2022 Communication on Progress

PJSC "RusHydro"

Published date

October 12, 2022

No. of questions

64

Supplemental files

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    Key issues of sustainable development are considered at meetings of the Board of Directors and the Management Board of the Company. An important role is played by the Reliability, Energy Efficiency and Innovation Committee under the Board of Directors of PJSC RusHydro, which preliminary considers the issues of long-term planning for the development of hydropower and energy based on other RES, the development of functional policies (technical, environmental and others)

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Human rights: https://ungc-production.s3.us-west-2.amazonaws.com/commitment_letters/120951/original/06092017_Letter_of_Commitment_Global_Compact_RusHydro_N5034.pdf?1504685155 https://media.rspp.ru/document/1/7/d/7d00eeb3d677c5e587d24c0ce8103b2b.pdf Page 40. Labour Rights / Decent WorkL: https://ungc-production.s3.us-west-2.amazonaws.com/commitment_letters/120951/original/06092017_Letter_of_Commitment_Global_Compact_RusHydro_N5034.pdf?1504685155 Environment: https://ungc-production.s3.us-west-2.amazonaws.com/commitment_letters/120951/original/06092017_Letter_of_Commitment_Global_Compact_RusHydro_N5034.pdf?1504685155 http://www.eng.rushydro.ru/company/strategy/ Anti-Corruption: https://ungc-production.s3.us-west-2.amazonaws.com/commitment_letters/120951/original/06092017_Letter_of_Commitment_Global_Compact_RusHydro_N5034.pdf?1504685155

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    In Company and all the subsidiaries were introduced the system of corporate policies and standarts that regulate anti-corruption activities that achieve the main goals, objectives, justification and direction of decision and counteraction to the formation, including: the Code of Corporate Ethics, Anti-Corruption Policy, Regulations on the Prevention of dissemination of a conflict of interest in the RusHydro Group, Regulations on the procedure for benefits on offers, Regulations on the commission for compliance with corporate ethics and settlement of conflicts of interest, Anti-corruption clause in smuggling agreements with agents, etc. The occupational safety policy is mandatory for all structural divisions of the Company, its branches and controlled organizations, as well as other persons who may be affected by the production factors of RusHydro Group facilities. The rights and obligations of employees are regulated, with the exception of the Russian Federation, (A) of the Company, labor contracts. http://www.eng.rushydro.ru/sustainable_development/environmental-protection/environmental-policy/ http://www.rushydro.ru/activity/antikorruptsionnaya-deyatelnost/antikorruptsionnaya-politika-osnovnye-printsipy-podkhody-napravleniya/ http://www.rushydro.ru/upload/iblock/07a/politika-gruppy-v-oblasti-ohrany-truda.pdf (page 6)

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 90, 94) http://www.rushydro.ru/upload/iblock/a71/Antikorruptsionnaya-politika-s-izm.-2021.pdf (page 12)

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    According to the distribution of responsibility for the management of health and industrial safety issues, the functions of the Deputy General Director — Chief Engineer are the management of labor protection activities at hydropower facilities and the organization and control of the implementation of labor protection measures in the Company, including in terms of preventive work to minimize production risks and preserve the health of personnel. Also involved in the management are the Department of Industrial Safety and Labor Protection, which develops, organizes and controls the implementation of labor protection, health and industrial safety measures at the Company level, and the Labor Protection and Production Control Services of branches and controlled companies that develop, organize the execution and control of labor protection, health and safety measures. industrial safety directly in branches and controlled organizations. Responsible for the implementation of the Anti-Corruption Policy in the Company are the Board of Directors of the Company (the Audit Committee under the Board of Directors of the Company), the Chairman of the Management Board - the General Director of the Company, the Department for Control and Risk Management of the Company, the Ethics Commission. In accordance with the new organizational structure of PJSC RusHydro, approved by Order No. 58 dated 05.02.2021, the RusHydro environmental management system has the following structure. The first link is the RusHydro Group, from which the Executive Staff (Management Board), the Deputy Director General for Project Engineering and International Cooperation, the Department of Environmental Policy and Environmental Management, the Deputy Director General — Chief Engineer, the Department of Technical Regulation, Environmental Protection Specialists of branches and controlled companies participate. Further, the company has a permanent collegial expert body — the Scientific and Technical Council (NTS), which ensures the formation and functioning of a unified system of technical expertise of scientific and technical solutions, projects and programs for compliance with the requirements of Technical Policy and current regulatory and technical documents. To ensure environmental safety in the formation of new technical solutions, a specialized section of the NTS "Reservoirs and environmental protection" has been created. The third link is the Expert Community, which includes Research and design institutes and others. http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 90, 94) http://www.rushydro.ru/upload/iblock/a71/Antikorruptsionnaya-politika-s-izm.-2021.pdf (page 12)

