Material topics of the Report and key concerns of stakeholders [GRI 101, 102-46, 102-47, 102-49]
In order to ensure that the Annual Report complies with the principles of international GRI standards and integrated reporting standard, a procedure was conducted to identify material topics based on the following fundamental principles [GRI 101]:
- Stakeholder engagement – identifying Inter RAO stakeholders and meeting their reasonable expectations and interests regarding the content of the Annual Report
- Sustainable development context – Inter RAO’s performance results should be material topics in the broad context of sustainable development
- Materiality – the themes that are identified should reflect the significant economic, environmental, and social impact of the Inter RAO Group and/or have a significant impact on the assessments and decisions of stakeholders
- Completeness – the coverage of significant topics and indicators as well as the boundaries of reporting should be sufficient to reflect their significant impact on the economy, the environment, and society and provide stakeholders with an opportunity to evaluate Inter RAO’s performance results for the reporting period
In 2019, the Company employed a step-by-step methodology for the first time to identify material topics, which includes the following steps:
- Preparation of a basic list of material topics by the working group in charge of preparing the Annual Report that was compiled based on the list of themes of GRI standards as well as an analysis of frequently asked questions when dealing with stakeholders
- Assessment of the materiality of topics by stakeholder representatives via questionnaires on such criteria as Inter RAO’s level of impact on a particular sustainable development theme as well as the level of materiality of the theme (problem) for society, the regions where the Company operates, and the environment
- Analysis of stakeholder proposals and the identification of significant new themes for the Report as well as the compilation of a final matrix of material topics in the Report
- Compilation of the final rating of topics taking into account the prioritization procedure, the distribution of themes as major ones and secondary ones, and their alignment with GRI Standards
The survey was conducted among 34 representatives of eight groups of external and internal stakeholders who assessed the level of significance of the proposed themes for society, the regions where the Company operates, and the environment. The survey also involved ten representatives of Inter RAO management who are responsible for working with different groups of stakeholders. They were asked to evaluate the level of impact that Inter RAO has on each sustainable development theme. This procedure resulted in the identification of eight key aspectsThe material topics were selected based on the average rating value of the themes (see the matrix of material topics). whose disclosure in this Report will seek to cover all GRI requirements to the fullest extent as well as the requirements of ESG agencies:
- The Company’s financial performance results (financial indicators) and factors that have a direct impact on the Company’s economic efficiency.
- Issues associated with ethics and integrity, combating corruption, and abuse in procurement activities.
- Compliance with environmental legislation and reducing the environmental impact of suppliers’ products.
- Quality of corporate governance.
- Reducing emissions of greenhouse gases and pollutants. Development of energy efficiency.
- Occupational health and safety.
- Ensuring reliable consumer access to electricity and heat.
- Resource conservation and efficient water use. Reducing discharges and waste.
The remaining themes are also covered, but with less detail due to the fact that they are not as important to stakeholders. Aspects that individual stakeholder representatives also considered important beyond the basic list were also added to the secondary themes. These themes included:
- Development plans for the short and medium term.
- Disclosure of ESG risks and a system for managing these risks at the company.
- Innovative development and the use of new technologies, including digital ones.
- The development of new business lines.
- The quality of communication with consumers.
- Participation in social projects and charity.
|RatingThe rating of themes is calculated as the sum of the average rating of 34 responses from stakeholders to each question about the significance of the theme and the average rating of the responses of ten Inter RAO managers who estimated the Group’s impact on each theme, adjusted by a factor of 0.5.||Aspect of the Company’s activities|| Level |
5 – critically important
4 – very important
3 – notable
2 – insignificant
1 – N/A
|Inter RAO Group’s impact on the aspect||Importance for society, regions of operation, and the environment|
|6.49||The Company’s financial performance results (financial indicators) and factors that have a direct impact on the Company’s economic efficiency.||4.80||4.09||201|
|6.15||Issues associated with ethics and integrity, combating corruption, and abuse in procurement activities.||4.67||3.81||102-16-17, 102-25, 205, 206|
|6.08||Quality of corporate governance.||4.33||3.91||102-18-20, 102-22-28, 102-30-36|
|6.01||Compliance with environmental legislation and reducing the environmental impact of suppliers’ products.||4.50||3.76||307, 308|
|5.99||Reducing emissions of greenhouse gases and pollutants. Development of energy efficiency.||4.10||3.94||302, 305|
|5.82||Ensuring reliable consumer access to electricity and heat.||3.70||3.97||EU 1,2,3,4, 12, 21, 27, 28,29, 30|
|5.81||Occupational health and safety.||3.80||3.91||403|
|5.71||Resource conservation and efficient water use. Reducing discharges and waste.||3.90||3.76||303, 306|
|5.58||Human rights development and promotion||4.20||3.48||408,409, 410, 411, 412, 414, EU22|
|5.55||Reducing the negative impact on the health and wellbeing of the population in regions where the Company operates. Issues involving violations of the law and the dissemination of personal data.||4.00||3.55||416, 417, 418, 419|
|5.50||The Company’s impact on the development of the regions where it operates, including the creation of highly paid jobs and procurements from local suppliers.||4.10||3.45||202, 203, 204|
|5.36||Interaction with communities in the regions where the Company operates as well as the impact on local and federal policies.||4.00||3.36||413, 415|
|5.29||Development of the trade union movement and labor relations that meet the requirements of Russian and international laws.||3.80||3.39||401, 402, 404, 405|