UC RUSAL Sustainability report 2015


Operating results

Performance

The continual implementation of measures to optimise the Company’s OHIFS activity makes it possible to achieve positive results in this area.

US RUSAL has the Uniform Occupational Health, Industrial and Fire Safety Reporting Regulations in place as a guideline for determining the procedure for collecting, preparing and submitting the information on occupational health, industrial and fire safety at all management levels. In conformity with these Regulations, records of accidents and near misses are kept under different categories, with all incidents divided into six groups, from near misses to fatalities. Minor injuries and incidents when employees seek medical assistance are also recorded. Cumulative statistics for the reporting period are automatically consolidated at enterprise level, and then subsequently at both the divisional and Company level.

The Company identifies the following key OHIFS performance indicators:

·         fatal accidents (Fatality);

·         lost-time accident frequency rate (LTAFR);

·         lost-time injury severity rate (LTISR);

·         accidents caused by violations of industrial safety requirements (Accident).

In an effort to achieve optimal results in the sphere of OHIFS, UC RUSAL works actively with the state executive authorities and expert organizations[32], thus allowing specialists and directors of the Company taking part in legislative activity.

The key OHIFS indicators were improved in 2015. The total number of fatalities as compared to the previous year was reduced from 6 to 5. The number of fatal accidents with contractors[33] also decreased from 3 to 1 fatal accident. The number of third-party fatalities was reduced to zero. The number of fatalities among employees increased from 2 to 4.

Still fatal on-the-job accidents are primarily due to the violation by workers of HSE requirements during the performance of work, and personal negligence.

Number of fatalities

The Company on an ongoing basis monitors the results of the following indicators:

·         Lost time accident frequency rate (LTAFR),

·         Lost time injury severity rate (LTISR). G4-LA6

In 2015 the Company succeeded in not surpassing the target values of LTAFR and LTISR. The lost time accident frequency rate decreased versus the previous year by 10.5% up to the figure 0.17 when the target value was 0.22. The lost time injury severity rate increased from 12.71 to 14.26, which is still below the target value 14.50. The statistics for UC RUSAL on injury frequency rates continue to be amongst the highest in the aluminum industry.

Lost time accident frequency rate among employees G4-LA7

Lost time injury severity rate among employees G4-LA7

Accident frequency rate (including contractors) for companies in the sector in 2015 G4-LA7

According to the International Aluminium Institute, UC RUSAL demonstrates the lowest injury rate among the largest companies of the sector.

The Company’s enterprises have demonstrated a trend towards maintaining an absence of accidents and fires that could have a significant impact on the output of finished products (10% or more of an enterprise’s production plan), thus attesting to the effectiveness of the industrial and fire safety system.

Qualitative and quantitative assessment of OHIFS performance results is performed every six months at the meeting of the Board of Directors’ core committee. An analysis of on-the-job injuries is performed for the Company’s employees, the workers of contracting organisations performing services for the Company and other third parties.

Reasons for accidents

The Company carefully scrutinises each fatal on-the-job accident and also performs an internal investigation and analysis of the reasons for the accident.

The process of identifying, investigating, keeping records of and identifying the reasons for accidents at the Company is carried out in accordance with the Regulations on internal investigation and analysis of OHIFS incidents. After each incident, the Company’s employees are notified using the corporate information system, an investigation is performed, the root causes are identified, an action plan for eliminating the causes is drawn up, and a report on the lessons learnt is issued. The Regulations are a universal tool for investigating accidents in countries where local legislation falls short of global best practices. However, adhering to the legislative norms of the regions and countries where UC RUSAL’s production facilities are located is a mandatory requirement of the OHIFS management system.

During the reporting period, the main efforts to minimise on-the-job injuries focused on those production areas in which accidents were recorded most frequently. Unlike the previous period, when the highest number of accidents took place during the extraction of rock and alumina production (25%), in 2015 the main reason for accidents was personal negligence. Working at height still ranks third in the list of the most dangerous areas of production.

Production areas and dangerous conditions in which accidents took place

Occupational medicine

The main area of work of the occupational medicine is to prevent occupational diseases and work-related illnesses and to take measures to maintain and improve the health of employees.

The work on prevention of occupational diseases among the Company’s employees is performed by introducing progressive environmental protection technologies and using high-quality personal protection equipment that has passed the relevant certification.

RUSAL Medical Center (RMC) plays a leading role in preventing non-industrial accidents. The RMC’s main objective is to provide highly qualified general medicine, preventative and emergency medical care and to perform regular medical examinations in accordance with Russian laws.

RMC operates a network of twelve health care facilities located in twelve regions where the Company operates. More than 45 thousand people are affiliated to these facilities. 558 employees work in RMCs health care facilities. The medical services of the Company also operate in Guinea, Guyana and Nigeria..

