UC RUSAL Sustainability report 2016


GRI Table and compliance with UN Global Compact principles

Compliance of the Report with the GRI G4 Guidance, the UN Global Compact principles and theRules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Common standard reporting elements

GRI Indicator

Report section

UN Global Compact

Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

 

Comment

Strategy and analysis

G4-1

Statement of the Chief Executive

Statement of the Chief Executive Officer

Strategy

 

 

 

G4-2

Description of key impacts, risks and opportunities

Risk analysis

 

HKEx Appendix 27 Para 9

 

Organisation profile

G4-3

Organisation name

Profile

 

 

 

G4-4

Types of products and services

Key types of products

 

 

 

G4-5

Headquarters location

Profile

 

 

 

G4-6

Countries of operation and location of business units

Profile

 

 

Please see also UC RUSAL Annual Report for 2016, p. 8

G4-7

Nature of ownership and legal form

Shareholding structure

 

 

 

G4-8

Markets in which the organisation operates

Key types of products

 

 

 

G4-9

Scope of the organisation

Profile

 

 

Please see also UC RUSAL Annual Report for 2016, p. 6-7

G4-10

Number of staff

Staff structure and personnel movement

Staff structure in 2016

 

HKEx Appendix 27-KPI B1.1

 

G4-11

Percentage of staff covered by collective bargain agreements

Social partnership

Principle 3

 

In accordance with Article 43 of the Labour Code of the Russian Federation: the collective bargain agreement applies to all employees of the Company.

Please see also UC RUSAL Annual Report for 2016, p. 77-78

G4-12

Organisation supply chain

Supply chain

 

HKEx Appendix 27 KPI В5, B6

 

Please see also UC RUSAL Annual Report for 2016, p. 5

G4-13

Changes in scale, structure, ownership, or supply chain

Profile

 

 

 

G4-14

Application of the precautionary principle

Participation in industry initiatives

 

 

 

G4-15

Economic, environmental, social principles and initiatives, to which the organization has acceded or which it has supported

Global sustainable development goals

Participation in industry and national initiatives.

About the report

 

HKEx Appendix 27 KPI A3.1, В5, B8

 

G4-16

Memberships in association

Participation in industry initiatives

Interaction with stakeholders

 

 

 

Identified material aspects and boundaries

G4-17

Legal entities whose reports were included in the consolidated financial statements

About the Report. Reporting boundary

 

 

 

G4-18

Methodology of definition of report content and aspect boundaries

About the Report. The process of identification of material aspects

 

 

 

G4-19

Al material aspects

About the Report. Material aspects of the Report and the boundaries of the aspects

 

 

 

G4-20

Material aspects within the organisation

About the Report. Material aspects of the Report and the boundaries of the aspects

 

 

 

G4-21

Material aspects outside the organisation

About the Report. Material aspects of the Report and the boundaries of the aspects

 

 

 

G4-22

Results of all reformulations given in previous reports and their causes

Data preparing

 

 

 

G4-23

Material changes in the scope and boundaries of aspects compared to previous reporting periods

Data preparing

 

 

 

Interaction with stakeholders

G4-24

List of stakeholders

Interaction with stakeholders. Management approach

 

 

 

G4-25

Principles for the identification and selection of stakeholders

Interaction with stakeholders. Management approach

 

 

 

G4-26

Approach to the organisation of stakeholder relations

Organisation of interaction with stakeholders

Employee communication mechanisms

 

 

 

G4-27

Key themes and concerns raised by the stakeholders

Organisation of interaction with stakeholders

 

 

 

Overview of the report

G4-28

Reporting year

About the Report. General information about the Report

 

 

 

G4-29

Date of publication of the previous report

About the Report. General information about the Report

 

 

 

G4-30

Reporting cycle

About the Report. General information about the Report

 

 

 

G4-31

Contact person for inquiries about the report

About the report

 

 

 

G4-32

GRI Content Index

Appendix 1

 

 

 

G4-33

Policy and practice of organisation with regard to external acknowledgment of the report

About the Report. Acknowledgment

 

 

 

Corporate governance:

G4-34

Corporate governance structure

Management bodies

 

HKEx Appendix 27 para 8

Please see also UC RUSAL Annual Report for 2016, Corporate Governance Report, p. 181-201

G4-35

Procedure for the delegation of authority to address economic, environmental and social issues from the highest authority to other staff members

Management of the aspects of sustainable development. Governance structure

 

HKEx Appendix 27 para 10

 

G4-36

Manager/managers responsible for economic, environmental and social issues

Management of the aspects of sustainable development. Governance structure

 

 

 

G4-37

Procedures for consultation on economic, environmental and social issues between stakeholders and the highest body

President

Risk analysis

Monitoring, reporting and performance evaluation

Labour relations

Management of the aspects of sustainable development. Governance structure

Employee communication mechanisms

 

