UC RUSAL Sustainability report 2016

Message from the CEO

Dear friends,

I am happy to present UC RUSAL’s 2016 Sustainability Report.

Our Company is a leader of one of the world’s largest and most dynamically developing industries. Our actions determine the future of this industry, as well as the environmental situation, and well-being of employees and local communities – especially as our production facilities are often the biggest employers for the respective towns and cities.

I am delighted to note that despite the industry being in a difficult situation at the beginning of 2016 – with aluminium prices plummeting to the lowest levels for the past several years – RUSAL has demonstrated a consistent financial performance at the year’s end. This was helped by a market recovery in H2 2016 and also by our robust cost-cutting controls, a strict production discipline, and a continuous development of value-added products.

RUSAL retains its focus on operating efficiency and sustainability across the whole supply chain, from mining of bauxite to production of aluminium to logistics and sales. We have a continuous process for introducing the best management methods and production processes to ensure we use resources efficiently and keep our environmental impact at the lowest possible level. In particular, commissioning of super-powerful RA-550 pots (whose environmental and energy performance are unprecedented for this type of cells) at the Sayanogorsk smelter has been a very important technical break-through of 2016.

Another area of work was to continue development of zero-waste production technologies. For instance, recovery of scandium oxide from red mud showed good progress. Scandium oxide is then used to produce aluminium-scandium alloys, which have a great potential in the aerospace, transport and utility segments.

Reduction of GHG emissions and the carbon footprint are among our key strategic objectives. Already today, over 90% of our aluminium is based on clean and renewable energy of Siberian rivers.

Testing of inert anodes continued last year. The technology aims to fully avoid emissions of CO2 and other pollutants by our smelters.

RUSAL is also an active participant of the national low-carbon development agenda in Russia: RUSAL was one of the initiators for creating the Russian Climate Preservation Partnership, and is also a contributor to several international climate initiatives.

Professional, initiative and qualified employees are our most valuable asset. Each year, the Company invests heavily in various projects to improve working conditions, fulfil commitments under collective bargaining agreements, develop occupational healthcare, and enhance the personnel training system. All proactive H&S activities scheduled for 2016 have been completed in full, and our corporate and site-specific OHSAS 18001 certificates have been duly confirmed by audits.

I would like to separately highlight a large-scale project we have launched in Guinea to fight the Ebola virus. In 2016, the RUSAL-built Scientific Clinical and Diagnostics Centre of Epidemiology and Microbiology received a highly sophisticated laboratory as part of a joint project with the Russian Federal Supervisory Agency for Protection of Consumer Rights and Human Welfare.

Social and economic welfare in the regions where we operate is another priority area for RUSAL, where we finance and implement a large number of community development programmes. RUSAL is represented by 6300 corporate volunteers, who helped expand the geographical range our social programmes and increase the number of beneficiaries. The projects were praised by the public and received recognition from national and regional competitions and ratings.

A lot of attention is also given to stakeholder engagement at regional and national levels, which we view as an essential ingredient of our sustainability activities.


Vladislav Soloviev