initiatives towards a more sustainable and responsible business, shar- ing best international practice and standards within this sphere among companies operating in Russia, informing member com- panies of the AEB on the current state of affairs and proposed regulatory changes, while enhancing the exchange of information between European and Russian business through a common platform.

On this note, I wish you a pleasant reading.

Yours sincerely,

Valery Kucherov Chairman of the AEB Safety, Health, Environment & Security Committee, Partner, ERM

1 AEB Business Quarterly | Autumn 2018 Contents |

AEB BUSINESS QUARTERLY, Autumn 2018 p. 7

Safety, Health, Environment & Security

Maximizing the value of your investment in safety: opportunities and challenges VALERY KUCHEROV, Chairman of the AEB Safety, Health, Environment & Security Committee; Partner, ERM IVAN IVANOV, Principal Consultant, Safety Services, ERM 4 Safety leadership: evolution of the concept Safety leadership: Q&A with David Campbell, BP Russia President DAVID CAMPBELL, BP Russia President 7 p. 12

Behaviour Based Safety and what it means for business KONSTANTIN VON VIETINGHOFF-SCHEEL, Chairman of the AEB Health & Safety Subcommittee; Managing Director, Corporate Counselling Services 10

Operational safety in digital era of Industry 4.0 VLADISLAV GORBACHEV, Senior Manager, Risk Consulting Corporate Governance and Sustainability Group, JSC KPMG 12 A digital solution to modify industrial production management

Should the white collars undergo obligatory medical examinations? p. 22 EKATERINA ALEXANDROVA, Associate, Castrén & Snellman International Ltd 15

Urban mining in Russia DMITRY SOROKIN, Chief Ecologist, Ecopolis Corporation VITALY KASLIVTSEV, Head of Marketing, Ecopolis Corporation 18

Extended Producer Responsibility. Rules for selection of electronics waste recyclers PAVEL RUDYAKOV, Technical Regulation Manager CIS, Samsun Electronics 20 Update on initiatives to reduce emissions

2 | Contents AEB Business Quarterly | Autumn 2018

Update on climate change policy p. 30 MAX GUTBROD, Chairman of the AEB Climate Policy Working Group; Partner, Baker McKenzie 22

Cargo crime dynamics in Russia: general overview and response ILYA SMOLENTSEV, Supply Chain Security Expert DMITRY BUDANOV, Chairman of the AEB Security Subcommittee; CEO, Elite Security Group 24 Meeting with Elvira Nabiullina, Governor of the Central Bank of Russia

AEB updates p. 30 AEB news 28 AEB Committees updates 32 Member news 40 Appointments 42 New members 43

Meeting by Alexander Shokhin and Johan Vanderplaetse

p. 29 p. 31

XV AEB Jubilee Flagship Conference AEB co-organised International Moscow Automotive Forum

Publication name/Наименование издания: Businesses”/Некоммерческое партнерство Номер выпуска: 03, 2018 Publisher’s address/ AEB Business Quarterly “АССОЦИАЦИЯ Release date/Дата выхода: Адрес издателя, редакции: (Eжеквартальное деловое издание ЕВРОПЕЙСКОГО БИЗНЕСА” 30 September 2018/30 сентября 2018 г. 16, bld. 3, Krasnoproletarskaya str., 127473, АССОЦИАЦИИ ЕВРОПЕЙСКОГО БИЗНЕСА) Chief Editor/Главный редактор: Circulation/Тираж: 16,000 сopies/16,000 экз. Moscow, Russia/Россия, 127473, Published by/Учредитель: Non-profit Y.S. Melnikova/Мельникова Ю.С. Cost/Цена: Distributed free of charge/ г. Москва, ул. Краснопролетарская, making partnership “Association of European Publication volume and number/ Бесплатно д. 16, стр. 3

The “AEB Business Quarterly” is registered with The Federal Service for Supervision of Legislation in Mass The information in this publication is not exhaustive. While all reasonable care has been taken to Communications and Protection of Cultural Heritage, Certificate registration ПИ № ФС77-24457/ СМИ prepare it, the Association of European Businesses accepts no responsibility for any errors it may “АССОЦИАЦИЯ ЕВРОПЕЙСКОГО БИЗНЕСА: Ежеквартальное деловое издание” зарегистрировано contain, whether caused by negligence or otherwise, or for any loss, however caused, sustained by any в Федеральной службе по надзору за соблюдением законодательства в сфере массовых person that relies on it/ Информация в данном издании не является исчерпывающей. Несмотря коммуникаций и охране культурного наследия. Свидетельство о регистрации ПИ № ФС77-24457 на то, что были предприняты все меры предосторожности при ее подготовке, Ассоциация от 23 мая 2006 года. The opinions and comments expressed here are those of the authors and do not европейского бизнеса не несет ответственности за наличие возможных ошибок, допущенных necessarily reflect those of the Non-profit making partnership “Association of European Businesses”/ по невнимательности или другим причинам, а также за любой вред, понесенный любым лицом, Мнения/комментарии авторов могут не совпадать с мнениями/комментариями учредителя которое будет руководствоваться данной информацией. публикации, Некоммерческого партнерства “АССОЦИАЦИЯ ЕВРОПЕЙСКОГО БИЗНЕСА”.

3 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Maximizing the value of your investment in safety: opportunities and challenges

solution—and increasing the workload on everyone makes things even worse.

According to ERM research through hundreds of interviews and projects undertaken globally, established safe- ty processes and programmes account for as much as 20% of total labour costs. Processes and procedures natu- rally and quickly decay into a meaning- less paperwork and tick box exercise because of repetition. As little as 40% of the resources expended on estab- lished safety processes impact behav- VALERY KUCHEROV IVAN IVANOV iours and therefore performance. Chairman of the AEB Safety, Health, Principal Consultant, Safety Services, Environment & Security Committee; ERM In order to maximise the value of in- Partner, ERM vestment in safety, address most diffi- cult safety challenges and make a step change in business performance there ost companies have im- lems that everyone was afraid to talk are three key actions that are common plemented the essential about. Is there a way to break this cir- for each successful safety transforma- M elements of an HSE man- cle? Or, should we wait when another tion path: agement system. However, it is very fatality, life-changing event or even a • people – emphasising the role of common, that everyone in the com- catastrophic event occurs? leaders in driving a positive safety pany from the top management to culture and shape the awareness, frontline personnel instinctively un- Many companies have even started competency and behaviours of the derstands that the rituals and routines the journey to improve HSE manage- workforce; of a typical HSE management system ment system after implementing basic • process – simplifying overly com- are literally out of date. As a manager, measures. Most organisations have plex and bureaucratic processes how many times have you been dis- gone through numerous safety audit- that hinder the effective manage- tracted by pointless safety inspections ing programmes, moving HSE function ment of safety related risks; the main result of which was a tick from one manager to another, imple- • plant – focussing on the availabil- box on your scorecard? Do workers menting new software, new policies ity, reliability and maintainability of on the shop floor feel better about it? and procedures, new safety KPIs and safety-critical equipment. How many times people had to stop scorecards or new incentive systems. work when the manager came on the It feels like these traditional recipes of- Although the above actions seem shop floor—in order to hide real prob- ten seem part of the problem—not the to be simple and obvious, the way

4 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

they are riven in the or anisation is overs en or s en oorly, so they o ently? The most desired outcome of critically im ortant for the success A not et their return on investment in the learnin is that ersonnel feel ho small mistake may ruin the whole ef safety lea ershi trainin ro rammes safety is inte rate an connecte to fort. Below, we shall look at how to ue to the follo in reasons all other thin s they o every ay e avoid the most typical mistakes and • overspend on buying a name brand; achieve aily ro uction, etc he itfalls on the ay to a ne level of • buying pretty details (“bells and learnin rocess shoul e focuse safety erformance whistles”), i.e. style of the training on the learner, an ho the content, over retention; elivery mechanisms, trainers facilita People: emphasising the the romise to cover a lot of content tors and coaches work collectively to role of leaders in a very short erio of time, i e enhance safety relate com etencies The first action is to emphasise the volume of information over reten role of lea ers an et as many fol tion Process: simplifying lo ers as ossi le ithout everyone s overly complex and commitment to safety no rocesses The way to maximise the return on bureaucratic processes an roce ures can e chan e eo your investment in safety is to trans Companies have thousands of pro le ust i nore chan e an hin er form the a roach to trainin an ce ures in lace hey are ho ever the chan e in the or anisation he transform training into an exciting not ty ically com rehensive, effec most ty ical solution here oul e learning experience. The biggest thing tive or easy to use, there y creatin to e loy a safety lea ershi trainin to achieve learnin is to focus on the the con itions for life alterin an ro ramme aime at everyone s en outcomes. What will be different? life en in events An o erator at the gagement in safety. Most companies How will the Learners do things differ ty ical chemical lant must rea an

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AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

• technical integrity: people are qualified and know how to design, use, maintain and monitor controls to ensure technical integrity of the controls; • design integrity: processes and in- frastructure (the facility/plant/equip- ment/production sequence) have been designed or modified with safety in mind. There are relief valves as ne- eded, blast walls, permanent barri- cades. Not everything is left to hu- man interactions; • organisational integrity: the or- ganisation is set up to ensure that a structure with right people with the right competencies have the roles, understand around 400 to 600 pages support and reinforce proper hazard responsibilities and accountability to of various types of operational and identification and risk assessment. keep the system working; safety instructions. It is not surprising • operational integrity ensuring that most of these documents have Plant: focusing on safety- that the processes, equipment, in- never been read by personnel. Due critical equipment frastructure, plant are operated as to huge amount of information, per- After empowering leaders and focusing per standard procedures and are sonnel selectively remember the most the management system on critical haz- not pushed outside of limits and commonly used requirements without ards, the respective controls must be maintenance is done on time. seeing the big picture. implemented. The most common mis- take is that organisations may focus and All these elements are equally impor- In order to be successful in fatality overrely on lower order controls (e.g. tant. Otherwise, controls will no longer prevention the organisation needs to PPEs or organisational controls) without be strong, creating the opportunity for shift thinking and recognise that every really lowering the risk. Any significant fatalities. procedure aims to control a certain modification of the production involv- unwanted event or a hazard. New ing design modification is a lasting and The most efficient companies agree thinking must be aligned on its pro- expensive project that needs to be ap- that investment in safety contributes cesses regarding major hazards and proved by many parties involved. With to profitability in many ways. Based on risks, their management and preven- this in mind, it is much easier to imple- the International Labour Organization tion. ment another inspection procedure to (ILO) study of 19 countries including observe the dangerous area/activity or Russia, the return on investment in As we know, serious incidents usu- provide additional PPE for the workers. health and safety was 1:2.2. Based ally happen from lower frequency on ERM’s experience a targeted safety and higher consequence events. As ERM identifies control as an act, engi- transformation programme results in a result, we have fewer opportunities neered object or system (combination 70-80% incident and accident reduc- to learn and less focus comparing to of act and object) intended to prevent tion and high cost emergencies and the events that we observe on a daily or mitigate an unwanted event. Con- fatalities can be avoided completely. basis (e.g. lacking fire extinguisher or trols must be comprehensive, effec- Emotional involvement of employees people not holding a handrail). The tive and easy to use—preventing con- in what they do, pride for the com- safety management system (proce- ditions for life-altering and life-ending pany and the achievements lower the dures, SOPs, work instructions, pro- events. There are four elements to workforce turnover while productivity grammes, etc.) must be simple and control integrity: and quality increase.

6 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

Safety leadership: Q&A with David Campbell, BP Russia President

do before we do it and look for ways ronments, where managing the inher- to remove risk first. ent risks is of the utmost importance. BP was made up of lots of legacy Of course, we have recently com- companies and for a time we toler- memorated the 30th anniversary of ated different standards. I think Fuzzy the Piper Alpha accident [an explosion and his leadership team have driven a on a North Sea platform in July 1988, much more systematic and consistent which resulted in the deaths of 167 approach and this has moved us to a people]. This accident and the sub- different place. sequent inquiry, led by Lord Cullen, brought about significant changes in Do you think the way people com- the way our industry designs oil and municate has improved? gas platforms, the way decisions are I think so. I was deeply involved in made and how we control work. For responding to two serious helicopter instance, during the disaster, a nearby accidents in the North Sea where we DAVID CAMPBELL BP Russia President platform continued supplying gas to put counselling in place for those af- Piper because it was not given per- fected. Typically, this is a group who mission from onshore to stop. This might not have thought they needed has completely changed—now, the it, but I had some tough North Sea offshore installation manager has ab- workers tell me they really benefited avid Campbell has more than solute authority to make those deci- from it. I also think younger people 30 years’ commercial and sions. coming in to the business are much D technical experience with better at opening up and talking about AEB member company BP, across a What is the latest thinking on their concerns. wide range of onshore and offshore safety leadership? upstream operations in international I think we are focusing more on creat- Is there any safety leadership ad- locations. Here, Campbell, BP Rus- ing a caring environment, where eve- vice that has stuck with you? sia President for the past four years, ryone is encouraged to look out for Quite early on, we adopted a pro- shares his views on safety leadership each other and think about the risks gramme of behavioural safety con- and what it means to him. involved. versations and provided training on how to approach and ask people How would you say the approach What is key is that this has to come about what they were doing and the to safety leadership has changed from the top. Leadership is the single risks involved. Being a typical Scottish during your time in the oil and most important determinant in improv- Highlander, I was not so comfortable gas industry? ing safety. And role modelling is really engaging with strangers about their I think in the early days hazard aware- important. I give great credit to our work—a trait I also often encounter ness was not what it is today. That head of global operations, Fuzzy Bitar. in Russia—but the training helped me definitely is not the case anymore. He leads the function that employs the to learn how to go to someone in a Now, we take more time to carefully most people and many work in com- respectful way. Audits are important; think through what we are going to plex and challenging operational envi- they show you are serious in terms of

7 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

safety. Making our core value mean- ingful for people is a great example of safety leadership in action. In BP, we always encourage each other to start meetings or townhalls with a safety moment.

