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Social responsibility and corporate sustainability report 2015

About this Report

This document is a Social Responsibility and Corporate Sustainability Report of Federal Grid Company for the year 2015. This is the ninth non-financial report of the Company. In accordance with the Company’s policy to improve its openness and transparency, such reports have been published annually since 2007. G4-28 G4-29 G4-30

GRI G4 ‘In Accordance’ option

We report in accordance with the Core option. G4-32

This Report has been prepared based on the following international standards:

  • Sustainability Reporting Guidelines (v. G4) of the Global Reporting Initiative (GRI);
  • GRI sector disclosures for electric utilities;
  • AA1000SES Stakeholder Engagement Standard (2015).

The Report includes data on the Company’s activities from 01 January 2015 to 31 December 2015, as well as plans and commitments for 2016. Federal Grid’s performance results, financial and economic indicators that are included in the Social Report are based on our RAS financial statements. G4-17

Traditionally, the purpose of the Report is to inform a wide range of stakeholders about the Company’s activities, its strategy and mission, social responsibility and corporate sustainability policy, key events and performance, crisis response measures, import substitution policy, economic, social and environmental impact, and stakeholder engagement.

The Report contains forward-looking statements with respect to operating, financial, economic and social performance indicators that characterise further development of the Company. Our assumptions and intentions are subject to political, economic, social and legal situation in Russia and in the world. Due to this, the Company’s actual performance may differ from forecasts.

In accordance with the GRI G4 Guidelines, when switching to a new version in 2015, a procedure was developed and implemented for determining materiality of key topics (aspects) of Federal Grid Company’s operations, as a result of which a materiality matrix was made (for further details, see the 2014 CSR Report, page 49).

In 2016, when preparing the 2015 Report, the materiality matrix was updated through a questionnaire survey of internal stakeholders G4-18 G4-23 . 26 questionnaires were completed.

Aspects included in the area of highest importance for the Company and stakeholders are treated as priority and subject to mandatory disclosure in full (i.e. the Report will disclose information about management approaches and performance indicators). They are placed in the upper right (‘red’) corner of the map. The list of fully disclosed aspects also includes aspects from the ‘blue’ zone of the map.

Aspects: G4-19

1. Economic performance
2. Presence in the labor markets
3. Indirect economic impacts
4. Procurement practices
5. Materials
6. Energy
7. Water
8. Biodiversity
9. Emissions, effluents and waste
10. Environmental impacts of the reporting Company’s
products and services
11. Compliance with environmental protection requirements
12. Transport
13. General investments in environmental protection
14. Company’s management of suppliers’ environmental impact
15. Supplier environmental assessment
16. Environmental grievance mechanisms
17. Employment
18. Labor/Management Relations
19. Occupational health and safety
20. Training and education
21. Equal remuneration for women and men
22. Diversity and equal opportunity
23. Supplier Assessment for Labor Practices

24. Labor practices grievance mechanisms
25. Investment
26. Non-discrimination
27. Freedom of association and collective bargaining
28. Child labor
29. Forced or compulsory labor
30. Security practices
31. Indigenous Rights
32. Assessment of the Company’s units for observance of human rights
33. Supplier Human Rights Assessment
34. Human rights grievance mechanisms
35. Local Communities
36. Anti-corruption
37. Contribution to government policy making
38. Anti-competitive Behavior
39. Compliance with legislative requirements
40. Supplier assessment for impacts on society in the regions where the Company operates
41. Grievance mechanisms for impacts on society in the regions where the Company operates
42. Customer health and safety
43. Product and service labeling
44. Marketing communications
45. Compliance with the product responsibility requirements
46. Customer privacy

Aspect boundaries: PJSC FGC UES, including all branches (MES and PMES). G4-20

Aspects are not material outside the organisation. G4-21

Adhering to the principles of stakeholder engagement, the Company conducted public hearings of the draft Report on 22 April 2016. The results of these hearings and stakeholder recommendations were incorporated in the Report. The minutes of the hearings were agreed with the participants in the dialogue and included in the Appendix 5 to the Report.

The reliability of data included in the Report is ensured during the collection and consolidation of information using standard procedures and confirmed by the departments responsible for the preparation of the corresponding information unit. The data is subject to an internal approval, its completeness and accuracy is verified by structural divisions that submit the data, and by functional units of the Company’s departments. If external information is used, a reference is provided to the source.

The Report has been externally assured. An External Assurance Statement is also included in this Report (see Appendix 4 to the Report).

Interactive version of the 2015 Report, as well as previous reports of Federal Grid Company in electronic formal are available on the corporate website (http://www.fsk-ees.ru/ shareholders_and_investors/disclosure_of_information/ annual_reports/).

Please refer any questions related to the 2015 Report and its contents to the Department for External Communications and Government Relations at: 8 (800) 200 18 81 (ext. 20–97)
and e-mail: ratnikova-yd@fsk-ees.ru . G4-31

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