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    The risks of the negative impact of production activities on the environment and climate are assessed. In order to prevent accidents, occupational diseases, microtrauma and other deterioration of the health of employees at the Group's production facilities, a set of measures is carried out, which includes the identification of hazardous production sites, risk assessment and accident investigation. The risks of lack of qualified personnel and violation of the labor legislation of the Russian Federation are assessed. http://www.rushydro.ru/upload/iblock/55c/Otchet-po-AKD-za-2021.pdf (page 3) http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 91, 143)

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    In order to minimize risks when interacting with counterparties, an updated Anti-Corruption Clause has been developed and implemented, which is mandatory for inclusion in contracts with all counterparties. Also, during signing contracts / agreements, all potential counterparties undergo an internal assessment procedure for signs of unreliability. Risk assessment and minimization is carried out for the personnel of contracting organizations working on the territory of the facilities of PJSC RusHydro. http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 93, 145)

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    The Company develops, organizes and controls the implementation of measures aimed at minimizing corruption risks. In order to minimize risks when interacting with counterparties, an updated Anti-Corruption Clause has been developed and implemented, which is mandatory for inclusion in contracts with counterparties. When concluding contracts/agreements, all potential counterparties undergo an internal assessment procedure for signs of unreliability. The Company has developed an action plan to reduce the risks of injury to RusHydro Group personnel for the period 2020-2023. Among the personnel of contracting organizations working on the territory of the facilities of the RusHydro Group, in 2021 there were 6 cases of injuries among workers. In this regard, urgent measures were also taken in all cases and an action plan was developed to exclude the impact of the traumatic factor on others. http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 90, 93, 145) http://www.rushydro.ru/upload/iblock/55c/Otchet-po-AKD-za-2021.pdf (page 3)

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    The Company develops, organizes and controls the implementation of measures aimed at minimizing corruption risks. In order to minimize risks when interacting with counterparties, an updated Anti-Corruption Clause has been developed and implemented, which is mandatory for inclusion in contracts with counterparties. When concluding contracts/agreements, all potential counterparties undergo an internal assessment procedure for signs of unreliability. http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 145)

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    The RusHydro Group Trust Line is the main tool for identifying, preventing and eliminating violations of the rights and legitimate interests of employees, consumers, contractors, corporate ethics, corruption and other offenses in the RusHydro Group.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    Optional comment
    The rules of operation of the RusHydro Group's Trust Line include and describe all of the above issues. http://www.rushydro.ru/form/

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The anti-corruption policy provides for the inadmissibility of sanctions against persons who report corruption. (page 22; http://www.rushydro.ru/upload/iblock/a71/Antikorruptsionnaya-politika-s-izm.-2021.pdf) The rules of operation of the RusHydro Group Trust Line guarantee the applicant the confidentiality of the information contained in the Application, as well as information relating to the private life of a citizen. An employee who has reported facts of unlawful acts that have become known to him, if necessary, is guaranteed protection under the laws of the Russian Federation and regulatory legal acts. (clauses 2.4, 2.5; http://www.rushydro.ru/form/). The anti-corruption clause provides for mutual actions of the Company and counterparties in relation to cases of corruption offenses. http://www.rushydro.ru/upload/iblock/a71/Antikorruptsionnaya-politika-s-izm.-2021.pdf http://www.rushydro.ru/form/

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The Company's anti-corruption system provides for prevention, identification of potentially risky areas in the field of combating corruption, investigates them, takes measures aimed at eliminating the causes and minimizing the consequences of detected violations, makes appropriate changes to the processes (if necessary), and regularly monitors the implementation of measures to prevent corruption .