I would also point to our partner com- pany in Russia, Rosneft, which will run a second safety leadership conference. This two-day meeting with their whole executive team and our upstream chief executive will be speaking this year. Supporting efforts like that is im- portant. Again, it is discretionary time spent on leadership learning and talk- ing about our safety journey.

In places such as Russia, BP works in joint venture partner- ships. What value do you bring to that and what can you learn? We ask questions at board level and we have also encouraged the creation of a safety committee at an executive management level and we have run a number of workshops with colleagues in Rosneft, where we have shared our experiences on issues such as con- checking conformance. It is important What would you say are the key tinuous improvement, safety leadership that people are able to ask questions attributes of a good safety lead- and culture, and contractor manage- and speak up if they see something er? ment. We have also organised safety unsafe, but we must hold to account The most important thing is an abil- workshops in the field. anyone who knowingly disregards the ity to listen: good leaders listen more rules. than they talk. And, I think people re- On the other side, we get to see how spond, in terms of discretionary effort, another company works. Rosneft has Do you get the chance to visit when they feel they are being cared much more experience of land-based sites and why is that important? for. Then, they start doing that for and Arctic operations than we do and Definitely. To be a good, effective each other, which is more important. they have many more internal ser- safety leader, you have to get out Visiting is also key—that visible felt vices—they run a drilling company, there and talk to people and show you leadership I mentioned. Then I would whereas we contract out that work. It want to know where the issues are say it is about being very clear on ex- gives us a valuable different perspec- and provide support to resolve them. pectations. tive. People need to feel the leadership as well as hear about it. And, you can be Can you give examples of good How is technology helping to sha- more effective because you see what safety leadership in action? pe safety? is on the ground, you do not ask for During regular appraisals, I always So much work that used to be carried the impossible. discuss our values and number one is out by people can now be done with

8 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

machines. I remember divers going ple doing it. Technology is helping to safety practice, which has evolved in into barometric chambers for a week take people out of harm’s way and recent years as we have learned. We to work underwater. Now, most of making this industry inherently safer, treat it as a living document. Techno- that can be done by remotely oper- particularly around inspection. logy can be useful here, too, helping ated vehicles. All our subsea equip- us to better record incidents and ex- ment is maintained remotely and we How does BP build learning into amples of proven practice, and help- have automated iron roughnecks that its systems? ing employees to access that learning connect pipes in the drilling process, Our Operating Management System as easily as they access their music which was always a potentially high- gives us the structure on which to these days. risk activity. We fly drones at height build our procedures, accountabili- to inspect difficult to access pipework ties, training and verification activi- A final point is that we are not holding and equipment instead of sending ties. And where our standards exceed safety as a competitive advantage. We people up scaffolding. We send ma- local requirements it is often because work with contractors and other com- chines through our pipelines and use we have learned from incidents and panies and to help each other. I think crawling inspection vehicles to go up applied those lessons back into the the oil and gas industry has definitely the side of platforms, instead of peo- business. An example is our driving improved in that regard.

9 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Behaviour Based Safety and what it means for business

protective measures to be taken used might have had influence on the de- in studies of compliance and manage- velopment of an incident. Application rial strategy, improving the safety re- of such procedures requires a high cord of the organisation. level of engagement and investment from the organisation and is consid- We have in certain industries since ered a significant element in the learn- many years the “zero” tolerance, striv- ing process, helping to develop better ing for accident free workplaces and preventative measures. often sophisticated regulations, ac- counting for all incidences, including However human behaviour is influ- the “near misses”. enced by many different elements and is often not a straight forward applica- Workplaces over the years have looked tion of rule compliance. Organisational KONSTANTIN VON VIETINGHOFF- at the “human error” factor compared climate, managerial attitudes, inter- SCHEEL to other elements of influence making personal relations in the work envi- Chairman of the AEB Health & Safety a given workplace more likely to be un- ronment, clarity of procedures and the Subcommittee; Managing Director, safe. In certain industries such as the like—all play their part. Further there Corporate Counselling Services energy sector a lot has been invested to is the fluctuation of a person’s capac- develop engineering that virtually elimi- ity to perform. Personal factors often nates the potential for human error, cre- influence the individual’s judgement, ating safety standards and automatized willingness to comply with rules and man fell off a scaffolding workflow processes that keep the influ- role perception. Much has been writ- not wearing his safety ence of human factor interferences to a ten about the influence of perceived “A equipment adequately!” minimum. But this is not just an issue stress, conditioning a person’s abil- Or maybe worse: “Company got fined in the energy sector. All forms of indus- ity to perform. Motivational issues or 100.000 USD in accident of a man trial processes where there is interaction psycho-social risk factors, as it is also falling off a scaffolding!” We all hear between machines and humans require labelled have a significant influence on about situations where something has thorough investigation of such inter- a person’s attitude and behaviour. badly gone wrong and quickly some- faces, going from simple “Slips, Trips and one gets pointed out as being the cul- Falls” approaches to much more sophis- Occupational and organisational psy- prit, the person who did something ticated learning processes. chologists but also health psychologists which consequently caused the inci- have studied this domain extensively. dent. This is a normal “cause-effect” One of the popular procedures are the Preventative measures, improving thinking. However Behaviour Based so-called Root-Cause Analysis (RCA). work/life balance factors are to be con- Safety is associated with many dif- This is a highly structured process, sidered. ferent things from simple study of studying the circumstances of any in- workflow processes and operational cident that might have occurred. The Changing people’s attitudes for them to schedules resulting in guidelines for Bow-Tie method is one of those pro- engage in safety behaviour remains a workers to follow, to offering ad- cedures, engaging many layers of the significant preoccupation. Many com- equate equipment enhancing safety, organisation and the processes that panies have spent a lot of energy, time

10 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

and financial resources to do just this. Human behaviour is influenced by To be successful implementing such initiatives requires distinct and calibra- many different elements and is often ted measures that allow to bring about the level of positive motivation for not a straight forward application of rule people to fully integrate and continu- ously adopt the kind of mindset that is compliance. required. Positive incentives, thorough measures of accountability across the underestimate the importance of this comes with the creation of safer work lines of hierarchies from top down transformational process. They see the processes, better protective measures, through the organisation, continued initial cost and potential disruption this creating rules and guidelines for people educational efforts and a clear sense can create in the organisation. Against to follow, but let us not forget the at- of the benefits for all is one of the this they calculate their risk of getting mospheric elements, the culture of an recipes for success. This translates into away with not doing enough of the nec- organisation that might allow for not open and supportive communication, a essary things. What is not enough con- strictly following those rules, cutting sense of “we together” and permanent sidered though to really obtain longer corners, not acting on non-compliance reminders at all levels of attitudes that term positive results enhancing behav- and last but not least the motivational emphasise the necessary behaviours ioural safety is the cultural change of aspects of those who are to perform. to focus on. Nothing much less will the organisation. We talk in this con- Working on height requires a specific bring the financial gains and rewards text about creating a “Culture of Safe- mindset and a positive disposition, also organisations strive for. It still happens ty” and that goes hand in hand with a coming from the leadership of the work much too often that decision makers “Culture of Health”. Part of this clearly team.

11 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Operational safety in digital era of Industry 4.0

Risk assessment of all aspects of work, monitoring of the equipment safety from separate components to opera- level and employees actions at hazard- tor “contact point” with equipment, ous facilities, augmented and virtual forms the procedure of particular step- reality technologies, electronic markers by-step actions that should theoreti- and tags, control of the actual time of cally be valid till any changes are made working in harmful conditions, control within the entire technological process of employees’ health, telemedicine, or its separate stages. Direct hazards etc. can be easily taken into account and mitigated and workers’ safety risks are For instance, digital devices installed prevented if all procedures are rigor- on working sites that can reveal and ously executed. inform about the operator’s incorrect VLADISLAV GORBACHEV operation, which could be a safety risk. Senior Manager, Risk Consulting However, an enterprise guided by the The most popular now are intelligent Corporate Governance and principles of Industry 4.0 potentially cameras that collect digital images or Sustainability Group, JSC KPMG uses more complicated set of various video materials on the working area new technological solutions and relat- and send it to the central control point ed problems. Rapid reconfiguration of and automatically mark any abnormal production lines in a short term includ- behaviour, such as entering a restricted ndustry 4.0 is a new era and a fun- ing changes of tool kits, relocation and access area. Some companies equip damentally new approach to prop- adjusting of equipment, changing rates their technological transport and I erties and methodology of modern and types of work can lead to safety vehicles with safety monitoring devices industrial production management, it problems. A significant number of pro- that can immediately determine if the is the ability of a modern enterprise duction processes configurations can driver violated the speed limit or entered to respond quickly to client require- also lead to separate assessment of to an unsafe area, or was too close to ments and to integrate changes into operational and occupational risks for critical equipment. In such cases, as a a processing chain, it is a digital so- each of them. default, the driver is informed about lution that helps to modify production unsafe action or the vehicle is stopped activities of an enterprise simply and Nevertheless, one of the key features or, in case of joint work, it slows to a effectively on the principle “right here of Industry 4.0 is the increasing of the safe level, which allows to significantly and right now”. safety level of employees and pro- mitigate hazardous situation. duction processes within the general In a traditional industrial environment safety management system of all or- Another example is how to deal with where production lines or cells are of- ganisation using modern IT solutions. noise exposure on a work site. An ten focused on the production of a sin- Numerous digital solutions are now ac- organisation can invest in inexpensive gle product, safety of workers on the tively developing in various spheres of programming noise measurement site is generally simple in monitoring. occupational health and safety—24/7 technology with specialized sensors for

12 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

online measurements of the functional nological state of equipment and ma- digital solutions without accompany- state of the equipment and its noise chines, dataflow about accidents and ing strategic and cultural changes can that allows to determine technological incidents, identified violations and near cause more problems than it solves. processes with a high noise level, to miss. The ability of the IT system to Application of digital technologies on assess the degree of noise influence analyse the operational dataflow and work sites will require the integra- on employees’ performance and health forecast potential risks, that furtherly tion and development of new cultural and develop mitigation measures in could become a failure in the techno- norms for the integration of best prac- accordance with obtained data. logical chain, an accident or incident, tices and maintaining the necessary is a real opportunity to safety level level of safety. In such conditions, a It is no exaggeration to say that Indus- enhancement and transition to proac- high level of influence is assigned to try 4.0 offers more opportunities for tive operational risk management for a the “leaders of changes”. further safety enhancement due to the modern enterprise. ability to collect Big Data in real time, In the field of occupational safety, rapidly assess potential risks and then Another aspect affecting integration the HSE specialist should take a role act before a potential hazardous situa- and usage of digital solutions is that of the leader, become a coordinator tion occurs. the automation encourages managers and consultant in the integration of to assess the value of employees, as digital health and safety solutions in The procedure for operational and oc- their roles become less important as his organisation. New IT products are cupational risk assessment involving executors of routine operations and are developing rapidly, and HSE special- qualified employees and experts can more significant in terms of their prac- ists should understand that they need be supplemented with an IT module tical experience, knowledge and skills more time to study, get professional on assessment and calculation of po- in qualitative and safe performance help from IT specialists if necessary, tential risks based on digital processing of work. Changes in the technology which will allow them to prioritise the of the statistical database of the tech- of work execution while integration of integration of new technologies in view

Qualitative Quantitative risk assessment risk assessment

Statistic data on Digital data processes and processing / accidents / mathematic knowledge base modeling results

Expert opinion / risk-sessions Integrated IT system of organisation with Occupational health and safety risk management

13 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Industry 4.0 offers opportunities for the whole process of value creation, operational and occupational risk man- safety enhancement due to the ability agement, uniting production companies, scientific and government organisations, to collect Big Data in real time, rapidly specialists and managers from various assess potential risks and act before industries and knowledge fields. Only through the open cooperation, ideas a potential hazardous situation occurs. exchange and approaches to health and safety solutions, digital solutions of the Industry 4.0 will find their way and prac- of data about operational and occupa- theoretical and practical training, ways tical implementation. tional risk, occurred incidents and re- to transfer knowledge and practice; a ceived experience. system for recording potential risks and In conclusion, it is necessary to note its preventive and mitigation measures, that the integration of digital safety A HSE specialist should actively par- budget calculation, etc. solutions is a long-term investment in ticipate in initiating and developing a sustainable development and a com- roadmap for integration digital safety Considering that the Industry 4.0 moves pany’s success. In the nearest future solutions. The roadmap should include more and more to the integration, it is leaders of the Industry 4.0 will receive description of existing IT solutions in a clear that no company can significantly an advantage and reward in the form company, ways to integrate it with the leap alone. Safety solutions in the era of greater asset reliability, optimized new digital safety solutions, target in- of Industry 4.0 significantly depend on maintenance strategy, less failure, miti- dicators and assess the effectiveness the ability to openly share knowledge gation of losses caused by accidents, of implemented solutions; description and practices—both technically and greater engagement and employee of cross-functional interaction, types of organisationally—in the framework of loyalty.

14 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

Should the white collars undergo obligatory medical examinations?

