Social responsibility

HR Policy

Staffing with qualified and responsible managerial and engineering personnel is a major strategic objective that is the Company's focus in personnel management. The Company`s HR policy addresses the following problems:

  • attracting new employees with the necessary competencies, skills and knowledge, including young specialists;
  • increasing employee loyalty;
  • providing education and staff development.

The Expert RA rating agency awarded A.hr rating (high level of employee attractiveness) to PJSC RusHydro


The Rating Committee noted that the Company provides high quality professional development for its employees and helps them upgrade their living standards. Positive factors, such as: the Company`s average wage, a transparent system of allowances, bonuses and increments, a decent level and quality of employee social protection, a clear definition of criteria for career growth, the possibility of obtaining additional education and re-training at the Corporate Hydro-power University, as well as in external training centers, allowed the Company to receive the highest rating.

Characteristics of personnel structure

As of December 31, 2013, PJSC RusHydro's headcount increased 3.3% and amounted to 6,305 employees (compared to 6,101 employees in 2012). Last year, the increase was due to the following factors:

  • connecting a hydro-power plant to the branch in North Ossetia;
  • commissioning the first start-up facility of Zagorskaya PSPP-2;
  • employing personnel to meet Rostekhnadzor`s requirements on strengthening responsibilities for equipment operation and improving power facility reliability.

The average duration of employment at the Company was 9.5 years (compared with 10.9 years in 2012). In 2013, the average monthly earnings of corporate employees grew 5.5% and stood at RUR 89,980.6 (compared to RUR 85,256 in 2012).

2013 PJSC RusHydro Personnel Structure, %

Source: Company data


Over the past five years, the Company has enjoyed a rather stable personnel structure, with a trend to employ younger and more highly qualified professionals. The average age of the Company's employees is 41.4.


RusHydro Personnel Structure Change by Age, 2009-2013, %

Reduction in employed pensioners` share and increase in working-age employees` share

RusHydro Personnel Structure Change by Categories, 2009-2013, %

Increase in specialists/office personnel's share and reduction in workers` share

RusHydro Personnel Structure Change by Education, 2009-2013, %

Increase in employees having higher education and reduction in highly qualified personnel

Developing Human Resource Potential

One of the Company’s strategic priorities is to grow and develop human resources potential to successfully meet current and future targets, aims and objectives. The Company uses measures on forming personnel reserve, and developing an incentive and social support system that can create a long-term competitive advantage to attract and retain qualified employees.


The Company has the Fast-Track Human Resource Development Concept – From New School to Workplace in which a Corporate Elevator Program is created: Corporate Elevator – New School, Corporate Elevator – Higher Institutions/Secondary Specialized College, Corporate Elevator – the Company.

As part of the Program, the Company has target projects underway to develop key competencies for future hydro-power professionals starting from elementary school, activities aimed at offering guidance for middle and high school students, energy power training for students based on RusHydro’s requirements, and efforts to create a corporate environment that promotes effective performance for the Company’s young employees.


The Company has an ongoing employee training system, helping to grow the competencies of its personnel in line with their job requirements, and to rotate and transfer employees as part of developing a succession pool.


PJSC RusHydro set up a branch – the Corporate Hydropower University (CorHUn), which is an active participant in the Company`s educational initiatives and one of the key elements in the Company`s knowledge management system. In its practice, the Corporate University develops and implements face-to-face and distance learning programs based on PJSC RusHydro's competencies and carries out training of corporate employees. All programs for training HPP employees contain three disciplines: corporate, general professional and special.


Wide opportunities for professional personnel development (including simulator training) are offered by a new IT-based Training and Industrial Centers.


Expenditures on Human Resource Development, 2011-2013, RUR million

Social Policy

In 2013, the Board of Directors approved PJSC RusHydro's Social Policy In this document, the Company addresses the problems of forming long-term human resource management as a major asset of staffing new facilities, performing production programs and attracting young profile professionals into the industry.


