Sustainability Report 2012–2013 1
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Sustainability report 2012–2013 1 CONTENTS About the Company ······················································································································ 2 Chairman’s Message ···················································································································· 4 A Responsible Investor·················································································································· 6 Our approach to responsible investment ·················································································· 6 Stakeholder Relations ············································································································· 9 Managing corporate social responsibility ·················································································· 10 Social Investment ························································································································· 13 Culture and Arts ······················································································································· 15 Education and Science ············································································································ 18 Sports ····································································································································· 23 Social development ················································································································· 25 Corporate governance and culture ································································································ 29 Corporate Governance ············································································································ 29 Corporate culture and business relations ·················································································· 36 Our personnel ······························································································································· 43 Personnel structure and headcount ························································································· 43 HR policy ································································································································· 44 Human rights ··························································································································· 46 Motivation and remuneration ···································································································· 46 Personnel assessment, development and rotation ···································································· 47 Social safeguards ···················································································································· 48 Occupational health and safety ································································································ 49 Healthy lifestyle ························································································································ 50 Environmental protection ·············································································································· 53 Air, water and soil protection····································································································· 54 Resource saving ······················································································································ 54 Waste disposal ························································································································ 55 Biodiversity restoration ············································································································· 56 Environmental activities ··········································································································· 56 Report profile ································································································································ 58 2 SISTEMA JSFC SUSTAINABILITY REPORT 2012–2013 3 Revenue, US$ m Adjusted OIBDA, US$ m Sistema’s portfolio companies Comment 40,000 10,000 About MTS is the leading telecommunications group in Russia and the CIS, offering mobile and fixed voice, 35,942.1 8,918.5 broadband and pay TV services. MTS is included in the top-100 most valuable brands in the world the Company 33,950.4 5.9% 8,430.6 30,000 7,50 0 5.8% JSOC Bashneft is a vertically integrated oil company ranking in the top-10 Russian companies 20,000 5,000 in terms of oil production and in the top-5 in terms of oil refining Sistema JSFC is the largest publicly-traded diversified holding company in Russia and Bashkirian Power Grid Company is one of the largest regional electricity transmission companies 10,000 2,500 the CIS. Incorporated in 1993, Sistema is now one of Russia’s top 10 companies by revenue, and is one of the largest holding 0 0 Targin (formerly Bashneft-Service Assets) is a management company of an oilfield services holding companies in the world. The Company’s 2012 2013 2012 2013 which comprises 11 companies portfolio comprises stakes in predominantly Russian businesses in a range of sectors, United Petrochemical Company is a vertically integrated petrochemical company which owns including telecommunications, oil and gas, Operating income, US$ m 2012–2013 Highlights: four businesses in the Republic of Bashkortostan utilities, healthcare services, consumer, high 6,000 tech, and others. Sistema is the control- 5,663.0 ling shareholder in most of its portfolio 19.8% 4,500 companies. 4,725.8 167.5 k Sistema Mass-Media (SMM) is one of Russia’s leading media holdings employees Sistema’s portfolio companies serve more 3,000 than 100 million consumers in Russia, MTS Bank is a universal commercial bank of federal scale, one of the top 50 Russian banks the CIS, Europe and Asia across industries by the size of equity and net assets 1,500 such as telecommunications, high tech, oil >100 m and energy, radio and space technology, customers Detsky Mir is the largest children’s goods retailer in Russia and the CIS banking, retail, mass media, tourism, and 0 healthcare services. 2012 2013 VAO Intourist is the oldest operator in the Russian tourism market Sistema’s shares are listed on the London $69.9 bn Stock Exchange as Global Depository Earnings per share, in revenues in 2012–2013 Receipts (GDRs). The Company’s ordinary 30 in US cents shares are listed on the Moscow Stock Medsi is a leading provider of private healthcare services in Russia which operates the largest Exchange. The main shareholder of the Com- 25 private chain of medical institutions in the country 24.43 pany is the Chairman of Sistema’s Board 20 140.1% P3.6 bn of Directors Vladimir Evtushenkov (64.19%). of social investments in 2012–2013 15 RTI is a major Russian industrial holding which develops and manufactures high-tech products SISTEMA’S PORTFOLIO COMPANIES and infrastructure solutions using proprietary microelectronic technologies. The company 10 10.18 is one of the top 100 largest defence companies in the world In November 2012, Sistema’s Board of Direc- 5 P676 bn Binnopharm is a pharmaceutical company which operates one of Russia’s largest facilities tors approved a new organisational structure, of tax payments in 2012–2013 for full cycle production of biotech drugs under which all of the Company’s investments 0 were grouped into asset portfolios. 2012 2013 NIS is a leader in the Russian navigation and information market, implementing major projects P113 bn to deploy GLONASS, a Russian satellite navigation system Sistema is ranked 308th Net income attributable staff costs in 2013 2,500 to Sistema, US$ m in the Fortune Global 500 Russkaya Zemlya (RZ Agro Holding Ltd.) is a major grain producer in the south of Russia 2,257.5 with a land bank of approximately 100 thousand hectares and ranks in the top 10 Russian 2,000 138.6% 3,500 companies by revenue. 1,500 employees involved in volunteer projects SG-trans is Russia’s largest independent railcar operator in the market for transportation 1,000 of liquefied gas 946.1 500 >300 Sistema Shyam TeleServices Ltd (MTS India) is a mobile operator in India 0 social projects run by the Company 2012 2013 4 SISTEMA JSFC SUSTAINABILITY REPORT 2012–2013 5 Chairman’s Message Dear Partners and Shareholders, undergo a significant transformation: we do not just Bashneft’s integrated Occupational Health & Safety Employees and Customers, construct new buildings to house clinical diagnostic and Environmental Management System was certified centres; we want to bring to Russia the most advanced to the internationally recognised standards ISO 14001 I am pleased to present our Sustainability Report. international medical technologies, including both and OHSAS 18001. In the reporting period, we saw In 2012–2013, we initiated a number of important latest equipment and latest medical know-how. RTI’s a significant decline in the occupational injury rates social projects, the largest of them being the all-Russia contribution to enhancing Russia’s security received at our hazardous facilities . programme to support talented youth, Lift to the Future. the highest recognition possible when in 2012 The companies comprising the Corporation have funded the developers of its new radar station were awarded Sustainable development of our Company is based the construction and renovation of dozens of sports, the State Prize in science and technology.