However, the list of harmful and/or steer for obligatory medical examina- hazardous factors and works approved tions those employees who are affect- by the Order of the Ministry of Health- ed by the harmful and/or hazardous care and Social Development of the factors (as stipulated in the List), or Russian Federation1 (the “List”) re- if such affection becomes evident in cognizes non-ionizing radiation (50% the course of the work conditions as- of daily working time with PC) as a sessment. At the same time, certain harmful and/or hazardous factor. In factors are included in the List with a such a case employees shall be exam- comment stating that they are applied ined by neurologist and ophthalmolo- only in case they are revealed during gist prior to employment and every the work conditions assessment, and two years afterwards. The presence of some factors are not accompanied harmful and/or hazardous conditions with such a reference (including work- EKATERINA ALEXANDROVA is revealed during the work conditions ing on PC). Associate, Castrén & Snellman assessment.2 International Ltd This wording raises the question Similar requirement is established by whether some of the harmful and/or the sanitary-epidemiological legisla- hazardous factors are ipso facto harm- tion, namely in the Decree No. 118 ful and/or hazardous or this should be What the Law says of 3 June 2003 of the Chief Medical proved during the work conditions as- Obligatory medical examinations of Officer of the Russian Federation. sessment. certain categories of employees are The Decree provides that employees generally established by the Labour whose daily working time with PC The Ministry of Labour vs. Code of the Russian Federation. At exceeds 50% of their working day the Federal Labour and the first glance its wording provides must pass medical examinations prior Employment Service for obligatory medical examinations and during the employment. This This question became a subject of in- only for employees working in harm- Decree does not specifically mention quiry of the Federal Labour and Em- ful and/or hazardous conditions, what non-ionizing radiation, but refers to ployment Service (“Rostrud”) and the definitely does not seem the case the procedure of conduct of obliga- Ministry of Labour. Despite the fact when thinking of ordinary office work tory medical assessments. According that the Ministy of Labour is a supe- on PCs. to this procedure, an employer must rior body and coordinates the work of

1 Order of the Ministry of Healthcare and Social Development of the Russian Federation No. 302n dated 12 April 2011. 2 Article 13 of the Federal Law No. 426-FZ on Special Assessment of Labour Conditions dated 28 December 2013 (as amended).

15 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Rostrud, both of them are entitled to which Norilsk Nickel challenged in the inspections and charge companies provide guidance on the issue. Commercial Court. and/or their officials with administra- tive liability. The liability for violation of In 2015, the Ministry of Labour issued The court of the appellate instance ex- the employment legislation is set out Letter No. 15-1/OOG-4397 stating pressed its opinion that 50% of daily in the Russian Code of Administrative that employees whose daily working working time with PC automatically Offences and is imposed in the form time with PC exceeds 50% of their means the presence of non-ionizing of a monetary fine in the maximum working day must pass medical ex- radiation, and even if the results of amount of RUB 50,000 for companies amination irrespective of the results of the workplace condition assessment and RUB 5,000 for companies’ respon- work conditions assessment. revealed no excess of the statutory sible officers (usually CEO or Head of

However, in 2017, Rostrud expressed its opposite opinion in Letter No. The liability for violation of the TZ/942-03-3. Rostrud concluded that this division of the factors between employment legislation is set out in those which must be detected in the course of assessment and those the Russian Code of Administrative which are ipso facto harmful and/or Offences and is imposed in the form hazardous, contradicts the existing legislation (mainly the Labour Code of a monetary fine in the maximum of the Russian Federation), and all harmful and/or hazardous factors amount of RUB 50,000. may be determined only by means of the work conditions assessment. The position of Rostrud was supported by allowed level of non-ionizing radiation HR). More severe consequences may the Federal Service for Surveillance from PCs screens, the employer must accrue for repeated violations—dis- on Consumer Rights Protection and organise medical examinations for qualification of CEO from one to three Human Wellbeing (“Rospotrebnad- those workers who spend 50% and years. zor”). more of their working day with PC. A violation of sanitary-epidemiological Position of the Supreme The Supreme Court of the Russian legislation (if the inspection is con- Court Federation supported the conclusion ducted by Rospotrebnadzor) leads to In November 2014, the Commercial of the appellate instance in Septem- administrative liability in the form of a Court for Krasnoyarsk Krai heard the ber 2015.3 fine in the maximum amount of RUB case of Norilsk Nickel. Rospotrebnad- 20,000 or suspension of the compa- zor Department for Krasnoyarsk Krai What to expect? ny’s activity for up to 90 days. conducted the inspection and revealed As the medical assessments are sub- that employees working with PCs had ject both to labour and sanitary-epi- Rostrud has the authority to hear ad- not passed medical assessments (the demiological legislation, both Rostrud ministrative cases on violation of em- results of workplace attestation re- and Rospotrebnadzor are entitled to ployment legislation itself; however, vealed presence of non-ionizing ra- conduct inspection within their re- repeated violations are subject to diation on certain workplaces). The spective competences. Both Rostrud consideration by a court. Rospotreb- local department of Rospotrebnadzor and Rospotrebnadzor are authorized nadzor is entitled to hear cases on vio- issued an order to eliminate violations, to conduct regular and extraordinary lation of the sanitary-epidemiological

3 Resolution of the Supreme Court of the Russian Federation No. 302-KG15-11278 dated 24 September 2015

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le islation, ut it may ass the case to carried out the attestation of work PCs, then the company should con a court on its o n iscretion laces efore 201 , such an attesta sider organisation of medical exami tion is effective as the work conditions nations in or er to eliminate ossi le What to do? assessment and is valid for five years lia ility irst an foremost, com anies shoul after the ate hen it as com lete monitor the information on sche evertheless, com anies ith certain hen an assessment oes not sho uled inspections of Rostrud and Ros exceptions provided by the law) are any of the a ove factors, the com a otre na or in or er to have time obliged to complete work conditions ny may rely on the positions of Ros for re aration Sche ules of ins ec assessment no later than on 31 Janu trud and Rospotrebnadzor and expect tions for the follo in year ecome ary 2018 that these o ies ill consi er only availa le on the e sites of com e the results of the assessment Still, tent authorities efore the ecem f the assessment sho s that non the company should make sure that er 1 ionizing radiation from PCs screens its internal re ulations internal oli exceeds the allowed level (what cies o escri tions an or em loy Secon , com anies shoul con uct seems to e a very rare occasion as ment a reements clearly state that the work conditions assessment. The mo ern screens o not ro uce such the employees work under normal work conditions assessment was in excessive levels of radiation), or that con itions an that they are not af tro uce in 201 an re lace the at certain em loyees s en more than fecte y any harmful ha ar ous fac testation of workplaces. If a company 50% of their daily worktime with the tors Реклама

1 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Urban mining in Russia

waste in an environmentally safe way. It should be noted that administrative accountability is being toughened up, while new legislative requirements for waste treatment are being introduced.

Europe and other leading global econ- omies have long implemented a con- cept based on behavioural economics. It is a method, actively used in public administration, which involves “nudg- ing” businesses and populations to behave in ways that reduce economic loss. DMITRY SOROKIN VITALY KASLIVTSEV Chief Ecologist, Ecopolis Corporation Head of Marketing, Ecopolis Corporation The closed-loop economy is a modern trend used in economic development and improvement strategies. It was referred to by the Russian President rban mining is a relatively carcinogens, mercury, radioactive and Vladimir Putin in his Orders to the Rus- new term used to denote ozone-depleting substances, cadmium, sian Government in November 2017: U the extraction of metals and lead, beryllium, synthetic oils, etc. economic efficiency must be raised other useful elements from used elec- by reducing material resource losses tronic and household appliances such At the same time, even the larg- and non-controlled burial of valuable as computers, mobile phones, office est conurbations have no centralized resources. appliances and industrial equipment points for collecting equipment, the belonging to state-owned and com- only exception being one-off cam- Russia produces over 1.3 million tons mercial organisations. paigns organised by large retailers. of electronic waste annually. However, current recycling volumes remain very Whether you live in the city or the Organisations also have large amounts low at about 5-7%. countryside, everyone has some old of equipment they no longer use, but equipment that has long outlived its which they keep for years simply to Urban mining in Russia has all the usefulness. We hold on to electronic avoid the cost of getting rid of them. necessary prerequisites for active devices that no longer work mainly They might not be aware that doing so development, including growing con- because we do not know what to do can be risky: an administrative penalty sumption of household appliances and with them. Some just feel bad about of up to RUB 250,000 may be imposed electronics, and their reduced life cy- parting with gadgets which they no for accumulating waste in offices for cle. longer use, while many have under- over 11 months and for not monitor- standing that electronic waste should ing how it is being accumulated. In Q4 2018, Ecopolis Corporation is not simply be thrown away, because it launching innovative plants in the is toxic to the environment. Appliances Specialized service centres across the Moscow region for electronic waste and devices may contain hazardous globe struggle to dispose of electronic processing. Three plants will have a

18 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

full reutilization cycle, returning up to 90% of recycled waste in the form of ready-to-use products (plastic gran- ules, ferrous and non-ferrous scrap, glass, copper wire) and extraction of up to 99% of useful metals.

The plants were engineered and built with a focus on environmental issues. The technologies used meet Rus- sian environmental requirements and stricter European standards.

The equipment installed at the com- pany, including its gas treatment facili- ties, enables Ecopolis Corporation to produce “zero” environmental impact.

The “green” concept is currently gain- ing widespread popularity in Russia: cal challenge. For this reason, there able materials are retained while the environmental and awareness raising are no companies on the market that rest, including components hazardous campaigns are being held, and envi- scrap them in an environmentally safe to human health and environment, is ronmental management standards are manner. The cartridge processing line simply dumped. being introduced into offices for com- launched at the Ecopolis Corporation’s panies to enhance their image and en- facility is the first in Russia to enable Professional urban mining is a com- ergy efficiency. automatic and safe removal of pow- plex production process using pyro- der, which can subsequently be used metallurgical, hydrometallurgical and “Any company, tenant or owner can to produce composite materials, vari- chemical methods to extract useful make their office more ecologically ous types of covering, for example, metals. sound,” says Rashid Ismailov, Head while the plastics can be recycled. of the Russian Environmental Com- Building a processing plant requires munity. “To start with, we should re- The transportation of used equipment high levels of investment, however place conventional and mercury light- to be salvaged requires special atten- foreign experience shows that invest- bulbs with energy saving ones, reduce tion. It is crucial to select and form ment alone cannot make a company heat loss and water consumption, contracts with trusted urban miners dedicated to processing primary elec- and introduce separated waste collec- who have the necessary licenses and tronic waste profitable. tion, including for office applicances, certificates, special equipment and toner cartridges, etc. Green Office trained personnel. Responsible per- It requires professional recycling exper- programmes help structure this work sons are recommended in the first tise and the launching of not just one and maximise the participation of per- place to visit the production sites of business, but a whole production cycle sonnel from participating companies,” the companies engaged in receiving using cutting-edge facilities capable noted the expert. and salvaging equipment to see that of advanced processing of electronic processing is being carried out using equipment and extraction of useful Used toner cartridges are a particular modern technological facilities and elements for further recycling. Only this problem for offices, as their powder waste is not being processed manu- kind of complex approach is economi- is explosive and disposing of them ally using “barbaric” methods where cally feasible on the one hand and en- properly presents a difficult techni- the most precious and easily remov- vironmentally effective on the other.

19 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Extended Producer Responsibility. Rules for selection of electronics waste recyclers

than a half of them cannot be hired to The minimum selection work because they do not meet the criteria requirements of legislation regarding The document developed by the mem- EPR. Many recyclers themselves often ber companies of the E-EPR association do not understand this, because they is one of the most relevant documents have not studied the legislation in de- containing the criteria for the selection tail, but offer their recycling services. of recyclers. This document is available at the association’s site, as are the links There are a number of requirements to a free training video.1 relating to EPR only; for example, a recycler must have a license for recy- First, the license is always checked. cling, not for treatment. It is also im- As the law allows reporting on the re- PAVEL RUDYAKOV portant that the license should include cycling of analogous goods, it is nec- Technical Regulation Manager CIS, the Federal Classification Catalogue of essary to analyse the list of products Samsung Electronics Waste (FCCW) codes of the electronic covered by EPR and to find out the equipment waste into which the manu- recycling of which analogous products facturer’s products turn. can be used for your items; the cor- xtended Producer Responsibil- responding items must be included ity (EPR) has been implement- The site of the Federal Service for Su- in the recycler’s license. You must E ed and the norm of recycling pervision of Natural Resources of the check how the recycler documents of 5% of sold products weight has Russian Federation (Rosprirodnadzor) the waste management history and been set for Waste of Electrical and is the main source of information. Ac- balance. This is done based on form Electronic Equipment (WEEE) since cording to its data: 2-TP (waste), the waste management 2017. Manufacturers and importers are • there are about 20 companies that log, and agreements with contractors. obliged to recycle WEEE and have al- have a license for WEEE recycling on After the analysis of these documents, ready begun to actively work on the is- the market; it becomes clear if the waste has been sue. The main problem faced by every- • the majority of them are engaged in collected, documented, and recycled one is the absence of recyclers on the recycling of office equipment. correctly. Lately, Rosprirodnadzor has market that meet the requirements of also strongly recommended checking legislation regarding EPR. At the same time, it is very hard to find for the presence of the state environ- a recycler which, within the framework mental expert analysis of the technol- Market realities of EPR, can be engaged in the recy- ogy, waste certificate, and a number Despite the great number of companies cling of household appliances and not of other documents that are impor- recycling WEEE on the market, more officeequipment. tant, of course, but not so crucial be-

1 http://e-epr.ru/dlya-pererabotchikov/

20 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

make sure that a utilizer can recycle the stated quantities of electronics waste a year.

