Risk appetite

Risk appetite consists of rules that must not be violated to provide reasonable assurance about the achievement of the Group’s strategic goals. Risk appetite expresses the unanimous opinion of the Group’s management about what is permissible, acceptable, or unacceptable to achieve business goals.

Group’s risk appetite (approved by the Board of Directors in December 2019):
1 Breach of equipment breakdown susceptibility criteria is unacceptable due to the failure to implement the repair program or investment program
2 The operation of a power unit (power plant) may not be resumed at generating facilities following repairs unless an assessment of the repair quality “meets the requirements of the repair documentation” or “meets the requirements of repair documentation with restrictions”For equipment to be replaced or decommissioned within the next 5  years from the period in question.
3 The number of electricity supply points may not be reduced at the supply assets of the Inter RAO GroupSupply assets of the ‘Supply in the Russian Federation’ segment. at the end of the yearExcept for the bankruptcy of consumers or the termination of economic activities.
4 The Inter RAO Group may not implement projects in high-risk countries (sanctioned countries) without the prior decision of the Group’s management bodies
5 The Inter RAO Group shall provide R&D funding at a rate of at least 0.1% of the revenue of its Russian generating assets
6 The Inter RAO Group shall not accept the use of intangible assets (as regards its own developments) without the proper documentation of intellectual property rights when collaborating (concluding contracts, transactions, etc.) with third parties outside the Inter RAO Group
7 There must be candidates from the talent pool to fill the vacant positions of Group leadersFor senior executives.
8 The Inter RAO Group shall not make additional borrowings when its debt/EBITDA ratio exceeds 3.05Does not apply to the Group’s assets that are planned for sale.
9 The criteria for the implementation of the corporate import substitution plan must be met
10 The Inter RAO Group shall annually provide funding for measures to improve occupational safety amounting to at least 0.2% of the total cost of product manufacturing (works, services)
11 The Inter RAO Group shall annually provide assurances regarding carbon reporting (verification) on direct greenhouse gas emissions, including CO2
12 The Inter RAO Group shall not tolerate a single case of corruption or other willful misconduct that runs counter to the law Such a case is recorded when a court convicts an employee of a company of the Inter RAO Group or a former employee (if the offense was committed while the employee worked at a company of the Inter RAO Group) of committing fraud and/or corruption offenses associated with the performance of their official duties, if during the investigation of these criminal cases the company of the Inter RAO Group or the employer of the defendant fails to provide the necessary assistance to law enforcement agencies.