HKEx Appendix 27 para 9

HKEx Appendix 27 KPI В4.2

 

G4-38

Composition of the highest corporate body and its committees

Board of Directors

 

 

Please see also UC RUSAL Annual Report for 2016, Corporate Governance Report, p. 182-187

G4-39

Position of the chairman of the highest body of corporate governance

Board of Directors

 

 

 

G4-40

Procedures for nomination and selection of candidates for membership of the highest body of corporate governance and its committees. Selection criteria

Composition of the Board of Directors

 

 

Please see also UC RUSAL Annual Report for 2016, p. 182-188

G4-41

Procedures used by the highest authority to prevent conflicts of interest

Composition of the Board of Directors

 

 

Company position and related actions

with regard to the conflict of interest  are stated

in the Code of Ethics, section 3.6 Conflict of Interest

G4-42

The role of the highest authority and executive management in formulating, approving and updating the formulation of the goals, values, mission, policies and objectives of the organisation

Board of Directors

 

HKEx Appendix 27 para 8

 

G4-43

Measures used to develop and enhance the collective knowledge of members of the highest authority in relation to economic, environmental and social issues

Performance evaluation and training

 

 

 

G4-44

Evaluation of the work of the highest body of corporate governance

Performance evaluation and training

 

 

 

G4-45

The role of the highest corporate governance body in identifying and managing impacts, risks and management opportunities

Risk analysis

 

HKEx Appendix 27 para 9

Please see also UC RUSAL Annual Report for 2016, p. 192-199

G4-46

The role of the highest corporate governance body in analysing the effectiveness of the risk management practices used by the organisation

Monitoring, reporting and performance evaluation

 

HKEx Appendix 27 para 9

Please see also UC RUSAL Annual Report for 2016, p. 186

G4-47

How often does the highest corporate governance body analyse the economic, environmental and social impacts, risks and opportunities

Monitoring, reporting and performance evaluation

 

HKEx Appendix 27 para 9

 

G4-48

Title of the person who officially checks and approves the report

About the report

 

 

 

G4-49

Procedure for informing the highest corporate authority about critical issues

Risk analysis

 

HKEx Appendix 27 para 9

 

G4-50

Nature and total number of critical issues brought to the attention of the highest corporate governance, mechanisms for their review and resolution

Management of the aspects of sustainable development. Governance structure

 

HKEx Appendix 27 para 10

 

G4-51

Rules of remuneration of the members of the higher corporate government authority and executive management

Compensation policy

 

 

Please see also UC RUSAL Annual Report for 2016, Corporate Governance Report, p. 176-177, 191

G4-52

Procedure for the determination of the compensation

Compensation policy

 

 

Please see also UC RUSAL Annual Report for 2016, Corporate Governance Report, p. 176-177, 191

Ethics and integrity

G4-56

Organisation's values, principles, standards and norms of conduct, codes of conduct/codes of ethics

Ethics and human rights.

Principle 1

 

 

G4-57

Internal and external mechanisms for consultation on ethical and law-abiding behaviour, as well as on issues related to the manifestation of bad faith

Code of Ethics and ethics officers

Principle 1

 

Please see also UC RUSAL Annual Report for 2016, p. 8

G4-58

Internal and external mechanisms for reporting unethical or unlawful conduct/bad faith

Ethics and rights

rights

Principle 1

HKEx Appendix 27 KPI B7.2

 

 

 

 

 

 

Specific standard reporting elements

Economic category

Economic performance

GRI Indicator

Report section

UN Global Compact

HKEx

Comment

G4-EMS

Overview of management approaches

Quality management system

Business system

UC RUSAL

 

 

 

G4-EC1

Direct economic value created and distributed

Strategy

 

 

 

G4-EC2

Financial aspects and other risks and opportunities for the organisation's activities related to climate change

Climate change

Principle 7

 

 

G4-EC3

The coverage of organisation's commitments related to pension plans with fixed benefits

The workers of UC RUSAL participate in the pension plans of the countries of operation. The Company allocates funds for the future pensions of its employees pro rata to the amount of the payroll. Targeted funds have been established for this purpose in different countries

 

 

Please see also UC RUSAL Annual Report for 2016, p. 238, 281

G4-ЕС4

Financial assistance received from the state

Scientific and technological development. Management approach

 

 

 

G4-EC6  Share of senior managers in the material areas of operation of the organisation, recruited from the local population

Gender composition of workers

 

 

 

Indirect economic impact

G4-EC7

Development and impact of infrastructure investment and gratuitous services

Participation in the development of the territories of operation

Principle 8, 9

 

 

G4-EC8

Material indirect economic impacts, including the area of impact

Participation in the development of the territories of operation

Principle 8, 9

HKExAppendix 27 KPI B8.1, B8,B8.2

 

