Environmental policy, environmental management system, and compliance with environmental legislation

Environmental policy [GRI 102-11]

Management’s priority objectives within the Inter RAO Group’s Environmental Policy are: mitigating the negative environmental impact of industrial enterprises, including decreasing emissions of pollutants into the atmosphere and water bodies, the sustainable use of water resources by thermal power plants, and reducing the production of industrial waste.

The Company’s commitment to sustainable development and the integration of the electricity markets of Russia, the CIS countries, and the European Union heighten the importance of the environmental aspects of the Company’s activities in order to achieve its strategic goals. The degree to which production activities affect the environment and the risks associated with environmental aspects have an increasing impact on the level of market capitalization and the availability and cost of credit resources, constitute an important feature of sustainable development and the extent of business’s social responsibility to society, and have become a real factor in the Company’s development.

In planning and implementing its activities, the Group is guided by the precautionary principle, which was approved at the 1992 United Nations Conference on Environment and Development«Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost- effective measures to prevent environmental degradation.» (Rio Declaration on Environment and Development, 1992). [GRI 102-11]

The strategic goals of PJSC Inter RAO as regards environmental protection and the sustainable use of natural resources are detailed in the Company’s Declaration of Environmental Responsibility Approved by the Board of Directors (Minutes No. 64 dated April 2, 2012).. In an effort to achieve the joint sustainable development of the Group and its regions of operation, obtain economic benefits and advantages, while acknowledging its share of responsibility for the environment, the Company has set the following environmental goals for itself:

  • Ensuring that the production activities of the Group’s enterprises comply with regulatory requirements and obligations
  • Reduce the environmental impact of the Group’s enterprises to the minimum level that is technically and economically feasible
  • Consistently reduce economic costs and risks associated with the environmental aspects of production activities
  • Reach a consensus among stakeholders
Environmentally sustainable production is a key principle

Risk appetite: Inter RAO verifies greenhouse gas emissions

The main mechanism for achieving environmental goals and reducing the significance of the environmental aspects of the Group’s production assets is the phased implementation of the Environmental Target ProgramOrder No. IRAO/37 dated February 3,2017. in the following areas:

  • Compliance with regulations and obligations
    • Reduce the portion of polluted wastewater discharged into natural water bodies
    • Equip all water intakes with means to prevent damage to hydrobiological resources in accordance with national regulatory requirements
  • Mitigate the environmental impact
    • Increase the share of coal-fired boiler plants with specific emissions of solid particles that meet the best available technologies
    • Increase the share of power plants that meet the target values ​​for nitrogen oxide emissions
    • Equip all category I power plants with measuring instruments for the continuous monitoring of emissions by 2030
  • Lower economic costs and environmental risks
    • Maximize the proportion of useful ash and slag materials
    • Reduce the average annual consumption of fresh water for industrial needs
  • Achieve agreement between stakeholders on environmental issues
    • Introduce an environmental management system certified by an independent organization at all generating production subsidiaries by the end of 2030

Key measures in environmental protection activitiesThe environmental protection indicators only include companies in the ‘Generation’ segment that were selected based on the principle of their significant environmental impact.

In an effort to reduce atmospheric emissions, a number of measures are being taken to improve flue gas cleaning technologies and conduct continuous

environmental monitoring and control. The use of advanced technologies makes it possible to ensure that permissible standards for emissions of harmful substances into the atmosphere are not exceeded.

Another important aspect of ​​environmental protection is minimizing polluted wastewater discharges and increasing the proportion of recycled water use. As regards optimizing the waste management process at the Group’s facilities,waste is collected separately with the mandatory disposal of hazardous waste. Part of the waste is reused.

In addition, the facilities carry out measures to reduce the level of noise exposure, increase the energy efficiency of production, and prevent emergency situations.