Control over recycler’s work The control guarantees the actual waste recycling. Mainly, remote video control over the main points of the production process is used: waste acceptance warehouse, production line, ready material warehouse. Along with video control, field audits, the on-site measurements of the actual quantity of recycled waste in a day, is cause they cause problems connected cal negative consequence for a manu- used. The control systems should be with the risk of suspending the recy- facturer/importer. Respectively, in the equipped with weighing equipment, cling activity and not with the risk of presence of such risks, it is necessary which makes the process more trans- invalidation of the recycling reports. to develop a remedial action plan, and parent and is an additional advantage. to not conclude an agreement until From the point of view of reducing this plan has been completely imple- The control methods need to be applied risks, a recent audit by Rosprirodnad- mented. altogether or separately depending on zor that revealed no violations by the the annual quantities of recycling at the recycler is a positive factor. The absence of an exhaustive list of particular facilities, the nomenclature critical risks, therefore any noncom- of recycled waste, and the specific fea- The liability for a failure to comply with pliance of a recycler with the require- tures of the recycling technology. For EPR, according to Federal Law No. 89- ments of environmental legislation example, a field audit will most likely FZ, cannot be transferred to another is perceived as a critical risk even not yield accurate results if it is carried party, so it is important to understand though, in fact, the consequence of out at small enterprises at which the that, at least for the next three months such a risk may be insignificant, is one daily recycling quantities vary consider- after the recycling report submission, of the main barriers for the introduc- ably; in this case, it is advisable to use an audit can reveal a violation and the tion of the EPR mechanism. video control. manufacturer/importer will be obliged to pay a fine in the amount of the en- It is necessary to establish a dialogue Conclusion vironmental fee. The maximum period with the supervisory agencies and to The absence of clear criteria of recy- of liability is three years, therefore it make a list of main criteria for a check cler selection coordinated by business is necessary to check the recycler’s of recyclers, having narrowed them and supervisory agencies, as well as financial stability to be sure that, in down to the minimum. On the one the large fine sanctions equal to the the event of its guilt, it will be able hand, this will allow avoiding exces- environmental fee if the recycling re- to compensate the customer for fines sive requirements on recyclers and, ports are invalidated, create exces- imposed on it. on the other hand, will guarantee the sive tension in the market. For this approval of the recycling reports. very reason, the criteria for selec- The recycler shall be assessed taking tion of recyclers or the provisions of into account the possible risks of neg- There are currently no requirements agreements with recycling companies ative consequences. It is important to regulating the special technology of may seem severe. It is necessary to clearly separate critical consequences WEEE recycling applied by recyclers. discuss the criteria with the regulator from others. The invalidation of the The technology and equipment effi- and to reduce their list to a reason- recycling certificates is the most criti- ciency shall be checked first of all, to able minimum.

21 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Update on climate change policy

and people seen as making money on vision was among the most contro- what was also referred to as hot air, versial ones during the final negotia- and market determined prices were tions in Paris. Since then, there has lower than the prices believed to be been a very detail oriented effort to necessary to contain climate change. establish such an international mech- anism. Also, with China and Mexico One of the most controversial issues establishing internal carbon markets, in discussions about climate always South Korea and Latin America focus- is the level of commitment of each ing on communication of international country. A typical, very difficult to links of those markets there appears solve line of debate tends to be that to be a positive dynamics, which are less developed countries argue they very much supported by international MAX GUTBROD would be prevented from reaching the institutions. Chairman of the AEB Climate Policy levels of developed countries if they Working Group; Partner, Baker McKenzie were required to emission levels simi- In a slightly different development lar to those of developed countries. and to bridge gaps in the international The Paris Agreement avoided this line contractual framework, carbon emis- of debate by an intricate set of self- sion plans for aviation and maritime commitments. Most importantly, all transport have been introduced. hen, on 12 December 2015, countries submitted self-commitments the Paris Climate Agree- as to the reduction in emissions they In turn, Russia had been an unhappy W ment was signed, it was were prepared to commit to, the so- member of Kyoto. It had ratified the greeted enthusiastically because all called NDCs. Those self-commitments Kyoto Agreement with a view to enter countries in the world adhered to it, were not reviewed, and there is no into the WTO. However, Russia suc- because it set a benchmark for re- enforcement mechanism for them, so ceeded in acceding to the WTO sub- duction of carbon emissions so as to that if countries exceed their commit- stantially later than Russia had antici- keep the increase in temperature to ments there are no established sanc- pated, and the EU, who had bargained 20 or maybe even to 1.50, but also be- tions. Russia’s Kyoto accession with accept- cause it had been preceded by atten- ance of Russia’s WTO accession, by tion catching unsuccessful attempts Another controversial issue was raising Russian internal energy prices, to agree on a continuation of what whether there should be an interna- was a difficult negotiating partner for was generally referred to as the Kyoto tional market. On the one hand, as Russia in the context of Russia’s entry Agreement. The Kyoto Agreement, mentioned, markets were not popu- into the WTO. Rumor had it that Presi- that had been entered into in 1997, lar. On the other hand, it is difficult dent Putin therefore disliked the Kyoto had provided for commitments relat- to conceptualize an international Agreement. Whilst Russia made im- ing to emissions from 2008 and, at system which provides for sanctions pressive steps to implement the regu- the end of the validity of its commit- other than to accept market mecha- lations required for the Kyoto Agree- ment periods, in 2012, had become nisms. The Paris Agreement solved ment, bureaucratic infighting delayed quite controversial as it was under- this contradiction by a vague allusion the sale of emissions units until a time stood as fostering unreliable market to countries being allowed to estab- at which prices had dramatically fall- mechanisms with many projects not lish mechanisms among themselves, en, also due to Ukraine having been actually benefitting the environment and despite its vagueness this pro- quicker than Russia.

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It would therefore hardly surprise that rules for aviation, as many other coun- of political debate. Furthermore, car- Russia has been participating in the tries do. bon prices have been low, with the EU Paris process in a manner which can reforming its market for that reason, fairly be described as reluctant. In- It is not difficult to conceptualize how and international institutions believing deed, Russia’s NDC does not require Russia could derive revenue from much higher prices to be required to bigger efforts from Russia. Moreover, overcomplying with the not very ambi- achieve the emission reduction goals. throughout the process, Russia has tious Russian NDC. However, Russian All this clearly does not allow to be very made reference to the Russian forest officials seem to be less concerned positive about the current efforts and potentially contributing to increasing with the economics, but quite inter- the introduction of market initiative. oxygen levels. Some have understood ested with introducing reporting re- At the same time, there very simply is this reference as meaning that for- quirements. no alternative to the market approach. ests should in future emit more oxy- Given the speed of changes in cost of gen to offset emissions, others—as a On a more global level, events have energy reduction and the diversity of general reference to the inefficiencies confirmed how politically loaded an projects around the world, agility of in Russian forest management and area climate change is, the US with- allocation of capital is highly desirable yet others—as some Russian interest drawal from the Paris Agreement be- and only possibly achievable through groups lobbying for subsidies. Russia ing a recent, Canada’s withdrawal market mechanisms. In particular if is among the few countries not having from Kyoto being an older example. market prices increase and reporting ratified the Paris Agreement and there The picture becomes much more dif- obligations are being implemented, are different rumors on when the de- ferentiated considering that there are it will be advantageous for Russian cision on ratification is to be made by markets at the level below the states, companies if Russia ratifies the Paris Russia. Also, Russia, up to now, has for instance, in California and Ontario, Agreement and actively participates in not participated in the formation of with the later in turn being an object emissions reductions initiatives.

23 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Cargo crime dynamics in Russia: general overview and response

Cargo theft is one of the permanent risks in Russia that needs addressing at both the government and corporate levels. As widely accepted by the in- dustry experts, major risks are official’s corruption, negligence of suppliers to the baseline security precautions, traditional cargo theft (mainly fraud and internal theft) and various types of supply chain disruptions caused by a complex and controversial industry regulation. Clearly, to fully recognise the scope of the problem, one needs trustful statistical information that can ILYA SMOLENTSEV DMITRY BUDANOV be analysed in different ways. Unfor- Supply Chain Security Expert Chairman of the AEB Security tunately, nowadays there is no unique Subcommittee; CEO, Elite Security Group and reliable source of this data in the country.

Despite lack of consistent and mean- Market trends and official to 130.9 billion ton/km, which exceeded ingful data on freight losses in Russia, statistics the level of 2016 by 6.4%. The truck- it is relatively easy to identify two key According to BusinesStat, in 2017 the ing industry is very sensitive to the state trends in official country’s cargo crime size of the Russian commercial road of the real sector of the economy. Since dynamics: year-on-year decrease of transport market increased by 14.6% the beginning of 2017, there is a pro- officially reported freight crime; and and amounted to 733.2 billion rou- cess of increasing demand for transpor- relatively low level of violence utilized bles (EUR 10,2 billion). The rate of tation. This is due to some recovery of by offenders. Both trends are ques- increase in this indicator in 2017 was the country’s economy and the adapta- tionable and do not give the full mag- twice as high as in 2016. The increase tion of business to new conditions under nitude of the picture due to a biased in the turnover of commercial trucking the current sanctions regime. approach used in preparation of those is associated with the general growth numbers and lack of specific details of local manufacturing and industrial According to some recent studies and on criminal modus operandi. Gener- consumption in Russia as well as in- interviews with logistics providers and ally, the freight crime continues to be creasing regional cooperation within manufacturers in Russia—despite the underreported partially due to reluc- the Eurasian Economic Union (EAEU). general upward trend in transporta- tant attitude of the manufacturers and tion sector, issues arise in all areas of freight forwarders to report offences Rail and truck modalities continue to the supply chain—planning, sourcing, and general lack of confidence and prevail in the Russian cargo infrastruc- production, distribution, reverse flows, trust in Russian Law Enforcement’s ture. Commercial turnover of cargo and security. Surely, the latter requires capability to effectively respond and transport in Russia in 2017 amounted close specialist’s attention. investigate cargo theft.

24 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

Information sources and the loads and disappear, as a general Geographically, the Central Russia targeted commodities crime trend for the country. was the region with the highest num- Nevertheless, in recent years the in- ber of product losses, with 22 or 50% ternational industry and research According to the IIS report, fraud was of the annual total, well ahead of the organisations, as well as local initia- the biggest risk to the supply chains in Volga region, which was the scene tives became active to know the true Russia in 2017. In the majority of the of a further eight freight thefts. The picture of cargo theft issue in Rus- 15 or 34% of crimes involving fraud, top five products targeted by cargo sia. One of them—Transported Assets products that had been picked up sim- thieves were: food and drink – 9 Protection Association (TAPA)—in its ply did not arrive at their destination incidents; tobacco – 4; tools/build- 2017 Annual Report included Russia and, presumably, the individuals or bo- ing materials – 3; metal – 2; no in the Top 10 countries effectively re- gus companies assigned to make these load (theft of truck and/or trailer) – 2. porting cargo incidents with the total deliveries subsequently vanished with- The most frequent criminal modus Official Statistics on Cargo Theft in Russia, 2015-2017 operandi in Russia remains fraud. Although violence and hijacking are still used, the general lack of security awareness amongst manufacturers, shippers and carriers provides good ground for organised crime to use less violent techniques like fraudu- lent pick-ups, diverting cargo to “pre- pared” facilities, falsified paperwork or fictitious carriers, traditional theft in the parking lots and moving theft. 44 incidents reported. In its analysis, out trace. In addition to cases of fraud, Open violent attacks on truck driv- the Incident Information System (IIS) incidents involving Theft of Vehicle, ers to seize the full loads are rarely identified a growing number of crimes Theft from Trailer, Theft from Vehicle reported through both channels—the involving bogus transport companies and Hijacking accounted for a further official statistics and independent that use fake identification to pick up 27 or 61.3% of crimes accordingly. data sources. According to the police

Cargo Theft in Russia by Industry Value Loss Cargo Truck Theft in Russia by Type

Percentage of Total Incidents Percentage of Total Incidents Moving Truck 3% 2% 1% 3% 7% 3% Theft of 3% Food and Beverage Fictitious Truck Logistics 24% 29% Alcohol and Tobacco 4% 11% Electronics Consumer Goods 6% Chemicals Pharmaceuticals Industrial Materials Base Metals Theft Medical Devices from Truck 14% 17% Apparel and Footwear Automotive Truck Fossil Fuels 17% Hijacking 21% 15% Theft by Driver 20%

Source: BSI SCREEN Report: Russia, June 4, 2018 Source: BSI SCREEN Report: Russia, June 4, 2018

25 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

RUSSIA 2017 TOTAL NUMBER OF NUMBER & % OF CRIMES INCIDENTS IN 2017 WITH A LOSS VALUE MOST RECORDED TYPE OF INCIDENT FRAUD - 15 OR 34% OF ANNUAL TOTAL 44 12 VS. = 2016 TOTAL OF 62 ALL INCIDENTS = % CHANGE YEAR-ON-YEAR -29% = 27.2%

