Responding to community challenges

RESPONDING TO COMMUNITY CHALLENGES

As a major business and employer, SUEK is focused on making a positive and sustainable contribution to the economic and social aspects of people’s lives in the regions where we operate.

2020 priorities

Support for local medical institutions and the most vulnerable groups during the pandemic

Helping lead a major volunteer movement

Taking social and charitable projects online

2020 Results

>150
community and charitable projects implemented
51
growth points created

Our regulatory framework

Our approach

Our assets perform an important infrastructural function, as they supply heat and electricity to over 5.5 million people in regions where temperatures drop below 0°C for more than six months a year.

SUEK contributes significantly to local employment, creating attractive working conditions for over 73,000 people in 14 regions of Russia. Moreover, in the main, our employees are also local residents. We also encourage social entrepreneurship to improve local social infrastructure and increase employment in areas not directly related to the company’s operations.

Our activity stimulates the overall regional development through regular tax payments to federal, regional and municipal budgets. Tax payments in the reporting year amounted to $314m, of which 78% were paid to local budgets.

When purchasing services and materials, we strive to work with local suppliers, supporting regional production and economy. In 2020, 66% of goods and services were provided to SUEK by suppliers from the regions where the company operates.

SUEK’s social strategy is aimed at creating conditions and an environment in which local residents can fulfil their potential. By involving local residents in making positive changes, we can accelerate economic development and improve living standards. Investment in infrastructure and knowledge helps solve pressing local issues and attract the needed resources. In 2020, our social activities were largely focused on supporting the regions in their fight against COVID-19. Alongside this, we managed to complete virtually all of the programmes to which we had previously committed, including our social entrepreneurship and vocational guidance programmes. Some of our events were held online to avoid any health risk to participants.

Through constructive collaboration with local communities and by integrating our social programmes into our business, we promote the interests of both local communities and our plants, and improve the quality of life and well-being of our employees, their families and the entire population in the regions where we operate. We develop and run key investment projects and social programmes in close cooperation with all of our stakeholders, including local administrations, non-governmental organisations and local residents, focusing on social development projects that are both beneficial to the local communities and aligned to SUEK’s strategic goals.

Our approach to engaging with local communities is outlined in SUEK’s Corporate Social Policy. Our social activities strive to comply with the best ESG practices, aligning to the UN Sustainable Development Goals, Social Charter of Russian Business and ISO 26000 (Guidance on Social Responsibility) international standards. In addition, our interaction with local communities is based on the Code of Corporate Ethics, which describes SUEK’s corporate values and culture.

We participate in global sustainable development initiatives and also help local communities address specific social issues. Most of the company’s social projects are interconnected and aimed at comprehensively solving several sustainable development issues at once, including improving immunisation, supplying schools with electricity, computers and other equipment, and supporting young mothers in their professional development. These long-term projects are first piloted in one of the territories where we operate and then replicated across our regions.

What impact has COVID-19 had on your social responsibility programmes?

The pandemic has not changed our overall approach to sustainable development; it raised some new priorities and required us to adapt to new challenges, but most of all, it reiterated the importance of our company’s role in protecting the well-being of our local communities.

Throughout the year, SUEK worked closely with local administrations and medical institutions to understand where we could provide support. We helped to finance the procurement of personal protective equipment, medical equipment and gasoline for ambulances. We transferred vehicles, normally used to suppress dust, to disinfect city streets and public transport stops. Our employees volunteered to drive doctors to visit patients.

How did SUEK support the most vulnerable groups?

Our employees volunteered to join the all-Russian #WeTogether initiative. They regularly delivered groceries and medical supplies to pensioners, large families, single mothers and others in need of support. We also set up a volunteering initiative to provide online support, with some of our younger employees recording videos to entertain children from large families, orphanages and nursery schools and also offering online educational classes.

Although our response to the pandemic was a major focus of SUEK’s social support in 2020, this was not at the expense of our numerous ongoing social programmes. We kept to our commitments regarding the delivery of local community development projects.

Sergey Grigoriev
Sergei Grigoriev,
Public Relations and Communications Director

Human rights

We respect the rights of all of our stakeholders including all minority groups such as local indigenous and small-numbered peoples. Whilst SUEK’s operation sites do not overlap with the territories where these particular communities live, we support the preservation of all local religions, customs and cultural heritage. According to Russian law, no licensed sites can be located on territories occupied by indigenous peoples.

