Sustainable development governance

Responsibility for providing control, methodology support and regulation of RusHydro Group’s sustainable low-carbon development, as well as preserving cultural heritage sites and biological diversity in accordance with Order No. 420 of June 15, 2018On Distribution of Tasks, Powers and Responsibilities Among RusHydro’s Managers., is assigned to member of the Management Board, First Deputy General Director – Chief Engineer.

Sustainable development activities are carried out by specialized units within the area of their functional responsibility:

  • Social responsibility – personnel management unit;
  • Cooperation with government authorities in the regions of the Company’s operations and creation of a favorable social environment for the Company’s efficient development – corporate communications unit, Far East Division;
  • Economic responsibility – unit of economic planning and investments, unit of production activity, unit of capital construction, and unit of financial and corporate law management;
  • Power generation, improvement of energy efficiency and environmental responsibility – unit of production activity; charity – corporate communications unit;
  • Providing charitable aid – corporate communications unit.

Operation of RusHydro’s different subdivisions and subsidiaries is coordinated at regular meetings of the working group on sustainable development to monitor the efficiency of implementation of key tasks in sustainable development for the period through to 2020 approved by RusHydro’s Order No. 614 of September 11, 2017.

Key sustainable development issues are reviewed at the meetings of the Board of Directors and the Company’s Management Board. The Committee on Reliability, Energy Efficiency and Innovation under RusHydro’s Board of Directors plays an important role in RusHydro’s sustainable development management and also preliminary reviews matters of long-term development of hydropower and energy based on other renewables (“RES”), as well as development of functional policies (technical, environmental, etc.), corporate standards in technical regulation, etc.

The Company has adopted a number of internal regulations outlining and governing the approach to sustainable development and corporate social responsibility (“CSR”). In 2018, a number of new internal regulations on environmental protection and social development were approved, including the new consolidated Environmental Policy of RusHydro Group (approved by Minutes No. 275 of the Board of Directors of August 9, 2018), as well as the Uniform Regulations on RusHydro Group’s Procurements (approved by Minutes No. 277 of the Board of Directors of October 4, 2018).

Internal regulations
CSR area Internal regulations
Sustainable production
  • RusHydro Group’s Development Strategy until 2020 with an outlook until 2025;
  • RusHydro’s Long-term Development Program for 2018–2022;
  • RusHydro’s Regulations on the Working Group on Technical Standards;
  • Regulations on Managing Investing Activities Performed in the Form of Capital Investments;
  • RusHydro’s Regulations on the Standardization System;
  • RusHydro’s Regulations on Internal Controls.
Procurement
  • The Uniform Regulations on RusHydro Group’s Procurements and other internal regulations developed to provide further details, including the Methodology for Reviewing the Reliability (Business Reputation) and Financial Standing of the Bidders.
Corporate ethics and anti-corruption
  • RusHydro’s Code of Corporate Ethics;
  • RusHydro’s Anti-Corruption Policy;
  • RusHydro’s Regulations on the Prevention and Management of Conflicts of Interest;
  • Regulations on the Procedure to Report Presents Received by RusHydro’s Employees during Official Events, Business Trips, etc.;
  • RusHydro’s Regulations on the Committees for Compliance with the Corporate Ethics Standards and Management of Conflicts of Interest;
  • Rules of RusHydro’s Line of Trust Operation;
  • RusHydro’s Comprehensive Program of Anti-Corruption Activities for 2016–2019.
Environmental impact
  • RusHydro Group’s Environmental Policy;
  • RusHydro’s Program of Energy Saving and Increased Energy Efficiency through to 2020;
  • RAO ES East Subgroup’s Energy Saving and Energy Efficiency Improvement Policy.
Health and safety
  • RusHydro’s Health and Safety Policy;
  • Policies on occupational health and safety of RusHydro’s subsidiaries.
Charity
  • The Company’s Charity and Sponsorship Policy;
  • Charity and Sponsorship Policy of the Company’s Subsidiaries.
Innovative development
  • Innovative Development Program of RusHydro Group for 2016–2020 with an outlook until 2025;
  • RAO ES East’s Innovative Development Program for 2016–2020 with an outlook until 2025;
  • Regulations on Design and Implementation of RusHydro’s Innovative Development Program;
  • Regulations on R&D Management Process in RusHydro’s Operations;
  • Regulations on the Intellectual Property Management Process in RusHydro Group;
  • Regulation on Planning and Monitoring the Progress of Activities as Part of the Innovative Development Programs of RusHydro Group and RAO ES East;
  • Regulation on Preparation, Adjustment and Monitoring of Implementation of Procurement Plans for Innovative and/or High-Tech Products;
  • Methodology for Assessment of Technical and Economic efficiency of Innovative Projects and the Temporary Procedure for Assessment of Technical and Economic Efficiency of Innovative Projects Implemented as R&D.
Personnel management
  • RusHydro’s Social Policy;
  • Regulations on RusHydro’s Employee Training;
  • Regulations on Personnel Certification at RusHydro’s Branches;
  • Regulations on the Database Formation of Candidates to Be Recruited at RusHydro’s Branches;
  • Regulations on RusHydro’s Talent Pool;
  • Concept of advanced human resource development From School to Workplace.