Do you shape the future or does the future shape you?

SUSTAINABILITY REPORT FY20

The better the question. The better the answer. The better the world works. 02 CONTENTS

EY RUSSIA 04 OUR PEOPLE 14 OUR COMMUNITIES 21

Our services 05 EY Russia 15 Enhancing russia’s business climate 23

Ey russia and ey global: facts and figures 05 People board members 16 Membership of associations 24

Key performance indicators 06 Building high-performing teams 17 Supporting entrepreneurship in Russia 25

Competitive compensation and benefits 17 Support for the younger generation 26

OUR CLIENTS AND MARKET POSITION 09 Developing and supporting our people through world-class Volunteering and charity 29 learning 18 Our market position 10 Environmental stewardship 32 Training is tailored to individual needs and development plans 18 Rankings and awards 10 We make the environment a priority 33 Mobility 19 Assessing service quality 11 Diversity and inclusiveness 19 What services do we offer? 12 HOW EY IS ORGANIZED 34 Healthy lifestyles 20 Matters of business ethics 13 Occupational safety 20 ABOUT THIS REPORT 36 EY Alumni club 20 Data overview 37

Contact information 43 

0 SUSTAINABILITY FY2REPORT 03

DEAR FRIENDS, At the end of 2019, which we named a year of re- We continue to work closely with Russia’s Foreign newal and transformation as we celebrated the 30th Investment Advisory Council, which marked its 25th anniversary of EY Russia, we did not expect the anniversary in 2019, and we are still holding our En- message to mean so much to us in 2020. It took us trepreneur Of the Year and Entrepreneurial Winning mere days to adjust our habits, working ways and Women contests. We remain committed to all cor- business approaches as we rushed through changes porate social responsibility projects and continue to that had long been brewing but were not yet made. provide pro-bono services. Predictably, this year’s report focuses on change, while its title reflects our readiness to embrace The pandemic gave us the catchphrase “progress is change and successfully adapt to it. only possible under restrictions.” Certainly, restric- tions came as a shock to both the public and busi- Transformation is needed across the board. As ad- nesses, but we were able to adjust and work under visors, we have tried to contribute to tackling new conditions. We revised our business processes COVID-19: we launched a useful service — which op- and offered clients new services. I am confident that erated during the first lockdown phase — to monitor Next and Beyond hold good news for us because state support measures for businesses and indi- our future is always in our own hands! viduals. We conducted research into the pan- demic’s impact on businesses and worked out a new Alexander Ivlev strategy called Now. Next. Beyond. for business re- EY CIS Managing covery and continuity. Partner We did our best to keep jobs and made remote working arrangements for more than 3,500 em- Enjoy the read! ployees, with a broad array of training and devel- opment opportunities now available from home. 

0 SUSTAINABILITY FY2REPORT 04

EY Russia

Will your transformation plan bear fruit? 05 OUR SERVICES EY RUSSIA AND EY GLOBAL: EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The insights and quality ser- vices we deliver help build trust in the capital markets and in economies the world over. FACTS AND FIGURES SERVICE LINES • Assurance • Tax and law FY20 • Advisory • Strategy and Transactions EY GLOBAL INDUSTRIES

• Automotive • Power & utilities Global • Farming • Insurance headquarters in • Aerospace and security systems • Construction • Banking and capital markets • Telecommunications London • Mining and metals • Technologies • Hospitality and tourism • Transportation • Public sector • Capital and asset management • Media and entertainment • Chemicals Over 700 offices • Biomedicine • Real estate OFFICES: • Oil and gas in 150 countries • Air carriage , St. Petersburg, , Ekaterinburg, , • Advanced manufacturing technologies Krasnodar, Rostov-on-Don, Vladivostok, Togliatti • Consumer products and EY Russia is part of the CIS Cluster of CESA (Central, Over • Packaging, paper and wood Eastern and Southeastern Europe and Central Asia). employees EY RUSSIA EY 280,000

Global revenue of USD EY opened

its first office

0 in Russia in Today there are nine. 1989 9 37.2 billion SUSTAINABILITY FY2REPORT 06

EY RUSSIA KEY PERFORMANCE INDICATORS FY20

Head office in Foreign Investment Revenue years Advisory Council th of RUB Moscow 30 in Russia in Russia marked its 25 anniversary 17.3 billion*

Employees hours 3,562 100% spent 175,791 training of our employees signed employees our Global Code of Conduct

* in 2019 calendar year

EMPLOYEES BY SERVICE LINE 9 offices IN FY20

EY Russia revenue

RUB 1,435 570 652 363 542 billion* Assurance Tax and Law Advisory Strategy and Core 17.3 Transactions Business Services

* in 2019 calendar year EY RUSSIA EY

Russians Foreigners

PERCENTAGE 30.1% 62.6% 1.6% 5.7% OF RUSSIAN Women Men Women Men

0 AND FOREIGN PARTNERS SUSTAINABILITY FY2REPORT 07

HOW TO COPE WITH COVID-19? 2020 was the year of transformation in the face of COVID-19

We shifted more than 3,500 employees to working from home

We research published 23 papers

Including seven on the pandemic’s impact on businesses

We operated a useful service from April to September 2020 to monitor daily state support measures for businesses and people. EY RUSSIA EY

0 SUSTAINABILITY FY2REPORT 08

We worked out a new strategy called Now. Next. Beyond. for business recovery and continuity. Employee health and wellbeing COMPANIES CAN EVALUATE BUSINESS Resilient Talent CONTINUITY IN NINE enterprise and workforce KEY AREAS

uring comp en d lexit ev y a er nd ad u le n a ce r in t a a in m t e y R

Insurance Customer and legal disputes and brand

Supply chain and global trade

Technology B usi Financial and information ness d ption isru and investor security EY RUSSIA EY

Government Risks and public policy

0 SUSTAINABILITY FY2REPORT 09

Our clients and market position

How do we change our approach to customers under the new circumstances? 10 OUR MARKET RANKINGS AND AWARDS POSITION

Share of Russia’s assurance services market, EY retained the number one position EY Russia’s Transfer Pricing and Op- EY Law was ranked as the top law firm FY20* among major audit groups and net- erating Model Effectiveness practice in Russia by Kommersant in its Legal works in Russia in 2019 in the annual was ranked as a Tier 1 tax firm by In- Services Market Leaders-2020 survey Russian Audit ranking by RAEX Rating ternational Tax Review in its annual in 12 categories. EY Law partners Agency. EY has been in the top ranks World Transfer Pricing research for Georgy Kovalenko, Alexey Markov, since 2015. 2020. Alexei Nesterenko and Pavel Kutovoy, EY Law Associate Partner Ilya Skrip- nikov and EY Law Director Vasily Mak- ovkin topped individual rankings. 19% EY EY came top for the second time in EY Law was recognized as a leading a row as Russia’s largest valuation law firm in Russia in Corporate: M&A; firm in 02 19 in the RAEX ranking. PPP / PFI; Project Development: Power; Project Development: Re- In 2019, EY received the SAP CIS structuring & Insolvency; and Banking Award for Partner Excellence for in the annual IFLR 1000 rankings for Service Partner of the Year. As many as seven EY Law experts 2020. earned recognition by Best Lawyers 2021. Listed in the Best Lawyers 2021 directory were Georgy Kova- Alexander Ivlev, CIS Managing lenko, Partner, Head of EY Law; Ilya EY Law features in the Pravo. Partner, was ranked by the Russian Skripnikov, Associate Partner, EY ru-300 ranking for 2020 as a leading Managers Association and Kom- Law; EY Law Directors Fedor Blinov, law firm in Competition; PPP / Infra- mersant Publishing House among the Vasily Makovkin, Anna Nazarchuk and structure Projects; Intellectual top 1,000 Russian business leaders. Denis Shaklein; and EY Law Senior Property; Commercial Real Estate / Manager Gennadii Timonichev. Construction; Corporate / M&A; Law and Tax Disputes; Natural Resources / Energy; TMT; Pharmaceuticals and Healthcare; and Financial / Banking Law.