Expenditures on Social Policy, 2011-2013, RUR billion

* Excluding non-State pension coverage program expenses

Collective agreement

Caring about the well-being and social protection of its employees and their families is one of RusHydro’s priorities. At each of its branches, the Company has a collective agreement in place. RusHydro offers its staff a strong social package, ensuring that the Company remains an attractive competitive employer on the labor market.


Existing social programs, benefits, corporate payments and compensation:

  • non-State pension coverage and voluntary insurance;
  • additional paid days for family leave;
  • material aid to branch employees, pensioners and their families;
  • health resort treatment and rest for employees
  • employee child care.

To implement the Action Plan for the development of Social Policy in 2013, the Company developed a new version of a model collective agreement for the Company's branches for 2014-2016, which included the current social package and new social programs:

  • family and maternal support;
  • support to employees who took orphans in their families;
  • socio-professional adaptation of children from orphanages.

Non-State pension coverage

In 2013, the current NPO Program of PJSC RusHydro received the main award at the all-Russian competition for non-material motivation - first place in the category, "The best NPF project to attract/retain staff”. GlobalForum held the competition within the auspices of the 7th Annual Conference “Compensation & Benefit Forum Russia – 2014”. It is the largest event that brings together personnel management specialists from leading Russian and foreign companies operating in Russia.


The Program is designed to create a long-term system of non-State pension coverage under a single approach, with common goals and principles. The program is focused on providing both a decent standard of living for RusHydro’s employees at retirement, and on effectively addressing personnel issues related to attracting, retaining and motivating personnel. The program is also designed to generate additional retirement savings for different target groups, especially employees with significant industry experience, who have received industry and State awards, and for employees with particular specializations where there is a labor shortage.


Non-State Pension Coverage Structure of PJSC RusHydro

Voluntary health insurance and voluntary accident and illness insurance

The Company annually revises and signs agreements for voluntary health insurance and voluntary accident and illness insurance to expand and upgrade the list of medical services available to employees. The program covers 100% of the Company’s workforce. Under voluntary health insurance coverage, employees take advantage of out-patient medical treatment (including home visits by doctors), urgent and non-urgent hospital services, emergency medical services, healthcare services abroad, regular medical examinations and employee vaccinations, the start of treatment and preventive examinations in Russia’s best medical facilities, and if necessary, in foreign clinics. The Company supports employees’ acquisition of medical insurance for family members at competitive prices; the Company also provides informational support concerning the registration policy for compulsory health insurance.

Employee housing upgrade program

PJSC RusHydro continues to implement the Employee Housing Improvement Program. The priority right to participate in the program is provided to young employees under the age of 30 who do not own a separate residential property, professionals who were offered branch positions and relocated from a different location, and to key and highly skilled professionals.


The main forms of corporate support in upgrading employee housing conditions are compensation for interest on mortgages and rental costs. In addition, the Company provided corporate support to all its employees in improving their housing conditions through the interaction of employees and credit, realtor and insurance organizations on better terms than market ones (lower mortgage interest, shorter time for application processing, and providing favorable insurance rates).

Socio-professional adaptation of children from orphanages

The socio-professional adaptation program for children from orphanages has been implemented since May 2013 in the framework of the Advanced Human Resources Development Concept "From the New School to the workplace". This program helps children who have experienced loss or parents' refusal adapt to the orphanage and post-orphanage life and purposefully prepare for admission to industry-specific schools after graduation of which they will come to work for the Company. Children get acquainted with the specifics of the profession and have the opportunity to attend the Company's facilities. They are attended to by volunteers from the personnel of the RusHydro Group of companies.


In 2013, the Company was actively working with six orphanages: Orphanage Volzhskiy (Rybinsk), Volzhskiy Orphanage (Volzhskiy), Comprehensive Boarding School named after 37 Gvardeyskoy Strelkovoy Divizii (Volzhskiy), Orphanage Lastochka (Sayanogorsk), Orphanage № 3 (Perm), Orphanage Nadezhda (Kochubeyevskiy District, Balahonovskoye).


