Sustainability Report 2019 F CUS ON WHAT REALLY MATTERS ABOUT THIS REPORT FOCUS ON WHAT REALLY MATTERS About SIBUR Strategy and Responsible Employees Occupational Health Environmental Protection Contribution to the Development Business Practices and Safety of Local Communities Contents ABOUT THIS REPORT STRATEGY AND RESPONSIBLE ENVIRONMENTAL BUSINESS PRACTICES PROTECTION 4 58 194 About this Report Global Challenges of Our Time Performance in 2019 10 64 197 Message from the Chairman SIBUR’s 2025 Sustainability Strategy Our Approach to Environmental of PJSC SIBUR Holding’s 70 Protection Management Board Our Contribution to Achieving the SDGs 206 12 72 Energy Consumption Message from the Chairman Internal Control and Risk Management and Energy Efficiency of the Management Board and CEO 79 212 of LLC SIBUR Business Ethics and Compliance Reducing Climate Impact and Greenhouse Gas Emissions ABOUT SIBUR 93 Society and Partnership 215 16 Pollutant Emissions 2019 Performance Highlights 101 Sustainable Product Portfolio 219 20 Water Consumption and Wastewater Our Business Structure EMPLOYEES Discharges 39 132 227 Corporate Governance Performance in 2019 Waste Management 50 136 236 Digital Transformation Our HR Approach Environmental Protection Initiatives 138 CONTRIBUTION Diversity and Inclusion TO THE DEVELOPMENT 142 OF LOCAL COMMUNITIES Employee Engagement 254 152 Performance in 2019 Training and Development 258 OCCUPATIONAL HEALTH Our Approach to Managing Social AND SAFETY Investments 259 168 Our Approach to Local Community Performance in 2019 Development 170 261 Our Approach to Occupational Health Social investments and Safety 174 REPORT ASSURANCE Employee Health and Safety 186 APPENDICES Fostering a Stronger Safety Culture 278 and Training Glossary 280 Additional Information 299 Table of GRI Discosures 306 Report Assurance 2 Sustainability Report 2019 www.sibur.ru/en 3 ABOUT THIS REPORT FOCUS ON WHAT REALLY MATTERS About SIBUR Strategy and Responsible Employees Occupational Health Environmental Protection Contribution to the Development Business Practices and Safety of Local Communities About this Report About this Report GRI 102-46 GRI 102-50, 102-51 GRI 102-54 The key recommendations of the RSPP Council for Non-Financial reporting have been taken The 2019 Sustainability report (the report) The 2019 Sustainability report is SIBUR's We present our strategy, policies, governance into consideration and incorporated into the report. of PJSC SIBUR Holding and its subsidiaries fourth non-financial report prepared principles, key focus areas and achievements (hereinafter collectively reffered to as in accordance with the Global Reporting for economic performance, the environment SIBUR, or the company) is intended Initiative Standards (the GRI Standards). and social development through the prism RECOMMENDATIONS DISCLOSURE IN THE REPORT to inform all stakeholders about SIBUR’s The practice of producing regular non- of the SDGs. The preparation of this core sustainability goals, activities financial reports helps build a comprehensive report was guided by the requirements and achievements. picture of our activities and strategic decision- and principles of the GRI Standards (Core Provide more complete information about the direct and indirect “Our Business Structure” section making, keeps stakeholders informed Option), the Social Charter of Russian impacts on the socio-economic development of regions GRI 102-52 about our progress towards developing Business, the requirements of analytical of presence The report presents information about a sustainability agenda and details how and ratings agencies, the SDGs, the UN our practices in the areas of economics, this agenda is being integrated into our Global Compact, the Sustainability Accounting Apply a broader approach to the presentation of quantitative “SIBUR’s 2025 Sustainability Strategy” subsection and “Key Targets occupational health and safety, business model. SIBUR is planning to publish Standards Board (SASB), the Task Force benchmarks for all major areas of activity for 2020” in each section the environment, climate change and energy sustainability reports every year going on Climate-related Financial Disclosures efficiency, corporate governance, supply chain forward. (TCFD) and other sustainability initiatives Disclose performance indicators for at least three years The list of three-year indicators has been expanded (“Employees”, management, innovation, and stakeholder and guidelines. for a wider range of indicators “Occupational Health and Safety”, “Environmental Protection” sections) and community engagement in the period GRI 102-32 from 1 January to 31 December 2019. These The 2019 Sustainability report has been The report has passed the Russian Union Update