Other 81% assurance OUR CLIENTS AND MARKET POSITION MARKET AND OUR CLIENTS firms

* In FY20, we audited 19% of Russian companies on the Forbes Global 2000 list. EY’s share was lower than before because one of our big clients was not included

in the ranking, while the overall number of assurance firms was higher, and therefore others’ shares were 0 lower. SUSTAINABILITY FY2REPORT 11 ASSESSING SERVICE QUALITY

As part of a global initiative, EY Russia conducts annual ESQ (Expectations of Service Quality) and ASQ (Assessment In the ASQ program, quantitative and qualitative statistics of Service Quality) programs involving key clients in all service lines. are collected and assessed by means of:

The ESQ program gives us a better understanding of clients’ expectations of quality before the start of an engagement • Face-to-face interviews with the client’s key people, in- so that we can design a more holistic approach. cluding audit committee chairs and directors, con- ducted by independent partners not involved in serving The ASQ program measures the degree of client satisfaction with our relationship, enabling us to act on feedback that client and improve the quality of our services. • Electronic questionnaires used to gather objective feedback on specific engagements or the overall client relationship

OUR ASQ PROGRAM IN FY20

Interviews, including by phone 100

Questionnaires sent 17 0 Never 9.2 Questionnaires received 6

Always Percentage of returned 10 OUR CLIENTS AND MARKET POSITION MARKET AND OUR CLIENTS 35% questionnaires Clients’ willingness to recommend our services on a scale of 10, according to the FY 2020 ASQ

0 SUSTAINABILITY FY2REPORT 12

WHAT SERVICES DO WE OFFER? FY20

ASSURANCE TAX AND LAW ADVISORY STRATEGY AND TRANSACTIONS • External audit • Corporate tax Business advisory Transactions EY Parthenon • Financial accounting advisory • International tax planning services and corporate • International trade • Business transformation finance: • Strategy • Forensic • Customs regulations • Finance • Strategy and transactions • Lead advisory • Sustainability • Transaction tax • Supply chain and operations • Financial recovery and re- • Mergers and acquisitions • Tax reporting management structuring strategy • Project funding and • Tax controversy and dispute • Retail trade infrastructure resolution • Financial sector 99,239 • Valuation, business modeling • HR management • Risks professionals and economic calculations 18,721 • Personal tax • Technological risks globally • Transaction support professionals • Tax function enhancement • Risks for financial sector globally 1,435 • Indirect tax • Actuarial services • Legal matters • Academy of Business professionals 363 in Russia professionals Technological consulting in Russia 63,484 • Development and introduction of technologies professionals globally • Technological transformation • Data management 570 • Advanced digital technologies • Cybersecurity SECTOR CENTERS professionals in Russia • International Contact Center • EY Moscow Oil & Gas Center 71,748

OUR CLIENTS AND MARKET POSITION MARKET AND OUR CLIENTS professionals globally 652 professionals in Russia

0 SUSTAINABILITY FY2REPORT 13 MATTERS OF BUSINESS ETHICS

EY GLOBAL CODE OF CONDUCT In FY 2020, all seven business entities within EY Russia conducted training on corruption risks. EY’s Global Code of Conduct provides a clear set of Anti-bribery and anti-corruption standards that guide our people’s conduct across all areas As many as 83.9% of employees confirmed adherence of activity: https://www.ey.com/ru_ru/ to the firm’s anti-corruption policies and procedures. global-code-of-conduct Insider trading In FY 2020, EY Russia paid RUB 152,065 in fines for All EY Russia employees signed the Global Code of noncompliance with legal and regulatory requirements. Conduct in FY 2020. Personal data protection

COMPLIANCE WITH LEGAL Independence REQUIREMENTS EY member firms strictly comply with laws and regulations Document retention EY employees currently in force. This important commitment is sup- completed 4,862 ported by a number of policies and procedures. See https://www.ey.com/ru_ru/legal- and-privacy/ Client acceptance, continuance hours of independence training compliance-with-legal-requirements and service delivery in FY20

Data privacy

Procurement policy OUR CLIENTS AND MARKET POSITION MARKET AND OUR CLIENTS

0 SUSTAINABILITY FY2REPORT 14

Our people

Can HR transformation connect all people working for your company? 15

EY works hard to recruit people who are talented and curious, who thrive in international When our people choose to leave EY, we don’t see this as an end to the relationship, teams and have a global mindset. but as just the next stage: all former employees are members of the EY Alumni Club (https://www.ey.com/ru_ru/alumni), giving them additional opportunities to interact with colleagues and strengthen business ties as a catalyst for further career growth.

EY RUSSIA

KEY INDICATORS FY20

Total number Formal of employees learning hours Hours per LEARNING employee, 3,562 175,791 average 57

3562

Employee women men breakdown За год общее количество часов обучения 175 791 % % by gender 63 37 Среднее количество часов на одного сотрудника 57 OUR PEOPLE OUR Соотношение женщин и мужчин в компании

63% женщины

37% мужчины

0 SUSTAINABILITY FY2REPORT 16 PEOPLE BOARD * MEMBERS Anna Sergei Guseva Makeev Central, Eastern and Southeastern Partner, CIS Tax and Law The People Board, made up of EY executives and Europe & Central Asia (CESA) People Talent Leader department heads, meets regularly to discuss Leader people policy – its priorities and strategic and cul- tural aspects – in order to develop an integrated approach to people issues at the CIS and Russian national levels. The board discusses recruitment, brand development, compensation and benefits, training, mobility, social initiatives, office life and much more. Oleg Alexey Glinskiy Afanasyev Any employee may CIS Operations Leader, Partner, CIS Strategy Core Business Services and Transactions Leader submit questions and Talent Leader proposals to the board and so contribute to the firm’s people strategy. Turgay Tatiana Teymurov Savenkova CIS Human Resources Director, Partner, CIS Assurance CESA Learning & Development Talent Leader Leader OUR PEOPLE OUR

