TVEL JSC
Annual Report
2013
Introduction
Annual Report
2013
Table of the Used Standard Disclosures and Performance Indicators GRI G3.1
| No. | Indicator | Disclosure | Compliance with GRI G3.1 for Level A |
| Strategy and Analysis | |||
| 1 | 1.1. Statement from the most senior decisionmaker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy | Message by chief executives | Full compliance |
| 2 | 1.2. Description of key impacts, risks, and opportunities | TVEL FC Development Strategy. Risk Management. Place of TVEL FC in the World Market of FE NFC. Nuclear and Radiation Safety. Social Capital |
Full compliance |
| Organizational Profile | |||
| 3 | 2.1. Name of the organization | Company Background Information | Full compliance |
| 4 | 2.2. Primary brands, products, and/or services | Company Background Information | Full compliance |
| 5 | 2.3. Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures | Corporate Governance | Full compliance |
| 6 | 2.4. Location of organization’s headquarters | Company Background Information | Full compliance |
| 7 | 2.5. Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report | Basic Characteristics. Place of TVEL FC in the World Market of FE NFC |
Full compliance |
| 8 | 2.6. Nature of ownership and legal form | Company Background Information | Full compliance |
| 9 | 2.7. Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) | Basic Characteristics. Place of TVEL FC in the World Market of FE NFC |
Full compliance |
| 10 | "2.8. Scale of the reporting organization, including:
|
Key Results. Company Background Information. Financial Results of Activities. Personnel Management |
Full compliance |
| 11 | 2.9. Significant changes during the reporting period regarding size, structure, or ownership | Corporate Governance | Full compliance |
| 12 | 2.10. Awards received in the reporting period | Stakeholders Engagement | Full compliance |
| Report Parameters | |||
| 13 | 3.1. Reporting period (e.g., fiscal/calendar year) for information provided | About the Report | Full compliance |
| 14 | 3.2. Date of most recent previous report (if any) | About the Report. General Information |
Full compliance |
| 15 | 3.3. Reporting cycle (annual, biennial, etc.) | About the Report | Full compliance |
| 16 | 3.4. Contact point for questions regarding the report or its contents | Contact Information | Full compliance |
| 17 | "3.5. Process for defining report content, including:
|
About the Report. Stakeholders Engagement |
Full compliance |
| 18 | 3.6. Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers) | About the Report | Full compliance |
| 19 | 3.7. State any specific limitations on the scope or boundary of the report | About the Report | Full compliance |
| 20 | 3.8. Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations | About the Report | Full compliance |
| 21 | 3.9. Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report | About the Report | Full compliance |
| 22 | 3.16. Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods) | No significant alterations have been made | Full compliance |
| 23 | 3.11. Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report | About the Report. No alterations occurred to the range, boundaries and evaluation methods |
Full compliance |
| 24 | 3.12. Table identifying the location of the Standard Disclosures in the report | Table of the Used GRI G3.1 Standard Elements of Reporting and Performance Indicators | Full compliance |
| 25 | 3.13. Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s) | About the Report | Full compliance |
| Governance, Commitments, and Engagement | |||
| 26 | 4.1. Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight |
Corporate Governance. Organizational Structure of TVEL JSC |
Full compliance |
| 27 | 4.2. Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement) | Corporate Governance | Full compliance |
| 28 | 4.3. For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/ or non-executive members | Corporate Governance | Full compliance |
| 29 | 4.4. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body | Stakeholders Engagement | Full compliance |
| 30 | 4.5. Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance) | Corporate Governance | Full compliance |
| 31 | 4.6. Processes in place for the highest governance body to ensure conflicts of interest are avoided | The matter of conflict of interests in the top executive body ofTVELJSC is under control of ROSATOM State Corporation | Full compliance |
| 32 | 4.7. Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity | Corporate Governance. The sole shareholder represented byAtomenergoprom JSC evaluates the qualification and competence of the member of top executive body ofTVELJSC. The Board of Directors plays the key role in strategic management of the Company and the entire Fuel Company. The sole shareholder appoints the Board of Directors with due account for the ability to handle the abovementioned objectives. The Board of Directors comprises mostly of the external directors, i.e. individuals who are not employed by the Company, and professionals vastly experienced in the industry and thoroughly understanding the specifics of activities conducted by the Company |
Full compliance |
| 34 | 4.9. Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles |
TVEL FC Development Strategy. Corporate Governance. Risk Management. Quality Management. |
Full compliance |
| 35 | 4.10. Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance | No processes for evaluation of its own performance by the top executive body are available | Full compliance |