Healthcare expenditures of the Company, RUB mln

The RMCs activity is focused on rehabilitative and preventative treatment to lower the risk of unexpected fatalities at production sites for somatic reasons and to prevent heat stroke through pre-shift medical examinations of employees belonging to the at-risk health group. The enterprises also conduct prophylactic work for employees with the assistance of external experts. In 2015 the doctors of the regional vascular centre under the Regional Clinical Hospital of Krasnoyarsk held 12 lectures for the employees of Krasnoyarsk Aluminium Smelter on the symptoms of stroke and myocardial infarction and for the prevention of these diseases. Similar work was carried out at the Achinsk branch of RUSAL.

Adoption of the Regulations on emergency medical response and first aid to employees of the Company in case of production accidents helped to organize the actions of medical personnel at medical aid rendering to employees, make systematic the training of the personnel to the rules of first aid rendering, as well as to improve the qualitative and quantitative analysis of the causes of injuries for future management decisions. These Regulations apply to all enterprises of the Company.

The RMC provides medical assistance not only to UC RUSAL workers, but also to residents in the areas of operation who have an MHI policy.

The Company ensures that all of its health facilities are provided with modern equipment. In 2015 the medical unit of Nikolaev Alumina Refinery acquired new equipment.

In 2014 the Company continued its work with Rospotrebnadzor, the Social Insurance Fund and regional occupational pathology centers on the Comprehensive Interdepartmental Work-Related Illness Management Program, whose measures include:

·         compilation of a brief description of production characteristics;

·         occupational hygiene and assessment of health risks at each work station;

·         work station certification;

·         performance of on-site medical examinations (using the resources of the RMC, municipal outpatient clinics, and occupational pathology centers);

·         medical and preventative measures (vaccinations, etc.) as well as emergency medical assistance;

·         medical and social Programs and wellness Programs;

·         instructional research on the impact of hazardous and dangerous production factors on the health of workers and effective preventative treatment;

·         the health testing of workers and corresponding adjustments to the Program.

In order to prevent respiratory diseases, annual vaccination of staff was held at the Company's enterprises. 29 thousand employees were vaccinated against the flu virus and 650 employees were vaccinated against the pneumococcal infection (which can be also a leading cause of acute respiratory disease in labor collectives). The main peak of respiratory diseases accounts for the epidemic season, which usually lasts from January to May. Analysis of this period showed a decrease in respiratory diseases in general, as well as in the number of missed days.

During the reporting period indicators of work-related illnesses improved: the number of work-related illnesses per 10,000 employees fell by 3% vs. 2014, and the number of newly identified cases of work-related illness also reduced, which in 2015 amounted to 231 and 49.8 cases, respectively.

Dynamics in the number of work-related illnesses[34]

Breakdown of work-related illnesses, %

Among work-related illnesses the leading condition continues to be chronic intoxication due to fluorine compounds, the percentage of which increased from 28% (2014) up to 33% in the reporting period, as well as to hand-arm vibration syndrome (23% and 30% respectively).

 

Structure of general sick rate, %[35]

 

 

The structure of illnesses with lost time of UC RUSAL employees remained the same: 38% are respiratory illnesses (34% in 2014), 24% diseases of the musculoskeletal system, 26% physical injuries, and 7% diseases of the digestive system.

Combating the Ebola virus in Guinea

The Company performed extensive work in the reporting period to combat the Ebola virus in Guinea. Its efforts embraced not only UC RUSAL employees but local residents as well. Disease control measures were performed at the Company’s enterprises in Guinea and at the residences of employees to reduce the risk of infecting expats and local personnel (disinfection of premises and buildings, work stations, raising awareness of personal hygiene issues). The indicated measures were developed with due regard to the recommendations of the leading Russian physicians with infectious diseases and international medical organisations. For more information about the opening of the Center for microbiological research and treatment of epidemic diseases in 2015, please see the Section "Investments in development of local communities.

UC RUSAL assists medical institutions in Guinea, providing them with medicines, disinfectants and specialised equipment. A modern medical isolation ward was set up in Simbaya with the Company’s help.

In addition to participating in theme-based scientific conferences, the Company also organises the visits of specialists to medical centers in Guinea equipped by UC RUSAL. This enables scientists to perform medical research based on actual clinical findings on the disease and to receive access to virological material.

UC RUSAL is actively working with Russian and foreign scientists to develop an Ebola vaccine. In 2015 the Russian vaccine against the Ebola virus was registered. The Russian Federation also provided funds to conduct field trials of the new vaccine. Among its major advantages over foreign analogues are high levels of protection of the body and less stringent requirements for storage and transport conditions. Vaccination of the first two thousand citizens of the Republic of Guinea will be scheduled on the basis of the Scientific-Clinical Diagnostic Center of Epidemiology and Microbiology.

