UC RUSAL Sustainability report 2015


Sustainable Development Aspects Management

Sustainable Development Aspects Management

Approach

UC RUSAL arranges the activities in the field of sustainable development and corporate social responsibility based on global practices, international and Russian standards and principles. The Company follows:

·         the principles of the Global Compact,

·         the provisions of the Social Charter of Russian Business,

·         the approaches in the sphere of sustainable development, on which the Global Reporting Initiative and international standards of the Sustainability Accounting Standards Board (SASB) are based,

·         the provisions of ISO 26000:2010 standard.

The areas of the Company’s activities cover the main spheres of corporate social responsibility and sustainable development in accordance with the ISO 26000 standard and the United Nations Millennium Development Goals. The Company undertakes voluntary commitments, which are implemented through policies, programs and target indicators to achieve a balance of interests of business and society (see Table).

Management structure G4-35

Co-ordination of the activities on sustainable development aspects management is exercised by the Board of Directors, President, the Management Board, functional departments of the management company and corresponding subsidiaries of the companies.

The issues of occupational health, industrial safety and environment are considered directly at the level of the Board of Directors within the framework of the relevant Committee.

Governance bodies and departments of the management company and subsidiaries are responsible for the development and implementation of policies and action plans on sustainable development aspects in accordance with their functionality. Politicians and major corporate documents are approved by the Management Board of UC RUSAL.

Responsibilities for solving economic, social and environmental issues related to the aspects of sustainable development, as well as for consultations with stakeholders are implemented within the framework of the relevant functional duties of employees; the results are submitted to senior management within the existing corporate governance procedures. G4-36 G4-37

Senior management involvement

10 meetings of the Board of Directors were held in 2015 which passed the decisions on the Company's strategic development, including sustainable development issues (staff motivation, labor protection and industrial safety, environmental protection and development of the regions of the Company’s presence). G4-50

Following the results, all 10 meetings of the Board of Directors were attended by independent non-executive directors (with the exception of one director appointed in June 2015), which ensures objectivity and impartiality of the decision-making process.

Principles of sustainable development in the supply chain

Adoption of the Business Partner Code by the Company in 2015 marked the beginning of work with companies and organizations, with which UC RUSAL cooperates in the production process, and on aspects of sustainable development. For more information, see Sections “Ethics and Human Rights” and “Supply Chain”.

 


Contribution to Sustainable Development: the main directions, documents and targets G4-2

Direction

Content, contribution to sustainable development and interconnection with the strategy

Major corporate documents

Goals for the future

Management

Corporate governance, business ethics, corruption prevention, commitment to the sustainable development goals

Corporate Code of Ethics

Business Partner Code

Continuous improvement of management processes in conformity with best practices and in co-operation with stakeholders

Economic sphere

Effectiveness of investments and production - impact on regional development and labor markets, taxes and employees’ income

New products for customers, quality of products and service

Contribution to development of the sector - creation of the Aluminium Valley, Association of Aluminium Producers and Consumers

Preservation of innovation and scientific potential as advantages of the Company

Development Strategy of the Company till 2021

Technical Policy

Quality Policy

By 2020:

- to increase the share of value added products up to 55%.

- to reach the level of consumer satisfaction of more than 9 points (out of 10) by improving products and services;

- to increase the labor productivity.

Ecological sphere

Modernization of production facilities, development and introduction of new technologies and technological solutions - reducing the environmental impact, improving production efficiency

Climate Initiatives

Participation in international programs

Ecology Policy

Policy in the field of Occupational Health, Industrial and Fire Safety (OHIFS Policy)

By 2020:

- to refuse completely from consumption of the electric energy produced with the use of carbon materials, at Russian plants.

- to decrease annual energy consumption by aluminium smelters by 3400 GWh as compared to the 2011 level

By 2025:

- to limit emissions of greenhouse gases (GG) by at least 85% enterprises on primary aluminium production on the level not exceeding 6 tonnes of equiv. CO2 per tonne of produced aluminium, including direct and indirect emissions on all production chain, bauxite from extraction of bauxite to aluminum smelting

- to reduce specific GG emissions at aluminium smelters by 15% as compared to 2014

- to reduce specific GG emissions at alumina refineries by 10% as compared 2014

Social sphere

Creating new, more high-tech jobs

Safety, working conditions, reduction of industrial injuries and occupational diseases prevention

Development of staff potential, social package

Support for the regions of presence - social programs

Collective Labor Agreements. Personnel Policy. Personnel Training Policy

Policy in the field of Occupational Health, Industrial and Fire Safety (OHIFS Policy)

Agreements with the regions and cities of presence in RF

Strategy of social activities. Regulations on charitable activities

Strive to achieve zero injuries.

Ensure the compliance of the equipment and production processes with legal and regulatory requirements of labor protection


Improve working conditions in order to improve safety at workplaces