UC RUSAL Sustainability report 2015


Stakeholder relations

Stakeholder Relations

Approach

The Company strives to take into account the expectations of a wide range of stakeholders which include individuals or organizations that affect the Company's operations or are subject to direct and indirect influences on its part. The key groups of stakeholders of UC RUSAL are the following: G4-24

·         shareholders and investors,

·         clients and suppliers,

·         employees and trade unions,

·         federal and regional authorities,

·         local communities.

The main documents governing the relations between UC RUSAL and stakeholders are the Corporate Code of Ethics and the Business Partner Code[18]. The Company maintains effective communications channels that meet stakeholder requirements. See the table below on methods of engagement regularly applied, as well as the identified areas of interest. G4-25

Participation in industry initiatives

As one of the world's largest aluminium producers, UC RUSAL takes part in international initiatives, particularly as is the member of: G4-16

·         International Aluminium Institute,

·         European Aluminium Association,

·         China Nonferrous Metals Industry Association, CNIA,

·         UN Global Compact,

·         Russian National Committee for the UN Environmental Programme (UNEPCOM).

The Company also participates in the activities of the Russian Union of Industrialists, theEntrepreneurs and several international initiatives of an ecological nature.

In 2015 the relations with stakeholders on the problems of sustainable development were significantly expanded – UC RUSAL became member of the following international and Russian initiatives: G4-15

-       Initiative in the field of responsible planning and management of aluminum;

-       CDP (Carbon Disclosure Project);

-       Russian Partnership for Climate Protection.

The Initiative in the field of responsible planning and management of aluminum (Aluminium Stewardship Initiative, ASI, for more information see http://aluminium-stewardship.org) introduces continuous improvement to reduce major adverse environmental, economic and social impacts of aluminium production. The Global Standard for Sustainability in Aluminium Industry and standards of relations in the international chain of metal value formation have already been developed to apply on a world-wide basis. Participants of the initiative intend to develop the tools that can be used to plan and measure the results achieved, to audit the aluminium production with certification according to ASI standards.

UC RUSAL is one of the initiators of the new partnership. The program "Russian Partnership for Climate Protection" was launched in participation of Sberbank, Rosnano, RusHydro and Ingosstrakh. The Russian business was offered joint efforts to reduce the production impact on the environment and prevent climate change. The goal of the partnership is to encourage companies to switch to more environmentally friendly production methods and seek the introduction of reasonable support measures that will ensure the economic effectiveness of investments in "green" technologies. G4-14

 

The content of the program meets the objectives of the new climate agreement reached at the 21th Conference of the UN Framework Convention on Climate Change. Supporters of the position presented in the program can join by signing the appeal (for details see the website http://climatepartners.ru ).

In 2016 the Company plans the development of the Memorandum of Understanding and Cooperation Plan. Furthermore, the plans include participation of the program representatives in international events on the climate agenda: the conference 360 Carbon Forum – large event which is the stage for preparation to the 22nd session of the UN Framework Convention on Climate Change COP22. At the moment of the report drawing, 13 Russian companies more have joined the Partnership, apart from the initiators.

Development of sector

With the support of the Ministry of Industry and Trade of the Russian Federation the Association of Aluminium Producers and Consumers was officially opened In December 2015. The key areas of activities of the Association are as follows:

-       development of a uniform long-term strategy for development of the aluminium industry;

-       stimulating the development of the related aluminium consuming sectors of the Russian industry;

-       supporting the introduction of new aluminum-containing products and other products to the market.

UC RUSAL became one of the initiators and the member of the new industry-specific association, considering it as an opportunity for development of domestic production and its use in various sectors of the economy.

Regional development

In December 2015 UC RUSAL introduced the project surging into the future - creation of the "Aluminium Valley", the special economic zone in Krasnoyarsk territory for metallurgical enterprises of Krasnoyarsk and Divnogorsk. The purpose of the project is to use local industrial, scientific, technical and human resources to create a complex of modern enterprises for production of high value added aluminum products.

In 2016 within the context of Saint-Petersburg Economic Forum, the Administration of Krasnoyarsk territory, UC RUSAL and the Aluminium Association have signed the Memorandum of Intentions. In the same year the first phase of the project will begin: a plan of the special economic zone organization will be prepared, as well as the list of resident companies and the list of economic preferences.

It is expected that the "Aluminium Valley" within the pilot period of existence will attract not less than US 200 million and create about 1,200 new jobs.

Participation in Forums

Economic Forums create the opportunities for establishing the relationships with business partners, and such forums are the platforms for discussing the issues being of interest to the business community and public authorities. In 2015 UC RUSAL took part in a number of large-scale regional and nation-wide events.

In February at the XII Krasnoyarsk Economic Forum the representatives of the Company's management discussed, among other issues, the prospects for the diversification of industry in the region through the development of industrial parks.