| 36 | 4.11. Explanation of whether and how the precautionary approach or principle is addressed by the organization | Being guided by the precautionary principle, the Company endeavors to avoid the expected damage to environment even if there is no scientific evidence that any specific activity inflicts this damage | Full compliance |
| 37 | 4.12. Externally developed economic, environmental,and social charters, principles, or other initiatives to which the organization subscribes or endorses | GRI G3.1 Reporting Guidelines International Integrated Reporting Council, v. 1.0 | Full compliance |
| 38 | "4.13. Memberships in associations (such as industry associations) and/or national/ international advocacy organizations in which the organization:
|
TVEL JSC is a member of the Union of Employers of Nuclear Power Industry and Science of Russia (President of the Company is a member of the Board of the Union) and member of the National Association of Procurement Institutes (NAPI) | Full compliance |
| 39 | 4.14. List of stakeholder groups engaged by the organization | Stakeholders Engagement | Full compliance |
| 40 | 4.15. Basis for identification and selection of stakeholders with whom to engage | Stakeholders Engagement | Full compliance |
| 41 | 4.16. Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group | Stakeholders Engagement | Full compliance |
| 42 | 4.17. Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting | Records of the Proposals Made By Stakeholders of TVEL FC | Full compliance |
| Management Approach and Performance Indicators | |||
| 43 | Disclosure on Management Approach to economic efficiency |
Procurement Activities. Personnel Management |
Full compliance |
| 44 | Disclosure on Management Approach to environmental efficiency | Ecological Policy. Energy Saving and Efficiency Improvement |
Full compliance |
| 45 | Disclosure on Management Approach to social efficiency | Procurement Activities. Corruption Management and Settlement of Conflicts of Interest. Quality Management. Personnel Management. Labor Protection and Industrial Safety. Social Capital |
Full compliance |
| Economic Performance Indicators | |||
| 1 | EC1. Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments | Social Capital | Full compliance |
| 2 | EC2. Financial implications and other risks and opportunities for the organization's activities due to climate change | Climatic effect attributed to the enterprises managed by the Fuel Company is insignificant compared to the enterprises related to extractive industries and thermal power companies. That is why the management board has not evaluated financial aspects and other risks related to the alteration of the climate. Climate change has no impact on business operations of TVEL FC and its employees | Full compliance |
| 3 | EC3. Coverage of the organization's defined benefit plan obligations | Personnel Management | Full compliance |
| 4 | EC4. Significant financial assistance received from government | Nuclear and Radiation Safety | Full compliance |
| 5 | EC5. Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation | Personnel Management | Full compliance |
| 6 | EC6. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation | Procurement Activities | Full compliance |
| 7 | EC7. Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation | Personnel Management | Full compliance |
| 8 | EC8. Development and impact of infrastructure investments and services provided primarily forpublic benefit through commercial, in-kind, or pro bono engagement | Social Capital | Full compliance |
| 9 | EC9. Understanding and describing significant indirect economic impacts, including the extent of impacts | Social Capital | Full compliance |
| Environmental Performance Indicators | |||
| 10 | EN1. Materials used by weight or volume | Environmental Impact. No information is available on total volume of materials used |
Full compliance |
| 11 | EN2. Percentage of materials used that are recycled input materials | Environmental Impact. No information is available on the percentage of recycled materials in total amount of materials used by the Company |
Full compliance |
| 12 | EN3. Direct energy consumption by primary energy source | Energy Saving and Efficiency Improvement. Enterprises of TVEL FC do not use energy from renewable sources | Full compliance |
| 13 | EN4. Indirect energy consumption by primary source | Energy Saving and Efficiency Improvement | Full compliance |
| 14 | EN5. Energy saved due to conservation and efficiency improvements | Energy Saving and Efficiency Improvement | Full compliance |
| 15 | EN6. Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives | Energy Saving and Efficiency Improvement | Full compliance |
| 16 | EN7. Initiatives to reduce indirect energy consumption and reductions achieved | Currently, the Company has not developed any policy to promote management of other indirect energy consumption, as there are no applicable regulatory requirements | Full compliance |
| 17 | EN8. Total water withdrawal by source | Environmental Impact | Full compliance |
| 18 | EN9. Water sources significantly affected by withdrawal of water | Environmental Impact | Full compliance |
| 19 | EN10. Percentage and total volume of water recycled and reused | Environmental Impact | Full compliance |
| 20 | EN11. Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas | Environmental Impact | Full compliance |
| 21 | EN12. Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas | Environmental Impact.
