Charitable activitiesManagement Approach: Involvement in social projects and charity
Policy and main focuses of charitable activities
Inter RAO continued work in 2019 to effectively implement charitable projects and disseminate best practices to the Group’s companies in order to solve social problems in a particular region.
The Group’s charitable activities policy when selecting projects is determined based on the following principles:
- Targeted nature – the allocation of monetary and other funds to an individual or legal entity for specific purposes with the subsequent monitoring of their targeted spending
- Effectiveness – the achievement of a specific result, including an impact on the core business (supporting corporate values, promoting the implementation of a strategy, etc.)
- Objectivity – the evaluation of programs and projects in terms of their social efficiency and compliance with the goals, priorities, and principles of charitable and sponsorship activities
- Efficiency – the achievement of the desired results using the smallest amount of funds
- Territoriality – the implementation of charitable and sponsorship projects in the territories where the Company has production, commercial, or other interests related to business development
- Viability – investments in the future of regions that the Company views as promising in terms of business development
- Accessibility and transparency – ensuring a transparent and effective system for monitoring the targeted spending of funds.
When determining the priority focuses of its charitable activities, Inter RAO takes into account the relevance of issues based on decrees of the President of the Russian Federation, instructions of the Government of the Russian Federation, and other state programs.
Improving the mechanisms used to monitor the implementation of charitable projects has enhanced the effectiveness of charitable activities and sponsorship as well as the transparency of expenses. In addition to working with legal and accounting reporting documents as well as video and photographic materials, representatives of the Group’s companies also personally monitor project implementation, travel to event venues, interact with beneficiaries, collect information from third parties, verify beneficiaries with internal security staff, and monitor the information field and the media. The Company’s Board of Directors considers the use of charitable funds by the Company as well as its subsidiaries and affiliates when reviewing reports on the implementation of the business plan.
|Indicator||2017||2018||2019||Change vs. 2018, %|
|Budget of charitable programs, RUB bln||1.1||0.8||1.1||27.3%|
|Number of charity projects implemented||400||305||300||-1.7%|
|Number of recipients, people||1,169,317||1,149,134||1,158,685||0.8%|
PJSC Inter RAO is actively involved in the economic and social life of all the regions where it has a presence and does not restrict itself to one-time donations, but pursues a policy of integrated social responsibility with all the conditions required for transparency. The Company traditionally supports and implements projects in seven key areas:
- Support for industry veterans, war veterans, and disabled veterans
- Support for vulnerable social groups
- Support for educational institutions, health facilities as well as grassroots and youth sports
- Support for environmental organizations and nature reserves
- Assistance to cultural figures
- Support for cultural events
- Funding for sites with historical and cultural value
In 2019, Inter RAO prioritized projects that aim to support educational institutions and healthcare facilities as well as grassroots and youth sports. The Company also paid serious attention to supporting industry veterans, war veterans, and disabled people.
Long-term socially beneficial projects
Main focuses for development of regions of operation [GRI 103Management approach: Markets of operation]
Inter RAO continued to prioritize interaction with the authorities and public organizations in the regions where its subsidiaries operate in 2019. Such interaction was based on the principles of openness, dialogue, and partnership as well as cooperation agreements that establish the general framework and principles for joint activities.
The Company engaged in cooperation in the following key areas:
- Implementing measures to improve the reliability of electric and thermal power supplies to consumers and prevent further shortages of heat and electricity
- Carrying out energy conservation and energy efficiency measures at enterprises, publicly funded institutions, and housing and utility facilities, including by participating in the working groups of the regional authorities on energy and engineering as well as increasing the availability of regional energy infrastructure by organizing and conducting practical exercises on the fundamentals of energy conservation for students at schools and universities as well as company employees
- Initiatives that aim to ensure the socioeconomic development of the regions, contribute to their industrial potential, increase their investment appeal, create new jobs, and create conditions for additional taxes to be paid to regional budgets
- Cooperation on ways to solve environmental problems and create conditions for improving people’s quality of life, including participating in the work of regional coordination councils on environmental protection and the sustainable use of natural resources
- Cooperation with the regional scientific and technical community and providing advanced training for employees at regional universities and staff training
- Setting tariffs and reducing receivables
Inter RAO continued signing agreements with the governments of Russia’s regions in 2019. In March, PJSC Inter RAO and the Government of the Kaliningrad Region signed a cooperation agreement on the development of the region’s fuel and energy industry.