In June UC RUSAL became the member of the ХIX Saint-Petersburg International Economic Forum, within the context of which participants discussed the prospects for transition to a model of "green economy", the global climate change agenda and other topics.

Cooperation on environmental issues

UC RUSAL has extensive experience in cooperating with the environmental community and other stakeholders focused on environmental issues. As mentioned above, the Company is a member of several international initiatives and has used these frameworks to undertake certain commitments and obligations.

In 2007 UC RUSAL signed a memorandum of intentions with the United Nations Development Program and became the first Russian company to publish a report on the implementation of the UN Global Compact principles in its operations. The objective of cooperation is the implementation of joint actions aimed at reducing greenhouse gas emissions. The Company also participates in the activities of the International Aluminium Institute which is focused on the reduction of greenhouse gas emissions and rational energy use.

UC RUSAL is a member of the Russian National Committee for the UN Environmental Program (UNEPCOM). UNEPCOM is noncommercial partnership of individuals and legal entities which aims to support the efforts of civil society and businesses to help preserve the environment, improve public health and support the sustainable development of the Russian Federation, as well as promoting the implementation of Russia's international obligations to the United Nations Environment Program and other international organizations. The Company intends to continue to carry out its work within the framework and to improve its operations to meet the highest international standards.

The Company continues to cooperate with the Russian national environmental movement "Green Russia" as part of a framework in the field of ecology which was signed in 2014. The agreement is aimed at developing and implementing solutions in the field of ecology and environmental protection, the implementation of citizens' rights to a safe environment and the preservation of the natural environment for future generations.

Information about the Company's environmental programs and plants is regularly made available to the public, as well as regional bodies and local authorities. Thus, in its financial reporting, information about the Company’s investments in environmental activities was brought to the notice of the members of the permanent commission on ecology of the Bratsk Duma and the Public Council for Environmental Studies under the Achinsk Administration,. The Company also offered to implement the Program for Reducing Public Health Risks associated with the pollution of the atmospheric air of Bratsk. For more details, see Section "Environmental Protection".

 

Organization of stakeholder relations

Stakeholders

Topics of interest[19] G4-27

Forms of communication G4-26

Shareholders and investors

 

Performance results

Strategic business prospects

Anticipatory risk management

Quality of corporate governance

·   Presentations and conference calls of the Company management for the investment community (at least 1 per quarter)

·   Publishing materials associated with the agenda items of the General Meeting of Shareholders on the corporate website (annually)

·   Meetings of the Company management with analysts and investors, including, as part of the road show and industry conferences (at lease 1-2 times per year)

·   Regular meetings with minority shareholders

·   The annual general meeting of shareholders (annually)

·   Financial and non-financial reporting (quarterly, annually)

Clients and suppliers

Quality and reliability of supplies

Access to trading and purchasing, clarity and transparency of procurement procedures

Nature of business relations

Sustainable developments aspects management

·   Information on tenders and procurement plans (as required)

·   Annual client survey (annually)

·   Meetings with customers, including industry conferences, technical seminars and mutual enterprise visits (systematically, as required)

·   Supplier certification and development system (regularly)

·   Complaints system: weekly consideration of customer claims (regularly)

·   Procedures for monitoring compliance with the requirements of contracts (regularly)

·   Responds to customer inquiries about the activities of the Company in the field of sustainable development (as available)

Employees and Trade Unions

Wages and social guarantees

Working conditions

Opportunities for carrier development

Compliance with employee rights

·   Reports on implementing the provisions of Collective Labor Agreements and the Agreements on Occupational Safety (annually)

·   Collective Labor Agreement (once in three years)

·   Internal corporate media: magazines, social network (monthly)

·   Regular meetings with the administration and management (at least 1-2 per year)

·   Conference of the management body (periodically)

·   Considering the appeals made via the hotline (regularly)

·   Participation in reputation survey (annually)

State and regional executive authorities

Payment of taxes

Compliance with statutory requirements

Development of the regions of presence

Creation / preservation of workplaces

·   Public hearings and advice during modernization and expansion of the existing production facilities and construction of new facilities (upon completion of projects)

·   Dialogue with the state executive authorities on issues of legislative and statutory regulation (regularly)

·   Joint projects (as required)

Local communities:

city residents, noncommercial organizations, small businesses, professional and creative organizations, etc.

Development of the regions in which RUSAL operates

Workplaces

State of the environment in locations of plants

Grant support of initiatives

·   Public hearings and advice during modernization and expansion of the existing production facilities and construction of new facilities (upon completion of projects)

· Social and economic partnership agreements are signed with one subject of the federation and with two cities. Agreements with various areas of operation are signed with different terms of duration. Furthermore, for three-year-agreements additional agreements are concluded for each year of cooperation.