Delivering on Digital SUSTAINABILITY REPORT 2019 SUSTAINABILITY REPORT 2019 Delivering on Digital ROSTELECOM'S SUSTAINABILITY REPORT 2019 Table of Contents Chairman’s Statement ....................................................................................................... 4 E-government infrastructure ......................................................................... 130 Letter from the President ............................................................................................... 6 Unified Public Services Portal ...................................................................... 130 2019 Highlights ....................................................................................................................... 8 Integrated Identification and Authentication System .................. 132 Rostelecom’s Structure and Geography of Operations ...........................10 Unified System of Interdepartmental Our Employees Electronic Cooperation ..................................................................................... 132 Our Environment 3 Smart City project ................................................................................................ 132 5 4.3. Digital Equality Integrated Social Programme .................................... 134 ABC of the Internet computer literacy project We are Rostelecom for senior citizens .................................................................................................. 134 3.1. The Company’s Approach ................................................................................... 77 Growth distance learning and socialisation project 5.1. The Company’s Approach ................................................................................ 163 1 3.2. Attractive Working Conditions .......................................................................... 81 for children in orphanages and foster homes, as well 5.2. Environmental Initiatives .................................................................................... 167 Equal opportunities .................................................................................................. 81 as children deprived of parental care ....................................................... 136 Waste Management ............................................................................................. 168 Remuneration and incentives .......................................................................... 85 Learn the Internet — Manage It! Emission management ........................................................................................ 172 Social benefits and compensation ............................................................. 88 digital literacy project for Russian internet users .............................138 Reduction of water consumption ................................................................ 173 Area improvements .............................................................................................. 175 1.1. Development Strategy and Business Model ......................................... 15 Improving working conditions ......................................................................... 90 Social Impact Award Russia, 5.3. Energy Efficiency .................................................................................................... 176 Development Strategy .......................................................................................... 15 3.3. Corporate Culture and Internal Communications ............................ 92 an international programme supporting Business Model ......................................................................................................... 20 3.4. Employee Training and Development ......................................................... 95 Energy consumption ............................................................................................ 177 early-stage social entrepreneurs ............................................................... 140 Energy efficiency programmes and initiatives .................................... 178 Operating Review .................................................................................................... 22 Investment in training ........................................................................................... 96 Internet for Social Infrastructure Facilities project .......................... 141 Management skill building programmes .................................................. 98 5.4. Fostering Environmental Culture ................................................................ 182 1.2. Corporate Governance ........................................................................................ 24 Computerisation of Orphanages project .............................................. 142 Rostelecom’s Corporate Governance Framework ............................. 24 Professional skill building programmes .................................................... 99 5.5. Occupational Safety ............................................................................................ 186 Project of the ProeKTOriYA All-Russian Forum Remuneration ............................................................................................................. 30 Digital skill building programmes ................................................................ 100 Fire safety .................................................................................................................... 187 of Professional Navigation ............................................................................... 142 Risk Management .................................................................................................... 33 Rostelecom’s Corporate Online University ............................................ 101 Industrial safety ........................................................................................................ 187 1.3. Supply Chain .............................................................................................................. 38 3.5. Cooperation with the Public Education System ............................... 104 Children’s Technology Parks project Promoting the National SME Development Policy ........................... 43 Engaging school students ................................................................................ 104 promoting additional education .................................................................. 143 1.4. Responsible Business Practice ....................................................................... 44 Engaging with students ..................................................................................... 106 Educational programme in cyber security Employee Training ................................................................................................... 44 Work experience placements and internships at the Sirius educational centre .................................................................. 144 Feedback Channels ............................................................................................... 46 at Rostelecom .......................................................................................................... 108 Safe Internet project for school students ............................................ 145 Conflict of Interest Management .................................................................. 46 3.6. Ensuring Workplace Safety ............................................................................... 110 4.4. Charitable Activities and Volunteering Projects ................................ 146 Our Customers Relations with Subsidiaries and Affiliates ................................................. 47 Employee volunteering project competition ...................................... 149 6 Public Endorsement of the Results Run and Help charitable sports project ..................................................149 of the Implementation of the Anti-Corruption Midday volunteering project .......................................................................... 150 Charter of the Russian Business ................................................................... 48 Exciting Readings volunteering project ................................................... 151 1.5. Protection of Human Rights ............................................................................. 49 Social telecoms project for the severely disabled ......................... 152 6.1. The Company’s Approach ................................................................................ 191 6.2. Modern Digital Services ................................................................................... 195 Our Country Donor Day and donor initiatives .................................................................. 153 Rostelecom for households ........................................................................... 195 4 Digital Education project to develop digital skills ........................... 153 Corporate and government customers ............................................... 200 Digital Class project for school students ............................................. 154 Operators ................................................................................................................... 208 Digital location in the Manufaktoriya 6.3. Safe User Environment .....................................................................................