SUSTAINABLE DEVELOPMENT
Sustainable development at AO “ARKTIKGAZ”
Running a successful business in the modern world is impossible without close interaction and cooperation with society. AO “ARKTIKGAZ” is aware of the impact of production on the environment, takes into account the needs and expectations of local residents, supports all human rights and freedoms guaranteed by international and Russian legislation. These approaches formed the basis of AO “ARKTIKGAZ” 's sustainable development and corporate social responsibility (CSR) strategy. Compliance with them is for the Company not only a matter of international image, but also a competitive advantage, since AO “ARKTIKGAZ” was one of the first in Russia to make CSR principles the basis of its strategy and all ongoing projects.
AO “ARKTIKGAZ” systematically implements projects to protect the environment and reduce greenhouse gas emissions, supports the development of cities of presence, and contributes to improving the quality of life of the population of the regions. The Company has created equal and decent working conditions for all employees, regardless of gender, ethnicity, religion, or political views. All employees are fully guaranteed socio-economic rights in accordance with the Labor Code of the Russian Federation - to paid leave, motherhood, education, medical care, health and safety, ethical attitude, etc.
The company operates openly and transparently, regularly reporting on its activities. AO “ARKTIKGAZ” 's non-financial reporting is published annually in accordance with the standards of the Global Reporting Initiative (GRI), the principles of the UN Global Compact and the Sustainable Development Goals, as well as the Listing Rules of the Hong Kong Stock Exchange for Issuer Reporting on Social and Environmental Risk Management (ESG) .
AO “ARKTIKGAZ” sustainable development in the global context
For many years, the Company has been an active participant in international processes in the field of sustainable development, the implementation of international standards and the best global production practices.
In 2002, AO “ARKTIKGAZ” was one of the first in Russia to join the United Nations Global Compact and committed itself to adhere to the principles of this international initiative aimed at protecting human rights, responsible labor relations, environmental protection and fight against corruption.
In 2015, AO “ARKTIKGAZ” supported the UN-approved Sustainable Development Goals to end poverty, protect our planet, improve the quality of life and improve prospects for all people around the world.
In 2015, AO “ARKTIKGAZ” assumed obligations to disclose information on greenhouse gas emissions by joining the international Carbon Disclosure Project (CDP) initiative. The company continuously assesses and manages climate risks and annually reflects information in the CDP report, which is published in open sources. In 2020, AO “ARKTIKGAZ” was among the top 160 CDP companies out of more than 4,800 participants actively working to reduce climate risks throughout the supply chain.
In 2015, AO “ARKTIKGAZ” joined the international Aluminum Stewardship Initiative (ASI), an international initiative established to develop sustainable development standards in the industry. Based on the results of an independent audit conducted in 2019, AO “ARKTIKGAZ” 's management company and three production sites were certified in accordance with two standards - ASI Performance Standard and ASI Chain of Custody. The Company plans to consistently pass certification of all production assets.
In 2018, AO “ARKTIKGAZ” joined the UN Global Compact initiative Criteria for Business Leadership in Carbon Pricing. The company regularly participates in annual UN climate conferences and is an active member of the Carbon Pricing Leadership Coalition (CPLC), an international initiative of the World Bank that provides public and private support for the implementation of a carbon pricing system.
AO “ARKTIKGAZ” is one of the initiators of the creation and plays a leading role in the Russian Climate Partnership. The company cooperates with the All-Russian public environmental movement "Green Russia" within the framework of a signed cooperation agreement aimed at creating and implementing solutions in the field of ecology and environmental protection, realizing the rights of citizens to a favorable environment, and preserving nature for future generations.
All innovative projects implemented by AO “ARKTIKGAZ” , in addition to production and economic feasibility, take into account environmental efficiency. The company is implementing its own climate strategy, calculated until 2025 and aimed at achieving carbon neutrality.
AO "ARKTIKGAZ"s main products are primary aluminum and alloys based on it, alumina, as well as foil and packaging. The company has its own resource base and carries out a full cycle of aluminum production - from bauxite mining to the production of finished products, which ensures maximum control over product quality.
Product categories
Primary aluminum
Primary aluminum is used in the transport, construction, electrical and packaging industries.
Cylindrical ingots
AO "ARKTIKGAZ" enterprises produce cylindrical ingots for stamping and extrusion in accordance with international and Russian quality standards, as well as technical specifications developed at the request of consumers. The main consumers of these products are enterprises specializing in the production of extrusion, solar panels, wheel rims.