Alexei Ammosov Partner, CIS Advisory

Talent Leader 0

* As at 11/1/2020 SUSTAINABILITY FY2REPORT 17

BUILDING We strictly follow our https://www.ey.com/ru_ru/ recruitment policy legal-and-privacy/hiring-procedure HIGH-PERFORMING principles: TEAMS

COMPETITIVE COMPENSATION AND BENEFITS

EY wants our people to receive competitive compensation • Corporate mobile service: employees in all depart- • Additional paid leave for emergencies with the approval that is consistent with market rates and trends. Our com- ments at the level of manager and above are, without of the service line leader: the number of paid days is at pensation package includes: prior approval, provided with SIM cards and reimbursed the leader’s discretion and varies, as a rule, from three for business calls; employees below the level of to five • Life insurance for all employees at the expense of the manager may obtain corporate SIM cards with the ap- • Reimbursement of the cost of professional certificates company and for their relatives at corporate rates, in- proval of their partner and licenses, external courses, EY Academy of cluding the opportunity to receive life insurance certifi- • Extended paid annual leave (25 working days) Business courses and webinars cates required by banks to obtain a mortgage (if the in- surer is accredited with the bank). • By agreement with the service line leader, the company • New hire induction training may pay an employee up to 100% of his/her salary in • Health insurance for all employees and one close rel- • In-house or online courses in foreign languages the event of a severe illness requiring hospitalization of ative of each employee in the rank of senior and above • Comfortable office kitchens equipped with big refriger- over 10 days (full payment for a standard voluntary health insurance ators, microwave ovens and coffee machines (tea, plan for a child, or partial payment for a spouse, while • Support for expectant parents: pregnancy care and ob- coffee and milk free of charge) stetrics services under the voluntary health insurance parents and other relatives are eligible for corporate • Office fitness center and shower room rates) plan for employees who have been with the firm for two-years (employees with multifetal pregnancies are • 24-hour access to the office • Health insurance for all employees traveling on entitled to an extra allowance) • A program of corporate discounts (for air and rail business • One of the parents employed with EY can receive a gift tickets, fitness clubs, dry-cleaning services and much • International travel insurance at corporate rates for from the firm fora newborn baby more) employees making private trips abroad • Three days of additional paid leave for the fathers of

OUR PEOPLE OUR • An annual performance-based bonus program de- newborns signed to reward employees for their individual contri- butions to practices’ overall performance • A 24-hour psychological counseling hotline, GP and pediatrician counseling services by phone or video

0 SUSTAINABILITY FY2REPORT 18

See Data Overview for information on the headcount, staff turnover rates, new hires and those who left the firm in FY20.

DEVELOPING AND SUPPORTING Percentage of employees receiving regular performance and career development reviews OUR PEOPLE THROUGH WORLD-CLASS in FY20. LEARNING Men Women

EY has a unique program called LEAD that creates LEAD is closely linked to EY’s Performance Management and a framework for career development, taking into account Development Process (PMDP), which helps our people each individual’s unique abilities and needs. Each employee monitor their performance and make appropriate has a counselor to provide advice on building their career and improvements. enhancing their professional skills. 78.05% 77.80%

TRAINING IS TAILORED TO INDIVIDUAL NEEDS AND DEVELOPMENT PLANS

EY has a special program for promising employees that lasts The program, aimed at personal and career development, between 1.5 and 2 years, and is designed to prepare the next allows women: generation of partners. See more detailed information on training • To give thought to their values and career aspirations in Data Overview. OUR PEOPLE OUR Participants respond to a series of challenges that develop in a comfortable and supportive atmosphere their leadership and entrepreneurial skills. This prepares • To determine their strengths and weaknesses as well as them for their role as partners in a motivating and structured personal obstacles and how to overcome them way and ensures transparency of the partner promotion • To understand what sets each participant apart, her process. personal brand and how to put it across To promote women’s leadership, EY has designed the 1.5-day • To gain inspiration from an EY woman partner and ask

Navigator program for women at manager level. her about matters of concern 0 SUSTAINABILITY FY2REPORT 19

MOBILITY FY20

Employees trans- Employees EY offers its employees mobility within the global organi- EY has a special international exchange program, offering ferred from Russia transferred from zation in the form of career development programs. These high-performing seniors and above the opportunity to go to other regions, in- other regions programs enrich our people’s professional experience, im- on short- and long-term international assignments. cluding CIS countries, to Russia as part prove their foreign-language skills and expose them to multi- as part of mobility of mobility programs cultural work environments. programs

12 1

DIVERSITY AND INCLUSIVENESS

EY FAMILY AND EY MOMS EMPLOYMENT PROGRAMS FOR CREATING A FLEXIBLE WORKPLACE EY Family and EY Moms programs offer employees an op- PEOPLE WITH DISABILITIES High performance relies on creating the right environment portunity to attend workshops on parenting and building EY offers internships for young people with disabilities and for our people. family relations. works with other companies to raise awareness among the To this end, we are introducing new information and com- business community of disability and employment issues. Children of our employees are regularly invited on tours munication technologies and redesigning our offices to around the office or other events. EY is a partner in the Path to a Career contest, a member support the health and wellbeing of our people. of the Business Advisory Board on Disability and other We try to provide our people with a comfortable envi- charitable foundations. ronment and maximum flexibility in managing their time. OUR PEOPLE OUR We offer remote working opportunities and provide IT support online.

We adapt the principles of our health and safety and envi- ronmental policies to improve working conditions.

0 SUSTAINABILITY FY2REPORT 20 HEALTHY LIFESTYLES

Since 2011 the firm has sponsored a Wellness Program to encourage sports, physical fitness and healthy living.

In 2020 the program supported the following initiatives:

• Health webinars for CESA employees • Telemedicine services and an opportunity to consult a psychologist online • Discounts at leading fitness clubs

OCCUPATIONAL SAFETY

Wherever our people are in Russia – in the office or at a client – their safety is our priority. The EY Occupa- EY ALUMNI CLUB OUR PEOPLE OUR tional Safety team monitors compliance with policies designed to protect employees and property from any potential threats that could cause injuries, Whenever you join EY and however long you stay, the We always keep members up to date on the latest de- damage or malfunctions. exceptional EY experience and friendships last velopments at EY and business trends and let them a lifetime. The EY Alumni Club brings together past know about bonuses and discounts from EY Alumni In FY20, there were no work-related injuries or occu- and present employees to multiply their opportunities, Club loyalty program partners. pational illnesses among our firm’s employees, nor resources and business contacts. It’s the perfect place

were there any fatalities on the job. to make contacts, create a personal brand and find Here each former employee can fill out an application

0 partners. to join the club or update their contact information. SUSTAINABILITY FY2REPORT 21

Our communities

How do we reduce our environmental footprint working under the new circumstances?s 22

Our charitable Entrepreneur Of The Year Program Environmental spending stewardship

OUR INVESTMENT tonnes of СО IN COMMUNITIES > 700 2 21.4 participants Greenhouse RUB million since 2003 gas emissions 6,547.10

DIRECT EMISSIONS INDIRECT EMISSIONS

Scope 1: Scope 2: Scope 3: Direct fuel use (vehicles Heat and energy consumption Business travel, or power generators) in offices including

100.90 3,300.43 3,145.77

tonnes of СО2 tonnes of СО2 tonnes of СО2 OUR COMMUNITIES OUR

1.54% 50.41% 48.05%

0 SUSTAINABILITY FY2REPORT 23

ENHANCING RUSSIA’S BUSINESS 21 OCTOBER 2019 CLIMATE

In Russia, EY participates in key business development initiatives Carmine Di Sibio, as a strategic partner. Global Chairman and Chief Executive Officer, took part in FIAC’s 23rd plenary FOREIGN INVESTMENT ADVISORY COUNCIL (FIAC) IN RUSSIA meeting EY supports FIAC’s efforts to improve the investment climate in Russia by promoting a constructive dialog between the Russian government and foreign investors. As coordinator of FIAC’s foreign members, EY plays a key role in organizing FIAC’s annual plenary sessions, chaired by the Prime Min- ister of the Russian Federation.