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The motivation and remuneration policy of PJSC RusHydro is aimed at maintaining a competitive salary level. The remuneration systems of the RusHydro Group are established in accordance with the labor legislation of the Russian Federation and provide for an increase in the level of the real salary content of employees, as well as the dependence of motivation (bonuses) on the results of work (key performance indicators) of the companies and the work of each employee (individual bonus indicators), however, the company does not provide for separate remuneration criteria regarding the results works specifically on sustainable development. http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 83)

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    13

    Male (%)

    92

    Female (%)

    8

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    70

    Above 50 years old (%)

    30

    From minority or vulnerable groups (%)

    Information is not disclosed.

    Executive (%)

    8

    Independent (%)

    30
    Optional comment
    Information about the personal composition of the Board of Directors is not disclosed

    13. Do you produce sustainability reporting according to:

    Guidelines for the main indicators of corporate reporting on the contribution to the achievement of the UN Sustainable Development Goals until 2030 UNCTAD
    Optional comment
    When preparing the Report, principles were used, requirements and recommendations were taken into account: • Legislation of the Russian Federation; • Moscow and London Stock Exchanges; • Rules of Disclosure and Transparency of the UK Listing Authority; • Corporate Governance Code (recommended by the Bank of Russia); • Sustainability Reporting Standards (Global Reporting Initiative Sustainability Reporting Standards, GRI Standards) and industry application for energy companies (GRI G4 — EU); • Guidelines for the main indicators of corporate reporting on the contribution to the achievement of the UN Sustainable Development Goals until 2030 UNCTAD; • The FSB Task Force on Climate-related Financial Disclosures (hereinafter also referred to as TCFD) Standard for the Disclosure of Financial Information Related to Climate Change; • International Stakeholder Engagement Standard AA1000 Stakeholders Engagement Standard (AA1000SES); • internal documents of the Company (including the Corporate Governance Code of PJSC RusHydro, Regulations on the Information Policy of PJSC RusHydro, etc.).

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    Appendix No.21 Independent Limited Assurance Report
    Optional comment
    The annual report received an independent limited assurance opinion, but the questionnaire was not certified.

