UC RUSAL Sustainability report 2016


Implementation of Social Programs in Russia

Management of social investment in Russia

In line with the Social Welfare for Local Communities development strategy, further steps have been taken to improve the efficiency of the management of the social programmes and organisational development of the management structures.

In 2016, internal controls and workflow procedures of the Center for Social Programs were improved. The detailed social profiles of Sayanogorsk, Kamensk-Uralsky, Krasnoturyinsk and Severouralsk have been developed in order to interact more effectively with the territories of operation and to strengthen the methodological base of the fund; the work will continue in 2017. The basis for staff development is set: the program of training courses, participation of the employees in forum and conferences is being formed.

Measures have been taken to improve the quality of projects submitted for grants and implemented by grantees, including:

          methodical recommendations for the writing of grant applications;

          training programmes and teaching materials on the ‘Helping is Easy’ programme, new educational formats for applicants (quest for social design basics, ‘Expertise’ the business game);

          electronic platform for applications for grants, remote expert examination of projects and online voting of the residents, which will continue to be improved in 2017.

The employees of the production facilities are regularly informed about the social programmes and major events and participate in the opening of infrastructure facilities. The representatives of Social Welfare for Local Communities fund speak during Common Information Days and at meetings of the heads of production facilities, providing information about the outcome of activities and opportunities for participation in Social Welfare for Local Communities programmes. As a result, the employees of the Company become active participants, initiators and organisers of events in the framework of the social programmes, projects and actions of the regional offices of the National Council for Corporate Volunteering.

Description of social programmes implemented in Russia in 2016

Indicator

Programmes

RUSAL Territory

Helping is Easy

The Formula fo the Future *

Social Entrepreneurship

Relevance:

Number of applications received from residents/ organisations / Number of participants at the Schools of Social Entrepreneurship

335

464

394

Quality:

Number of grants awarded or interest-free loans issued

80

93

5**

Coverage:

Number of settlements, in which the financed projects are being implemented

15

23

9

7

Sustainability:

Share of co-financing from partners, % of the total programme budget for 2016

61

57

49

35

* The grant competition under the programme was not held in 2016.

** The competition was held in 2015, the winners were given interest-free loans in 2016 and the project implementation began.

Implementation of social programmes in the Russian Federation

RUSAL Territory

The purpose of the programme is to improve the quality of life in the territories of the Company's operation through the development of the urban environment, creation of new public and cultural spaces, modernisation of social infrastructure facilities and organisation of cultural, developmental and sporting events. A feature of the programme is the establishment of long-term partnerships between authorities, business, non-profit organisations, mass media and local residents.

In 2016, the programme was carried out in 8 constituent entities of the Russian Federation and in one region of Ukraine (Mykolayiv region). Local community projects receive grant support in three categories:

       The city of the future – original solutions for urban improvement and urban development, reconstruction, repair and equipment of social infrastructure facilities;

       The city of ideas – improvement of local public spaces (building surrounding grounds, school districts, squares and parks); and

       The living city – organisation of urban cultural events (festivals, art and museum exhibitions, musical concerts, theatrical productions, etc.), as well as the replication of effective social technologies in the area of education, sports and youth policy.

Given the nature of the programme, a diversified approach to stakeholder relations is being used. The mechanisms for interaction in the implementation of the programme include:

          annual Forum of Ideas – a conference, in which the representatives of all stakeholder groups participate in order to identify priority projects for the development of the urban environment;

          Schools of urban change – training and negotiating venues, where projects that are found to be the most relevant at the Forum of Ideas are developed or finalised;

          crowdfunding (Planeta.ru platform) – co-funding of the projects presented at the competition by any stakeholder;

          online voting of the residents of the territories for the projects presented at the competition; and

          clubs of grantees.

The best projects implemented by grantees are published on the website of the Center for Social Programs (http://www.fcsp.ru/keysy-proektov/) for dissemination and replication of progressive practices and ideas.

In 2016, 39 projects funded under the competition in 2015 were completed, and the vast majority of them were implemented in the area of education. Among the major urban projects that attracted the attention of the residents of the territories is the reconstruction of the city's central park and the 'Mine' exhibition on the premises of the Fyodorov Geology Museum (both in Krasnoturyinsk), Other projects include an interactive scientific and educational and entertainment centre for children and adults 'The foundry of science' and the 'Veloguide in the old city' (both in Novokuznetsk).

