SUEK CORPORATE SOCIAL RESPONSIBILITY REPORT 2014–2015 SIBERIAN COAL ENERGY COMPANY CREATING VALUE SUEK corporate social responsibility report 2014–2015 AboUT ThE REpoRT SUEK’s 2014–2015 Social Report is the sixth corporate social responsibility report for our Humanity’s need for accessible and reliable fuel is company. SUEK has been publishing reports since continuously growing. It increases as the world population 2006 that represent the main directions of the grows and as the global industry grows, and is particularly company and the results of solving its production relevant for remote and less developed regions, where there is still limited access to electricity. and economic issues, as well as social and environmental problems. By producing and supplying coal, the most accessible and cheapest energy source, to our customers in Russia and around the world, we make our contribution to this critical We think that it is fundamentally version). The GRI Content Index need. At the same time, we are constantly working to The report went through an important to regularly provide this is provided in Appendix 1 on page 173 external audit and received public improve the level of industrial and environmental safety of type of information to a wide range of the Report. The report presents assurance. To read more about this report and about our approach our operations. of stakeholders and all those who data on the SUEK Group (referred to reporting on corporate social would like to make an informed to in the Report as SUEK and the responsibility and sustainability, see We remain an important factor of social stability for our opinion about the results of our Company) for the calendar years page 40. activities in accordance with the of 2014–2015. (Referred to in the employees and for the regions of the Company’s presence. principles of corporate social Report as “SUEK,” “us,” “Company,” The information presented in the Report is presented in view of its SUEK’s sustained growth allows us to contribute to the responsibility and sustainable “Group” and applies to all companies significance for the company and development of the energy sector, contribute to the development objectives. consolidated under IFRS in the SUEK stakeholders. Our approach to the PLC financial statements, including assessment of the significance of country’s economy and improve the quality of life in regions the information is presented on In 2014–15, we made significant JSC SUEK and its subsidiaries, page 42. of our presence. progress in fulfilling our objectives. SUEK AG (Switzerland) and its In this Report you will find information subsidiaries, Russian lignite assets. Operating under difficult macroeconomic conditions, on how we solved strategic problems The consolidated data is presented we strive to improve the effectiveness of our economic, in areas of sustainable development in terms of assets, where SUEK PLC in accordance with the goals set for is the majority shareholder. The SUEK environmental and social activities, to continue to create the reporting period. group includes SUEK PLC (vertrtical value for all our stakeholders – from employees and integrated company, whose capital customers to society and humanity as a whole. In preparing this report, we asset is JSC SUEK, JSC SUEK has followed the recommendations overall charge of its affiliates activities. of the internationally recognized For more detailed information Sustainability Report Guidelines on the SUEK Group structure see of the Global Reporting Initiative in its he Corporate governance section latest version (GRI–G4, the basic of this report). The report is published on sustainable paper, as well as on our corporate This report has been evaluated by the Internal Audit Department website in both Russian and English. of JSC SUEK and the external auditor Bureau Veritas Certification Rus; it has been approved by the SUEK PLC Board of Directors Audit Committee, and has received public assurance in the Council on Non-Financial Reporting of RSPP. 1 SUEK corporate social responsibility report 2014–2015 AboUT ThE REpoRT CoNTENTs SUEK: sustained development Occupational safety and health 175 Appendix 1. Application of gri reporting and value creation 94 Main achievements for 2014–2015 principles 08 About the company 97 Following standards in the field of 177 09 SUEK assets occupational safety and health Appendix 2. Index of standard disclosures 10 SUEK’s Mission 102 Ensuring emergency response 12 Geography of presence 104 Ensuring aerological safety 192 Appendix 3. Structure of the company 14 SUEK strategy 108 Dust-explosion safety 15 Creating values for the company 109 Prevention and control of gas- 193 Appendix 4. page 57 page 64 page 92 and society dynamic phenomena Dialogues with stakeholders 18 Coal and sustained development 110 Occupational injuries risk in 2014–2015: topics and results management awards Product Development, product Innovative technology Achievement of the advanced 22 Sustainable development: priorities and objectives 114 Culture of safety 196 Appendix 5. quality improvement. development and implementation. indicators of labor protection 116 Health protection and prevention of Information about company awards and workplace safety. Corporate governance occupational diseases 198 Appendix 6. 