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Optional comment
    In the company, wages and social package are not differentiated by the type of employment contract, type of employment and gender. The principle of equality and non—discrimination on the basis of gender is observed in the RusHydro Group: the ratio of salaries for men and women is 1/1 for all categories of employees. Ensuring that workplaces meet the requirements of industrial safety is a priority area of activity in the RusHydro Group. Identification and assessment of occupational risks was carried out at the Group's enterprises. In order to prevent accidents, occupational diseases, microtrauma and other deterioration of the health of employees at the Group's production facilities, a set of measures is carried out, which includes: • assessment of working conditions taking into account a risk-oriented approach; • assessment of the state of working conditions at workplaces, determination of classes of working conditions; • industrial control over compliance with sanitary rules and the implementation of sanitary and anti-epidemic and preventive measures; • conducting interviews with employees and holding production meetings; • analysis of injury reviews in electrical installations and development of measures to prevent accidents; • detours of workplaces in order to identify violations of the requirements of labor protection, fire safety and industrial safety by own personnel and personnel of contracting organizations; • consideration of proposals of employees and the elected body of the primary trade union organization or other representative body authorized by employees in order to develop recommendations for improving working conditions and labor protection; • inclusion of health and safety (occupational safety) issues in official agreements with trade unions; • purchase of first aid kits and upgrade of a set of first aid kits; • ensuring the drinking regime of employees; • prevention of infectious diseases; • preventive vaccination of personnel; • training of workers in first aid skills to victims using robot simulators and a distance learning course; • organization of visits by employees of sports complexes and swimming pools; • provision of workers with overalls, safety shoes, personal protective equipment (PPE); • organization of storage of PPE, their care, repair and replacement; • providing workers with flushing and neutralizing agents; • provision of milk or other equivalent food products to workers engaged in work with harmful working conditions; • carrying out disinsection and deratization works. In order to monitor health, employers of the Group's enterprises organize mandatory preliminary and periodic medical examinations, as well as mandatory psychiatric examination of employees. In 2021, the facts of discrimination of employees on the basis of their health status were not revealed. Information (personal data) about the health of employees is protected in accordance with the legislation of the Russian Federation. Within the framework of the voluntary medical insurance program (VMI): • organization and provision of medical services to insured persons is carried out according to outpatient, inpatient, ambulance and emergency care programs; • outpatient and polyclinic services, emergency and planned inpatient treatment, emergency medical care, insurance for those traveling abroad are provided; • employees undergo preventive measures (vaccination and preventive examinations) that reduce the degree of threats to the life or health of an individual. VMI is part of the social package and covers 100% of employees. All employees of the RusHydro Group are subject to voluntary insurance against accidents and diseases. Full-time employees are provided with the following benefits: • voluntary health insurance; • accident and disease insurance; • disability/disability compensation; • maternity/paternity leave; • vacation and one-time financial assistance in connection with significant events in the life of an employee; • other payments and compensations in accordance with Collective agreements and local regulations. The average salary is 89,541 rubles, which is higher than the average in the regions of presence. The wages of entry-level workers on average exceed the minimum wage by 3 times, while in some regions of presence, the wages of entry-level workers exceed the minimum wage by more than 8 times.

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    -

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    unknown

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    2021

    Working conditions (wages, working hours)

    Optional comment
    http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf https://ar2017.rushydro.ru/ru/results/social-responsibility/personnel-policy http://www.rushydro.ru/upload/iblock/07a/politika-gruppy-v-oblasti-ohrany-truda.pdf

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Compliance with standards: GRI 407: Freedom of Association and Collective Bargaining (2016) Employees of RusHydro Group enterprises have the opportunity to fully exercise their right to freedom of association. Trade unions have been established and operate freely at most enterprises. In 2021, there were 29,024 members of trade union organizations in the RusHydro Group (44.1% of the number). [407-1] GRI 102: Standard Elements (2016) 102-41 Collective agreements All member companies of the ERA of Russia Association comply with the key OTC standards. It should be noted that PJSC RusHydro, in terms of providing benefits and guarantees to employees, provides for norms exceeding the OTC both in terms of the list and in terms of the amount of social benefits provided. [401-2] GRI 403: Occupational Health and Safety at work (2018) Occupational safety training and knowledge testing [403-5] Taking care of the health of employees [403-6] Consideration of proposals of employees and the elected body of the primary trade union organization or other representative body authorized by employees in order to develop recommendations for improving working conditions and labor protection; [403-4] inclusion of health and safety (labor protection) issues in official agreements with trade unions; [403-4] The Policy is mandatory for all structural divisions of the Company, its branches and controlled organizations, as well as other persons who may be affected by the production factors of RusHydro Group facilities. The communication of this Policy to the personnel of suppliers and contractors is also carried out by fixing the relevant obligations and its main provisions in the concluded contracts.