Fraud ...... 15 (34%) Theft of Vehicle ...... 11 (25%) Theft from Trailer ...... 7 (15.9%) TOTAL VALUE OF INCIDENTS REPORTING A LOSS VALUE Theft from Vehicle ...... 7 (15.9%) INCIDENT CATEGORY Hijacking ...... 2 (4.6%) Theft from Container ...... 1 (2.3%) Unknown ...... 1 (2.3%) 40.5% OF ALL CASES INVOLVING FRAUD €432,800 IN THE EMEA REGION IN 2017 WERE REPORTED IN RUSSIA AVERAGE LOSS FOR 2017 BASED ON CARGO BIGGEST SINGLE LOSS: €112,000 THEFTS WITH A VALUE €36,066

... MOST REPORTED TYPE OF LOCATION EN ROUTE - 29 OR 65.8% OF TOTAL MODUS OPERANDI USED NUMBER OF MAJOR LOSSES IN MOST CARGO THEFTS: ALL INCIDENTS DECEPTION OTHER - 17 OR IN EXCESS OF €100,000 38.6% OF TOTAL En Route ...... 29 (65.8%) Unsecured Parking ...... 9 (20.5%) Deception Other ...... 17 (38.6%) Secured Parking...... 2 (4.5%) Internal ...... 11 (25%) LOCATION Destination Facility ...... 1 (2.3%) Intrusion ...... 9 (20.5%) TYPE Railway Operation Facility...... 1 (2.3%) Unknown ...... 5 (11.3%) Road Transportation Facility ...... 1 (2.3%) Unknown ...... 1 (2.3%) Theft from Moving Vehicle ...... 1 (2.3%)

Violent & Threat with Violence ...... 1 (2.3%) -75% vs 2016 total 20.5% OF THEFTS IN 2017 SAW THIEVES 1 TARGET FOOD & DRINK PRODUCTS

TAPASource: EMEA - INCIDENT “Cargo INFORMATION crime acceleration”, SERVICE - ANNUAL IncidentREPORT 2017 Information Service (IIS), Annual Report 2017

data the average number of hijack- Frequently orders are subcontracted GPS-tracking or additional trailer doors ings and robberies in Russia vary several tiers down the chain which locking to protect cargo. from 300 to 400 per year (comparing creates the opportunity for organised to Italy with 2000 annually). crime to easily interfere and succeed. Building supply chain security princi- One level of subcontracting should be ples starts with putting your security Industry challenges and the key criteria in selecting the logistics requirements for the carrier, translating response service provider. these requirements through a tender To address these challenges many process to the suppliers, auditing them industry players simply do nothing or Although the volume of cargo moved and constantly monitoring the compli- transfer their risks buying relatively in trucks grows, continuous cost reduc- ance. Currently in Russia, there are cheap insurance, which in fact, does tion on the manufacturers and shippers technologies and monitoring services not cover the risks of sophisticated side have virtually “killed” any initiative that are capable to meet most of the freight fraud. Another issue is multi- in the industry to create culture of a TAPA requirements, which serves as ple subcontracting of freight orders. responsible, certified supplier. That is the industry “Best practice” in a supply In an effort to cut cost and find the why armed security escorts for high chain security domain. Raising security cheapest truck, forwarders outsource value goods are still widely applied and awareness amongst the transportation jobs to small carriers called “individual wrongly considered to be efficient, in- industry and the manufacturers should entrepreneurs”, i.e. drivers that own stead of having a robust selection and be the key priority for regulators, pro- the truck. This “affordable” type of vetting process for the carrier. The fessional associations and business transportation services constitutes up result is that very few companies cur- initiatives which fortunately started to to 80% of the Russian freight market. rently use technological solutions like take shape recently in Russia.

26 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

AEB Business Services Platform What is the Business Services Platform (BSP)? The platform BSP is a webpage where a potential client can request a quotation for different types of services (legal, consulting, auditing, etc.) from AEB member companies by fi lling in a short form at the AEB website. How it works? The request is automatically forwarded to a number of companies from the pool of service providers. The request is processed by the BSP participating companies — they contact the potential client, clarify all the details and then he/she receives a number of offers and chooses the one that best meets his or her requirements.

Visit www.aebrus.ru/bsp

Choose the needed type of service

Fill in and send the request form

Participating companies will automatically get your request and contact you directly to clarify the details

Recieve tailor-made offers and choose the best one!

Contacts 27

To join the BSP-pool please contact Elena Kabysh: +7 495 234 27 64, ext. 126 or [email protected]. Реклама AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

AEB News

Chairman of the AEB Auditing Commission elected

On 14 August 2018, members of the AEB procedures. The Chairman of the Commis- Auditing Commission elected Rene Pischel, sion reports to the Chairman of the AEB Head, Permanent Mission of the European Board on a regular basis. Space Agency in the Russian Federation, as Alexander Chesnykh from FinExpertiza and Chairman of the Auditing Commission. Igor Bruevich from KWS RUS LLC are mem- Rene Pischel, Head of the Perma- nent Mission of the European Space The AEB Auditing Commission supervises bers of the Auditing Commission. Agency in the Russian Federation the AEB’s financial activities and internal

CLAAS Field Day in Efimzevo village (the photo was submitted by CLAAS)

AEB participated in CLAAS Field Day bassy of Germany in Moscow; Leonid Gromov, Minister of On 6 June 2018, CLAAS company which is well-known for its Agriculture of the Kaluga region, and others. agricultural machinery, organised its Field Day in Efimzevo One of the key features of the event was the demonstration village of the Kaluga region. The event brought together of the work of a forage harvester JAGUAR which was recog- guests from many Russian regions. nized the “Machine of the year” at the Agricultural Exhibi- The official ceremony was opened by Bernd Ludewig, Gen- tion SIMA 2017. CLAAS team also organised CLAAS football eral Director, CLAAS Vostok. Among the speakers were Hin- match during which the audience enjoyed the spectacular rich Snell, Head of the Agricultural Department at the Em- scoring on different models of the company’s tractors.

28 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

Chairman of the AEB Auditing Commission elected

L-R: Alexander Grushko, Russian Deputy Minister of Foreign Affairs; Fyodor Lukyanov, Editor-in-Chief, “Russia in Global Affairs”, Chairman of the Presidium of the Council on Foreign and Defence Policy; Alexey Rybnikov, Director, CIS EY Knowledge Leader; Natalia Orlova, Chief Economist, Alfa Bank; Natalia Porokhova, Head of Research & Forecasting Group, Analytical Credit Rating Agency.

XV AEB Jubilee Flagship The second session was devoted to the Russian energy sector and the pros- Conference “Priorities for the pects for its development, as well as the role of foreign investors. The session Russian economy and the was moderated by Ernesto Ferlenghi, Executive Vice-President Market De- European businesses” velopment for Russia & Central Asia, Eni S.p.A, Chairman of the AEB Energy On 20 June 2018, the AEB organised its XV Committee. Jubilee Flagship Conference “Priorities for The third session moderated by Frank Schauff, AEB CEO, was focused on the the Russian economy and the European technological development of Russia. businesses” in AZIMUT Hotel Smolenskaya. Wrapping-up the conference, foreign investors stressed that they still believed Philippe Pegorier, Deputy Chairman of the in Russia’s economic potential and were hopeful about the creation of appro- AEB Board, President of Alstom Russia, priate conditions for doing business. delivered a welcome speech. The first session was devoted to the role of Russia in the new geopolitical context. Alexey Rybnikov, Director, CIS EY Knowl- edge Leader, moderated the session. The participants discussed the current inter- national environment, the Russian econ- omy and its current challenges.

L-R: Tatiana Mitrova, Head of Energy Centre, Moscow School of Management SKOLKOVO; Arnaud Le Foll, Total Country Chair Russia and General Director, Total E&P Russie; Ernesto Ferlenghi, Chairman of the AEB Energy Committee, Executive Vice-President Market Development for Russia & Central Asia, Eni S.p.A; Reiner Hartmann, Head of Representative Office in the Russian Federation, Uniper Global Commodities SE; Kris Sliger, Chief Financial Officer, BP Russia.

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L-R: Sergey Klinkov, the Central Bank of Russia; Dmitry Tulin, the Central Bank of Russia; Elvira Nabiullina, the Central Bank of Russia; Alexander Morozov, the Central Bank of Russia; Takhir Makhmadaliyev, the Central Bank of Russia; Mikhail Chaikin, ING Wholesale Banking in Russia; Frank Schauff, AEB; Mikhail Alekseev, UniCredit Bank AO.

Meeting with Elvira Nabiullina, Governor of the Central Bank of Russia

On 26 June 2018, the meeting between the AEB and the Cen- CEO, ING Wholesale Banking in Russia; Mikhail Alekseev, tral Bank of Russia was organised. Chairman of the Board, UniCredit Bank AO; and Anna Tsiuli- From the side of the Central Bank of Russia, Elvira Nabiullina, na, Coordinator of the AEB Banking Committee and Insurance Governor; Dmitry Tulin, First Deputy Governor; Alexander & Pensions Committee. Morozov, Director of Research and Forecasting Department; At the event, the participants discussed issues related to and Sergey Klinkov, Director of International Cooperation banking regulation, latest US sanctions, the draft law intro- Department, took part in the meeting. ducing criminal responsibility for complying to sanctions of The participants from the AEB side were: Frank Schauff, AEB foreign states, and agreed on possible areas of cooperation CEO; Mikhail Chaikin, AEB Banking Committee Chairman, in the future.

Meeting by Alexander Shokhin and Johan Vanderplaetse On 13 July 2018, Johan Vanderplaetse, Senior Vice President, President for Russia and CIS, Schneider Electric, Chairman of the AEB Board, met with Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs (RSPP). The discussion focused on the RSPP-AEB coop- eration prospects, in particular on improving the Russian business climate, addressing trade and investment barriers, and advancing the Special In- vestment Contract legislation.

Participants of the meeting L-R: Alexander Shokhin, RSPP President; Johan Vanderplaetse, Chairman of the AEB Board (the photo was submitted by the RSPP).

30 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

Event organised by the AEB sponsor company ManpowerGroup On 19 July 2018, the AEB sponsor company ManpowerGroup organised “HR Workshop 3.0: preparing for the Labour Inspectorate visit. Outplace- ment 2018”. The event focused on major issues for HR Directors: preparing for the Labour Inspectorate visit, how to use checklists to your advantage and avoid penalties; practices of releasing staff; outplacement 2018; recom- mendations for managers and HR. Hugh Piper, General Director of ManpowerGroup Russia & CIS, addressed the audience with an inspirational speech in which he showed that moti- vation was a key element for organisations to retain talents. The AEB would like to take this opportunity to thank ManpowerGroup for its great support as the AEB sponsor company. Hugh Piper, General Director of ManpowerGroup Russia & CIS

AEB team made a visit to Oriflame On 24 August 2018, the AEB team attended the CETES COS- METICS factory (a group of companies Oriflame) in Noginsk, the Moscow region. During the visit, the AEB staff enjoyed a marvelous opportuni- ty to get an insight into the production process of decorative cosmetics. The detailed tour around the facilities which com- prised assembly and packaging lines as well as a warehouse was arranged by the Oriflame employees. After the excursion, the AEB team took part in the round table with Oleg Akilbaev, Managing Director of CETES COSMETICS Russia. We would like to express sincere gratitude to the AEB sponsor AEB staff at the Oriflame factory company Oriflame for their hospitality!

AEB co-organised International Moscow Automotive Forum (IMAF 2018) On 28 August 2018, the AEB jointly with the international exhibition operator ITEMF Expo opened the 9th International Moscow Automotive Forum (IMAF 2018). The Forum took place at the Expocentre as a part of the MIMS Autome- chanika Moscow 2018 Exhibition. This year, the main topic of the Forum was “The new stage of the automotive industry in Russia.” Frank Schauff, AEB CEO, and Michael Johannes, Vice President, Messe Frankfurt GmbH, Brand Manager, Automechanika, made the opening remarks. The first day was devoted to innovations in the automotive industry, electric cars, and self-driving cars. Among the speakers of the plenary session were: Vyacheslav Burmistrov, Deputy Director, Department of Technical Regulation and Accreditation, EEC; Yves Caracatzanis, President, Avtovaz; Stefan Teuchert, CEO, BMW Group Russia; Alexey Volodin, Managing Director, Peugeot Citroen Rus, and others. The second day of the Forum covered the localisation of manufacturing by pur- chasers and suppliers. Frank Schauff, AEB CEO, delivering the welcome speech

31 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

AEB COMMITTEES UPDATES

Compliance & Ethics, Human Resources and IT & Telecom Committees

L-R: Anastasia Petrova, Associate, ALRUD Law Firm; Daria Rozhkova, Junior Lawyer on Eastern Europe countries, Syngenta; Julia Borozdna, Chairperson of the AEB Labour Law Subcommittee, Partner, Head of Employment and Migration Law Practice, Pepeliaev Group; Alexey Muntyan, Personal Data Protection & IT Security Officer, DHL Express; Tatiana Vukolova, Associate Partner, Rödl & Partner.

On 12 July 2018, the AEB Compliance & Ethics Committee, The open event provided a platform for discussion of the most Human Resources Committee and IT & Telecom Commit- important challenges in the process of implementing the GDPR. tee held its open event ”EU General Data Protection Regu- The feedbacks from the companies provided useful insights into lation (GDPR): implementation experience”. the complex and often resource-intensive process for the Regu- Regulation (EU) 2016/679, the European Union’s new Gen- lation’s implementation. The meeting illustrated numerous chal- eral Data Protection Regulation (GDPR), governs the pro- lenges for companies in the interaction between the GDPR and cessing of personal data by any EU party. It also address- other laws and regulations (both EU and third countries), espe- es the transfer of personal data outside the EU and EEA cially in domains where the co-existence of different require- areas. The GDPR aims primarily to enhance the control ments may create a conflict of organisations’ legal obligations. by citizens and residents over their personal data and at The meeting was moderated by Julia Borozdna, Chairper- the same time to simplify the regulatory environment for son of the AEB Labour Law Subcommittee, Partner, Head of international business. Employment and Migration Law Practice, Pepeliaev Group.