RUSAL became co-organizer of the round table "Russian vaccine against Ebola: first lessons and look into the future", which was held in Moscow with the participation of the Ministry of Health and Rospotrebnadzor of Russia. The President of the Republic of Guinea Alpha Conde expressed his gratitude and appreciation to the President of Russia and the world community for its help and responsibility.

Awards

In the reporting year UC RUSAL employees and divisions were recognised and received certificates for achievements in the area of occupational health and industrial and fire safety:

Employees participated in the annual Russian competition for the best organisation of working conditions and occupational health "Safety and Success 2014", organized by the Ministry of Labour and Social Protection of the Russian Federation.

Rank at the level of the municipality and the subject of the Russian Federation

Rank at the level of the Russian Federation

NAZ-SUAL, Branch of JSC SUAL

1

93

IT-Service LLC

2

44

BAZ-SUAL, Branch of JSC SUAL

2

317

CJSC Kremniy

  • Letter of Appreciation for participation in the territorial competition "Best organization of labor protection in Shelekhovsky district in 2015".
  • Letter of Appreciation from the State Labor Inspection Service of Irkutsk region for continuous monitoring of the labor protection status and achievement of excellence in efforts to improve working conditions and safety at work.

SUAL-PM

  • Diploma issued by the Administration of Shelekhovsky district for victory in the competition "Best organization of labor protection in Shelekhovsky district in 2015" in Processing Industries group.

OJSC RUSAL Novokuznetsk

  • Certificate of Merit from the Coordination Council of the departments of the Russian Union of Industrialists and Entrepreneurs (RUIE) in Siberian Federal District to the Managing director of the enterprise "For large and effective work on implementation of the state policy in the sphere of occupational safety and health in organizations in Kemerovo region".

BAZ-SUAL, Branch of JSC SUAL

  • Letter of Appreciation from the Head of the city "First Place in the competition for the best organization of labor protection among industrial enterprises of Krasnoturinsk district".

OJSC RUSAL Krasnoyarsk

  • Diploma from the RUIE "For great contribution to organization of works on special assessment of working conditions at the enterprise".
  • First Degree Diploma from the Government of Krasnoyarsk territory for the first place in territorial competition for best organization of labor protection in nomination "Best organization of work on labor protection among employers of Krasnoyarsk territory" in Group "Metallurgic production and fabrication of finished metal products, machinery and equipment".

OJSC Boguchanskaya Hydro Power Plant

  • Third Degree Diploma from the Government of Krasnoyarsk territory for the third place in territorial competition for best organization of labor protection in nomination "Best organization of work on labor protection among employers of Krasnoyarsk territory" in Group "Production and distribution of electricity, gas and water, other community services".

NAZ-SUAL, Branch of JSC SUAL

  • Following the results 2015 the Chief of the OHIFS department Dmitry Maurichev entered the list of winners of the Republican Competition "Best specialist on labor protection" and took the second place in nomination "Best specialist on labor protection among the organizations of the production sphere".

Plans for 2015-2016 and the Medium Term[36]

The Company plans to continue its active work to improve the OHIFS management system. Work will continue next year, with an emphasis on the following areas of business:

·         100% standardisation of work stations within their business system, including working conditions and safety of operations;

·         across-the-board behavioural safety auditing;

·         creating and developing a culture of leadership skills and personal commitment to work safety;

·         introduction of preventive approaches to protect and promote the health of workers;

·         identification of system (root) causes of injuries during internal investigations, implementation of relevant measures;

·         strengthening of responsibility (and motivation) for control over the hazardous works among managers, professionals and employees;

·         strengthening of the control over safe performance of works by contractors;

·         special assessment of working conditions at work stations of the key personnel until 31.12.2016.

·         revising motivation mechanisms of the personnel for the benefit of occupational health and safety;

·         organization of the competition between the enterprises "Leader of the Company in the Sphere of Occupational Health and Safety";

·         Organization of developing the draft interstate standard GOST "Electrolysis cells for production of primary aluminum. General technical conditions";

·         Preparations for introduction, development, initiation and support of changes to the Technical Regulations of the Customs Union TC CU 010/2011 "On safety of machines and equipment" in terms of identification of electrolysis cells as a commodity item with indication of the requirements to them as to the technical equipment applied in nonferrous metallurgy to produce primary aluminium".

·         Popularization of the Company’s image in terms of OHIFS in mass media.



Targets of RUSAL

Business Plan 2015

Fact 2015

Business Plan 2016

Number of workers who died during accidents at work

0

4

0

Lost Time Accidents Frequency Rate (LTAFR)

0,22

0,17

0,21

Lost-Time Injury Severity Rate (LTISR)

14,50

14,26

14,50

Number of accidents / fires, the consequences of which have

a significant impact on production of finished products

0

0

0