In April 2019, PJSC Inter RAO and the Administration of the Tomsk Region signed an action plan to create a Unified Information and Settlement Center in the Tomsk Region. The establishment of the center ensures the transparency of relations between entities working on the housing and utility services market and increases the availability and convenience of various payment mechanisms for services.
Also in April 2019, PJSC Inter RAO and the Government of the Sverdlovsk Region signed a roadmap on the implementation of a cooperation agreement that was concluded in 2018. In particular, the agreement stipulates that PJSC Inter RAO will have access to procurements by small and medium-sized enterprises in the region for its needs.
In June 2019, as part of the implementation of an agreement between PJSC Inter RAO and the Administration of the Ivanovo Region, a service center for the Group’s companies was opened in Ivanovo to unify and centralize three areas of the Company’s activities: HR management, accounting and tax accounting, and treasury payment transactions. The opening of the center resulted in the creation of 255 jobs in the Ivanovo Region. This number is expected to triple by 2021. In addition to infrastructure projects, the Company plans to develop scientific and technical cooperation together with universities in Ivanovo.
Measures to reduce receivables is an essential part of work to stabilize payment discipline and make it possible to maintain the level of tax revenue to regional budgets. The effectiveness of such measures directly depends on regular interaction with the regional authorities and the territorial representative offices of the federal executive authorities (the Federal Bailiffs Service). Each of the Group’s supply companies has a receivables management committee, and the relevant regulatory documents have been adopted.
The platforms set up by state and public organizations and institutions to protect the rights of entrepreneurs (employment centers, regional commissioners for the protection of entrepreneurs, chambers of commerce, branches of OPORA RUSSIA, etc.) are a key channel of interaction between the Group and the business community in the regions. The Group’s subsidiaries in the regions regularly participate in roundtables, seminars, and conferences on changes to legislation, tariff policies, staff training, energy conservation, and energy efficiency.
Major regional initiatives in 2019
The Group’s network-based social projects are being implemented simultaneously in several regions where the Company operates and thus provide a significant social effect while also being adapted to the needs of specific regions.
‘Energy of Remembrance and Kindness’. This project has taken on special significance in the run-up to the 75th anniversary of victory in World War II. The aim of the project is to provide charitable assistance to veterans of World War II, blockades, labor front workers, and concentration camp prisoners. In 2019, the project was implemented in 22 regions where the Group operates. Projects were implemented to restore and fix up memorials and monuments to World War II soldiers. Veterans in the regions where the Group operates were provided with targeted financial assistance, household appliances, foods, and basic necessities. The Group’s employees took part in large-scale municipal and regional events and celebrations dedicated to Victory Day and the International Day for Older Persons.
‘Ray of Hope’. The project focuses on providing assistance to children with disabilities and their families. The Group implemented a total of 32 projects over the course of the year. As part of the project, funds were allocated for the purchase of rehabilitation equipment and medical equipment, training parents of children with disabilities in behavioral therapy techniques as well as the purchase of medicines, food, and household appliances. Numerous rehabilitation, sports, and cultural events were organized and held for the disabled.
‘Energy of Sport’. The goal of the project is to support youth sports and promote a culture of sports and healthy lifestyle among young people. In 2019, the Group implemented 46 projects, which included: major repairs of an indoor hockey rink at the ice arena of the Sports and Recreation Complex in Verkhny Tagil, the construction of an indoor hockey rink in Novy Urengoy, and the purchase of sports equipment and gear for youth sports schools. The Group also provides targeted assistance to Paralympic athletes in order to create favorable conditions for training and providing athletes with the equipment they need.
‘Light and warmth for children’. The goal of the project is to provide assistance to orphans and children left without parental care through the purchase of essential goods, medicines, medical equipment, and sports equipment as well as organizing sports and creative events for children. Assistance was provided to 31 institutions in 2019.
‘The Brightest Christmas Tree’. Per tradition, employees from Inter RAO companies organized and held festive events on New Year’s Eve for orphans and children in difficult situations at 28 orphanages, boarding schools, and specialized medical institutions. One of the most memorable celebrations was organized at the Russian Children’s Clinical Hospital in Moscow for more than 300 children with serious illnesses getting treatment.
The Company also implements a number of social programs outside the Russian Federation:
Lithuania. AB INTER RAO Lietuva supports projects that aim to improve the skills of athletes and train a new generation of professionals in several different kinds of sports, conducts educational projects on art and culture for the public, allocates investments for the promotion and development of motor sports in Lithuania, organizes international competitions, holds sporting events for children with disabilities and children from orphanages, provides assistance to children from orphanages as they prepare for final school exams, takes part in social projects at a rehabilitation center for low-income families and people with disabilities, including assistance with staging performances and conducting tours by a theater of disabled people, and supports a project to search for and rescue people, among other things.