In Bratsk and other cities, the pool of partners expanded – urbanists, architectural and urban planners that participated in the programme's activities, expert examination, seminars and meetings with the grantees. In Novokuznetsk, new forms of organisation of events aimed at the development of urban spaces were tested. For example, the summer festival of temporary constructions 'Great Construction', an applied educational project combining teams of residents, architects, designers, and business partners. Together they designed and built new facilities of urban environments. As a result, seven new designs emerged in the city and an interesting format of celebration of the city's anniversary was developed.

One of the most large-scale events was the Light Metal science and learning programme, which was implemented in the Tayozhny village, the cities of Achinsk, Bratsk, Shelekhov and Novokuznetsk.

In Novokuznetsk, with the support of the programme, an interactive science and learning centre 'The foundry of science' was inaugurated in 2016 and became a popular place for the excursions and educational activities of school children, families with children, residents and visitors in town.

At the initiative of the youth council of the Boguchansk aluminium smelter in partnership with the cultural and sports complex in the village of Tayozhny of the Boguchansk district of the Krasnoyarsk territory, a multifunctional sports ground with outdoor fitness machines and a complex for children, young people and adults has been built.

The 'Island of Goodness and Health' was equipped in Bratsk and became a recreational and sports venue for the workers of the smelter and the city's residents, within walking distance from the place of residence. Cultural and sports events for the families of the Company's employees are also held here.

Structure of funded and implemented projects

 

Helping is Easy

The promotion of volunteering is one of the priorities of the Company's social investment programmes, as UC RUSAL considers this movement to be an important tool for building a firm relationship with local communities.

The objective of the programme is to promote corporate and urban volunteering, to identify and support best practices aimed at involving active citizens in volunteer activities in the Company's regions of operation. The mechanisms for programme implementation include:

         ‘Helping is Easy’ portal (http://pomogat-prosto.ru), an open site that brings together people who are willing to provide assistance as volunteers and for the non-profit organisations that need it;

         charitable and fund-raising events initiated by the CSPin the cities of operation;

         annual New Year charity marathon, 'Believe in miracle, create a miracle', a series of charitable events for volunteers with socially vulnerable audience, as well as a federal fundraiser for New Year gifts for children from socially vulnerable families and orphanages;

         School of Volunteers – training courses, master classes and workshops on volunteering;

         grants competition of volunteer projects ‘Helping is Easy’, to identify and support social initiatives of citizens, companies and initiative teams;

         participation in the National Council for Corporate Volunteering (http://www.nccv.ru), a public venue that brings together organisations and companies that have been set up to disseminate the best practices of corporate volunteering in Russia, promote volunteering ideas, develop standards and methodical tools for volunteer programmes.

In 2016, the priority of the programme was to forge long-term relationships with major partner companies in the cities of operation. As a result, a number of joint projects have been carried out, such as 'Eat!" Share! Love!' (Krasnoyarsk), 'Great Construction' (Novokuznetsk), and 'Day of fluffy paws' (Achinsk).

23 cities in Russia and Mykolayiv (Ukraine) took part in the New Year charity marathon, the event was supported by 92 companies that participated for the first time. In addition to the volunteers of UC RUSAL and other companies, the representatives of city administration, students and NPOs also participated in the marathon. In the framework of the philanthropy New Year fairs, the volunteers of the New Year marathon collected more than RUR 800,000.

          The community group 'National Council for Corporate Volunteering' (http://www.nccv.ru) was established at the initiative of UC RUSAL and a number of partners, including Nestlé and Norilsk Nickel companies, in late 2015. In 2016, this initiative was further developed. Major companies, such as Gazpromneft, MTS, United Metallurgical Company, Leroy Merlin, the Public Opinion Foundation, Yum Restaurants Russia and others, joined the council (about 30 companies and organizations). Branches of the National Council were opened in Krasnoyarsk, St. Petersburg, Bratsk, Novokuznetsk and the Krasnodar territory.

          During the year, the members of the Board held a number of joint volunteer actions, including the Purple Day festival, the second corporate Clean Games, the pilot corporate consulting programme for social entrepreneurs ‘Pro bono Way’. During 2016, the Company has initiated in the framework of the National Council and implemented together with the partners the project of study of corporate volunteering in Russia.  1,343 corporate volunteers participated in the study survey. The results of the study and the digest 'Corporate volunteering in Russia: status estimate and development recommendations' published in accordance with the results of the study, were presented on December 8, 2016 at the V International Forum 'Corporate volunteering: business and society'.