information about the management of risks related “Internal Control and Risk Management” subsection in the “Strategy topics are covered in the relevant sections approved by the Sustainable Development of Industrialists and Entrepreneur’s (RSPP) to digitalization and Responsible Business Practices” of this report. The report also includes events Committee of PJSC SIBUR Holding’s Board Council for Non-Financial reporting’s that occurred in 2020, after the reporting date, of Directors. public assurance review and independent Present energy consumption statistics for each major company “Energy Efficiency and Consumption” subsection in the due to their special significance. assurance. asset “Environmental Protection” We understand that making a long-term We engage with our stakeholders on a regular contribution to sustainable development Present specific indicators for the environmental impact per unit “Environmental Protection” section basis through a variety of communication is as important as increasing production of output channels. To prepare this report, we capacity and improving financial performance. conducted a survey among our key internal This is why we strive to implement best Continue publishing data on the evaluation of grant projects “Project Impact Assessment” subsection in the “Contribution to the stakeholders (employees and management) international sustainability practices The 2019 Sustainability report to reflect their performance and demostrate progress towards Development of Local Communities” and external stakeholders (the media, and apply them throughout our business. is SIBUR's fourth non-financial the development of evaluation methodologies for other areas shareholders and investors, business SIBUR’s Board of Directors approved report prepared in accordance of the Formula for Good Deeds programme partners and suppliers, NGOs and clients). the 2025 Sustainability Strategy based with the GRI Standards. This survey helped determine a list on the company’s corporate values, the Ten Describe how material topics were selected “Determining Material Topics” subsection in the “About This report” of significant company activities and served Principles of the UN Global Compact as the basis for a detailed analysis of topics and the Sustainable Development Goals Develop a system of stakeholder engagement in the report “About This report” section, “Associations and Partnerships” of material interest to stakeholders. (SDGs). preparation process, hold public hearings and present subsection in the “Strategy and Responsible Business Practices” the results in the report section The 2019 report and the reports for 2016-2018 have been posted in the Sustainability section on official SIBUR’s website in Russian and English for all stakeholders to read. The SIBUR report has also been uploaded to the GRI Database. Disclosure labels indicate where a specific GRI disclosure is addressed here and throughout the report. For more details, refer to “Global Challenges of Our Time”. For more details, refer to “Our Contribution to Achieving the SDGs”. For more details, refer to “Associations and Partnerships”. For more details, refer to “Report Assurance”. 4 Sustainability Report 2019 www.sibur.ru/en 5 ABOUT THIS REPORT FOCUS ON WHAT REALLY MATTERS About SIBUR Strategy and Responsible Employees Occupational Health Environmental Protection Contribution to the Development Business Practices and Safety of Local Communities About this Report Reporting Principles Reporting Principles for Defining report Quality GRI 102-46 SIBUR was guided by the following principles when preparing the 2019 Sustainability report: We were guided by the following principles to guarantee the quality of the information presented in the 2019 Sustainability report: Stakeholder SIBUR engaged its stakeholders throughout the preparation of the 2019 report. The company conducted a survey in the initial stages of report Accuracy The report provides comprehensive and reliable data obtained through measurement and calculation methods. Information about all inclusiveness preparation to identify topics of material interest to stakeholders. Information obtained from the survey was analyzed to determine material the methodologies used to obtain data are provided in the report. When rounded/approximate values were used, the report provides topics, which form the basis for the structure and content of the report. We also presented the report at public hearings, collecting appropriate comments on the assumptions used. Quantitative data and other related information used in the report do not contradict each and analyzing the opinions of attendees. The recommendations we obtained were incorporated into the report and will be taken into other. consideration in future