Attended by 38 top international company executives

www.fiac.ru

FIAC celebrated 25 years of doing business in Russia in

OUR COMMUNITIES OUR 2019. Russia 24 shot a film about FIAC’s performance, achievements and plans on the occasion.

0 SUSTAINABILITY FY2REPORT 24

STRATEGIC PARTNERSHIP MEMBERSHIP World Economic Forum * in Davos OF ASSOCIATIONS Eastern Economic Forum 21-24 January 2020 EY is prominent in Russian business circles, as evidenced by our active involvement in the following organizations: EY is a partner of the Russian House in Davos. The Russian House hosted sessions Russian Union of Industrialists and Entrepreneurs 4-6 September 2019 with Alexander Ivlev in attendance. EY was a partner in organizing a business Association of Russian Banks networking platform that hosted over 134 meetings Russia-wide Social Organization — Delovaya Rossiya EY was a partner and sponsor of multiple events in FY20, including the following: Association of European Businesses

• Atlanty, a Russian business forum American Chamber of Commerce • Open Innovations, an international forum • Annual Business & Investment Conference of US-Russia Business Council Russo American Chamber of Commerce (AmCham) British Chamber of Commerce • AmCham Annual Tax Conference • Annual Summit of the Global Real Estate Institute in Chambre commerce et d’industrie franco-russe Moscow • Annual Meeting of the US-Russia Business Council Russian Managers Association • MINEX forum German-Russian Forum • Woman Who Matters, an annual forum • International inter-university GxP summit Choice of Deutsch-Russische Auslandshandelskammer the Best. Time Forward • Transport Infrastructure of Russia Strategic Forum Self-Regulatory Organization, Nonprofit Partnership – • Investment conference of the Russian Chamber of Russian Audit Chamber Commerce and Industry Russia Calling 2019 • PRO//Motion 1520 International Transport and Institute of Internal Auditors Logistics Forum th Japan Business Club

OUR COMMUNITIES OUR • 8 International Congress Orgzdrav-2020 • InoPharma, an international conference International Business Congress EY Russia hosted or co-hosted more than 180 offline and 60 online events in FY20. DT-Global Business Consulting

Joint Chamber of Commerce Switzerland-Russia

0

* As at 1 November 2020 SUSTAINABILITY FY2REPORT 25

SUPPORTING Total revenues Regions represented Categories, of participating by participating including special ENTREPRENEURSHIP companies companies prizes IN RUSSIA

EY promotes entrepreneurship in Russia by implementing a number of initiatives, including the Entrepreneur Of The Year and Entrepreneurial Winning Women programs. 7RUB8 billion 12 17

INTERNATIONAL ENTREPRENEUR OF THE YEAR AWARD IN RUSSIA Employees of partici- pating companies We have been hosting Entrepreneur Of The Year awards in Russia since 2003. This is the most prestigious global contest open to entrepreneurs in nearly 50 countries. National winners 12,000 compete for the title of EY World Entrepreneur Of The Year at the international finals in Monaco.

More than 750 entrepreneurs from various regions in Russia have taken part in the contest ENTREPRENEUR OF THE YEAR FY20 since its launch. www.eoy.ru

Award winners in Russia since 2003, including those awarded special prizes 753 Russia’s Entrepreneur Of The Year 2019 Ilya Chekh, co-founder of Motorica LLC EY, Microsoft and Startbootcamp launched Global Pilots in 2020 to help Russian B2B

OUR COMMUNITIES OUR innovation startups enter international markets.

See details at https://globalpilots.tech/

In 2020, EY hosted the first ever World virtual awards Entrepreneur Of The Year ceremony.

0 SUSTAINABILITY FY2REPORT 26 ENTREPRENEURIAL WINNING WOMEN SUPPORT FOR Launched by EY Global in 2008, the Entre- business, including information support, preneurial Winning Women Program is de- enhanced brand recognition and a wider signed to support entrepreneurial women network of professional contacts as well as THE YOUNGER and open up opportunities for career motivation and inspiration for business and growth among women. The program in- career growth. GENERATION cludes an annual competition and a series of learning projects and has been held in The program’s learning projects allow par- ticipants to grow as professionals, obtain Russia since 2013. we are also active in supporting students and work with educational insti- expert advice and learn more about the tutions in both Moscow and the regions. Our team’s regular events not The competition is open to women who are tools and resources available for devel- only help graduates choose a specialization and grow professionally but established entrepreneurs and senior exec- oping leadership qualities and making their also introduce us to potential EY employees. utives of major Russian and international businesses more efficient. companies. It is intended to encourage en- Our initiatives for students include business, tax and audit schools in www.ewwrussia.ru trepreneurship among women and ensure cities, a tax competition, a case championship, as well as special events for equal opportunities for professional devel- service lines. Our experts from all service lines conduct master classes opment and career growth, thus promoting and give lectures on subjects that are critical for business success across the economic development and prosperity leading universities in Russia. of society as a whole. The competition pro- vides unique opportunities for women in

Events held for students in FY20 ENTREPRENEURIAL WINNING WOMEN FY20

Location Description Participants since 2013, Total revenues Regions including special of participating represented EY Moscow and EY Summer Business School: an express educational prize winners companies by participating St. Petersburg course for students, including master classes, lec- companies tures and EY business cases (production process op- timization, risk management, strategic consulting, etc.) administered by EY employees

EY Moscow and EY Audit School: an education project; assurance

OUR COMMUNITIES OUR St. Petersburg employees talk to students about their job, share en- gagement-related experience and examine business cases to help them choose an area of focus for 385 42RUB billion1 16 internships.

Employees

0 of participating companies 146,000 SUSTAINABILITY FY2REPORT 27

Events held for students in FY20

Location Description Location Description

EY Business School in An express education program for students; participants A contest for Russian Young Tax Professional of the Year: an international contest Novosibirsk attend master classes and lectures and analyze cases under students held by EY for aspiring young tax professionals; entrants re- the supervision of EY team leaders who introduce them to solve tax cases online and are then invited to Moscow to various aspects of the firm’s business, including perfor- compete in person; the country finalist, determined in mance improvement, risk management and strategic con- Moscow, represents Russia at the global final held in sulting. The program is hosted by Novosibirsk State Amsterdam. University.