MM8

Number and share of sites, where artisanal or small-scale development is taking place

 

 

 

None

 

 

 

 

 

Environmental category

GRI Indicator

Report section

UN Global Compact

HKEx

Comment

G4-EMS

Overview of management approaches

Environmental protection. Approach. Management structure

 

 

 

Materials

G4-EN2

Share of materials representing recycled or reusable waste

Waste

 

Principle 8

 

 

Energy

G4-EN5

Energy intensity

Energy consumption

8

HKExAppendix 27 KPI A2.1 (part)

Partially. The information on the energy intensity of production and on the reduction of power expenses for production of 1 tonne of aluminium is given by separate production facilities

G4-EN6

Reduce energy consumption

Energy consumption

8

HKExAppendix 27 KPI A2.3

Water

G4-EN8

Total number of drawn water by source

Water resources

Principle 8

HKExAppendix 27 KPI A2.2

 

G4-EN9

Water sources that are significantly influenced by the water drawing of the organisation

Water resources

Principle 8

HKExAppendix 27 KPI A2.4 (part)

 

G4-EN10

Share and total volume of water reused

Water resources

Principle 8

HKExAppendix 27 KPI A2.4

 

Biodiversity

G4-EN11

Production sites owned, leased or administered by the organisation and located in protected natural territories and territories with high value of biodiversity beyond the boundaries of protected natural territories, or adjacent to such territories

Biodiversity

Principle 8

 

 

Emissions

G4-EN19

Cutting greenhouse gas emissions

Climate change

Principle 7, 8, 9

HKExAppendix 27 KPI A1.5

 

Discharges and wastes

G4-EN22

Total volume of discharges indicating the quality of the drain water and the receiving facility

Water resources

Principle 8

 

 

G4-EN23

Total waste mass by type and methods of treatment

Waste

Principle 8

HKExAppendix 27 KPI A1.3 (part), A1.6 (part)

 

MM1 
Number of lands (owned or leased for production activities), disturbed and recultivated

Waste

Principle 8

 

 

Products and services

G4-EN27

Degree of reduction of the environmental impact of products and services

Environmental results of the introduction of new technologies and projects

 

HKExAppendix 27 KPI A3.1 (part)

 

General information

G4-EN31

Total expenditure and investment in environmental protection by type

Investments in environmental protection

Principle 7, 8, 9

 

 

 

Social category

GRI Indicator

Report section

UN Global Compact

HKEx

Comment

Labour practices and decent work subcategory

G4-EMS

Overview of management approaches

Employees. Management approach

 

 

 

Employment

G4-LA1 
Total number and share of newly recruited staff as well as turnover of personnel by age group, sex and region

Staff structure and personnel movement

Principle 6

HKExAppendix 27 KPI B1.2

The indicator is partially reflected

G4-LA2 
Benefits granted to full-time employees

Social support. Main results in 2016

Occupational medicine

 

HKExAppendix 27 KPI B1

UC RUSAL provides the same social package to all full-time employees

Staff-management relationships

G4-LA4 
Minimum period of notification for significant changes in the organisation's operations

Employee communication mechanisms

Principle 3

 

In accordance with the legislation of the countries of operation

Health and safety in the workplace

G4-Overview of management approaches

Work safety

 

 

 

G4-LA5 
Share of all staff represented in the official joint committees on health and safety

Collective bargain agreements

Principle 3

HKExAppendix 27 KPI B2.3

 

G4-LA6 
Types and levels of industrial injuries, occupational diseases, lost day rate and absentee rate, and total number of fatalities related to work, by region and sex

Work safety. Performance

Occupational medicine

Principle 1

HKExAppendix 27 KPI В2.1,В2.2

 

G4-LA7 
Workers with high injury rate and high risk of diseases associated with their occupation

Work safety. Performance

Work safety. Actions

Occupational medicine

 

 

 

G4-LA8 
Reflection of health and safety issues in formal agreements with trade unions

Social partnership

Collective bargain agreements

Principle 1

 

 

Training and education

G4-LA10 
Lifelong skills and education development programmes designed to support staff's ability to work, as well as to support them in completing their careers

Internal talent pool

Education and development

Functional academies

Modular vocational training system

 

HKExAppendix 27 KPI B3,В3.1 (part)

 

Diversity and equal opportunities

G4-LA12 
The composition of the organisation's governing bodies and major categories of staff with structure by gender, age group, minority group and other characteristics of diversity

Composition of the Board of Directors

Gender composition of workers

 

 

Please see also UC RUSAL Annual Report for 2016, Corporate
Governance 
Report, p. 190

Assessment of suppliers' labour practices

G4-LA14

Share of new suppliers evaluated according to the criteria of the labour relationship practice

Requirements for suppliers in the area of health and safety

 