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Training on the organization of safe working conditions, in the appropriate conditions, is prescribed in the labor protection policy, which is mandatory for all structural divisions of the Company, its branches and controlled organizations, as well as other persons who may be affected by the production factors of RusHydro Group facilities. http://www.rushydro.ru/upload/iblock/07a/politika-gruppy-v-oblasti-ohrany-truda.pdf

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    93.6
    Optional comment
    http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 89)

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    44.1
    Optional comment
    In 2021, there were 29,024 members of trade union organizations in the RusHydro Group (44.1% of the number). http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 89)

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    22

    Non-executive board

    Optional comment
    http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 81)

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    1/1

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    35
    Optional comment
    In 2021, the RusHydro Group had 34 accidents with its own personnel, in which 35 employees were injured, 5 of them were fatal. As a result of accidents, 1 manager (male), 3 specialists (male) and 31 workers were injured: 27 men and 4 women. http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 92-93)

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0.326
    Optional comment
    Lost Time Injury Frequency Rate http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 92)

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Among the personnel of contractors working on the territory of the facilities of the RusHydro Group, in 2021 there were 6 cases of injuries (by the type of bruise, bone fracture, burn) workers: 4 men and 3 women. Urgent measures have been taken in all cases and an action plan has been developed to exclude the impact of the traumatic factor on other persons. http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 92-93)

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    The Company consistently allocates significant financial resources for measures related to occupational safety and prevention of occupational injuries. In the reporting period, there was an increase in labor protection costs associated with an increase in the costs of measures to improve working conditions in the workplace and measures to prevent diseases. These expenses include providing employees with personal protective equipment, measures to improve working conditions, measures to prevent diseases at work and measures to reduce injuries and prevent accidents at work. The main tool for ensuring compliance of personnel qualifications with professional requirements is occupational safety training with the use of a specialized training course, which includes an assessment of the knowledge of occupational safety requirements of employees and labor protection commissioners. Assessment of knowledge of occupational safety requirements includes testing of theoretical knowledge and practical skills of safe work. When preparing employees for a new position, on-the-job training and internship, knowledge testing, training and duplication (for operational and operational-repair personnel) are carried out. The thematic actions include measures to prevent injuries in electrical installations, when working at height, when working in confined spaces, when working on equipment operating under pressure, when performing construction work, during loading and unloading operations, when working with the use of lifting structures, devices and mechanisms, as well as measures to improve the culture of production, ensuring road safety, training personnel to work during special periods (autumn-winter, fire-hazardous, floods and floods) and training of personnel for the repair campaign. Moreover, the enterprises regularly conduct emergency and fire-fighting training, all kinds of safety briefings for their own personnel and personnel of contracting organizations. Ensuring that workplaces meet the requirements of industrial safety is a priority. A special assessment of working conditions at enterprises in 2021 showed that 28,508 employees work in workplaces where the levels of exposure to harmful and (or) hazardous production factors exceeded the levels established by hygienic standards. The identification and assessment of occupational risks was carried out at the enterprises. In order to prevent accidents, occupational diseases, microtrauma and other deterioration of the health of workers at production facilities, a set of measures is carried out, which includes an assessment of working conditions taking into account a risk-oriented approach, an assessment of the state of working conditions at workplaces, the definition of classes of working conditions, industrial control over compliance with sanitary rules and the implementation of sanitary anti-epidemic and preventive measures, conducting interviews with employees and holding production meetings, analysis of injury reviews in electrical installations and development of measures to prevent accidents and workplace detours in order to identify violations of labor protection, fire safety and industrial safety requirements by own personnel and personnel of contracting organizations. In order to monitor the health of employers of enterprises, mandatory preliminary and periodic medical examinations were carried out, as well as mandatory psychiatric examination of employees. In 2021, the facts of discrimination of employees on the basis of their health status were not revealed. Information (personal data) about the health of employees is protected in accordance with the legislation of the Russian Federation. A voluntary medical insurance program is also provided, within the framework of which medical services are provided under outpatient, inpatient, ambulance and emergency care programs, outpatient services, emergency and planned inpatient treatment, emergency medical care, insurance for those traveling abroad, as well as preventive measures that reduce the degree of life or health hazards threats to an individual (including vaccination). According to the results of the reporting period, 78% of employees were vaccinated against COVID-19. The program is part of the social package and covers 100% of employees. All employees of the RusHydro Group are subject to voluntary insurance against accidents and diseases. In 2022, work is planned aimed at eliminating occupational injuries, increasing employee responsibility for compliance with industrial safety requirements and forming corporate consciousness of the Production Culture of the RusHydro Group. As part of the Personnel Policy, an analysis of the structure of personnel by gender, age and other categories is carried out. Due to the stability of operating activities, PJSC maintains the list number of employees at the same level: 65,792 people as of 31.12.2021, which is only 0.3% less than last year. The decrease in the indicator is mainly due to the sale of assets of JSC Chuvash Power Supply Company in the third quarter of 2021 (the list number as of 31.12.2020 was 479 people). Organizational and staff measures were carried out to optimize the number of administrative and managerial personnel. Also, one of the priority tasks in the field of personnel management is to attract young specialists. Share of young workers (under 35 years old) it is 23.2% of the list number.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2018