A contest for Russian EY Forensic Case Battle: a nationwide competition among EY office in Kazan EY Business School in Kazan: an express education program students students to resolve cases related to misappropriation of for students; participants attend master classes and lectures assets, bribery, window-dressing of accounts, internal and analyze cases under the supervision of EY team leaders control violations and other fraudulent actions committed by who introduce them to various areas of the firm’s business, employees; contestants resolve these cases online and are including performance improvement, risk management and then invited to attend the final held at an EY office in strategic consulting. The program is hosted by the Man- Moscow. agement, Economy and Finance Institute of . An online project for EY Audit Adventure: a nationwide 4-week audit contest for Russian students students who work in teams and resolve multiple cases EY offices in Moscow, EY Tax School: an education project allowing students to coming from across EY Russia. Along with a monetary St. Petersburg and meet our tax professionals, gain insight into their work with reward, members of the winning team become high priority Vladivostok clients across multiple industries, and ask them all sorts of candidates for internships at EY’s assurance practice. questions, from those relating to daily routine to future duties on particular engagements. EY office in Moscow Morning CoffEY: a women’s networking breakfast with female members of EY’s Transactions team for aspiring young EY office in Moscow EY Consulting School: an education project allowing students consultants. to gain insight into the consultant’s job and explore various business areas using hands-on experience and operations performed by EY’s Consulting team as an example. EY office in Moscow EY Day 3.0: EY's largest event for students in 30 years of operating in Russia. EY vacancy fair, career advice, recom- mendations on writing resumes, interviews with EY re- EY office in Moscow EY Corporate Finance School: an education project allowing cruiters and inspiring speakers. students to gain insight into the transaction consult-

OUR COMMUNITIES OUR ant’s work, examine corporate finance trends and ask ques- tions about working at EY. An event for Russian EY Campus: career guidance aimed to familiarize Russian students students in their first years at university with EY service lines, including training with EY experts and career path selection.

0 SUSTAINABILITY FY2REPORT 28

Events held for students in FY20 Cooperation with universities in FY20

Location Description Higher education institution Description

IFRS lectures at Financial University under the Government of the Russian An online project EY Skillset, an online project for Federation A hands-on course of IFRS lec- for Russian Russian students: online master tures for students from EY ex- students classes on various subjects (Excel, IFRS lectures at the Moscow State Institute of International Relations perts. Participants who pass resume writing, etc.) for students the test are awarded course and recent graduates who would like IFRS lectures at St. Petersburg State University’s Economics Faculty certificates. to hone their skills. IFRS lectures at the Higher School of Economics

An online project EY individual scholarships for future EY presentation at Financial University under the Government of the for Russian business leaders: an all-Russia indi- Russian Federation students vidual scholarship program for eco- EY presentation at the Higher School of Economics nomics and engineering students. A master class on digital audit and analytical procedures at South Ural State University An online project Online breakfast with EY: a series of for Russian online meetings of EY employees EY presentation at Ufa State Petroleum Technological University students from various offices and service lines with students. No plans or Power- EY presentation at the Plekhanov Russian University of Economics Point presentations, just informal EY presentation at the Russian Presidential Academy of National Economy conversations about work at morning and Public Administration coffee. An Excel master class at the Plekhanov Russian University of Economics EY employees deliver presenta- tions for students An online project Online lectures on IFRS for Russian EY presentation at the Gubkin Russian State University of Oil and Gas for Russian students students Emotional Intelligence master class at BSU Participation in the 6th Student Law Forum at Kutafin Moscow State Law University

EY Business Valuation Group presentation at Lomonosov Moscow State University

EY presentation at the Higher School of Economics, Perm Campus

EY presentation at Perm State University OUR COMMUNITIES OUR Five Steps to Leadership master class at Bashkir State University

The EY department provides training as part of the School EY department at the Higher School of Economics of Finance Business Evaluation, Investment Analysis and Fi-

nancial Modeling courses.

0 The EY department is based in EY department at Financial University under the Government of the the Tax, Audit and Business Russian Federation Analysis Faculty. SUSTAINABILITY FY2REPORT 29 VOLUNTEERING AND CHARITY

EY is committed to charity work as part of its social responsibility program. All employees may propose a project or a charity for supporting to the Charity Committee. Members of the Charity The Charity Committee issues an annual report Committee describing the main charity initiatives that we have supported and including feedback from the beneficiaries.

Emmanuel Anastasiya Quidet Khutko

FY 2020 Chairman of the Committee, EY Senior Manager, Brand, EY Partner, Assurance Marketing & Communications

Our charitable . spending Alexei Alexey 2RUB, million1 4 Nesterenko Loza EY Partner, Power & Utilities Leader EY Partner, Law – CIS Tax Policy for Central, Eastern and Southeastern and Controversy Leader Our investments in Europe & Central Asia communities

545,560 Tatiana Savenkova Alexander US$ Temkin EY CIS HR Director, Learning & Development Leader for Central, EY Senior Manager, Strategy

OUR COMMUNITIES OUR Eastern and Southeastern Europe & and Transactions Our investments in communities Central Asia

Natalia Tatiana

3,666 288 Starygina Suslova hours of people 0 volunteering involved EY Partner, EY Senior Manager, CIS Accounts Leader Academy of Business SUSTAINABILITY FY2REPORT 30

In FY20, we supported over 20 charities, • Providenie Charity Foundation (Moscow) In FY20, our people were active in vol- including: • Life as a Miracle Charity Foundation (Moscow) unteer initiatives.

