UC RUSAL Sustainability report 2016


Approach

Approach

UC RUSAL considers that environmental activities are an integral part of production activities and participation in public sustainable development projects. In the development of natural resources and processing of mineral raw materials, the production sites of UC RUSAL are bound to have an impact on the environment. To minimise and compensate for this impact, the Company has undertaken to comply with legal and regulatory requirements for environmental protection, to participate in the solution of global and regional environmental problems and to search for innovative solutions. HKEx Appendix 27 KPI А1, A2 and A3.1

UC RUSAL implements the principles of its environmental policy at all production facilities and continually develops and optimises the environmental management system. The environmental management and environmental stewardship system provides for compliance with environmental impact standards as defined by local laws in the regions, where UC RUSAL carries out its production activities. G4-EMS, HKEx Appendix 27 KPI A3.

As an environmentally responsible company, UC RUSAL implements programmes aimed at reducing adverse environmental impacts and reducing the quantity of waste, while ensuring compliance with all applicable legal and regulatory environmental requirements.

The adoption of management decisions at all levels and in all areas of UC RUSAL operations is based on the following guiding principles:

          risk management: identification and assessment of environment risk levels, setting targets and planning work in the context of environmental risk management;

          compliance: commitment to full compliance with the requirements of the environmental legislation of the countries of operation and the voluntary commitments assumed in the area of environment protection;

          prevention: the use of the best available technologies and techniques to prevent pollution, minimise the risks of environmental accidents and other adverse environmental effects;

          training: organisation of education for the employees of the Company in the area of environmental requirements applicable to their activity in order to develop an understanding of their capabilities and responsibilities, as well as the implications for the environment when these requirements are violated;

          interaction: taking into account the views and interests of stakeholders, establishing environmental requirements for selecting of suppliers and contractors, and assisting them in meeting these requirements;

          measurability and evaluation: setting, measurement and assessment of environmental indicators, as well as the assessment of compliance with the environmental legislation of the countries of operation and the voluntary commitments undertaken in the area of environmental protection;

          openness: open demonstration of plans and results of environmental activities, including in the form of public reporting by the Company.

The strategic areas of UC RUSAL in the framework of the environmental policy include:

          meeting air emission standards prescribed by laws of the countries of operation by production facilities of the Company by 2022;

          protecting the interests of the Company in the regulation of greenhouse gas emissions and reducing them by 2025 by 15% for aluminium smelters and by 10% for alumina refineries compared to 2015;

          establishment of closed recycled water supply systems for key production processes at the Company’s production facilities by 2020;

          annual increase in the share of waste processing and recycling, safe storage and disposal of waste;

          complete abandonment of equipment and exclusion of waste containing polychlorinated biphenyls (PCBs) by 2022;

          annual increase in the share of reclaimed land and promotion of preservation of biodiversity;

          establishment of a corporate management system for the management of environmental aspects and risks and certification by 2020 of all production facilities selling products in the market for compliance with ISO 140001;

          promotion of the creation of a modern legal and regulatory framework for the protection of environment in the production of aluminium and alumina.

Among the significant environmental activities, the Company also emphasizes reliable access to clean renewable energy sources and the commitment to the reduction of the carbon footprint. In the framework of these tasks, UC RUSAL has concluded long-term contracts with hydropower plants in Siberia, allowing more than 90% of aluminium to be produced using renewable and clean hydropower, as well as reducing greenhouse gas emissions.

Every year, UC RUSAL conducts an assessment of the status of implementation of the principles and approaches embodied in the environmental policy. The Company implements a strategy for the progressive improvement of environmental performance within the framework of the adopted technical policy:

          on new capacities, through the introduction of the most advanced technologies;

          on existing production facilities by:

          modernisation of the existing production cycle;

          replacement of obsolete gas treatment equipment;

          creation of closed recycling water supply system or the construction of modern treatment facilities to avoid waste-water discharges without treatment, in case if closed recycling water supply systems cannot be created;

          construction of modern waste disposal facilities to ensure their long-term and reliable storage,

          construction of capacities for the preparing of the waste for the consumer (e.g. crushing and screening equipment);

          replacing and disposing of electrical equipment containing PCBs;

          restoration of the environment through the reclamation of damaged land and decommissioned waste disposal facilities;

          implementation of the best available technologies.

The best available technologies and techniques are used to prevent pollution, mitigate the risks of environmental accidents and other factors that adversely affect the environment. They are applied in accordance with the Technical Policy of UC RUSAL G4-EMS. In 2016, an information and technical directory of the best available aluminium production technologies was developed with the participation of specialists from the Company.