    Water

    2018

    Oceans

    Forests / Biodiversity / Land Use

    2018

    Air Pollution

    2018

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2018

    Energy & Resource Use

    2018
    Optional comment
    The activities of the RusHydro Group in the field of environmental protection and rational use of natural resources are carried out in accordance with the approved Environmental Policy, which is based on the provisions of the state policy in the field of environmentally sustainable development and environmental safety, the Constitution of the Russian Federation, federal laws and other regulatory legal acts, international treaties of the Russian Federation in the field of environmental protection and rational use of natural resources. The environmental policy is mandatory for all organizations that are part of the contour of the RusHydro Group, as well as organizations that carry out joint activities with companies of the RusHydro Group on contractual terms. The selected items are included in the Environmental Policy approved on 09.08.2018.

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    Scope 2 Emissions

    The Company does not keep records of indirect greenhouse gas emissions.

    Emissions (tCO2e)

    Scope 3 Emissions

    The Company does not keep records of Scope 3 emissions.

    Emissions (tCO2e)

    Optional comment
    Number of Scope 1 emissions will be available during 2022.

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    25

    8. Has the organization acted to support climate change adaptation and resilience?

    When forming the updated Environmental Policy, global climate change and the need to adapt to the adverse effects of these changes were taken into account.

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    80

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    695200

    Groundwater:

    22246.4

    Surface water:

    570064

    Rainwater:

    Wastewater:

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    0

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    634400

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Sector-specific: Forest, biodiversity, and land use

    14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).

    Number

    Unknown

    Not applicable (Please provide additional information)

    Sites

    Hectares

    15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?

    Conversion of natural resources (hectares)

    256.66
    Optional comment
    In the conditions of construction and operation of energy facilities of the RusHydro Group, compensatory measures for the restoration of natural territories, as well as land reclamation, are mandatory. Activities related to land disturbance and, accordingly, restoration work and land reclamation were not carried out in the reporting year. The indicator reflects the area of disturbed land that has been worked out.

    16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?

    No

    No, but we plan to in the next 2 years

    Yes

    Forest ecosystem restoration

    Other ecosystem restoration

    Reforestation

    Natural regeneration

    Agroforestry

    Set-aside land

    -

    Biodiversity offsetting

    -

    Other (please specify in text box)

    Sector-specific: Air pollution

    17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

    Emissions (tCO2e)

    Unknown

    Not applicable (Please provide additional information)

    NOx

    58400

    SOx

    53800

    Volatile Organic Compounds (VOC)

    Hazardous air pollutants (HAP)

    Particulate matter (PM10)

    64700

    Persistent organic pollutants (POP)

    Other (please specify in text box)

    Sector-specific: Waste

    18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

    Waste Generated (t)

    1956500

    19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

    Hazardous Waste Ratio (%)

    0.004
    Optional comment
    In 2021, the mass of income of hazard classes I and II is 0.081 thousand tons, while the total mass of waste of all classes was 1956.5 thousand tons.