In the framework of the 2013 Program, the following areas of activities were identified:

  • social, professional, spiritual and moral development of orphan children and children left without parental care;
  • equipping orphanages with teaching aids, educational games;
  • social support of the Program - introduction of the list of benefits, incentive payments for supervisors, mentors and other target groups of participants of the program;
  • organization of volunteer movement among the Company’s employees with the purpose of participating in the life of orphan children in the regions where PJSC RusHydro operates;
  • consulting, organizational and psychological support for the target group of the Program participants;
  • interaction with industry-specific educational institutions;
  • interaction with ministries, departments and other government bodies authorized to deal with orphans and children left without parental care.

In 2013, hydropower volunteers from the Company’s employees conducted thirty events for 270 children from orphanages in Yaroslavl and Volgograd Regions, in Khakassia, in Perm and Stavropol Regions. During the year, the Company carried out training seminars and practical training for teachers and volunteers of the Program, the training business game "My Rights" for children from orphanages in the five regions. In December 2013, in PJSC RusHydro a pre-New Year's charity event was held to raise funds for children from orphanages. The funds raised were transferred to the Company's volunteers for holding the New Year's holidays for children from orphanages participating in the Program.

Public receptions

To implement a socially responsible position, PJSC RusHydro has implemented large-scale support measures in connection with recent emergencies in the regions in which it operates. A (public reception) mechanism for collecting information on the need for assistance and the development of targeted support measures was devised and put into place. The aim of the public reception lies in ensuring direct access to PJSC RusHydro's management for each employee (as well as a victim or any citizen).


Everyone, who applies to public reception, receives consultations and clarifications on matters relating to the possibility of obtaining legal benefits, compensation, material aid and assistance in addressing economic issues, sanatorium-resort treatment, education and employment, and placing children in kindergarten and organizing youth leisure, as well as about renovating and upgrading social infrastructure.


Public reception was introduced after the accident at the Sayano-Shushenskaya HPP (named after P.S. Neporozhny) in August 2009. A similar experience was gained during the liquidation of flooding consequences in 2013 in the Far East.

Interaction with regional authorities

Making social and economic cooperation agreements is one of the forms PJSC RusHydro interacts with regional authorities to address socio-economic problems of the regions. At the end of the reporting year, 16 cooperation agreements were entered into with the following regions:

  • The Republic of Altai;
  • The Republic of Bashkortostan;
  • The Republic of Dagestan;
  • The Kabardino-Balkarian Republic;
  • The Republic of North Ossetia-Alania;
  • The Republic of Khakassia
  • The Krasnoyarsk Region
  • The Stavropol Region (two agreements);
  • The Amur Region (two agreements);
  • The Astrakhan Region;
  • The Moscow Region;
  • The Saratov Region;
  • St. Petersburg;
  • The Magadan Region.
Charity and Sponsorship

Social responsibility is an integral and important part of PJSC RusHydro's activities. Fully involved in the economic and social life in the regions in which its facilities are present, the Company develops long-term programs to address societal humanitarian and educational problems.

Assistance to flood victims in the Far East

As part of implementing a full-scale assistance program to flood victims in the Far East, RusHydro Group has transferred more than RUR 245 million.

Charitable and Sponsorship Activities, 2011-2013, RUR billion

Based on a decision of the Company's Chairman of the Management Board, Evgeny Dod, to eliminate the consequences of abnormal flooding in the Far Eastern Federal District, the Company directed RUR 200 million. RUR 100 million out of these funds was transferred for the assistance of the Amur Region, which was the first region to be affected by the natural disaster, and RUR 50 million was transferred to both the Khabarovsk Region and the Jewish Autonomous Region.


PJSC RusHydro took part in a charity event “All Together”, organized by Channel One, and allocated RUR 20 million as a contribution to assisting the Far East.


Thanks to corporate employees who wished to transfer their one-day earning to help victims in the Far East, the Charity Fund "Awareness", under the auspices of PJSC RusHydro, received more than RUR 9.4 million. The Company's subsidiaries, including the Holding JSC "RAO Energy System of East", transferred more than RUR 14 million to the Charity Fund "Awareness". PJSC RusHydro`s fund-raising initiative was supported by the Association of Employers in the Electricity Industry, the all-Russian Electric Trade Union and many power sector enterprises, that have transferred more than RUR 8 million to the Fund. In addition to the humanitarian aid, RusHydro Group has allocated an additional RUR 2.2 million.


