UC RUSAL Sustainability report 2015



UC RUSAL’s social investments are aimed at improving the living standards and intensifying social initiatives in the regions in which the Company operates. For more than 10 years, the Company has been developing a system of social investments, and now this system represents a common approach used in Russia and abroad. At all the major enterprises of the Company the community support programme is implemented. G4-SO1

Social investment management is based on the following principles: long-term goals, a competitive model in the selection of the projects for funding, interaction with stakeholders in order to enhance the efficiency of investments, monitoring and evaluation of the program results, as well as professional development of specialists and participants of the programs.

In 2013 the Company adopted the Development Strategy of RUSAL Center of Social Programs, which defines new priorities and areas of modernization for the programs under realization. The Strategy is focused on increasing the stability of social investments by expanding the practice of social partnership, enhancing the participation of stakeholders (officials of regional and municipal authorities, local organizations, projects participants and the public), as well as the activation of residents. The Company sees the possibility of further expanding the scope of social programs through the implementation of partnership projects at the federal level.

The Companys priority areas of charity activity and social investment (both in Russia and abroad) remained unchanged. They included the following areas:

·         social infrastructure and urban environment;

·         education;

·         sport and healthy lifestyle;

·         involvement of residents in joint volunteer projects and socially useful activities;

·         social entrepreneurship;

·         assistance to socially vulnerable groups.

Social investments of the Company in Russia are focused on four priority programmes: G4-ЕС8

·         RUSAL Territory – social and economic development programmes in the regions where the company operates,

·         Helping is Easy – a corporate volunteering support and development programme,

·         Formula of the Future – a programme to support youth initiatives,

·         Social Entrepreneurship – a programme to support social entrepreneurs.

The evaluation of the effectiveness of social programs is an important element of the control system. For each programme, a set of indicators[41] has been developed which the Company uses to assess the programme demand, efficiency and relevance. Evaluation is carried out against 100% of the programs implemented in Russia, but with varying intervals depending on the nature of the programme. G4-SO1

Management of UC RUSAL’s social investments is carried out by the Fund "Center of Social Programmes" (CSP, for details see http://www.fcsp.ru) which has branches in most regions of Company's presence in Russia. The centre performs the role of an expert institute on the most advanced social technologies, corporate charity and volunteering activities. The Programme for Development of Social Entrepreneurship is governed by the Center of Innovations in the Social Sector (hereinafter - CISS).

The total budget for social programs funding in 2015 by UC RUSAL own funds was equal to RUB 90.2 million (taking into account the amount of partners co-financing, the amount of social investment made RUB 167 million).

Along with the implementation of its own social programs, the Company cooperates with the territories of presence in the framework of social and economic partnership agreements. In 2015 the agreements were signed with Kemerovo region, as well as the cities of Achinsk and Bratsk. Key areas of cooperation include: G4-ЕС7

·         improving the quality of transport and social infrastructure,

·         improvement of cities,

·         improvement of ecological situation.

The total budget of social investments within the frame of the agreements in the territories of presence was equal to RUB 98 million.

Foreign social investments of UC RUSAL take into account specific local conditions (including climate), cultural and social traditions and expectations of the local population. The most acute problems include access to drinking water, health services and education, as well as the state of social infrastructure.

UC RUSAL has spent on the whole over USD 11 million for social investments programs and charity projects in Russia and abroad in 2015.

Results 2015

Social programs management

·         Completed independent assessment of the CSP organizational development;

·         Competitive approach is applied in all ongoing programs;

·         Improved expertise system for competitive applications; improved quality of funded projects;

·         Implemented program to engage employees of the Company in social activities.

Social programs implementation

·         Extended the range of program partners and participants, increased volume of co-financing by stakeholders up to 50% of the total budget for social programs;

·         National Council on Corporate Volunteering for development of this direction in Russia;

·         UC RUSAL became a participant of the international programme for development of youth social entrepreneurship, the Social Impact Award;

·         Total number of participants is more than 1,500 organizations, 10,500 volunteers, 1,777 partners, more than 1,000 participants trained in schools of social entrepreneurship.

Agreement on Social and Economic Cooperation: G4-ЕС7

·         repair and reconstruction of the Kuznetsk bridge in the city of Novokuznetsk;

·         improvement of parkland in the city of Bratsk;

·         purchase of two buses in the city of Achinsk;

·         total number of beneficiaries - about 900 thousand persons.

Characteristics of social programs in 2015




RUSAL Territory

Helping is Easy

Formula of the Future

Social Entrepreneurship Development Programme


Number of applications from residents / organizations / participants of the School of Social Entrepreneurship, pers.






Number of awarded grants and issued interest free loans






Number of communities in which the financed projects are implemented






Share of co-financing from partners (% of total budget of the programme for 2015)





Note: the results of competition were summed up in the reporting period, the loans were issued in 2016.