    20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

    Single-use plastics (tonnes)

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Low—carbon development is one of the main tasks facing the RusHydro Group. At the same time, the Environmental policy of PJSC RusHydro sets such targets until 2025 as reducing greenhouse gas emissions in direct and specific terms and increasing the installed capacity of low-carbon generation. In 2021, the total volume of investments in environmental protection amounted to 2.1 billion rubles, due to an increase in the cost of paying for environmental services and the cost of capital repairs of fixed assets for environmental protection. The share of excess payments in the total amount of fees for negative impact on the environment3 in 2021 for the RusHydro Group was 19.8%. PJSC RusHydro has developed and is implementing a list of measures aimed at reducing the accumulation of ash and slag materials for the period up to 2025, technical documentation has been developed for the software, reflecting possible uses of ash (in particular, the production of concrete mixtures, the production of construction products, road construction, land reclamation, and others), and benchmarks have been established. As part of the implementation of these measures in 2021, more than 38 thousand tons of ash were sold by the RusHydro Group, despite the drop in demand. Ash and slag materials are used in the implementation of projects of the RusHydro Group in the Sakhalin Region and the Kamchatka Territory, in particular, for filling roads in the village of Deputatsky and at the Mutnovskaya Geo-power station, leveling territories, creating substrates during repair work at facilities. In addition, a project is being considered to create a complex for the processing of ash and slag materials through the production of building materials in the Khabarovsk Territory. Part of the network infrastructure of the RusHydro Group is located in the territories of specially protected natural zones, where rare species of plants and animals live. Due to the specifics of its activities, the Company pays special attention to the conservation and restoration of fish stocks of rivers. In 2021, field studies were conducted on the water bodies of 52 hydroelectric power plants and about 3.9 million fry of valuable and especially valuable fish species were released for stocking rivers and reservoirs. As part of the environmental direction of the charity program, the Company carries out work on the conservation of biodiversity, the formation of a careful attitude to the environment, systematic work with specially protected natural territories. In the conditions of construction and operation of energy facilities of the RusHydro Group, compensatory measures for the restoration of natural territories, as well as land reclamation, are mandatory. Activities related to land disturbance and, accordingly, restoration work and land reclamation were not carried out in the reporting year.

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    2021
    Optional comment
    The anti-corruption policy of PJSC RusHydro was approved by the decision of the Board of Directors of PJSC RusHydro on December 25, 2017 (Minutes No. 263 dated December 28, 2017) as amended by the decision of the Board of Directors dated November 25, 2021 (Minutes No. 336 dated November 26, 2021) http://www.rushydro.ru/upload/iblock/a71/Antikorruptsionnaya-politika-s-izm.-2021.pdf

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    The following policies have been approved and are in effect to guide employees when in doubt and/or in situations that may constitute a conflict of interest, such as in relation to gifts and hospitality, donations, sponsorships or interactions with government officials: Prevention and Resolution Policy conflict of interest in the RusHydro Group, Regulations on the procedure for notification of gifts. http://www.rushydro.ru/activity/antikorruptsionnaya-deyatelnost/vnutrennie-normativnye-dokumenty-i-metodicheskie-materialy/

    Prevention

    3. Who receives training on anti-corruption and integrity?

    Optional comment
    http://www.rushydro.ru/upload/iblock/55c/Otchet-po-AKD-za-2021.pdf page 14-16

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    Optional comment
    Training is held annually.

