Innovative activities management system [GRI 103Management Approach: Innovative development and application of new technologies, including digital technologies.]

The innovation management system focuses on forecasting and setting goals for innovative development, implementing complex innovative projects, and creating tools to reduce the time required to develop and launch new products on the market. The system is being developed to bolster the synergistic effect of innovation and more flexibly respond to the rapidly emerging challenges posed by innovative development.

The innovation management system has the following objectives:

  • To systematically organize and coordinate innovation at all levels of management
  • To identify the requirements for planning and implementing innovations as well as monitoring and analyzing their results
  • To ensure integration with the overall management system of PJSC Inter RAO
  • To monitor, analyze, and forecast the market and environment in terms of the development of technologies and the impact of environmental factors on the current activities of PJSC Inter RAO
  • To plan innovations and rank them by business, strategic and operational focus, and other parameters
  • To ensure the management of innovative projects, including planning, budgeting, monitoring, control, accounting, and analysis
Treating intellectual property responsibly

Risk appetite: Inter RAO registers the Group’s intellectual property rights in a timely manner.

Innovation at the Group’s companies is managed within the existing organizational units of Inter RAO and in accordance with the following documents:

  • The PJSC Inter RAO Innovative Development Program for 2020-2024 with a view to 2029 Resolution No. 262 of the PJSC Inter RAO Board of Directors dated December 23, 2019.
  • The Inter RAO UES (PJSC Inter RAO) Intellectual Property Rights Management Program for 2019-2023 Resolution No. 233 of the PJSC Inter RAO Board of Directors dated October 17, 2018.
  • The Policy on Managing Intellectual Property Rights Order No. IRAO/375 of PJSC Inter RAO dated June 27, 2019.
  • The Regulation on the Drafting and Implementation of the PJSC Inter RAO Innovative Development Program Order No. IRAO/605 of PJSC Inter RAO dated November 13, 2015.
  • The Regulation on the Procedure and Rules for Implementing Innovative Solutions in the Activities of the Inter RAO Group’s Companies Order No. IRAO/656 of PJSC Inter RAO dated November 27, 2015.
  • Regulations on the Business Process for Managing the Register of Innovative Solutions When Introducing Innovative Products and R&D results Order No. IRAO/503 of PJSC Inter RAO dated October 1, 2015.
  • Regulations on the Process ‘Management of the Program for the Scientific Research, Developmental, Experimental, and Technological Work of the Inter RAO Group’ Order No. IRAO/539 of PJSC Inter RAO dated November 1, 2018.
  • Methodology for Assessing the Effectiveness of R&D at the Stages of the Product Life Cycle in Innovative Activities Order No. IRAO/653 of PJSC Inter RAO dated December 17, 2018.
  • Methodology ‘Management of Intellectual Property Rights’ approved by Order No. IRAO/495 of PJSC Inter RAO dated September 27, 2017.

In accordance with the Regulation on the Delineation of PowersOrder No. IRAO/420 of PJSC Inter RAO dated July 22,2019., the Group appoints the Member of the Management Board and Head of the Innovation, Investments, and Costs Management Unit as the person responsible for innovative development. This individual directly reports and is personally responsible to the CEO of PJSC Inter RAO for the effectiveness of the following functional areas of the Inter RAO Group, including:

  • Innovative activities and energy management
  • Project management
  • Management of rights to intellectual property rights and means of individualization

The incentive system in place at the Company focuses on existing mechanisms used to conduct an intensive search for innovative solutions and achieving current indicators that reflect the Company’s innovative performance. The list, target values, and methods for assessing the achievement of key innovative performance indicators are established by a resolution of the PJSC Inter RAO Board of Directors, and for subsidiaries – by a decision of the management bodies of subsidiaries. The incentive system at the Group’s companies as regards innovation is reflected as follows:

  • Incentives for the CEO and members of the Management Board of PJSC Inter RAO aim to achieve an integrated innovation indicator that reflects productivity and efficiency in innovation, was developed in 2016, and is annually approved by the PJSC Inter RAO Board of Directors
  • Incentives for the sole executive bodies of generating subsidiaries and their deputies for achieving the integrated innovation indicator that reflects productivity and efficiency in innovation Calculated in accordance with the ‘Methodological Guidelines for Assessing the Degree of Implementation of the Inter RAO Group’s Strategy Implementation Plan’ approved by PJSC Inter RAO Order No. IRAO/689 dated December 27, 2018.
  • Incentives for the sole executive bodies of supply subsidiaries and their deputies for achieving the key performance indicator of design and survey work ‘Profit from sales of additional paid services on the retail market, RUB thousand /year’
  • Remuneration to employees of the Group’s companies for coming up with streamlining proposals and ideas to improve operations in accordance with the Regulations of the Process ‘Work with the Proposals of Employees of RP 107-1’. Order No. IRAO/119 of PJSC Inter RAO dated March 27, 2017. Remuneration for the authors of streamlining proposals is paid on a one-off basis and their amount or remuneration is determined depending on the extent of the economic effect of the streamlining proposal.