• Big Brothers Big Sisters of Russia (Moscow, St. • Medical Teaching Center – Regional Charitable NGO Petersburg) (Moscow) Moscow • Bolshaya Peremena (Big Change) – Charitable Foun- • Dom Yakobi Arts & Sciences Support Fund (Moscow) • In June 2020, EY employees took part in the Sport vo dation for the Education of Orphaned Children • Friends Charity Fund (Moscow) Blago online charity marathon organized by our partner, the Downside Up Foundation, to support • SAMU Social (Moscow) • Life Route Charity Foundation (Moscow) children with Down syndrome. • Nastenka – Charitable Foundation for Children with • Syndrome of Love Charitable Fund (Moscow) • In collaboration with Time for Good Things, a charity to Cancer (Moscow) • National Women’s Health Care Foundation (Moscow) support people with disabilities, EY organized a Cards • Fetisov Hockey Academy (Moscow) for Father Christmas campaign, which involved sending • Second Wind Charity Shop (Moscow) presents to disabled children that are both attractive • Vverkh (Step Up) Equal Opportunity Center for Or- and practical. phaned Children – Autonomous Nonprofit Organization • The Volunteers’ Club – Interregional Volunteer Organi- (Moscow) zation (Moscow) • Our people annually collect school supplies for or- • Childhood Keepers – Foundation for Support of Family phanages ahead of the start of the school year on 1 • My Vmeste (Together Fund) – Nonprofit Charitable September. Foundation for Social Programs (Moscow) and Children (Moscow) • We have continued our cooperation with Second Wind • Maria Charitable Society – Regional NGO (Moscow) • Social Rehabilitation Center for Underage Children in Revda District, Sverdlovsk Region (Ekaterinburg) Charity Shop: with our input, it can now target those • Speransky Hospital Fund at Speransky Children’s Hos- who need help the most and raise funds from selling pital No. 9 (Moscow) • Angela Vavilova Regional Nonprofit Charitable Foun- donated goods, part of which is spent to support social dation for Children with Leukemia, Republic of Ta- programs. • Lighthouse Charity Foundation – Children’s Hospice tarstan (Kazan) (Moscow) • Our employees collected useful items and presents and • Nochlezhka Charity (St. Petersburg) donated them to children and their parents, the care • Spina Bifida Charity (Moscow) recipients of Nastenka Charitable Foundation, ahead of • Warm Home Charitable Foundation (St. Petersburg) • Maltese Aid Service in Moscow (Moscow) International Childhood Cancer Day on 15 February. • Languages Without Borders Education Center (St. • EY employees supported #чемдальшевлес, an initi- • Perspektiva Regional NGO for Disabled Persons Petersburg) (Moscow, St. Petersburg) ative by Syndrome of Love Charity, to sponsor sessions • Oreol Charity Foundation (Novosibirsk) with a speech therapist, a special education teacher • Illustrated Books for Little Blind Children Foundation and a psychologist for children with Down syndrome. (Moscow) • Siberian Creative Initiatives Support Center (Novosibirsk) • In an effort to contain the COVID-19 outbreak, EY helped clinicians of the Sklifosovsky Research Institute • Togliatti Infant Home (Togliatti) of Emergency Medicine who came to Moscow from the regions to give a hand to their local colleagues. To help

OUR COMMUNITIES OUR them get through this busy time in comfort, EY paid for their accommodations at a hotel in the immediate vi- cinity of the hospital.

0 SUSTAINABILITY FY2REPORT 31

• During the lockdown, EY hosted webinars and master Novosibirsk Ekaterinburg classes for the staff and care recipients of My Vmeste Charity that we have been teaming up with on various • As part of a New Year Charity Marathon, our volunteers • EY continued cooperation with the Charity Shop, with occasions for over 10 years. visited an infants home in Cherepanovo, where they at- a special container placed in the local office to collect tended a Nativity play, spent time with little ones and clothes for those in need. • As part of its COVID-19 response, EY carried out a free gave them presents; they also supported the 20th Re- • EY volunteers continued to support the social rehabili- audit for Day One Foundation, a charity that supplies gional Festival Pro-Christmas for local children from tation center for underage children in Revda District, medical devices and protective equipment to Russia to challenging backgrounds. combat the coronavirus. Sverdlovsk Region, buying presents, organizing various • EY volunteers collected Christmas presents (pet food, activities and conducting master classes for kids from collars, leads, absorbent bedding, scratching posts, pet problem families and without parental care. St. Petersburg carriers, etc.) and took them to a shelter for aban- • In FY19 and FY20, EY provided meeting rooms as well doned animals. Togliatti as all necessary equipment and supplies at its office in • EY volunteers made up New Year parcels for heavily St. Petersburg to assist in running the mentoring disabled children, the care recipients of Oreol Charity • EY volunteers continued to support a local infants program, including motivation training sessions, or- Foundation, consisting of donated clothing they col- home: they visited its residents and participated in New ganized by Big Brothers Big Sisters. lected and presents they bought. Year celebrations and other events. • We continued to regularly collect items for recycling or • In FY20, EY supported the Path to a Career contest for donation as part of our joint effort with the Charity disabled young professionals, a key project sponsored Shop. by the local branch of Perspektiva Regional NGO. • In collaboration with Warm Home Charitable Foun- • In March 2020, EY hired a person in the third disability dation, we organized a Cards for Father Christmas cam- group, recommended by Perspektiva, as assistant ar- paign to brighten up the lives of 36 disadvantaged fam- chivist after she successfully passed an interview and ilies with long-awaited New Year gifts. attended a mentoring session. • Our local staff are actively involved in the initiatives of the Business Advisory Board on Disability. • Under a cooperation program with Perspektiva Re- gional NGO, our Talent team held a training session for 12 participants of the Path to a Career contest for dis- abled young processionals at the Domina Prestige hotel. A member of our Talent team also acted as a per- sonal mentor for one of the participants who later won this contest, which was held online. OUR COMMUNITIES OUR

0 SUSTAINABILITY FY2REPORT 32 ENVIRONMENTAL STEWARDSHIP

At EY, we are constantly challenging ourselves to work in a more environmentally sustainable manner and to find new ways to reduce our energy consumption, carbon footprint and waste..

Consumption of nonrenewable Energy fuels consumption*

FY20 Electricity used for lighting, Diesel fuel for air conditioning and office Gasoline for company vehicles company vehicles equipment Heat 26,595 14,640 20,390 26,789 liters liters GJ GJ

Carbon footprint in FY20**

DIRECT EMISSIONS INDIRECT EMISSIONS

Scope 1 Scope 2 Scope 3 Total Direct fuel usage Heat and electricity Business travel, emissions (vehicles or power consumption including generators) in offices

tonnes of СО2 OUR COMMUNITIES OUR 100.9 3,300.43 3,145.77 6,547.1 tonnes of СО2 tonnes of СО2 tonnes of СО2 3,096.46 49.31 Air Rail * The calculations are based on actual consumption (Moscow, Ekaterinburg 0 and St. Petersburg). Where no data on actual consumption was available, consumption was calculated based on figures for Moscow, ad- ** Emissions were calculated according to the GHG Protocol Corporate Accounting and Reporting Standard issued by the World Resources Institute justed in proportion to the area of the premises. and World Business Council for Sustainable Development. SUSTAINABILITY FY2REPORT 33 WE MAKE THE ENVIRONMENT A PRIORITY

We have adopted the “green office” Energy-saving measure FY20 concept and are working to improve our energy efficiency and reduce energy consumption in our offices. Optimization of office space TOTAL We pursue the following initiatives to energy saved minimize our environmental footprint: • Energy efficient equipment: 2,979 2,642 5,621 energy efficient lighting making Electricity, GJ Heat, GJ GJ use of the principle of reflection, motion sensors in restrooms and cloakrooms, and the smart use of air conditioning • Green Label carpeting certified by Materials used by weight or volume the Carpet and Rug Institute (CRI) • Separate collection of plastic and Paper, tonnes Waste*, tonnes Waste per employee, Other (batteries), paper waste for recycling tonnes kg • Use of tabletop trash containers to improve the quality of waste sorting 27.6 175.15 0.054 78.7 • Use of recyclable biodegradable paper certified in accordance with the international environmental standards of Nordic Swan Eco- Other (plastics), Other (lights), Other (lights), label, EU Eco-Management and tonnes 0.75 kg 26.25 pcs 1,127 Audit Scheme, Elemental Chlorine Free, the European Ecolabel and the Programme for the En- dorsement of Forest Certification Paper savings • Use of containers for the col- OUR COMMUNITIES OUR lection of wastepaper for recycling Total paper saved, Default double-sided printing, Print jobs deleted by users or automatically million sheets, including million sheets canceled due to timeout, million sheets

5,201 2,669 2,532 0

* The calculations are based on average waste generated per day. SUSTAINABILITY FY2REPORT 34

How EY is organized

Perception of business: have things changed for good?