From August 15 to November 1, PJSC RusHydro's public reception processed data on victims and provide targeted assistance to them in Seya in the Amur Region, where the Zeyskaya HPP is located. Based on the results of its activities, more than 309 families received lump sum payments, including families of injured employees of the Holding JSC "RAO Energy System of East", in the total amount of RUR 13 million. The Company provided aid to four infrastructure sites most affected by the flooding in the Amur Region. The boarding school in the village of Ovsyanka was completely renovated and newly furnished. For this purpose, the Company transferred RUR 6.6 million. PJSC RusHydro repaired the water intake from the Zeya River worth more than RUR 1.6 million. The Company acquired a special vehicle for sewage suction in Beregovoy worth RUR 979 thousand. The Company allocated RUR 7.5 million for the construction and renovation of the "Kolosok" kindergarten in the village of Ovsyanka.


PJSC Rushydro has adjusted its charity and sponsorship program in connection with implementing the assistance program to flooding victims in the Far East. In addition, all funds intended for the purchase of gifts for the Company`s partners were also transferred to support the Far East.

The Corporate Charity Fond "Awareness"

For the purpose of assisting employees and persons, who are particularly in need of corporate support, a Corporate "Charity Fund" Awareness" was established.


In 2013, the Fund implemented programs worth more than RUR 48 million; namely assisting employees and other applied persons in handling difficult life situations, implementing target church restoration programs, helping religious organizations, renovating the profile chair of the Moscow Power Engineering Institute, and implementing assistance program to flooding victims in the Far East.

Motherhood and Childhood

In 2013, in the Saratov Region, PJSC RusHydro acted as the patron for the construction of a new kindergarten "Ostrovok", which is equipped with state-of-the-art technologies of life support, sports and games facilities at playgrounds. To construct and equip the kindergarten, the Company transferred RUR 150 million.


In 2012, the “Born by Energy” project started. The project’s main purpose is to provide maternity hospitals and maternity departments with costly diagnostic and rehabilitation equipment in cities in which the Company's facilities are located. Continuing this work in 2013, the Company allocated RUR 6 million to purchase hematology analyzers which can promptly calculate a number of blood factors for newborns, computer devices for diagnosing the condition of a fetus during a high-risk pregnancy, artificial lung ventilators, an intensive phototherapy care system for newborns with jaundice, and an automatic defibrillator.


Last year, the Company continued to provide financial assistance for sponsored orphanages and boarding schools, comprehensive and music schools, and creative teams.


To support social projects in the Karachay-Cherkessia Republic, the Company purchased equipment for the children's preschool institution, "Ogonyok", and the secondary comprehensive school in Pravokubansky (village), which was worth more than RUR 5 million.

Educational programs

The "Energy Development" contest of student works in the field of hydropower and renewables, which marked its fifth anniversary in 2013, is the basic educational project of the charity program. Over the years of the contest about 100 technical colleges have accepted the invitation to participate in it and more than 500 undergraduate and graduate students have submitted their works. According to the results of the project, more than 30 participants from the winners decided to link their professional path with hydropower. In 2013, 7 research topics related to the Company’s real research works and projects were presented.


With the financial support of PJSC RusHydro, the publishing house DETGIZ released an informative book "Water is unusual in the usual” for secondary and high school-aged children. The book presentation took place in all regions where the Company operates and a large part of the circulation was given to the children's homes, schools and libraries.