Indicators of the Helping is Easy programme

Year

Number of volunteers

Number of activities carried out

Number of direct beneficiaries

Number of partner organisations

2011

3,563

1,484

7,515

595

2012

5,974

1,721

13,333

540

2013

10,242

1,324

29,556

761

2014

9,018

1,625

40,807

570

2015

10,472

1,497

41,669

563

2016

6,304

2,865

72,015

1,072

TOTAL:

39,269

10,516

204,895

4,101

Social entrepreneurship

The objective of the programme is to create conditions for the work of social entrepreneurs, organise resource centres based on CISS, teach about the technologies for launching, promote and develop business projects in the social sphere.

The programme enhances the social and business activity of the residents of the territories of operation, the access of socially vulnerable categories of population to social services, the employment of socially vulnerable groups (people with disabilities, women with small children, etc.). The programme consists of several components, including:

          School of Social Entrepreneurship (SSE), in which those who wish to become social entrepreneurs can examine the characteristics of this activity, the basis of business planning and the management of a production facility;

          mentoring institute – assistance from the mentors (skilled professionals and entrepreneurs) to newbie entrepreneurs; and

          interest-free loans competition.

 

The mechanisms for interaction with stakeholders in the implementation of the programme include:

          club of CISS residents – a meeting of programme participants with specialists in different areas for consultation, horizontal relations and communication; and

          partnership programmes – the involvement of the Company in social enterprise development initiatives. An example of this partnership is the support by UC RUSAL of International Social Impact Award competition(http://socialimpactaward.ru), since 2015, aimed at popularising this area among young people.

In 2016, the graduates of the School of Social Entrepreneurship accounted for about 23% of the total number of students enrolled. A total of 32 social entrepreneurship projects have been developed, refined and launched in the School of Social Entrepreneurship in the process of training. New production facilities mainly provide leisure and social services for children and adults; single production facilities produce household goods. At the moment, the average period of operation of the social enterprises that received educational support under the programme was of two years, financial support – 3.5 years. The loans issued in 2014 were repaid at more than 50%.

In 2017, work will continue on expanding the geography and development of the acceleration module of the School of Social Entrepreneurship, as well as on obtaining the licence for educational activities for CSI.

Dynamics of participants in the School of Social Entrepreneurship

Formula for the Future

The programme is aimed at school-children and students of higher and secondary specialised schools, young specialists in UC RUSAL products and those who support young specialists up to 35 years of age. Through the programme, young people are able to realize their ideas or organise city-wide activities in the form of charitable, cultural, sporting, educational or environmental actions.

The objective of the programme is to create conditions for stimulating the productive and social activities of young people, to engage the best young professionals for further education in engineering and technology, and to support initiatives and projects targeting youth audiences in the Company's regions of operation.

One of the mechanisms for implementing the programme is the youth councils that work at the Company's production facilities. Training sessions at the Active Youth School and youth conventions are regularly organised for young people. In October 2016, a corporate youth convention 'Rusal 2.0: New shift'. Since then, there has been an increase in the activity of youth councils: activities have been initiated in the field to attract new staff and to increase the commitment of those who continue to participate.

In 2016, the youth councils comprised of 238 persons who conducted 199 both city-wide and inner corporate events and attracted 94 other organisations and companies as partners. Among the activities that attracted public attention was the tourism convention of the working youth '5 cadres' (Krasnoturyinsk), the Engineers' Club (Novokuznetsk), the project 'Basic Road Safety for Pupils' and the family festival 'Baik-Al' (Sayanogorsk) etc. The '360 Minutes for Baikal' partnership action was attended by 30 youth council activists representing all production facilities of UC RUSAL.

Plans for 2017

In 2017, the work of the Social Welfare for Local Communities fund and the CSI on the development of the programme activities will continue:

          RUSAL Territory programme: development of a system for monitoring projects and evaluating the social impact of the programme, development of the programme 'School of Urban Change'; collection and publication of successful case studies and examples of project sites;

          Helping is Easy programme; expansion of programme geography, development and implementation of the monitoring and evaluation system for supported projects within the grant competition, standardisation of Personal Donations Programme, restarting of 'Volunteer Schools', creation and description of the case database;

          Social Entrepreneurship programme: launching and testing online SSE, launching new social and entrepreneurial projects that focus on the most relevant topics, building a pool of SSE residents, and promoting them at the city and regional levels; and

          ‘Formula for the Future’ programme: shifting the focus of the programme to the teaching of pupils, raising the prestige of engineering professions and developing new ‘JuniorSkills’ competence in the design of alloys and materials.