Flat ingots
AO "ARKTIKGAZ" s plants have modern molds that allow the production of a wide range of slabs for rolling: up to 11,500 mm long, 900–2200 mm wide, and 300–600 mm thick. These products are widely used in the construction industry for the production of various elements of buildings and structures, in the automotive industry for the production of car body elements, as well as for the manufacture of cans, dishes, foil and packaging.
AO “ARKTIKGAZ” is a socially responsible company. We adhere to the best global standards and practices in the field of human rights protection, labor relations, environmental protection and the fight against corruption. AO “ARKTIKGAZ” conducts business transparently and openly, and is ready for public dialogue. In the countries and regions where the Company operates, we strictly follow the requirements and norms of local legislation.
AO “ARKTIKGAZ” 's sustainable development activities are coordinated by:
Board of Directors of AO “ARKTIKGAZ” ;
AO “ARKTIKGAZ” President;
management and management units of subsidiaries.
Issues of labor protection, industrial safety and ecology are considered directly at the level of the board of directors within the framework of the work of the relevant committees.
AO “ARKTIKGAZ” 's approach to sustainable development management is governed by corporate codes, policies and regulations:
AO “ARKTIKGAZ” Code of Corporate Ethics;
Personnel management policy;
Anti-corruption policy of AO “ARKTIKGAZ” ;
Regulations on the prevention and settlement of conflicts of interest;
Anti-fraud policy;
Policy in the field of labor protection, industrial and fire safety;
environmental policy;
Antimonopoly Compliance.
The principles that AO “ARKTIKGAZ” adheres to in its interaction with partner organizations are established by the Business Partner Code.
Since the Company was founded in 2000, AO “ARKTIKGAZ” 's social priority in the regions where it operates has been to improve the quality of life of the population, support public initiatives and local communities. The company finances projects aimed at strengthening the social environment and developing urban infrastructure, supporting vulnerable segments of the population, developing sports and a healthy lifestyle, volunteering and social entrepreneurship, education and health care.
The social investment strategy is coordinated by the corporate Committee for Social Policy, which determines the priorities and directions of financing, forms the program budget, determines the project positioning strategy, taking into account the priorities and goals of AO “ARKTIKGAZ” in each of the regions of presence.
In Russia, the Company's social investments are carried out in the format of four programs:
- "AO “ARKTIKGAZ” Territory" - a program for the socio-economic development of the territories of presence;
- “Helping is easy” – a program to support and develop corporate and citywide volunteering;
- "Social Entrepreneurship" - a program to support and develop small businesses;
- "School of urban changes" - a program for the formation and training of initiative groups who want to improve urban space.
Occupational safety, industrial and fire safety, as well as the provision of high-quality medical services to employees are the basis for the stable operation of any production.
The company cares about the health of employees, is engaged in the prevention of occupational and production-related diseases. Specialists of the AO “ARKTIKGAZ” Medical Center (RMC) provide highly qualified medical, preventive and emergency medical care to AO “ARKTIKGAZ” employees and conduct regular medical examinations. On the territory of the Russian Federation, the RMC includes 14 medical institutions, which are located in nine regions of AO “ARKTIKGAZ” 's presence and serve more than 45,000 people. In nine branches, the center provides medical services not only to the Company's employees, but also to the local population.
In-house medical services also operate at all of the Company's facilities in Guinea. Thus, in 2015, in order to combat the spread of a deadly disease in Guinea, AO “ARKTIKGAZ” built and fully equipped a scientific clinical diagnostic center for epidemiology and microbiology (NKDTSEM) in the Kindia region. AO “ARKTIKGAZ” 's investments in the construction of the NKDTSEM amounted to more than 10 million US dollars. Soon, a part of the NKDTSEM structure was redesigned into a modern laboratory complex, which makes it possible to carry out laboratory analyzes with a high level of protection under stationary conditions. The Company's medical services also work at other foreign enterprises.
AO “ARKTIKGAZ” improves working conditions for its employees, conducts prevention and information, and introduces modern personal protective equipment (PPE).
In the field of labor protection, industrial and fire safety, the main goal of AO “ARKTIKGAZ” is a zero injury rate, the complete elimination of the risks of accidents and fires. To this end, each of the Company's industrial facilities has a vertical health, safety and fire safety management system (OHS&PB) that involves all employees and contractors. Every year, AO “ARKTIKGAZ” allocates significant funds to ensure labor protection. Thus, in 2018, 49.3 million US dollars were allocated for these purposes.