32 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

Human Resources Committee

L-R: Andrey Venediktov, Senior Trainer Consultant, CBSD Thunderbird; Olga Ilyina, Head of Mindful Leadership, CBSD Thunderbird; Irina Zarina, Chairperson of the AEB Assessment, Training and Development Subcommittee, General Manager, SHL Russia & CIS; David Gilmartin, Chairman of the AEB Human Resources Committee, General Manager, Troika Relocations.

On 27 August 2018, the AEB Human Resources Committee the Federal Competency Centre on Labour Productivity; held its open event entitled ”Life hacks: adult’s conscious CBSD Thunderbird’s approach on how to use brain ca- learning” organised by the AEB Assessment, Training and pacity and to increase learning efficiency; key compe- Development Subcommittee. tencies in adult learning presented by the Beeline Cor- The event served as a platform to discuss the follow- porate University. ing issues: key findings on learning and development The event was moderated by Irina Zarina, Chairperson of trends; most productive learning behaviours, specifics the AEB Assessment, Training and Development Subcom- of adult learning within the programme implemented by mittee, General Manager, SHL Russia & CIS.

Migration Committee

On 6 July 2018, Frank Schauff, AEB CEO, Liudmila Shiryaeva, AEB Migration Committee Chairperson, and Alexey Filipenkov, AEB Migration Committee Deputy Chairman, met with Alexan- der Aksenov, Deputy Head of Chief Migration Directorate, the Ministry of Internal Affairs of Russia. Among other participants of the meeting were: Igor Dudnik, Deputy Head of the Moscow city Migration Directorate; Andrei Kostorei, Deputy Head of the Moscow region Migration Directo- rate, as well as other representatives of migration authorities. The meeting was devoted to the practical implementation of new rules of migration registration procedure for foreign em- ployees in the Russian Federation, which were adopted by the Federal Law No. 163-FZ “On amendments to the Federal Law of migration registration of foreign citizens” on 27 June 2018. Participants of the meeting

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North-Western Regional Committee

L-R: Maxim Kalinin, Managing Partner of the Baker McKenzie office in St. Petersburg; Andreas Bitzi, Chairman of the AEB North-Western Regional Committee, Director, quality partners.; Stuart Lawson, AEB Board Member, Chairman of the AEB Finance & Investments Committee, Senior Advisor, EY; Andrey Gusev, Managing Partner, BORENIUS ATTORNEYS RUSSIA; Vladimir Efremov, Partner, Baker McKenziе; Vladimir Barbolin, Partner, Banking Practice, Clifford Chance.

On 17 July 2018, the AEB North-Western Regional Commit- Among other experts who took part in the event were: tee organised an open event entitled “Sanctions: overview, Andrey Gusev, Managing Partner, BORENIUS ATTORNEYS risks and challenges for European companies”. RUSSIA; Vladimir Efremov, Partner, Baker McKenzie; and The AEB members in the north-western region were able to Vladimir Barbolin, Partner, Banking Practice, Clifford Chance. participate in the discussion related to the most important They shared their views on the topic and answered numer- developments in the operating environment and regulations ous questions raised by the audience. under sanctions. The event provided a lively platform for discussion and ex- The event was moderated by Stuart Lawson, AEB Board change of practical experience, opinions and concerns. It Member and Chairman of the Finance & Investments Com- was kindly hosted and supported by the Baker McKenzie mittee, Senior Advisor, EY, and Maxim Kalinin, Managing office in St. Petersburg. Partner of the Baker McKenzie office in St. Petersburg.

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Public Relations & Communications Committee The meeting was moderated by Marina Tatarskaya, Chairperson of the AEB Public Relations & Communications Committee, PR Director, Ferrero Russia. In his speech, Dr. Emmanuelli appealed to the topic of humanism. He stressed the interdependence of social stratification and social exclusion, interconnection of poverty and homelessness. Being a huge megapolis, Moscow demon- strates a high degree of social stratification. The employees of SamusocialMoskva face the same challenges as their French coun- terparts: to win the trust of the homeless, to conduct an inspection, to identify devia- tions, and then to send them to one of the L-R: Marina Tatarskaya, Chairperson of the AEB Public Relations & Communications Committee, PR Director, Ferrero Russia; equipped centres. The Moscow office of Sa- Xavier Emmanuelli, founder of emergency medical service SamusocialInternational. musocial is experiencing difficulties in ob- taining government subsidies and is funded On 19 July 2018, the AEB Public Relations & Communications Committee or- exclusively through private donations. ganised its open meeting with Dr. Xavier Emmanuelli, founder of emergency The participants of the meeting discussed medical service SamusocialInternational and the co-founder of Médecins sans the approaches to the problem of social Frontières. exclusion in the Russian society, measures At the meeting Dr. Xavier Emmanuelli delivered a presentation entitled “How taken in this respect at the governmental to stay a human in a megapolis. Importance of social support for the most level, operating organisations providing a excluded: the case of SamusocialInternational”. systematic approach to tackle this issue.

Safety, Health, Environment & Security Committee

On 27 June 2018, the AEB Safety, Health, Environment & Security Commit- tee held a round table meeting entitled “Fire safety: prevention and tips”. The event was moderated by Konstantin von Vietinghoff-Scheel, Chairman of the Health & Safety Subcommittee. Tatyana Konovaltseva, Head of Design and Technical Support Department, Rockwool Russia; Vladimir Grachev, Risk Engineer, Zurich; Vadim Vychigin, expert in fire safety area, and Stanislava- Kin ach, H&S consultant, spoke about the fire safety legislative framework as well as practical tips for fire safety in con- struction industry and risk engineering. Vladimir Grachev, Risk Engineer, Zurich

35 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

Southern Regional Committee

L-R: Juliana Perederiy, AEB; Diana Lipinskaya, Center-invest Bank; Alexander Polidi, Public Chamber of the Krasnodar region; Oleg Zharko, Chairman of the AEB Southern Regional Committee; Vladislav Varshavskiy, Agency of Investments and International Cooperation; Igor Brener, Cargill.

On 7 June 2018, the HR conference “Sustainable develop- as a moderator of the conference. He pointed out that such ment of territories: modern requirements for human capital a conference was held by the AEB Southern Regional Com- management” was organised. mittee in Krasnodar for the 10th time. The conference was held in the framework of the programme Among the members of the Presidium were: Oleg Zharko, “Time for new strategies 2018”, co-organised by the Public Chairman of the AEB Southern Regional Committee, Region- Chamber of the Krasnodar region, the AEB Southern Re- al Corporate Affairs Director, Group of Companies Danone gional Committee, Association “Agency for investment and in Russia; Alexander Polidi, Chairman of the Commission international cooperation” and the Russian-English social on economy, industrial and agro-industrial sector, complex and political weekly “Yug Times”. development of rural areas, support for small and medium- The conference brought together HR heads of Russian and sized businesses of the Public Chamber of the Krasnodar foreign companies, heads of recruitment agencies, repre- region. sentatives of the Department of Investment, the Ministry The conference participants discussed current trends and of Education of the Krasnodar region administration, higher best practices in the field of HR management, activities educational institutions. It aimed to discuss the possibility of for professional orientation for school students, and the improving human capital in the Krasnodar region. interaction of business with secondary and higher educa- Igor Brener, Client HR Manager CASC EMEA Russia & tion institutions, as well as the issues of improving the Ukraine, Deputy Chairman of the AEB Southern Regional quality of human capital in the Krasnodar region as a Committee and Chairman of the HR Subcommittee, acted whole.

36 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

Representatives of the Kuban State University (at the top of the table) and other participants of the round table

On 13 June 2018, the member companies of the AEB South- competences and for deepening the crosscultural aspect in ern Regional Committee took part in the round table “Cross- the learning process. cultural communication in business” at the Kuban State Uni- Michael Ritter, General Director of CLAAS, shared with the versity. participants of the round table his personal experience in The round table was organised within the EU Erasmus+ the field of crosscultural communication. grant “European integration through language and culture”, Igor Brener, Client HR Manager CASC EMEA Russia & Ukraine supported by the German Philology Department of the Cargill, Deputy Chairperson of the AEB Southern Regional Kuban State University. Committee and Chairperson of the HR Subcommittee, spoke The round table was organised by the Faculty of Roman- about the Business Schools project that had successfully been German Philology, Department of International Relations of implemented with the support of the AEB Southern Regional the Kuban State University and the Faculty of Economics. Committee member companies for four years already. It aims, One of the most important challenges that universities face in particular, to prepare competitive and competent profession- is the correspondence of graduates’ competences with the als taking into account the views of potential employers. requirements of potential employers. The lively discussion of the round table participants con- Representatives of the Kuban State University, administra- firmed the importance of the development of students’ tion of Krasnodar, as well as such companies as CLAAS, Car- crosscultural competencies and laid the foundation for gill, Knauf, Gubskiy brick factory discussed the need and deepening cooperation in this area between the Kuban State opportunities for the development of students’ crosscultural University and businesses.

37 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

On 26 June 2018, a meeting was organised for the mem- bers of the AEB Southern Regional Committee which sup- port Business Schools of the Kuban State Technological and Kuban State Agrarian Universities. The event was held at the premises of the Cargill company. At the meeting representatives of the companies Ancor, Bonduelle, Cargill, Center-invest Bank, Nestle Kuban, Syn- genta, Philip Morris, Vegas Lex discussed the results of the Business Schools activities as well as prospects and oppor- tunities for their further development. It was proposed to create a common resource at the Uni- versities websites, where information about internships and

Participants of the meeting practice for students of Business Schools would be provided.

L-R: Sergey Ogurtsov, Vice-Chairman of the Krasnodar Regional Association of RSPP; Lyubov Popova, Chairperson of the Public Chamber of the Krasnodar region and Deputy Chairman of the AEB Southern Regional Committee; Alisa Andreeva, Manager Corporate Affairs South, Philip Morris International.

On 27 June 2018, the members of the AEB Southern Re- University, Deputy Chairman and Secretary-General of UNA- gional Committee participated in a debatable session “Inte- Russia; Larisa Ovchinnikova, Chairperson of the Board of gration of UN Sustainable Development Goals into the busi- the Association “National Network of the Global Compact”, ness strategies of modern companies. Context, meanings Managing Director of the Institutional Development Depart- and advantages” in Krasnodar. ment of Vnesheconombank; and Elena Feoktistova, Deputy The event was organised by the “National Network of the Chairperson of the Board of the Association “National Net- Global Compact” and the Krasnodar Regional Association of work of the Global Compact”, Managing Director of RSPP on RSPP with the assistance of the Philip Morris International corporate responsibility, sustainable development and social company in Russia. entrepreneurship. Participants of the discussion were welcomed by Sergey Representatives of the companies IKEA, Nestle Kuban, Syn- Ogurtsov, Vice-Chairman of the Krasnodar Regional Associa- genta and Philip Morris International spoke about imple- tion of RSPP, and Lyubov Popova, Chairperson of the Public mentation of their programmes for the achievement of the Chamber of the Krasnodar region and Vice-Chairman of the Sustainable Development Goals. AEB Southern Regional Committee. The meeting finalised with the signing of the Cooperation The experts of the panel session were: Alexei Borisov, Head Agreement between the Krasnodar Regional Association of of UNESCO Chair on Human Rights and Democracy, MGIMO- RSPP and the “National Network of the Global Compact”.

38 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

On 10 August 2018, members of the AEB Southern Regional Committee took part in the official reception of the youth delegation in the administration of Krasnodar. Evgeny Pervyshov, Mayor of Krasnodar, and Vera Galushko, Chairwoman of the Krasnodar Duma, expressed gratitude to the companies Bonduelle, Cargill, CLAAS, Knauf for their participation in the implementation of the international pro- ject. Five students from Karlsruhe, Nancy, and Harbin for almost a month (from 4 August to 1 September) undertook an in- ternship at the enterprises of these companies. The meeting was attended by the following participants: Agroin- dustrial HR Manager of “Bonduelle Kuban” Olga Luganskaya; Participants of the meeting Cargill Client HR Manager CASC EMEA Russia & Ukraine Igor Brener; Director of Sales from the Southern Directorate Branch of the Krasnodar administration Boris Staroselsky; Director of the of “Knauf GIPS” Sergey Bondarenko; Commercial Director of Department of international relations of the Kuban State Univer- CLAAS Michael Ritter; Deputy Chief of the Administrative Depart- sity Galina Govorova; and Director of the branch of the Associa- ment, Chief of the Department of foreign relations and protocol tion of European Businesses in Krasnodar Juliana Perederiy.

Taxation Committee

On 6 July 2018, the AEB Taxation Committee held an event entitled “Development of the Rus- sian tax system: results of the first half of 2018 and perspectives”. The event highlighted tax reforms’ new settings, recent experience of application of Article 54.1 of the Russian Tax Code, new clarification by the Federal Tax Service on beneficial ownership con- cept, OECD discussion on intra-group services, transfer pricing and other important tax matters, and provided an excellent platform for discussion and exchange of knowledge by professionals. Maria Semenova, Mazars; Anna Modyanova, PwC; Anton Nikiforov, Pepeliaev Group; Alexan- der Erasov, Bryan Cave Leighton Paisner; Nina Goulis, KPMG; Maria Kostenko, Baker McKenzie; Lyusine Satiyan, EY; and Dzhangar Dzhalchinov, Dentons, shared their expertise and gave recom- mendations on important tax and related mat- ters. Daniil Egorov, Deputy Head of the Federal Tax Service, was the event’s distinguished guest. The event was moderated by Alina Lavrentieva, Chairperson of the AEB Taxation Committee, PwC, and Vadim Zaripov, Deputy Chairperson of the AEB Taxation Committee, Pepeliaev Group.