28 SUEK management groups 119 Areas of activity and objectives for Independent assurance 34 Ethics and anti-corruption the next reporting period of non-financial reporting measures Environmental performance: 203 Appendix 7. 36 Risk management safety and efficacy Fedback questionnaire 38 Management systems development 122 Main results of 2014–2015: 40 Social responsibility and 124 Our approach to ensuring accountability environmental safety 46 Cooperation with stakeholders 128 Reduction of negative impact on the environment Economic sustainability 130 Land reclamation and efficiency 131 Effiient use of water resources page 68 page 72 page 120 52 Key indicators of economic 133 Reducing emissions of pollutants erriciency into atmosphere Increased productivity. Creation of human resources Conservation program 54 Investment program 136 Waste management and improving competence of development and implementation; 56 Developinc sales markets 138 Energy saving and energy employees to implement our development of management 57 Improving product quality efficiency business strategy. systems in environmental 60 Interacion with customers 141 Goals and objectives for the next reporting period protection. 62 Supply chain 64 Innovation activities SUEK and regions: partnership 66 Areas of activity and objectives for for sustainable development the next reporting period 144 Main results of 2014–2015 Social performance: company activities human capital 146 Our approach to social investments 153 Interaction with stakeholders 70 General results for 2014–2015 156 Main social projects and results 72 Our approach to human resource for 2014–2015 management 172 Public recognition 74 Characteristics of staff and types of employment 174 Areas of activity and odjectives for the next reporting period page 146 page 153 78 Motivation and remuneration 82 Cooperation with trede unions Report Legend: Creating a favorable social environment for SUEK’s efficient Development of constructive 84 Education and development development. Development of regional social and economic potential, interaction with stakeholders. 88 Corporate culture See more on website improving the quality of human potential, implementation of innovative 91 Directions and objectives for the social technologies. next reporting period See more on page 2 3 SUEK corporate social responsibility report 2014–2015 MEssAGE FRoM ThE ChAIRMAN 1.4 bln rubles oF ThE boARD oF DIRECToRs have been invested in SUEK’s social programmes AND ThE CEo in 2014–2015 Investment projects comprehensively tracks the state of our employees Corporate values security at enterprises in real time. The strategic priority during the As a result of our systematic efforts SUEK’s success is the result of hard and sustainable reporting period was the launch to improve safety, the Company’s and professional work of our team. development of the facility enrichment program. accident frequency rate decreased We work hard to attract and retain We continued to commission new by 18% over two years – from 1.50 talented and involved employees In 2015, the Code of Conduct was processing plants and modernize the LTIFR in 2013 to 1.23 LTIFR in 2015. who share our values. In order to updated to include a list of corporate existing enterprises. The Chegdomyn Unfortunately, we have not been able achieve that, we are developing the values: safety and effectiveness, enrichment plant at the Urgal coal to completely eliminate cases of fatal Company’s employees’ incentive professionalism and co-operation, deposit began its work, along with injuries. During the reporting period, system, training programs for stability and development, and the Taldinskaya-Zapadnaya-1 there were 13 fatalities as a result professional development and social responsibility. The code that enrichment facility in Kuzbass. of accidents. We deeply mourn our managerial personnel, and a social establishes corporate standards Considerable attention was paid to the deceased colleagues and are making support system. In 2014–2015, of conduct and ethical standards further development of our logistics every possible effort to prevent an improved training program for reaffirmed our commitment to the infrastructure, one of the Company’s such situations.