UC RUSAL Sustainability report 2016

Management structure

Environmental planning, monitoring and reporting at the Сompany level is carried out by the Health, Safety & Environment Department, which is part of the Technical Directorate of UC RUSAL. The Department includes the Health & Safety Unit, the Environmental Regulation and Control Unit and the Greenhouse Gas Emissions Control Unit. G4-EMS

Operational management of the environmental issues of the production facilities (approval of objectives and budgets, financing of activities, control of receipt of permits, environmental risk assessment, etc.) is carried out by the environmental services of the divisions. At the level of the production facilities, specialised environment, health and safety departments carry out direct operational activities in the area of environmental protection.

The Company is continually improving its environmental management system. In the reporting year, the compliance of the corporate environmental management system with ISO 14001 has been confirmed until 2018 at 15 production facilities of UC RUSAL, including all aluminium smelters. By 2020, the Company plans to certify all production facilities selling products in the market (foil plants ARMENAL, Urals Foil, silicon production Kremny (Shelekhov) and Silicon Ural (Kamensk-Uralsky). The Company is taking steps to adapt ESM to the requirements of the new version of ISO 14001:2015, including:

·         training of Company employees in the requirements of the new version of the standard;

·         updating of internal regulations and procedures.

Compliance of the Company's enterprises with ISO 14001 standards

In October 2016, as part of the monitoring audit, DNV confirmed the conformity of the umbrella Environmental Management System (EMS) of aluminium and powder production facilities with the requirements of ISO 14001 for 2015-2018.

The activities of UC RUSAL in the area of environmental management and protection are carried out in accordance with the laws of the country of operation, with corporate regulations and procedures, as well as voluntary obligations. In the Russian Federation, UC RUSAL focuses on the following environmental instruments:

          Federal Law No 7-FZ dated January 10, 2002 On environment protection;

          Federal Law No 96-FZ dated May 4, 1999 On air protection;

          Federal Law No 89-FZ dated June 18, 1998 On industrial and consumer waste;

          The Water Code of the Russian Federation No 74-FZ dated June 3, 2006;

          The Land Code of the Russian Federation No 136-FZ dated October 25, 2001;

          Federal Law No 52-FZ dated March 30, 1999 On sanitary and epidemiological well-being of the population;

          Federal Law No 416-FZ dated December 7, 2011 On water supply and sanitation;

          Federal Law No 261-FZ dated November 23, 2009 On energy conservation and efficiency improvement.

Environmental risk management is carried out in accordance with established procedures under the Risk Management Regulation. The identified inconsistencies in government oversight and voluntary audits are recorded and corrective actions are developed.

UC RUSAL seeks to comply with the environmental protection requirements of environmental legislation to the maximum extent possible. Emissions into the air and discharges of polluting substances to water facilities, as well as the disposal of wastes, are approved in a manner that defines the limits of negative impacts. The Company also performs timely payments for adverse environmental impacts.

The identified inconsistencies in government oversight and voluntary audits are recorded. For discrepancies (detected violations) corrective actions are developed.


In accordance with the legislation of the Russian Federation, 'nature users' have to make environmental payments as compensation for the negative impact on the natural environment they cause, such as:

• emission of pollutants from mobile and stationary sources;

• discharge of pollutants into water bodies, both on the surface and underground; and

• waste disposal.

The amount of payments depends on the degree of impact on the environment, i.e. on whether the nature user exceeds the permissible discharges and emissions of pollutants into the atmosphere; or whether the discharges and emissions remain within the limits.

Environmental charges for environmental pollution, USD mln. G4-ЕN29

Structure of environmental charges and fines for environmental pollution, USD mln

In 2016, payments for environmental pollution fell by a third compared with the previous period, amounting to USD 7.2 mln., mainly due to the introduction of new negative impact payment standards in the Russian Federation since January 1, 2016. In the expenditure structure, waste disposal payments account for the largest share – 68%, air emission charges amounted to 29%, and water facilities amounted to 3%. Environmental fines in 2016 amounted to USD 30 thousand.