Ecology

The principal priority of PJSC RusHydro is high environmental responsibility. As part of the environmental program, the Company implements large-scale social, humanitarian, and awareness-raising programs, as well as environmental actions and projects in the regions in which it operates. For a ninth consecutive year the Company holds a federal environmental campaign "oBEREGAI” devoted to cleaning up rivers and reservoirs, taking care of the coastal areas, getting to know the role of hydro power plants in the regulation of water regimes, as well as to forming young people’s responsible attitude towards nature. In 2013, the Company’s employees and volunteers collected 5,270 bags of garbage. In cooperation with the reserves, the Company organizes environmental tour itineraries, ecological trails, and develops recreation zones, as well as provides support for biological diversity and the natural habitat of rare and endangered animal and plant species. In 2013, the Company allocated approximately RUR 8 million for these purposes.

Sports

RusHydro has cooperated with the Russian Whitewater Federation for 6 years. During this time, the Company has helped organize an all-Russian competition at a high level and has supported this sport in some Russian regions.


In 2013, the Company continued to support Football Club Alania activities, namely financing the Club`s current activities and developing the Children and Youth Football School of the North Caucasus and the South of Russia.


Children's sports development in the regions in which the Company operates is also a very important part of the charity program and includes renovating and upgrading sports grounds and organizing competitions at different levels.

Cultural and Historic Heritage

The Company attaches great importance to preserving cultural and historical heritage and renovating Christian shrines. In 2013, assistance for various religious organizations amounted to more than RUR 50 million. With the participation of PJSC RusHydro, a new Cathedral to honor the Annunciation of the Blessed Virgin Mary was constructed on the territory of the Holy Trinity Seraphim-Diveevo Monastery. The Charity Program`s funds were directed to restoring the Church of the Tikhvin Icon of the Mother of God, renovating the Ascension of the David Desert Monastery and restoring the Assumption Cathedral of the Joseph-Volotsky Monastery.


In the past year, the Company continued to collaborate with the Russian Geographical Society. The Company has assisted in forming a grant fund for carrying out thematic research expeditions and compiling a cartographic encyclopedia of Russia.

Safety and Environmental Protection

Ensuring a reliable energy supply and the safe operation of equipment and hydro-power engineering for the population and the environment is one of the key strategic objectives of PJSC RusHydro.


Approaches used to ensure energy supply reliability and the safety of equipment, buildings and structures are fixed in provisions of PJSC RusHydro's Technical Policy, which came into force in 2011. The instrument used to implement the Technical Policy is the Production Program, which consists of several sub-programs.


The Production Program is developed based on the results of evaluating equipment condition, the forecasts of energy consumption in the regions and the water content of rivers, as well as the requirements of industry standards. The Program`s activities are planned for the medium (6 years) and long-term (15 years).


To identify and analyze insurance risks at production assets, the Company conducts surveys (independent technical expertise), and introduces a system of key performance indicators (KPIs) and limits (control figures), including monitoring how the object can be protected in the event of natural disasters.

2013 Implementation of the Production Program

XLS


2013 Plan,
RUR million

Program
performance,
RUR million

Execution,
%

Technical Rehabilitation and Reconstruction Program

27,096.8

25,257.4

93.20

Repair Program

2,766.6

2,610.1

94.3

Maintenance Program

884.3

806.7

91.2

R&D Program

666.2

632.8

95.0

Comprehensive Modernization Program of power generating facilities

The main problem of the Russian hydro-power industry is high equipment wear. In 2011, the Board of Directors approved a Comprehensive Modernization Program (CMP) for the generating facilities of PJSC RusHydro for the 2012-2025 period. Its objective is to maintain the reliability and safety of the Company`s generating facilities in the long run.

Policy of ensuring safety for the production processes

Ensuring reliable and safe energy production is one of the Company`s major problems. To address this problem, the Company implements the Policy of Ensuring Safety for Production Processes.