HKExAppendix 27 KPI В5.2 (part)

 

 

 

Mechanisms for complaints about labour practices

G4-LA16 
Number of complaints about labour practices filed, processed and settled through formal complaint mechanisms

Code of Ethics and ethics officers

Principle 1

 

 

Human rights

G4-HR2 
Total number of hours of training of staff in policies or procedures related to the human rights aspects material for the operations of organisation, including the proportion of trained staff

Labour relations

 

 

 

Non-discrimination aspect

G4-HR3 
Total number of cases of discrimination and corrective actions taken

Implementation of the human rights policy of the Company

Provision with labour resources

Principle 6

HKExAppendix 27 KPI B4,B5, B1

 

Freedom of association and collective bargaining aspect

G4-HR4 
Identified business units and suppliers, whose right to use freedom of association and collective bargaining may be violated or at considerable risk, and actions taken to support these rights

Labour relations

Employee communication mechanisms

Principle 3

HKExAppendix 27 KPI B1

 

Child labour aspect

G4-HR5 
Identified business units and suppliers with a significant risk of child labour

Implementation of the human rights policy of the Company

Labour relations

Principle 5

HKExAppendix 27 KPI B4.1 – B4.2 (part)

Since the nature of the production excludes the risk of child labour, this aspect is considered to be irrelevant

Forced or compulsory labour aspect

G4-HR6 
Identified business units and suppliers with significant risk of forced or compulsory labour, as well as actions taken to eliminate all forms of forced and compulsory labour

Implementation of the human rights policy of the Company

Labour relations

Principle 4

HKExAppendix 27 KPI B4.1 – B4.2 (part)

 

Security practices aspect

G4-HR7 
Share of security officers trained in policies and procedures on human rights aspects related to the operations

Ethics and human rights. Labour relations. Security

 

 

 

Rights of indigenous and small peoples aspect

G4-HR8 
Total number of cases of violations affecting the rights of indigenous and small peoples and the actions taken

Implementation of the human rights policy of the Company

Labour relations. Local communities

 

 

 

MM5

Total number of works in the territories of indigenous and small peoples and related territories

Code of Ethics and ethics officers

Local communities

Results in 2016

 

 

 

MM6

Number and description of significant land-use disputes and the rights of indigenous and small peoples

 

 

 

No such situations were identified during the reporting period

Assessment aspect

G4-HR9 
Total number and percentage of business units subject to human rights assessment

Ethics and human rights. Management approach

Labour relations

 

 HKExAppendix 27 KPI  B4

 

Mechanisms for filing of complaints about human rights violations

G4-HR12 
Number of complaints relating to human rights impact, filed, processed and settled through formal complaint mechanisms

Code of Ethics and ethics officers

Hotline

 

 

 

Society subcategory

G4-EMS

Overview of management approaches

Investing in community development. Management approach

 

 

 

Local communities aspect

G4-SO1 
Share of business units with implemented programmes of interaction with local communities, programmes of assessment of the impact on local communities and community development programmes

Investing in community development. Management approach

 

HKExAppendix 27 KPI B8 (part)

 

Fight with corruption aspect

G4-SO1

Percentage of business units with completed programmes of interaction with local communities and assessment of impact of operations on local communities and programmes of development of local communities

Investing in community development. Management approach

 

 

 

G4-SO3 
The total number and share of business units, for which the risk assessment of corruption was conducted and the significant risks identified

Fight against corruption and fraud prevention

Principle 10

 

 

G4-SO4 
Information on anti-corruption policies, practices and training

Fight against corruption and fraud prevention

Implementation of the human rights policy of the Company

Principle 10

HKExAppendix 27 KPI B7

 

G4-SO5 
Confirmed cases of corruption and actions taken

Fight against corruption and fraud prevention

Principle 10

HKExAppendix 27 KPI B7.1

 

Public policy aspect

G4-SO6 
Total monetary expression of donations for political purposes by country and recipient/beneficiary

 

 

 

None

Product liability subcategory

G4-EMS

Overview of management approaches

Efficiency management. Quality Management System. Supply chain. System of relations with suppliers

Achievement of targets

 

 HKExAppendix 27 KPI B6.2

 

Health and safety of the consumer aspect

G4-PR1

Share of significant categories of products and services, whose impact on health and safety is assessed to identify opportunities for improvement

Work safety. Management system

 

 

 

G4-PR2

Total number of cases of non-compliance with regulatory requirements and voluntary codes regarding the impact on the health and safety of products and services

Interaction with consumers. Management approach

 

HKExAppendix 27 KPI В6(part),

В6.1, B6.2

 

Marking of products and services aspect

G4-PR5 
Results of customer satisfaction surveys

Customer satisfaction analysis

 

HKExAppendix 27 KPI B6.2