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4.
Sustainable development report
4.1. Sustainable development report
4.2. Environmental Protection
4.3. Human Capital
4.4. Occupational Health and Safety
4.5. Social Partnership
Water, chemical workshop, boiler, heating.
Steam goes to turbine, rotation, generator.
Electric workshop, connection –
Megawatts go to the system.
Not everybody knows this process,
Only energy specialists do,
Those who care about warmth and light!
Who can proudly say – energy is my job.

Leonid Shamanov,
Head of Repair section of Technical services servicу at Adlerskaya TPP
Add to My Report

4.1
Sustainable development report

Basic principles of sustainable development and social responsibility

We combine the traditions accumulated by generations of our predecessors and the strive to change in line with the imperative of our time. We operate equipment commissioned decades ago and introduce state-of-the-art technology to gain in strength. We are working to be more efficient and take our rightful place in the market. Only this will allow us to update generating capacities and provide the best conditions for our team. Nonetheless, the main goal remains unchanged for power engineers of all time: reliable and uninterrupted power supply to consumers.

Such work can only be built on the principles of a responsible attitude of business towards people, the environment and society. Our core corporate values aimed to ensure the sustainable development of the company stem from the responsible attitude. Following the principles of openness and transparency we conduct an open and honest exchange of information with all the stakeholders.

OGK-2 Activities and the UN Sustainable Development Goals

The approaches to managing sustainable development processes in OGK-2 are consistent with the principles set forth in the United Nations (UN) Declaration on Environment and Development.

The Company pays great attention to meeting the requirements of environmental legislation, increasing the level of industrial and environmental safety, ensuring a planned and effective reduction of the negative impact of industrial activities on the environment.

On September 25, 2015, at the UN headquarters in New York, global leaders, including heads of state and government, approved the Post-2015 Sustainable Development Agenda, entitled “Transforming Our World: 2030 Agenda for Sustainable Development”. This agenda has 17 goals and 169 tasks.

OGK-2 operates based on the UN Sustainable Development Goals.

Sustainable Development Management

In its activities, OGK-2 is guided by the principles of social responsibility adopted by the Gazprom Group:

  • due consideration of the public interest;
  • assistance to the social and economic development of Russian regions and establishing a favorable business environment in them;
  • maintaining decent working conditions and social well-being of both its employees and people living throughout the territory of the Group's operations.

OGK-2 corporate values are enshrined in the Code of Corporate Conduct, approved by the Board of Directors on 02.10.2014. Along with documents defining the strategic goals of the Company, as well as the Corporate Governance Code, the Code of Corporate Conduct is a core of sustainable development of OGK-2 and is an integral part of the corporate culture of the Company. The document defines corporate values, discloses issues of conflict of interest, co-work of relatives, gifts, relations with competitors and counterparties, anti-corruption and other rules of business conduct. The Code is written in Russian. The provisions of the Code apply to organizations controlled by the Company.

Corporate Values

Professionalism

  • Deep knowledge of one's area of specialization, timely and high-quality fulfillment of assigned tasks, continuous improvement of professional knowledge and skills.

Leadership role

  • Diligence and non-reliance of employees in such matters as production process optimization

Lean approach

  • Responsible and lean approach to the use of assets of the Group companies, to own work time and the work time of other employees

Mutual respect

  • Team spirit, trust, benevolence and cooperation in the process of solving the assigned tasks

Openness to dialogue

  • Open and honest exchange of information, willingness to jointly develop an optimal solution

Succession

  • Respect for the work and experience of older generations, communication between beginners and labor veterans, vocational training and coaching

Image

  • Use of techniques and strategies aimed at creating a positive opinion about the Group companies

The Company provides for familiarization of all employees of OGK-2 with the Code of Corporate Conduct. The Business Integrity Committee is responsible for organization of work to comply with the requirements and provisions of the Code of Corporate Conduct of the Company. The Business Integrity Committee monitors compliance with the requirements and provisions of the Code. Senior executives, who are the supervisors of the “HR Management”, “Corporate Governance”, “Legal Support”, “Corporate Security” functional units, are members of the Committee.

