Answers to key questions from stakeholders

Plans for 2020 include:
  • Verifying the Annual Report, including the Sustainable Development Report, in accordance with the methodology of GRI Standards
  • Verifying direct greenhouse gas emissions for 2019
  • Work to improve sustainable development indicators by drafting and implementing internal policies in matters concerning sustainable development
When is the Company’s new Strategy expected to be approved?

Inter RAO’s Strategy was approved in 2014 for the period until 2020.

Given the pace of the Company’s development, the fact that it has achieved and overfulfilled a number of the strategic indicators it set as well as significant changes in the external and internal environment, updates to the Strategy are on the agenda. By the time this Report is published, we expect an updated document will have already been drafted. The updated Strategy/Long-Term Development Program is scheduled to be submitted to the Board of Directors for consideration in May 2020.

Are there any plans to change the approach to Inter RAO’s dividend policy?

The current dividend policy aims for dividend payments of up to 25% of IFRS net profit. The legislative requirements stipulating that dividend payments may not exceed the total amount of the Company’s net profit under Russian Accounting Standards must also be taken into account.

Decisions on the amount of dividend payments or any changes in the approach to the dividend policy are adopted by the Company’s Board of Directors.

Does the Company plan to take any steps to improve its position in the context of ESG? If so, what kind of measures?

In 2019, Inter RAO joined the UN Global Compact and committed to updating its business model and Strategy in favor of long-term sustainability, introduced a mechanism to analyze and assess climate risks, and verified its direct greenhouse gas emissions for the first time.

These achievements were the result of an upgrade in the Company’s rating at the five largest international ESG agencies (CDP, Sustainalytics, ISS, FTSE4GOOD, and RobecoSam). The Group is making every effort to follow the global trends and practices of the best international companies in matters concerning sustainable development.

Is the Company planning any additional ESG disclosures?

In 2019, the Company conducted its first verification of the direct greenhouse gas emissions (Scope 1) of Inter RAO for 2018 in accordance with International Standard on Assurance Engagements (ISAE) 3410. Recommendations have been drafted to improve the accounting of greenhouse gas emissions as regards quantifying indirect energy emissions (Scope 2).

Sustainable development issues are expected to be included in Inter RAO’s Long-Term Development Strategy, particularly with regard to the risks and opportunities associated with climate change. This includes identifying and assessing climate-related risks that could have a significant financial or strategic impact on the Company’s business, and mitigating these risks by taking the appropriate measures.

When working on specific projects, the Company engages with local communities and stakeholders (community involvement) and improves the disclosure of the Supply Chain Policy in accordance with ESG standards.

What economic effect will the modernization of units that have already been selected have on Inter RAO?

The modernization program will not only make it possible to renovate facilities and extend the life of power generating units, but will also increase installed capacity and boost fuel savings for a number of projects. Depending on the power generating capacity of units and technical capabilities, specific fuel equivalent consumption will decline in the range of 6–23 grams of standard fuel per kWh. In a number of cases, boiler steam production will be increased as equipment modernization projects are implemented.