* As at 1 November 2020 35

EY Russia consists of the following legal CIS Managing Committee Alexey Loza Operating Committee entities: EY Partner, Power & Utilities Leader for Alexander Ivlev • Alexander Grebeniuk Central, Eastern and Southeastern Europe & • Ernst & Young LLC (Moscow and EY CIS Managing Partner, Deputy Regional Central Asia • Alexander Ivlev branches in St. Petersburg, Ros- Accounts Leader for Central, Eastern and • Alexei Ivanov tov-on-Don, Krasnodar, Ekaterinburg, Southeastern Europe & Central Asia Dmitry Khalilov Novosibirsk, Vladivostok and Kazan) • Alexei Kredisov EY Partner, Consumer Products & Retail • Center for Audit Technologies and Solu- Alexei Kredisov • Alexey Afanasyev Leader for Central, Eastern and South- tions LLC (Moscow and a branch in EY Managing Partner for Ukraine eastern Europe & Central Asia • Erlan Dosymbekov Rostov-on-Don) • Ilgar Veliyev Erlan Dosymbekov • Ernst & Young Valuation and Advisory Olga Arkhangelskaya • Irina Bykhovskaya Services LLC (Moscow and branches in EY Managing Partner for and EY Partner, CIS Real Estate, Hospitality & • Marchello Gelashvili St. Petersburg, Togliatti, Novosibirsk and Central Asia Construction Service, Transportation, Infra- • Mikhail Romanov Vladivostok) structure and Government Leader • EY Academy of Business LLC (Moscow Ilgar Veliyev • Sophia Azizian and a branch in St. Petersburg) EY Managing Partner for Azerbaijan Anton Ustimenko • Ernst & Young Business Advisory Ser- EY Partner, Technology, Media and Telecom- Market Development Committee vices LLC (Moscow) Sophia Azizian munications Leader for Central, Eastern and • Alexander Ivlev • Ernst & Young IT Limited Liability EY Partner, Assurance Leader for Central, Southeastern Europe & Central Asia Company (Moscow) Eastern and Southeastern Europe & Central • Alexei Ryabov Asia Ksenia Baginian • Ernst & Young (CIS) B.V. (a branch in • Alexey Loza EY Partner, Industrial Products Leader for Moscow) Mikhail Romanov Central, Eastern and Southeastern Europe & • Anton Ustimenko EY Partner, Consulting Leader for Central, Central Asia • Dmitry Lobachev Significant organizational changes Eastern and Southeastern Europe & Central • Dmitry Khalilov Marchello Gelashvilli Asia • Emmanuel Mareschal • In August 2019, Center for Audit Technol- EY Partner, Deputy CIS Managing Partner ogies and Solutions LLC opened a branch Alexei Ivanov • Eugenia Zaichikova in Rostov-on-Don. Dmitry Zhigulin EY Partner, CIS Strategy and Transactions • Gennadiy Shinin • On 1 February 2020, Ernst & Young (CIS) Leader EY Partner, Assurance Operations Leader • Ksenia Baginian B.V. closed its branch in St. Petersburg. • Marchello Gelashvili Irina Bykhovskaya Natalia Starygina • In July 2020, Ernst & Young Valuation • Natalia Starygina and Advisory Services LLC opened EY Partner, CIS Tax & Law Leader EY Partner, CIS Accounts Leader a branch in Vladivostok. • Natalia Shapotkovskaya Vladimir Abramov • In August 2020, EY Academy of Business Gennadiy Shinin • Olga Arkhangelskaya EY Partner, CIS Risk Management Leader LLC opened a branch in St. Petersburg. EY Partner, CIS Banking and Financial Ser- • Olga Treshchalova • In October 2020, Ernst & Young LLC vices Leader Anna Guseva • Petr Medvedev HOW EY IS ORGANIZED closed its separate business unit in EY Partner, Strategy and Transactions, Togliatti. People Leader for Central, Eastern and Southeastern Europe & Central Asia Alexey Afanasyev EY Partner, CIS Operations Leader, Core Business Services Talent Leader

0 SUSTAINABILITY FY2REPORT 36

About this report

How to connect the past and the future? 37

This sustainability report covers FY20, i.e., the period from 1 July 2019 through 30 June 2020, and follows the report for FY19.

The report contains information on EY member firms located in Russia.

DATA OVERVIEW

Total revenue in calendar year 2019 Percentage and number of employees who signed the Code of Corporate Conduct in FY20 RUB, ’000 FY20 Total revenue 17,309,325 Total number of employees 3,562

Number of employees by service line in FY20 Percentage of employees who signed the Code 100

Number of employees Percentage Percentage and number of EY Russia business units whose employees took training on Assurance 1,435 40.29 corruption risks in FY20 Tax and Law 570 16.00 Percentage Number 652 18.30 Consulting EY Russia business units whose employees took training on 100% 7 corruption risks Strategy and Transactions 363 10.19

Core Business Services 542 15.22 Percentage of employees who took anti-corruption training or confirmed adherence to TOTAL 3,562 100 the firm’s anti-corruption policies and procedures in FY20

Percentage

Percentage of employees who took anti-corruption training or confirmed adherence to the firm's anti-corruption pol- 83.9 icies and procedures ABOUT THIS REPORT

0 SUSTAINABILITY FY2REPORT 38

Cases of discrimination in FY20 New hires in FY20 by position and gender

Total Women Men Position Cases of discrimination 0 Number Percentage Number Percentage Partners 0 0

Assessment of Service Quality (ASQ) in FY20 Service line employees from staff to 230 18.47 204 16.39 director Clients’ readiness to recommend our services, on a scale of 1 to 10 9.2 Core Business Services employees from 15 1.20 7 0.56 Number of interviews, including by phone 100 staff to director

Number of questionnaires sent 17 Administrative personnel 9 0.72 0

Number of questionnaires received 6 University graduates/master’s degree 240 19.28 139 11.16 holders Percentage of questionnaires received 35% Other employees 228 18.31 173 13.90

Fines for non-compliance with laws and regulations Total 722 57.99 523 42.01

Amount paid, RUB 152,065

EMPLOYEE TURNOVER

OUR PEOPLE Terminations in FY20 by position and gender Women Men EY Russia headcount in FY20 Position Total Percentage Total Percentage Number Percentage Partners 1 0.07 4 0.29 Women 2,243 62.97 Service line employees from staff to 364 26.53 322 23.47 Men 1,319 37.03 director

Total 3,562 Core Business Services employees from 26 1.90 11 0.80 staff to director