The personnel of the organizations studies the Code of Corporate Conduct against written acknowledgement at the beginning of employment or when changes are made to the document. Familiarization with the principles, standards and rules for behavior is a part of in-person and remote online onboarding programs for newcomers.

Analysis of the possible impact of climate-related risks and opportunities on the activities of OGK-2

Nowadays, the financial statements of companies cannot be a source of comprehensive information for investors. Therefore, companies need to increase the amount of disclosed non-financial information in order to increase the transparency of their activities and increase investment attractiveness. Non-financial disclosure requirements applicable to reporting are based on the disclosure standards. One of the important factors attracting the attention of investors is the disclosure of impact of climate-related risks on the activities of the Company.

Analysis of the possible impact of climate-related risks and opportunities on the activities of OGK-2

Type

Climate-related risks

Potential financial impact

 

Technological

Transitional risks
  • Replacing products and services with the ones that are more environment-oriented
  • Costs of transition to more environmentally friendly technologies
  • Write-off and premature disposal of assets
  • R&D expenses in the field of new and alternative technologies
  • Capital investment in technology development

Market

  • Consumer behavior change
  • Increase in the cost of raw materials
  • Decrease in demand for goods and services due to changes in consumer preferences
  • Increase in the cost of production due to changes in the cost of raw materials and production requirements

Climate-related Opportunities

Potential Financial Impact

Resource efficiency
  • Use of more efficient transportation methods
  • Use of a more efficient manufacturing process
  • Construction which is more environmentally compatible
  • Reduced operating costs (due to increased efficiency and prime cost reduction)
  • Increase in production capacities and, as a result, increase in revenue
  • Increase in the value of fixed assets

Energy sources
  • Use of more environmentally friendly energy sources
  • Use of new technologies
  • Reduced operating costs
  • Availability of capital (due to the investor interest in industries which are more environmentally compatible)
  • Positive impact on reputation

Stakeholder Engagement

Stakeholder Map

Sustainable development of Gazprom Energoholding Group companies directly depends on the quality of relations with stakeholders. The Group companies strive to maintain an open dialogue with all the stakeholders, as we believe that our companies equally influence and are being influenced by them. Responsibility, openness and due consideration of interests of all stakeholders when making decisions are a prerequisite for effective cooperation.

Stakeholders Most Closely Related to OGK-2 Activities

The main principles for uniting stakeholders in groups:

  • solidarity in interests and expectations for the companies of the Group;
  • the nature of their influence on the achievement of the strategic goals of the Group's companies;
  • tools used by the Group companies to interact with them.
Main Forms and Frequency of Stakeholder Engagement Activities

Stakeholders

Topics of interest

Forms of interaction

External stakeholders

Shareholders and investors
  • financial and production indicators,
  • investment program,
  • dividend politics,
  • shareholder value increase,
  • increase of production efficiency and reduction of costs,
  • priority areas for the development of the Company.
  • General meetings of shareholders, during which all the most important issues of the company's activities are brought up for discussion.
  • Boards of Directors and Committees under the Board of Directors are used as platforms for continuous interaction between representatives of major shareholders – consultations, search for compromises and reaching agreements on the most pressing issues.
  • In preparation for the meetings of the governing bodies and their committees, discussion and submission of proposals by the major shareholders on the meeting agenda and the nominees to corporate bodies take place. Meetings are held regularly in accordance with established corporate procedures.
  • IR events, including meetings of OGK-2's management with representatives of shareholders, investors and analysts.
  • Regular conference calls to discuss financial performance.
  • Ad hoc conference calls and meetings with shareholders, analysts and investors in the face to face format and in small groups as part of events held by investment funds and banks.
  • Timely publication of information on the official Website in accordance with the provisions of the Russian law, as well as the transfer of all information to depository banks in accordance with the requirements of the law of foreign countries.
  • Placing information on the Website and individual mailing to shareholders, analysts and investors of presentation and information materials, which not mandatory for publication in accordance with the law, but are provided for explanatory and information purposes.
  • Telephone calls, meetings of management and provision of information at the request of shareholders, analysts and investors.