Results of key environmental protection measures
No. Goal Description of measures Results
1. Compliance with regulations and obligations  
1.1. Reduce the share of polluted wastewater discharged into natural water bodies A plan has been developed to transfer used water after the cooling of equipment at Ufimskaya CHPP2 and Priufimskaya CHPP for further water supply to other enterprises in the region Discharge of 1.9 mln tons of wastewater per year was eliminated
Construction of treatment facilities with capacity of 6,000 m3/day at Omskaya CHPP5 (JSC CHPP11) Pollutants in flood and industrial runoff to be discharged into the Om River were reduced to the standard values of the maximum permissible concentrations
2. Mitigate the environmental impact
2.1. Increase the share of coal-fired boiler plants with specific emissions of solid particles that meet the best available technologies Reconstruction of the EB 1 and 2 pulverizing fans with the introduction of fabric expansion joints at Kharanorskaya TPP Emissions of solid substances to the atmosphere was reduced by 3.7% to 52,000 tons
2.2. Increase the share of power plants that meet the target values for NOx and SOx emissions Implementation of the Energy Conservation and Energy Efficiency Improvement Program and changes to the fuel balance structure. SOx emissions were reduced by 7% to 136,000 tons
2.3. Reduce greenhouse gas emissions Implementation of the Energy Conservation and Energy Efficiency Improvement Program CO2 emissions were reduced by 3% to 78.9 mln tons
3. Lower economic costs and environmental risks
 3.1 Conserve energy resources Implementation of the Energy Conservation and Energy Efficiency Improvement Program Use of fuel equivalent was reduced by 47,200 tons of fuel equivalent
 3.2 Reduce the average annual consumption of fresh water for industrial needs LLC BGC implemented a plan to collect and reuse wastewater at Ufimskaya CHPP4 Savings of 108,000 tons of natural water
A plan was implemented to run cooled water at the Kostromskaya TPP through cooling water recirculation channels Savings of 693 mln tons of natural water in Gorky Reservoir
Decommissioning of inefficient equipment with a direct-flow cooling system at Kashirskaya TPP Savings of 34 mln tons of natural water in the Oka River (Volga tributary)
4. Achieve agreement between stakeholders on environmental issues 
 4.1 Introduce an environmental management system certified by an independent organization at all generating production subsidiaries by the end of 2030 Certification of the environmental management system of CJSC Nizhnevartovskaya TPP by the international certification center British Standards Institute – BSI Receipt of certificate No. EMS 718352 dated November 12, 2019 with validity from November 10, 2019 to November 11, 2022
Recertification carried out for the transition to ISO14001: 2015 at JSC TG Receipt of Afnor Certification No. 2016/70863.3 with validity from May 6, 2019 to March 23, 2022
Recertification carried out at JSC Omsk RTS Receipt of Afnor Certification No. 2016/70827.3 with validity until March 21, 2022
Recertification carried out at JSC ТomskRTS Receipt of certificate No. 2016/70869.3 with validity from March 30, 2019 to March 29, 2022

Environmental protection expenses

Environmental protection expenses depend on such factors as the need to comply with environmental requirements for the repair and modernization of gas treatment equipment and treatment facilities, depending on the condition of the equipment. This work also includes the drafting of regulatory and authorization documentation, which depend on the legislatively approved validity of the documentation (five years in most cases).

Total environmental protection expenses amounted to RUB 1.288 bln in 2019 (50% of the expenses in 2018).

Investment in traditional areas of environmental protection measures, including the protection of water resources and air, amounted to RUB 414 mln (26% of the investment in 2018). Expenses on major repairs of fixed assets for environmental protection amounted to RUB 97 mln (38% of the expenses in 2018).

Current expenses for environmental protection decreased by 47% in the reporting year to RUB 778 mln.

Plans for environmental protection measures in 2020

In an effort to further reduce the level of solid emissions, the Group’s Investment Programs for generating assets include measures to modernize ash collection systems, reconstruct silencers, and modernize cooling towers as well as other measures to reduce emissions of pollutants and atmospheric emissions.

In October 2019, the leaders of JSC Inter RAO – Electric Power Generation, the Russian Federal Agency for Fisheries, and the federal publicly funded institution Glavrybvod held a meeting at which they decided to conclude a long-term cooperation agreement in order to develop long-term, effective cooperation and coordinate actions concerning the conservation of aquatic biological resources and their habitats during the construction and operation of TPPs and CHPPs. As part of this collaboration, a number of measures will be implemented to monitor the current state of aquatic biological resources as well as draw up compensatory measures for each individual water body in the regions where the Group has production assets.

Structure of investment in environmental protection in 2019, RUB mln.
Stucture of expenses on enviromental protection in 2019.
Stucture of expenses on enviromental protection in 2019, RUB mln.
Structure of investment in environmental protection in 2019.