    4. Does the company monitor its anti-corruption compliance programme?

    Optional comment
    The Company on an annual basis reviews and approves reports on the implementation of the Anti-Corruption Program (compliance programs). The report is approved by the Management Board of the Company and the Audit Committee under the Board of Directors. The report is published annually on the Society's website. Also, twice a year, the Company reviews and approves reports on the work of the Trust Line of the RusHydro Group, where it consolidates information on received requests, their topics and measures taken. According to the results of 2021, in the Anti-Corruption Rating of Russian Business, RusHydro Group was assigned the highest class "A1", characterizing it as a company with the highest level of anti-corruption and the minimum level of corruption risks, and, accordingly, the minimum level of associated threat to investors, creditors, business partners and other interested parties. The Company has been a member of the Anti-Corruption Charter of Russian Business since 2013. Twice a year, the Company submits a declaration to the Russian Union of Industrialists and Entrepreneurs confirming the Company's adherence to the basic principles of the Charter. In 2021, on the basis of the submitted declaration, the RSPP once again confirmed the compliance of the Company's anti-corruption system with the requirements of the Charter. http://www.rushydro.ru/upload/iblock/a71/Antikorruptsionnaya-politika-s-izm.-2021.pdf (5.3-5.5, section 7) http://www.rushydro.ru/upload/iblock/55c/Otchet-po-AKD-za-2021.pdf

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    -

    Confirmed during the current year, and related to this year

    0
    http://www.rushydro.ru/upload/iblock/b16/Godovoj-otchet-2021.pdf (page 145)

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    Individual review of cases by the Ethics Commission

    7. Does your company engage in Collective Action against corruption?

    Reports on the implementation of measures to comply with this Policy are submitted for consideration by the Board of Directors (Audit Committee) Societies.
    Optional comment
    The Company is a member of the Anti-Corruption Charter of Russian Business. Regularly participates in public events (forums, conferences, seminars, etc.) in the field of combating corruption. Participates in legislative initiatives. http://against-corruption.ru/reestr/?companyName=%CF%F3%E1%EB%E8%F7%ED%EE%E5+%E0%EA%F6%E8%EE%ED%E5%F0%ED%EE%E5+%EE%E1%F9%E5%F1%F2%E2%EE+%AB%D4%E5%E4%E5%F0%E0%EB%FC%ED%E0%FF+%E3%E8%E4%F0%EE%E3%E5%ED%E5%F0%E8%F0%F3%FE%F9%E0%FF+%EA%EE%EC%EF%E0%ED%E8%FF+%96+%D0%F3%F1%C3%E8%E4%F0%EE%BB

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    In the reporting period, a number of measures aimed at preventing and combating corruption were implemented within the framework of the Comprehensive Anti-Corruption Program of PJSC RusHydro. Following the principles of honest and open business, PJSC "RusHydro" discloses information about the activities carried out in the field of anti-corruption as widely as possible. In the reporting year, appeals and reports related to the Anti-Corruption Policy of the Company and the enterprises of the RusHydro Group were published, and information about the adopted anti-corruption documents, information and methodological materials, and current anti-corruption regulations were updated. Measures were taken to prevent the Company's employees from committing illegal actions. Ethics and Conflict of Interest Resolution Commissions have been established and are functioning on a permanent basis in the RusHydro Group. As part of the measures to prevent, identify and resolve conflicts of interest, the RusHydro Group collected and analyzed data on income (declarations) of 304 employees (managers), and for all identified cases, measures were taken to resolve/prevent conflicts of interest in the future. 106 candidates applying for senior positions in the RusHydro Group were checked. According to the results of the audit, all candidates for positions have been approved, while signs of a potential conflict of interest (the risk of a conflict of interest in the future) have been identified for 15 candidates, and recommendations have been made to prevent its implementation. As part of the approval of draft contracts and additional agreements, 1,308 counterparties were checked to assess their business reputation, financial stability, as well as the presence of conflicts of interest. According to the results of the audit, the facts and signs of conflicts of interest between the managers (founders) of potential counterparties and employees of the Company were not revealed; In the reporting year, a new interactive course "The Policy of PJSC RusHydro in the field of anti-corruption was developed and implemented, and an annual testing of 397 employees (managers and specialists) on anti-corruption legislation was conducted. Moreover, the feedback form on the page of the RusHydro Group Helpline has been modified. In the Company on a permanent basis, this Line. The Department of Control and Risk Management is responsible for organizing the process of receiving, accounting, reviewing and sending responses to applicants. http://www.rushydro.ru/upload/iblock/55c/Otchet-po-AKD-za-2021.pdf