Capital providers (lenders and rating agencies)
  • financial and production indicators,
  • investment programs,
  • debt indicators and debt portfolio structure,
  • credit policy,
  • priority areas for the development of the Company.
  • Holding meetings of OGK-2's management with representatives of rating agencies and providing all information requested by them to change or confirm ratings.
  • Negotiating when obtaining bank loans.
  • Publication of reports on the Company's activities at the end of each year and each quarter, containing information on the financial standing, liabilities and potential risks.

Local communities (local population, civil society organizations and local authorities)
  • uninterrupted heat and power supply,
  • compliance with environmental regulations and standards,
  • energy saving and energy efficiency,
  • compliance with safety standards and regulations,
  • job creation and wage levels,
  • taxes,
  • charity,
  • joint events with public organizations and local authorities,
  • participation in the development of local infrastructure,
  • business development.
  • Regular participation in expert consultations, meetings and working groups on regional development issues under the municipal government.
  • Conducting regular information meetings with responsible executives of the regions where the Group's companies are operating.
  • Conducting public hearings every time the construction of new industrial facilities begins.
  • Publication of reports on the activities of the Group companies at the end of each year and each quarter containing information on ongoing investment and social projects, including projects aimed at developing the regions where the production facilities of the Group companies are located.
  • At least once a month – holding cultural and educational events in the regions of presence aimed at raising awareness of the local population about the production of heat power and electricity; the company's activities in these regions; ways to improve the efficiency and safety of energy use; correct behavior in the event of emergencies related to the operation of production facilities.
  • Participation of OGK-2 employees in events organized by local authorities and public organizations.
  • Regular provision of information on emissions, measures to reduce emissions in the event of unfavorable meteorological conditions, the quality of hot water, as well as on indirect energy emissions to local authorities and upon consumer requests.
  • Posting on the Website and disseminating information through the media that affects the interests of the population, other enterprises, as well as local authorities in the regions where the Company is operating – as soon as newsworthy events appear.

Clients

  • uninterrupted heat and power supply,
  • production indicators,
  • payments for energy resources;
  • investment programs,
  • connection conditions,
  • increased efficiency.
  • Interaction with wholesalers on the issues of concluding non-regulated bilateral contracts for the sale of electricity and power supply – on an ongoing basis.
  • Interaction on issues of connection to the facilities of the Company (electricity and heat power) – upon receipt of applications.
  • Interaction with heat energy consumers on the issues of concluding/making amendments to contracts, settlements under concluded contracts – on an ongoing basis.

The Government of the Russian Federation and sectoral regulatory authorities, ministries and departments, regional executive authorities
  • uninterrupted heat and power supply,
  • production and financial indicators,
  • investment programs,
  • increased efficiency,
  • priority areas for the development of the Company.
  • Participation in meetings of commissions under the Government, ministries, expert panels and committees, etc.
  • Interaction with government authorities that establish, regulate and monitor compliance with the rules for functioning of the Russian heat power and electricity market (the Government of the Russian Federation, FAS Russia, the Ministry of Economic Development of Russia, etc.), as well as with the Trade System Administrator and System Operator.
  • Work with NP “Market Council”, Association “Council of Energy Producers”, Commissions and Committees of the Russian Union of Industrialists and Entrepreneurs.
  • The work is carried out on an ongoing basis and is aimed at optimizing the existing regulation and developing the heat power and electricity market.