Presenters (L-R): Daniil Egorov, Deputy Head of the Federal Tax Service; Alina Lavrentieva, Chairperson of the AEB Taxation Committee, PwC.

39 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

MEMBER NEWS

Dear members, please be informed that you can upload your news or press releases on our website in “Member News” section via personal page absolutely free of charge.

Retailers may have delivery costs calculated automatically Bryan Cave Leighton Paisner for any destination in the world. They may also book the Bryan Cave Leighton delivery and pick-up of goods very fast and get all the nec- Paisner Russia ranked essary paperwork done, following which the only thing to first by M&A deal count do is to print the documents and hand them to the cou- in Mergermarket rier picking up the shipment. Partnership with DHL Express Bryan Cave Leighton Paisner (Russia) LLP was placed first by will help Russian eBay sellers deliver goods to customers in M&A deal count* among all law firms in Russia for H1 2018, 220 countries within the shortest possible time: 1-2 days to according to the renowned Mergermarket League Table. Europe, 2-3 days to the USA, China and Australia. Behind the firm’s top position are big-ticket transactions han- dled by the Corporate/M&A Practice over the past six months, Servier including sale of a majority stake in the Sailfish OS developer; Ecolab’s acquisition of a chemical plant; acquisition by Sibe- Servier and the Government of rian Generating Company of 78% of the shares in Sibeco; Kazakhstan signed Cooperation Alfa-Bank’s acquisition of a stake in the fin-tech company Pay- Agreement Me, which develops mobile acquiring platforms. On 3 July 2018, Servier concluded Cooperation Agreement Mergermarket, a leading M&A data and intelligence provid- with the Government of Kazakhstan during the Kazakhstan er, relies on its network of key M&A media and experts in Global Investments Roundtable (KGIR). Out of 32 com- America, Europe, Asia and the Pacific, Central Europe and panies, Servier was the only pharmaceutical one to have Africa to rank law firms worldwide based on their work on signed an agreement during the event. major M&A deals. The day before Jérôme Gavet, Managing Director Servier EAEU, had an official meeting with the Prime Minister of Ka- *The deal size is not disclosed for confidentiality reasons. zakhstan and the Minister of Healthcare to present Servier’s activities in Kazakhstan and to discuss the opportunities and conditions for potential investments to Kazakhstan that was DHL Express and eBay highly supported and approved at the government level. DHL and eBay provide new opportunities for Russian exporters DHL Express and eBay an- nounced their partnership aimed at supporting exports of Russian goods and developing SME’s in e-commerce. It offers integrating DHL Express lo- gistics services into the seller’s personal account on eBay platform as well as special terms for goods delivery to 220 countries for Russian exporting retailers on eBay. Exporters get complete access to information and services of DHL Express from the sellers’ account on eBaymag.com platform. It enables posting goods simultaneously on eight eBay websites in different countries. All the information on goods is automatically translated into ten languages and the prices are set in the local currency.

40 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

According to the signed agreement, Servier is to assess the “We are honored to once again become the owner of this opportunities for potential transfer of modern pharmaceu- prestigious award. Despite the growing competition in the tical technologies for contract manufacturing production in market, the hotel manages to maintain the highest reputa- Kazakhstan. This Agreement also considers the develop- tion, offering travelers the Swiss hospitality combined with ment and implementation of joint scientific projects in differ- the highest quality of service. We are very pleased that our ent therapeutic areas and carrying out a set of educational efforts are valued both by the professionals and our guests, and awareness campaigns and programmes in the field of and we promise to constantly deliver the top standards of prevention and treatment of non-communicable diseases. service. This year we are dedicating these awards to late “For Servier development and strengthening of our coopera- Sarik Tara, the founder and honorary chairman of ENKA tion with the Republic of Kazakhstan, where we have been Holding, hotel owning company,” said Jan Chovanec, Gen- operating for more than 20 years, is one of the priorities. eral Manager of the hotel. We still have a lot to do together with our partners, but I Continuing maintaining its high reputation at the market, am confident that this is a very important and timely step the City Space Bar and Restaurant was recognized as BAR towards increasing the availability of high-quality innovative of the YEAR 2018 by the international prestigious award— solutions for patients of the Republic of Kazakhstan,” said Luxury Travel Guide, in September 2018. Jérôme Gavet. “We are happy that our guests appreciate our quality and service and this is the best stimulus for us to continue de- veloping,” said Jan Chovanec.

Tablogix Tablogix started managing operations of Michelin logistics centre One of the leaders of the tire market, Michelin, selected Tablogix for managing operations of the logistics centre in Russia. The warehouse is located on the territory of the Michelin industrial site in Davydovo (Moscow region); the warehouse area is 61,000 sq m. Tires from this ware- house are shipped to points of sale in Russia and CIS as well as for exports. Tablogix started working on 1 August 2018. The logistics centre allowed Michelin to optimise logistics Swissôtel Krasnye Holmy won two processes in Russia and CIS, reducing storage costs and de- awards livery time. The company develops an innovative approach On 30 June 2018, at the World Travel Awards ceremony in in logistics to provide the best service and quality for its Athens, Swissôtel Krasnye Holmy Moscow was recognized as customers. Europe’s and Russia’s Leading Luxury Business Hotel 2018. “It is strategically important for us to expand cooperation The World Travel Awards is the most prestigious award for with the world industrial leaders. We are happy to provide outstanding achievements of the travel industry. The World logistics support to our new partner and we expect that our Travel Awards was established in 1993 and this year marks collaboration will allow both companies to strengthen posi- its 25th anniversary. WTA is awarded according to the results tions in the market,” said Denis Savelyev, Sales Director of of voting of thousands of tourists and industry profession- Tablogix. als. Swissôtel Krasnye Holmy Moscow receives a prestigious Tablogix is known in Russia as one of the first logistics award for the 12th time and from year to year confirms its company who began to provide warehouse services for the leadership in the Russian market. automotive aftermarket according to international quality In 2018, Swissôtel Krasnye Holmy Moscow was first recog- standards. Today, Tablogix manages the central part distri- nized as Europe’s Leading Luxury Business Hotel 2018. bution centres of the largest automotive companies.

41 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security | APPOINTMENTS

Dentons In her new role, Alina becomes a key- player at 5* Moscow Marriott Hotel Novy Partners Vladimir Sokov, Sergey Klimenko, Arbat, being responsible for hotel’s PR and Tamer Amara joined Dentons with a team marketing activities, strategy planning and of lawyers. launching, as well as strengthening hotel’s Vladimir Sokov specializes in corporate law, positions within the Moscow market.

M&A, and in the field of life sciences. He Alina Abramovich Alina Abramovich studied marketing and also has extensive experience in consult- public relations in the UK, graduated from

Vladimir Sokov ing clients in commercial law, antitrust and the University of Westminster, London “Global Marketing” in real estate. Vladimir previously worked at 2012. Pepeliaev Group, where he headed the Cor- Before joining Moscow Marriott Hotel Novy Arbat, Alina held po- porate Practice Group, and Hannes Snell- sition of Marketing Communications Director at Swissotel Kras- man, where he managed the Moscow office. nye Holmy, Moscow. Vladimir contributed to numerous articles on “I congratulate Alina on her new role,” says Cornelia Brinkman, legal issues dedicated to the Russian legisla- General Manager of Moscow Marriott Hotel Novy Arbat. “We are tive system, participated in legislative draft- extremely happy to have such a strong team member on board.

Sergey Klimenko ing projects and is a member of the Russian Alina’s experience in hospitality PR & Marketing will certainly Bar Association. help us to reach great brand recognition and strengthen our Sergey Klimenko will head Dentons’ Life presence within Moscow market.” Sciences practice. Sergey is ranked among “I am happy to be back to Marriott family and to become part the leading life sciences lawyers by Cham- of the newest Marriott property in the Russian capital. I will try bers Europe 2018. He has extensive experi- my best not only to meet the expectations, but also to exceed ence advising companies in the life scienc- them,” says Alina. es industry on a wide range of regulatory

Tamer Amara and commercial matters. Sergey formerly Orange Business Services worked at Pepeliaev Group, where he head- ed the Life Sciences Practice, and at the Russian manufacturer of International service provider Orange Busi- original biologic medicines. ness Services appointed Robin De Keyser Tamer Amara will lead Capital Markets Practice. Tamer specializes as a new Head of Business Solutions and in cross-border financing transactions principally within capital Innovation Department in Russia and CIS. markets, derivatives and financial regulatory advice. He advises His main goal in the new position will be financial institutions and corporate clients in the context of debt creation of innovative solutions for inter- capital markets, margin lending, repos, restructuring and liability national and Russian enterprises from dif- Robin De Keyser management, with a particular focus on Russia, the CIS and Cen- ferent industries. Robin will be responsible tral and Southern Europe. Tamer’s previous experience includes both for the development of new services that take into account nearly 20 years of work at Clifford Chance, where he headed the wishes and ideas of Orange’s clients, and for the implementa- debt capital markets and derivatives practice. tion of complex integration projects. He will also be in charge of development of Orange technology partners ecosystem. Moscow Marriott Hotel Novy Arbat Robin has a degree in programming and accounting and has more than 26 years of experience in technology companies. Alina Abramovich is a professional with great experience in PR & Prior to joining Orange Business Services, Robin held senior po- Marketing in hospitality industry. She was responsible for public sitions in FNAC Belgium, KPN and Hewlett Packard. relations and marketing at such hotel chains as Radisson BLU, Marriott and Accor. Her great knowledge, dedication and atten- tion to the details is the basis for a successful career.

42 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018 NEW MEMBERS

The office in St. Petersburg was established in 2008. Its main task is to offer the whole range of services to the automobile industry: from port handling and storage to distribution to the dealers. Together with its partner LLC “Fenix”, BLG offers 120,000 square meters of terminal area in the Port of Bron- ART DE LEX ka (St. Petersburg region), dedicated to automobile logistics ART DE LEX is a Russian boutique law firm following latest and RoRo business. Our auto transportation department is global business trends and providing creative legal solutions located in Moscow and is operating 50 own trucks and up to to domestic and international clients. We have practices in 300 trucks of subcontractors’ fleet. mergers and acquisitions, corporate law, dispute resolution Our main focus is all kinds of forwarding activities. We offer and mediation, international arbitration, real estate and con- famous German logistics quality to our Russian partners. struction, competition regulation, intellectual property, energy www.blg-logistics.ru and natural resources, insolvency and restructuring, banking and finance, as well as international economic compliance. In addition to serving clients from anywhere in the world, ART DE LEX operates three dedicated international client service desks for clients in Brazil, South Korea and Turkey. Our attorneys work closely with clients on cases and trans- ECCO actions in order to help them achieve significant and sus- ECCO is one of the world’s leading shoe brands combining tainable benefits for their businesses. We strive to satisfy style and comfort. our clients’ requests within the shortest period of time and ECCO’s success is built on products with a great fit and top- at the lowest possible cost. quality leathers. We collaborate with other law firms and organisations that ECCO owns and manages every aspect of the value chain share our commitment to delivering the best expertise and from tanneries and shoe manufacturing to wholesale and re- the highest quality service. This allows us to take advantage tail activities. of world-standard best practices, whether completing pro- ECCO’s products are sold in 88 countries from over 2,000 jects in Russia or abroad. ECCO shops and more than 14,000 sales points. ART DE LEX participates actively in major international legal ECCO is family-owned, founded in Denmark in 1963, and em- organisations: International Bar Association, International ploys more than 20,000 people worldwide. Association of Judicial Independence and World Peace, and www.ecco.com International Association of Procedural Law. www.artdelex.ru

BLG LOGISTICS Graftonex Investments Limited BLG LOGISTICS as one of the biggest logistics providers in Graftonex Investments Limited is a holding Cyprus compa- Western Europe offering worldwide shipment services has ny, which has a subsidiary in the Russian Federation (LLC started developing its activities in Russia in the 1990s. BLG “Open-pit mine Arshanovskiy”), the main activity of which has established itself on the Russian market as a reliable is coal mining. and open partner, always ready to address cargo shippers’ According to geological data, the “Beyskiy” coal deposit is special needs. located in the southern part of the Minusinsk coal basin and We offer effective logistics solutions based on the delivery belongs to the northern wing of the Abakan trough. In ad- terms and special requirements for the cars transportation. ministrative structure, the deposit is located on the territory Thanks to our quality management systems implementa- of the Altai and Beyskiy districts. tion, we can always guarantee high-quality services to our The license area is 18 square kilometers. The maximum de- customers. velopment depth is 150 meters. 43 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