Basic principles of the Policy of Ensuring Safety for the Production Processes

In 2013, as part of the Program of Operational Actions to Prevent Industrial Injuries at the Facilities of PJSC RusHydro, the Company has implemented measures in occupational safety and health and production safety:

  • upgrading the quality of safety inductions and initial trainings, carried out by occupational safety and the health and production monitoring divisions in generating branches, on occupational and fire safety for organizations-contractors` employees and monitoring the organization of safe working conditions at the facilities;
  • holding monthly conference calls with the personnel of occupational safety and health and production monitoring divisions of the branches and subsidiaries on issues related to production activities;
  • introducing a new level of the single corporate system of production monitoring for compliance with safety standards;
  • introducing the comprehensive emergency database registrar (KRAB-3), which can upgrade the efficiency of monitoring processes via the automation of recording, analysis and scheduling of the performance of measures pertaining to occupational, production and fire safety as prescribed by the government, and departmental and corporate supervisory bodies;
  • conducting technical audits of the Company's facilities: the Upper Volga HPP Cascade, the Cheboksarskaya HPP, the Volzhskaya HPP, the Zhigulevskaya HPP and the Ust-Srednekanskaya HPP.

Occupational safety and health and production monitoring

The Company has implemented an information system “Production Monitoring of PJSC RusHydro”. This system is an integral part of the production monitoring system "Monitoring" of the Federal Service for Ecological, Technological and Nuclear Supervision (Rostechnadzor) and forms a single information space between PJSC RusHydro and Rostechnadzor in the field of industrial safety.


The system unified and enhanced the quality of the preparation processes and reporting in a timely manner concerning production safety at the Company`s hazardous production facilities.


The Company has a modern occupational safety and health management system, which is being updated to reflect changes in federal legislation in this area, as well as structural changes within the Company. The Company annually implements measures related to preventing accidents, carrying out sanitary and hygienic measures to prevent workplace diseases, improving general working conditions, and providing employees with individual protection equipment, as well as certifying employee workplaces.


Expenditures on Occupational Safety and Health, 2011-2013, RUR million

Environmental Policy

RusHydro is one of Russia’s largest electricity producers, providing consumers with highly effective, environmentally-friendly energy from renewable sources.


The Environmental Policy of RusHydro defines environmental protection as one of the most important and ongoing priorities, following the general principles of environmental safety, as well as continuously upgrading both the Company`s environmental performance and its management system.


The Company fulfills Russian legislative requirements in the field of environmental protection; participates in the performance of Russia's obligations that arise from international conventions in the field of environmental protection, as ratified by the Russian Federation; and aims to continually reduce its (negative) influence on the environment and to prevent environmental pollution.


The Company develops and implements standards in the environmental safety sphere. Also, in the environmental safety sphere, the following projects have been implemented by the Company:

  • developing effective methods to protect the flow of the HPP from forming river-borne zebra mussels;
  • increasing HPP eco-efficiency with hydro-power units that allow fish passage through the hydro-power tract;
  • parameter ground of under construction and operated reservoirs of the HPP on greenhouse gas emissions;
  • optimizing the usage of environmentally-friendly lubricants in hydro-power turbines.

The introduction of new techniques and technologies is subject to environmental policy requirements, in terms of reducing the negative impact of the Company’s technical system on the environment across all stages of the life cycle, including its impact on the aquatic environment.

RusHydro Group's Sustainable Development Report

To provide more details about RusHydro’s sustainable development, the Company prepares its Sustainable Development Report, which covers the most notable corporate achievements in the economic, environmental and social spheres.


The 2012 Report received public acknowledgment from the Council on Non-financial Reporting of the Russian Union of Industrialists and Entrepreneurs (RSPP). Experts emphasized that the Report reflects the Company's contribution to socio-economic development in the regions in which it operates. PJSC RusHydro Group's enterprises provide the infrastructure base for many of these regions` economic development. Constructing new hydro-power facilities, creating power generation complexes, developing mechanical and industrial engineering and improving regional energy efficiency were highlighted as key activity areas for regional development.


For a second consecutive year, the Social Report received public acknowledgment from RSPP, proving the Company`s consistency in developing a reporting process and ensuring the transparency of its activities.



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Report on the sustainable development of the Rushydro Group for 2012

Report on the sustainable development of the Rushydro Group for 2012. Appendices


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Report on social responsibility and corporate sustainability for the 2011 year


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Report on social responsibility and corporate sustainability for the 2010 year


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Report on social responsibility and corporate sustainability for the 2008-2009 year