Georgia. JSC Telasi supports major social projects that benefit society and attract public attention to particular social problems, for example, projects of the Lazarus Charitable Fund of the Georgian Patriarchate, which aim to help preserve the national and cultural identity of young representatives of Georgian diasporas, and supports projects organized by the Union of God – Children of the Whole of Georgia for people with disabilities in order to help improve their quality of life. In addition, the Company annually provides support to churches and cathedrals as well as charitable organizations of Georgia by offsetting the cost of the electricity they use.
Moldavia. CJSC Moldavskaya TPP, as the largest enterprise in the region, is actively involved in the social sector in the region, hosts local educational projects in sports, general education, and boarding schools, provides support to socially vulnerable groups (material assistance, health resort trips, funeral services for pensioners, and assistance to WWII veterans, orphans, and disabled people). CJSC Moldavskaya TPP also takes part in funding and organizing cultural events for residents of the region each year.
Sponsoring of major forums and conferences
In 2019, the Company became a partner of and provided financial support to such leading business events as the Russian Investment Forum, St. Petersburg International Economic Forum, Krasnoyarsk Economic Forum, and St. Petersburg International Legal Forum. Total expenses on support for these and other major business events amounted to RUB 24 mln (including VAT) in 2019 and has exceeded RUB 54.1 mln (including VAT) over the past three years (2017-2019). The events at which the Company serves as a partner are traditionally attended by a representative delegation of the heads of the Company’s key business segments. Sponsorship expenses are consistent with the targets in this regard.
Employees from the Group’s companies serve as volunteers at various social organizations and charitable foundations, participate in volunteer events, and organize special environmental days and trips to orphanages and nursing homes.
Inter RAO organizes work to promote corporate volunteering in an effort to systematize and develop public and voluntary activities. Corporate volunteering is one of the most important tools for supporting the social activities of Inter RAO and creating sustainable relations with the state and local communities. Corporate volunteering is also a key tool, both for major social changes and for building corporate communications. The provision of gratuitous assistance lies at the heart of corporate volunteering. Inter RAO employees as well as their family members can obtain corporate volunteer status. The goals of corporate volunteering are to strengthen the corporate culture, develop professional and personal skills among employees, and introduce intangible incentives for employees who are actively involved in volunteering.
The main priorities for volunteering at Inter RAO are to help children and the elderly, environmental protection, education, promotion of a healthy lifestyle, and the preservation of cultural and historical heritage. Inter RAO is building an effective system of social programs that primarily focus on improving the quality of life of its employees. The variety of social policy programs and their diversity underscore the importance of workers and workers’ families for Inter RAO.
In addition to charity and sponsorship projects, Inter RAO is quite active in various volunteer initiatives. The number of such initiatives is growing every year, which indicates a greater awareness and personal desire among employees to make their own contribution to solving social problems. The main focuses of volunteer projects in 2019 were targeted support for people in difficult life situations as well as environmental projects. Some RUB 3.5 mln in funds have been collected with the help of Inter RAO employees for projects.
Over the course of the reporting year, several urgent charitable social events were organized at the Group’s companies to raise funds for people in need, including employees who found themselves in difficult situations. Employees donated roughly RUB 2 mln for these causes.
In 2019, several of the Group’s companies held traditional Donor Days during which several hundred employees donated more than 250 liters of blood.
A number of Inter RAO companies took part in independent or regional environmental projects. The Group’s employees devote much attention to taking a responsible approach to the consumption of resources and the separate collection of waste. In total, the Group has collected more than 15,000 tons of recycled paper and also held events involving neighborhood cleanups, tree planting, and landscaping of parks and squares.
The Group’s employees took part in events dedicated to Victory Day (such events as ‘Gift to a Veteran’ and ‘St. George Ribbon’) and the ‘Memorial March’ national campaign and also organized meetings and celebrations for veterans. As part of educational projects, youth activists and volunteers from the Group’s companies organized projects related to energy conservation and energy efficiency in addition to preventing childhood injuries, promoted the idea of responsible consumption, and conducted career guidance events.
At the All-Russian #BrighterTogether Festival alone, Inter RAO employees held more than 50 events, such as thematic quizzes, quests and intellectual tournaments, excursions to power plants, drawing contests on energy conservation, energy efficiency lectures as well as a series of lessons titled ‘Ecology and Energy Conservation’ at schools and secondary special educational institutions in the regions where the Company operates.