The nearest industrial centres are the cities of Abakan Perfetti Van Melle Group was established in March 2001 (45 km) and Sayanogorsk (45 km), connected by a road, when Perfetti Spa acquired Van Melle, creating the world’s which passes east (15 km) of the site. The nearest town is third largest global confectionery company. In 2006 Perfetti Arshanovo located 1 km north-west of the site. Van Melle acquired the Spanish company Chupa Chups. There is a railway branch (9 km to the south of the site) Perfetti Van Melle is one of the world’s largest manufac- connecting the railway station Kamyshta of the Abakan- turers and distributors of confectionary and chewing gum. Novokuznetsk branch of the Krasnoyarsk railway from Say- Privately owned and headquartered in Amsterdam, the anogorsk. Netherlands with operations globally, the company creates Fossil coal of mark D is extracted from the coal deposit in imaginative products and brands that are enjoyed in more the open way. than 150 countries across the world. There are a total of 30 The total reserves of the “Beyskiy” coal deposit are four bil- plants and production facilities worldwide. lion tons of coal. This is 200-300 years of open-pit mining. In Russia there are two production facilities. One plant is Graftonex Investments Limited attracts financing for LLC located in the Moscow region in Leshkovo Village, the other “Open-pit mine Arshanovskiy” which produces commodity one is in St. Petersburg. output of high-grade classes: DR 0-300, DPK 70-200 Research and development plays an important strategic (300), DPKOM 13-200 (300), UP TO 25-70, HOUSE 13-70, role at Perfetti Van Melle. Our central laboratories in Lain- DMHSH 0-25. ate (Italy) and Breda (the Netherlands), supported by local laboratories in various countries, are constantly researching new chewing gum and candy formulations as well as quali- tative improvements to existing products. Investment of Perfetti Van Melle company in state-of-the-art Nomisgroup equipment and facilities ensures the highest standards of Nomisgroup founded in 2007 by Hans-Dieter Weingärtner is product quality, safety and efficiency, as well as the health working as importer and exporter on three main sections: and safety of employees. wine, event management, and general representation of prod- www.perfettivanmelle.com ucts from Ritzenhoff – Germany. We are the first importer of Russian wine to Germany and Eu- rope and we are doing export of wines from different countries to Russian trade companies. We are specialized on high class events with a focus on food and wine if it is a jubilee, reception or a business network event Promaco TR (from 10 up to 500 persons). Promaco TR is a public policy and strategic communications We are representing the German leading company Ritzenhoff advisory firm with a focus on sustainability. in the life style section of design glassware and table ware. The firm was created through the merger of Promaco, a Our international clients are very well known in Russia and we Helsinki-based communications agency, and TIAR Center, are glad to be a partner with them. a Moscow-based advisory firm and think tank specializing www.nomisgroup.de in promoting circular economy in Russia and the Eurasian Economic Union. Promaco TR is a business with purpose. The firm sees its pur- pose in supporting the transition from traditional linear econo- mic models to circular models through helping companies, governments and communities with adopting sustainable prac- tices. How can sustainability boost your business in Russia and Perfetti Van Melle Eurasia? That is the central question Promaco TR helps to answer. Limited Liability Company “Perfetti Van Melle” is a part of a Promaco TR’s core fields of expertise include Environment, multinational Perfetti Van Melle Group operating on the Russian Energy Efficiency, and Sharing Economy & Collaborative market. The Group’s principal product is confectionery of the Consumption. Promaco TR’s clients are world-renowned following brands: Mentos, Fruittella, Alpenliebe, Meller, Chupa brands in extractive industry, FMCG and tech sectors. Chups, Sula, Big Bubble, Smint. www.promaco.fi

44 | Safety, Health, Environment & Security AEB Business Quarterly | Autumn 2018

• We make decisions jointly and use consensus-building ap- proaches. Samsung Electronics • We selectively choose our services and markets. Samsung Electronics Co. Ltd. is one of the largest manufac- • We win through significant investments in focused areas. turers of TVs, smartphones, portable devices, tablets, cam- • We highly invest in research and development. eras, home appliances, medical devices, network systems, • We have extensive intra-firm communication. semiconductors and LED solutions. The company’s offices Scope Audit & Assurance BV is licensed by the Netherlands are located in 79 countries. Financial Markets Authority (AFM) to conduct statutory au- Since 1991 the company has operated on the Russian mar- dits (license number 13020069). ket. In 2008, Samsung factory was opened on the terri- In Russia, Scope is a member of the self-regulating auditors’ tory of the industrial park in the Borovsky district of the organisation Russian Union of Auditors (RSA), recorded un- Kaluga region. As of today, the factory produces 100% of der number 11803029175. all TVs, monitors and washing machines sold under Sam- We work under the highest standards of ethics, compliance sung brand in Russia. and transparency in the acceptance of our clients and the Samsung Research Center has operated in Moscow since performance of our services. 1993. In May 2018, the company opened Artificial Intel- www.scope-audit.com ligence Center in Russia, which became Samsung’s fifth research institution in the world. In Russia, Samsung is contributing to the education sector by developing social and educational projects “IT School Samsung”, “IoT Academy Samsung”, “UchimZnayem”, Segula Technologies “Samsung Technical Education Center”. The company is a Segula Technologies is an engineering group with a global partner of the Worldskills movement, aimed at develop- presence helping boost competitiveness within all of the ing professional education and popularizing skilled occupa- major industrial sectors: automotive, aerospace, energy, tions. rail, marine, pharmaceutical and Oil & Gas. Samsung is the oldest partner of the Bolshoi Theatre; co- Present in 28 countries, with its 140 offices worldwide, operates with the State Hermitage and the State Museum the Group fosters a close relationship with its customers and Reserve “Peterhof”; is the co-founder of the annual thanks to the expertise of its 11,000 employees. As a lead- literary prize “Yasnaya Polyana”. The company is develop- ing engineering specialist placing innovation at the heart ing the “Live Pages” project, which allows to study Russian of its strategy, Segula Technologies conducts large-scale classical literature in a new interactive format. projects, ranging from studies to industrialisation and pro- www.samsung.com/ru duction. The international presence of Segula Technologies is a strength that we continue to cultivate every day. With 140 sites around the world we can pay close attention to our customers and adapt perfectly to local differences, mainly Scope through our top-level field resources. This proximity can With offices in Moscow and Amsterdam, Scope Audit & As- also be seen within our group, where many synergies exist surance is ideally positioned to audit the global ambitions of among our various business areas. our international clients. Our ambition is to serve the ambitions of our customers. We provide audit and audit related services such as valua- As a leading engineering company, our success lies in our tions, financial reviews, due diligence, financial projections ability to project ourselves and to share our love of chal- and forensic audit. In addition, we define our clients’ inter- lenges with our teams and stakeholders. In a technologi- nationalisation strategy and improve performance. cal age where anything is possible, we take pride in the Our strategy and our culture make us unique: achievements of our group and know that we can still go • We have a highly selective recruitment and a “grow your one step further through our combined efforts. own” people strategy. At Segula Technologies, Research and Innovation form the • We reject individualistic behaviour. core of our engineering projects. We are involved with fas- • We compensate based on group performance. cinating technological projects, anticipating the develop- ments that will shape the world of tomorrow. Our know-

45 AEB Business Quarterly | Autumn 2018 Safety, Health, Environment & Security |

how in projects such as connectivity, renewable energies, energy consumption and many others open up exciting prospects for creating the future together. www.segulatechnologies.com

Weir Minerals Weir Minerals are specialists in designing, manufacturing, de- livering and supporting critical process equipment solutions including pumps, hydrocyclones, valves, comminution equip- WACKER ment, rubber and wear resistant linings for the global mining, WACKER is one of the world’s leading and most research-inten- mineral processing, sand, aggregates and industrial sectors. sive chemical companies, with total sales of €4.92 billion. We are proud of our extensive global service and manufactur- Products range from silicones, binders and polymer additives ing presence in more than 70 countries that develops, sup- for diverse industrial sectors to bioengineered pharmaceutical ports and sustains market leading technologies that deliver actives and hyperpure silicon for semiconductor and solar ap- enhanced performance in your process critical applications. plications. At Weir Minerals we have over 20 design centres of origin As a technology leader focusing on sustainability, WACKER pro- across the globe, which are the centres of research and devel- motes products and ideas that offer a high value-added poten- opment for specific product categories. tial to ensure that current and future generations enjoy a better Through a customer focused strategy Weir Minerals has used quality of life based on energy efficiency and protection of the its unique technologies to develop an unrivalled range of com- climate and environment. minution, mine dewatering, process water and specialist slurry Spanning the globe with 4 business divisions, we offer our cus- processing equipment for some of your most critical processes. tomers highly specialized products and comprehensive service This means that today’s Weir Minerals is much more than a via 23 production sites, 21 technical competence centres, 13 pump company. WACKER ACADEMY training centres and 50 sales offices in Eu- www.global.weir rope, North and South America, and Asia—including a presence in China. With a workforce of some 13,800, we see ourselves as a reli- able innovation partner that develops trailblazing solutions for, and in collaboration with, our customers. We also help them boost their own success. Our technical centres employ local specialists who assist customers worldwide in the development of products tailored to regional demands, supporting them during every stage of their complex production processes, if required. www.wacker.com

46 AEB MEMBERSHIP APPLICATION FORM / ЗАЯВЛЕНИЕ HA ЧЛЕНСТВОАЕБ Please, email a scan of completed and signed application form to: [email protected], and send the original document by post / Пожалуйста, вышлите скан заполненного и подписанного заявления на адрес: [email protected], а оригинал направьте почтой. Calendar year / Календарный год: 2019 (Please check the appropriate box/boxes / Укажите соответствующий год/года)

Name of your AEB Contact / Ваше контактное лицо в АЕБ:

1. COMPANY / СВЕДЕНИЯО КОМПАНИИ Company Name in full, according to company charter. (Individual applicants: please indicate the company for which you work / Название компании в соответствии с уставом. (Для индивидуальных членов – название компании, в которой работает заявитель):

Legal Address (and Postal Address, INN / KPP / ИНН/КПП: if different from Legal Address) / Юридический и фактический адрес, Phone Number / Номер телефона: Fax Number / Номер факса: если он отличается от юридического: Website Address / Страница в интернете:

2. CATEGORY/ КАТЕГОРИЯ: THE CATEGORY IS DETERMINED ACCORDING TO THE WORLD’S TURNOVER OF THE COMPANY Please attach the information letter on the activity of the company and its annual turnover with the signature of the head of the company on the official letterhead

Company’s world-wide turnover Please indicate your AEB Category / AEB Membership Fee / (euro per annum) / Мировой оборот Отметьте категорию Членский взнос в АЕБ компании (евро в год)

SPONSORSHIP / Спонсорство – 000,01 орве/orue

CATEGORY A / Категория А >500 million/миллионов 6,300 euro/евро

CATEGORY B / Категория Б 50–499 million/миллионов3,800 euro/евро

CATEGORY C / Категория С 1–49 million/миллионов 2,200 euro/евро

CATEGORY D / Категория Д <1 million/миллионов 800 euro/евро

INDIVIDUAL (EU/EFTA citizens only)/ Индивидуальное – 008 орве/orue (только для граждан Евросоюза/ЕАСТ)

Any non-EU / non-EFTA Legal Entities applying to become Associate Members must be endorsed by two Ordinary Members (AEB members that are Legal Entities registered in an EU / EFTA member state or Individual Members – EU/EFTA citizens) in writing/ Заявление любого юридического лица из страны, не входящей в Евросоюз/ЕАСТ, и желающего стать членом АЕБ, должно быть письменно подтверждено двумя членами АЕБ (юридическими лицами, зарегистрированными в Евросоюзе/ЕАСТ, или индивидуальными членами – гражданами Евросоюза/ЕАСТ)

Individual AEB Membership is restricted to EU / EFTA member state citizens, who are not employed by a company registered in an EU / EFTA member state / К рассмотрению принимаются заявления на индивидуальное членство от граждан Евросоюза/ЕАСТ, работающих в компаниях, страна происхождения которых не входит в Евросоюз/ЕАСТ

Please bear in mind that all applications are subject to the AEB Executive Board approval / Все заявления утверждаются Правлением АЕБ

3. CONTACT PERSON / INDIVIDUAL MEMBER / КОНТАКТНОЕ ЛИЦО / ИНДИВИДУАЛЬНЫЙЧЛЕН

Title, First Name, Surname / Ф.И.О:

Position in Company / Должность:

E-mail Address / Адрес эл. почты: 4. COUNTRY OF ORIGIN / СТРАНА ПРОИСХОЖДЕНИЯ

А. For a company / Компаниям: Please specify COMPANY’S country of origin / Указать страну происхождения компании1

or B. For an individual applicant / Индивидуальным заявителям: Please specify the country, of which you hold CITIZENSHIP / Указать гражданство

Please note that only EU / EFTA members can serve on the Executive Board and the Council of National Representatives/ Внимание! В Совет национальных представителей и Правление могут быть избраны члены, представляющие страны Евросоюза или ЕАСТ.

Please fill in either A or B below/ Заполните только графу А или В

5. COMPANY DETAILS / ИНФОРМАЦИЯ О КОМПАНИИ

Company present in Russia since: ______/ Компания присутствует на российском рынке с:______г.

Company activities/ Primary / Secondary / Деятельность компании Основная: Второстепенная:

Please do not include this in Company turnover (euro)/ In Russia / Worldwide / the AEB Member Database/ Не Оборот компании (в Евро) в России: в мире: включайте это в справочник АЕБ

Please do not include this in Number of employees/ In Russia / Worldwide / the AEB Member Database/ Не Количество сотрудников в России: в мире: включайте это в справочник АЕБ

Please briefly describe your company’s activities (for inclusion in the AEB Database and in the AEB Newsletter) / Краткое описание деятельности Вашей компании (для включения в базу данных АЕБ и публикаций АЕБ)

6. HOW DID YOU LEARN ABOUT THE AEB / КАК ВЫ УЗНАЛИ ОБ АЕБ?

Personal Contact / Личный контакт Internet / Интернет

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