Environmental Organizations
  • compliance with environmental regulations and standards,
  • reduction / increase of all types of environmental impact of production,
  • ongoing programs and activities related to environmental protection,
  • investment programs,
  • energy efficiency improvement,
  • priority areas for the development of the Company.
  • OGK-2 is working on the development of its own Environmental and Energy Management Systems, follows the ISO 9001:2015 and ISO 14001:2015 standards and regularly undergoes supervisory audits.
  • Participation in specialized competitions.
  • Every time a new construction starts at industrial facilities, OGK-2 holds public hearings with the participation of representatives of environmental organizations.

Suppliers of goods and services
  • creditworthiness,
  • procurement rules and transparency,
  • environmental, technical and other regulations and standards in the selection of suppliers,
  • investment programs,
  • priority areas for the development of the Company.
  • Every time a competitive tendering for procurement is announced, a complete set of information on procurement and the procedure for selecting suppliers is posted simultaneously and in the equal amount for all potential suppliers – on the Website http://zakupki.gov.ru/, in GazNeftetorg.ru trading system (http: //www.gazneftetorg.ru/) and the Company's Website.
  • The company follows the standards OHSAS 18001:2007, ISO 14001:2015, and focuses on them when conducting procurement.
  • When making purchases in especially important areas of activity, the procurement committee of the company conducting the purchases participates in making a decision on the selection of suppliers of goods and services.
  • All information about previously held transactions for the procurement of goods, including the quantity and total cost of purchased goods and services, is kept in the public domain on the Company's Website.

 

Stakeholders

Topics of interest

Forms of interaction

Internal stakeholders

Management and control bodies
  • the quality of corporate governance, the activities of the Board of Directors,
  • development strategy as part of activity of the Board of Directors,
  • review of performance of the sole executive body and the Board of Directors,
  • risk management and risk appetite,
  • sustainable development issues.
  • 20 meetings of the Board of Directors.
  • 23 meetings of Committees under the Board of Directors.

Employees, trade union organizations

  • compliance with environmental regulations and standards,
  • compliance with safety standards and regulations,
  • job creation and wage levels,
  • social and medical care,
  • opportunity for professional growth and development,
  • corporate culture,
  • business development.
  • The Company has implemented:
  • personnel incentive system;
  • system of professional training and professional development of personnel;
  • health and safety activities: compulsory medical examinations, assessment of workplaces, briefings on safety at the workplace;
  • the practice of holding sports and cultural events;
  • social insurance of personnel in excess of that established by the applicable law of the Russian Federation, the approaches to which are enshrined in the Collective Agreement: voluntary medical insurance (VMI), accident insurance, non-state pension schemes, additional social benefits and guarantees for employees.

 

Ongoing interaction with trade union organizations, which is implemented, among other things, through holding of meetings of the Committee for Settlement of Social and Labor Issues in OGK-2 JSC consisting of representatives of the parties to social partnership.

Sustainable Development Ratings

The Company is working on the implementation of generally recognized standards in the activities of OGK-2 in order to improve the disclosure of indicators in the field of sustainable development. In 2020, the Company was ranked in the top three of the World Wildlife Fund’s (WWF) rating of environmental openness, having gained a score of a total of 1.4 points. The industry rating was calculated on the basis of three sections: environmental management, environmental impact and information disclosure.

In addition, in the reporting year, OGK-2 confirmed its Climate Change 2020 “F” CDP rating.

OGK-2's environmental policy is based on the principles of safety, efficiency and transparency. Inclusion in such a rating is a quality mark that reflects the Company’s social and corporate responsibility and demonstrates conscious use of natural resources and environmental friendliness. The environmental management system at OGK-2 JSC is organized at a high level, and, undoubtedly, we will continue to work to improve performance in the field of environmental protection.

Yulia Chizhova, Head of Environmental Team of OGK-2 JSC

4.1. Sustainable development report
4.2. Environmental Protection
4.3. Human Capital
4.4. Occupational Health and Safety
4.5. Social Partnership