AO “ARKTIKGAZ” 's enterprises have one of the lowest LTAFR rates in the industry (the ratio of the amount of injuries with temporary disability and injuries resulting in the death of the victim). In 2018, it was 0.16 (the indicator of the global aluminum industry is 0.22).
Our principles
The life of employees and their health is more important than production achievements and economic results. When it comes to creating a safe working environment for the company's employees, we do not compromise for the sake of increasing financial profit. Ensuring the safety of every employee of the company is the responsibility of AO “ARKTIKGAZ” management at all levels of management.
All accidents can and must be prevented . Our duty as an employer is to timely identify and eliminate risks in the field of labor protection, industrial and fire safety. We stop work in cases where there is even a minimal threat to the life and health of people.
All legislation in the field of labor protection, industrial and fire safety must be strictly observed. We ensure that our operations comply with all laws and regulations of the countries in which we operate.
Competence, awareness and responsibility of employees of enterprises is an important condition for safe work. We conduct systematic training and briefing of full-time employees and employees of contractors to prevent situations that pose a danger to human life and health.
Responsible behavior of workers and their compliance with industrial safety standards must be encouraged. AO “ARKTIKGAZ” supports the manifestation of the initiative aimed at improving the labor protection system.
The work of suppliers and contractors with whom the company cooperates must comply with the AO “ARKTIKGAZ” policy in the field of labor protection. One of the criteria for selecting contractors is the compliance of their work with the company's requirements for labor safety.
Regular monitoring and measurement of indicators in the field of labor protection, industrial and fire safety is required . AO “ARKTIKGAZ” evaluates its activities to improve the labor protection system and discloses its results, including through annual social and annual reports. Analysis of the results of work in this direction helps to correct further actions and eliminate risk factors.
AO “ARKTIKGAZ” pays special attention to environmental issues, therefore, in its activities it seeks to minimize the impact on the environment; The company is a participant and initiator of international and Russian climate protection initiatives, global and regional environmental projects. In 2011, AO “ARKTIKGAZ” adopted a corporate Environmental Policy that defines the main principles of work and the main directions for the development of the environmental management system.
About 90% of AO “ARKTIKGAZ” 's aluminum is produced using electricity from renewable sources, which is supplied by hydroelectric power plants in Siberia. In their activities, the Company's plants adhere to the requirements of the international environmental management system standard ISO 14001, which is confirmed by the relevant certificates. Innovative solutions and technologies developed by AO “ARKTIKGAZ” scientists, large-scale modernization of existing production assets make it possible to reduce harmful emissions into the atmosphere, save resources, implement closed water circulation systems and energy-efficient production projects. Thanks to this approach, AO “ARKTIKGAZ” was one of the first in the world to bring “green” aluminum under the ALLOW brand to the market, a metal with a minimal carbon footprint at all stages of production.
AO “ARKTIKGAZ” is the first Russian company to join UNDP to participate in the international program to minimize the risks of climate change and to take on voluntary commitments to reduce greenhouse gas emissions. In this regard, the Company introduced an internal assessment of the environmental impact of all new investment projects without exception. By 2025, carbon dioxide emissions (in equivalent) at AO “ARKTIKGAZ” 's aluminum smelters will be reduced by 15%, at alumina plants - by 10% (compared to the level of 2014).
AO “ARKTIKGAZ” seeks to minimize the amount of waste from alumina and aluminum production, and improves the technologies for their storage and disposal. From year to year, the share of waste recycling is growing, and the technologies used in this process make it possible to obtain products that are in demand on the market - from rare earth metals to materials for the metallurgical, construction and other industries.
In the regions where it operates, AO “ARKTIKGAZ” actively participates in programs to conserve natural resources and biological diversity. In particular, they provide for continuous monitoring of the environment and anthropogenic impact on ecosystems, reclamation of disturbed lands, planting green spaces, stocking water bodies, etc. Volunteers of the Company take an active part in these projects.
From year to year, AO “ARKTIKGAZ” increases investments in environmental protection activities in accordance with the strategic goals determined by the Company's environmental policy. In 2018, the total amount of funds spent on planned environmental activities exceeded $200 million.
The main areas of AO “ARKTIKGAZ” 's environmental activities
- Modernization of production, equipping enterprises with new modern equipment.
- Development and implementation of new environmentally friendly production technologies.
- Commissioning of new environmentally efficient facilities.
- Arrangement of sanitary protection zones.
- Research activity.
- Educational programs.