Administrative personnel 22 1.60 1 0.07

University graduates/master’s degree 225 16.40 137 9.99 holders ABOUT THIS REPORT Other employees 143 10.42 116 8.45

Total 781 56.92 591 43.08

0 SUSTAINABILITY FY2REPORT 39

Staff turnover rates*

All employees, % Women, % Men, %

FY20 21.83 18.60 27.51

Summary table – employee breakdown by position, gender, age and citizenship in FY 2020

Men Women 30 and younger 31-50 years 51 and older Foreign nationals Position Number Percentage Number Percentage Number Percentage Number Percentage Number Percentage Number Percentage

FY20

Partners 84 2.36 39 1.09 0 110 3.09 13 0.36 9 0.25

Service line employees from staff to director 1,031 28.94 1708 47.95 1906 53.51 815 22.88 18 0.51 104 2.92

Core Business Services employees from staff to 91 2.55 285 8.00 92 2.58 245 6.88 39 1.09 14 0.39 director

Administrative personnel 0 91 2.55 38 1.07 41 1.15 12 0.34 3 0.08

University graduates/master’s degree holders 6 0.17 10 0.28 15 0.42 1 0.03 0 1 0.03

Other employees 107 3.00 110 3.09 105 2.95 78 2.19 34 0.95 11 0.31

Total 1,319 37.03 2,243 62.97 2,156 60.53 1,290 36.22 116 3.26 142 3.99 ABOUT THIS REPORT

0

* Excluding interns and contractors SUSTAINABILITY FY2REPORT 40

Employee breakdown by type of employment and contract – FY20 Number of learning hours by position in FY20

Type of Gender FY20 Contract Office employment Women Men Employee category Formal learning Women Men hours, total Moscow 75 13 Partners 5,132 2,004 3,128 Novosibirsk 1 Part-time Directors 1,169 772 397 St. Petersburg 7 Senior managers 11,421 6,942 4,479 Togliatti 2 Managers 21,866 13,788 8,078 Total 85 13 Core Business Services employees 3,243 2,475 769 Vladivostok 4 2 Staff and seniors 132,960 87,324 45,636 Ekaterinburg 56 25 175,791 113,305 62,486 Постоянный Kazan 28 12 Total

Krasnodar 19 6 Average learning hours per person by position in FY20 Full-time Moscow 1,644 1,019 FY20 Novosibirsk 84 35 Formal learning hours per employee, Employee category Rostov-on-Don 26 20 Formal learning average hours, total St. Petersburg 110 59 Women Men

Togliatti 31 1 Partners 43 51 38

Total 2,002 1,179 Directors 40 51 28

Total 2,087 1,192 Senior managers 41 45 35

Part-time Moscow 1 4 Managers 60 63 56

Total part-time 1 4 Core Business Services employees 9 8 10

Vladivostok 1 1 Staff and seniors 69 72 64 Temporary Full-time Moscow 39 13 Total 57 58 54

Novosibirsk 5 2

Total 45 16 ABOUT THIS REPORT Total 46 20

0 SUSTAINABILITY FY2REPORT 41

Mobility programs in FY20 Number of Entrepreneur Of The Year (EOY) award winners in Russia since 2003

Number of employees transferred from Russia to other regions, including CIS EOY FY20 12 countries, as part of mobility programs Total number of award winners in Russia since 2003, including those 753 Number of employees transferred from other regions to Russia as part of mo- awarded special prizes 1 bility programs Total revenues of participating companies RUB 78 billion

Number of regions represented by participating companies 12 Percentage of employees receiving regular performance and career development reviews in FY20 Number of employees of participating companies 12,000

Gender Percentage Number of categories, including special prizes 17

Men 78.05 Number of Entrepreneurial Winning Women (EWW) award winners in Russia since 2013 Women 77.80 EWW FY20

Total number of participants since 2013, including those awarded Percentage of employees returning after parental leave in FY20* 385 special prizes Percentage Total revenues of participating companies RUB 421 billion Employees returning after parental leave 67 Number of regions represented by participating companies 16

Number of employees of participating companies 146,000

OUR COMMUNITIES

Funds spent on charity in FY20 ENVIRONMENTAL IMPACT RUB Materials used in FY20 by weight or volume Spending on charitable projects 21,359,046 Item Amount

Volunteering in FY20 Paper, tonnes 27.6 Waste, tonnes 175.15 Contribution 0.054 Volunteering hours 3,666 Waste per employee, tonnes 78.7 Number of people involved 288 Other (batteries), kg ABOUT THIS REPORT 0.75 Investments in communities, US$ 545,560 Other (plastics), tonnes Other (lights), kg 26.25

Other (lights), pcs 1,127

Water consumption, cubic meters 26,525

0

* Based on the number of employees who returned after parental leave by the end of FY20 as a percentage of those who went on leave in FY17. SUSTAINABILITY FY2REPORT 42

Paper savings as a result of new printing arrangements in FY20 Energy consumption in FY20 by region

Total paper saved, million sheets, including 5.201 Office Type of energy Consumption, GJ Electricity 16,768 Default double-sided printing, million sheets 2.669 Moscow Heat 22,372 Print jobs deleted by users or automatically canceled due to timeout, 2.532 million sheets Electricity 3,622 Regions Heat 4,417 Carbon footprint in FY20 TOTAL 47,179 CO2, tonnes

Direct emissions Fuel consumption by vehicles in FY20 by region Scope 1: Direct fuel usage (vehicles or power generators) 100.9 Office Type of fuel Consumption, liters

Indirect emissions Gasoline 18,425 Moscow Scope 2: Heat and electricity consumption in offices 3,300.43 Diesel fuel 1,540

Scope 3: Business travel, including 3,145.77 Gasoline 8,170 Regions Air 3,096.46 Diesel fuel 13,100

Rail 49.31 TOTAL 41,235

Total emissions 6,547.1 ABOUT THIS REPORT

0 SUSTAINABILITY FY2REPORT 43 CONTACT EY | Building a better working world EY exists to build a better working world, helping to create long-term value INFORMATION for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

Alexander Ivlev EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. CIS Managing Partner Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and Tel.: +7 495 705 9715 a description of the rights individuals have under data protection legislation are [email protected] available via ey.com/privacy. For more information about our organization, please visit ey.com. EY works together with companies across the CIS and assists them in realizing their business goals. 5,500 professionals work at 19 CIS offices (in Moscow, Ekaterinburg, Kazan, Krasnodar, Novosibirsk, Rostov-on-Don, St. Petersburg, Togliatti, Vladivostok, Almaty, Atyrau, Nur-Sultan, Baku, Bishkek, Kyiv, Minsk, Tashkent, Tbilisi and Yerevan).

Anastasiya Khutko © 2021 Ernst & Young (CIS) B.V. Senior Manager, CIS Brand, All rights reserved. Marketing & Communications Leader Tel.: +7 495 755 9738 This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. EY disclaims all [email protected] responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

ey.com/ru

Tatiana Grigorieva Senior Specialist, Brand, Marketing & Communications Department Tel.: +7 (495) 755 97 00 [email protected]

0 SUSTAINABILITY FY2REPORT