We monitor the observance of human rights at all our assets to swiftly identify any risks in this field and put mitigation measures in place. In 2020, we did not record any human rights violations regarding to workers, contractors or locals.

Active community engagement

SUEK maintains an active dialogue with local communities. We hold public consultations to assess our environmental and social impact in accordance with the legal requirements set by local authorities. We analyse the proposals received during such consultations and, if necessary, adjust project documents in line with them. All consultation materials are available on the SGC’s website and websites local administrations.

In 2020, public consultations were held to discuss the modernisation of water treatment facilities in Kuzbass, the reconstruction of a processing facility in Khakassia, the construction of new power units at the Tom-Usinskaya GRES and updated heat supply plans for the cities of Novosibirsk, Barnaul and Abakan.

We also respond to requests from local residents and receive feedback on our activities through our general Hotline, corporate website, email and social media. In 2020, we introduced dedicated hotlines in five regions so that local residents could ask questions on environmental issues related to our energy facilities. Interactive live broadcasts with SUEK’s managers became a popular communication platform, giving every local resident or employee the opportunity to ask for advice.

assessment of social programmes

We carefully monitor the social environment in our communities to better shape our charity programmes. Both independent and in-house experts regularly assess our ongoing progress and outcomes. We measure the efficiency of our social investments through continuous monitoring of our projects using integrated social research, evaluating individual initiatives and the results of our programmes. This analysis enables us to ensure that the impact of our social investments is in line with our goals and values. Moreover, by carrying out continuous analysis we can quickly respond to changes and identify areas for potential improvement.

Our assessment tools include:

  • Meetings of project expert panels
  • Focus groups with representatives of local administrations and NGOs
  • Expert and participant surveys
  • Discussion of programme results at public events with stakeholders

Quantitative parameters:

  • Events held, number of participants
  • Beneficiaries
  • Funds raised for the company’s community development programmes
  • Partners involved
  • Growth points created as a result of the company’s community involvement
  • Media coverage results

Qualitative parameters:

  • The increased efficiency of public-private partnerships, closer interaction between commercial and non-profit sector companies in solving social problems
  • Sustainability of previously implemented social projects
  • Enhancement of SUEK’s reputation as a socially responsible company
Effectiveness assessment of our community investment
Indicator 2020 2019 2018
ParticipantsDirect participants in SUEK's social activities, along with the recipients of grants and donations. in our social programmes 1,500+ 1,500+ 1,350+
Total number of beneficiariesBeneficiaries are residents of the territories that benefit from the results of our community, entrepreneurial and social-entrepreneurial projects. 81,600 70,100 54,000
Growth points createdGrowth points are organisations set up as a result of social projects aimed at enhancing living standards in a particular district or town (maternity support centre, music workshop, mini-cinema etc.). 51 84 80

Key projects

We implement ongoing social and charitable programmes in all of our regions of presence. In 2020, we successfully ran more than 150 community and charitable projects. For this purpose, SUEK allocated $14m, or 7% of the company’s net profit.

SUEK seeks to address urgent community issues in the regions where we operate. We contribute to the creation of a favourable social climate, the improvement of housing conditions for residents of mining towns, the development of education, sports, health care and culture, vocational guidance for the youth. The ultimate goal is to increase young people's awareness of SUEK's role, attract them to the mining and energy industries, and ensure the sustainable development of these territories for years to come.

Our regular projects

Urban infrastructure development

Joint projects with local administrations to create a comfortable urban environment.

Education

Developing innovative and business thinking, fostering initiative and leadership qualities in children and teenagers, vocational guidance for occupations in engineering.

Sports and healthy lifestyle

Promoting a healthy lifestyle among employees and local communities.

Medical care

Providing cutting-edge medical care to employees, their families and local communities, treating and rehabilitating children and coal industry veterans.

Leisure, culture

Developing a culture of creativity and inclusiveness by financing public lectures on art, workshops, festivals.

Environment

Promoting a culture of environmental awareness through tree planting, improving recreational areas, waste collection for recycling, attracting young people to participate.

Developing local entrepreneurship

Developing business and leadership skills, offering mentoring and training to improve competencies at SUEK's School of Social Entrepreneurship for development of education, medicine, culture, sports, leisure and public services in the mining regions.

Charity

Helping disadvantaged groups of people.