Information about the impact on biological diversity caused by Atomredmetzoloto JSC and NAC Kazatomprom JSC (major suppliers of uranium processed at the enterprises ofTVELFCJcan be found in public annual reports of these companies |
Full compliance |
| 22 | EN13. Habitats protected or restored | Environmental Impact | Full compliance |
| 23 | EN14. Strategies, current actions, and future plans for managing impacts on biodiversity | Environmental Impact | Full compliance |
| 24 | EN15. Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk | Environmental Impact | Full compliance |
| 25 | EN16. Total direct and indirect greenhouse gas emissions by weight | Environmental Impact | Full compliance |
| 26 | EN17. Other relevant indirect greenhouse gas emissions by weight | Statutory legal acts regulating the interaction between enterprises of the Fuel Company and the contractors make no provisions for connection between the choice of the contractor and the environmental efficiency of the latter | Full compliance |
| 27 | EN18. Initiatives to reduce greenhouse gas emissions and reductions achieved | Environmental Impact. The Company does not keep records of the number of the said initiatives aiming to reduce emissions of greenhouse gases, as there are no regulatory requirements to keep any such records and the cost of acquisition of any such information will by far exceed the effect from acquisition thereof |
Full compliance |
| 28 | EN19. Emissions of ozone-depleting substances by weight | Environmental Impact | Full compliance |
| 29 | EN20. NO*, SO*, and other significant air emissions by type and weight | Environmental Impact | Full compliance |
| 30 | EN21. Total water discharge by quality and destination | Environmental Impact | Full compliance |
| 31 | EN22. Total weight of waste by type and disposal method | Environmental Impact | Full compliance |
| 32 | EN23. Total number and volume of significant spills | Environmental Impact | Full compliance |
| 33 | EN24. Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex 1, II, III, and VIII, and percentage of transported waste | Enterprises of TVEL FC are not engaged in cross-border movement of waste. | Full compliance |
| 34 | EN25. Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff | Environmental Impact | Full compliance |
| 35 | EN26. Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation | Environmental Impact | Full compliance |
| 36 | EN27. Percentage of products sold and their packaging materials that are reclaimed by category | Specifics of industry wherein TVEL FC conducts its business make no provisions for recycling of products and packaging materials | Full compliance |
| 37 | EN28. Monetary value of significant fines and total number of non-monetary sanctions for non- compliance with environmental laws and regulations | Environmental Impact | Full compliance |
| 38 | EN29. Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce | Environmental Impact | Full compliance |
| 39 | EN30. Total environmental protection expenditures and investments by type | Environmental Impact | Full compliance |
| Labor Practices and Decent Work Performance Indicators | |||
| 40 | LAI. Total workforce by employment type, employment contract, and region, broken down by gender | Personnel Management | Full compliance |
| 41 | LA2. Total number and rate of new employee hires and employee turnover by age group, gender, and region | Personnel Management | Full compliance |
| 42 | LA3. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations | Payments and benefits to employees of the enterprises of TVEL FC are made or provided in accordance with collective labor agreements and vary from enterprise to enterprise of the Fuel Company. Collective agreement applies to all employees. All payments and benefits are in line with applicable labor laws | Full compliance |
| 43 | LA4. Percentage of employees covered by collective bargaining agreements | Labor Protection and Industrial Safety | Full compliance |
| 44 | LA5. Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements | In the event of any significant operational changes in or to the business of the Company, the employees are given at least 2-months’ prior notice. This provision is envisaged by applicable labor laws of the Russian Federation and included in the Collective Agreement of each enterprise | Full compliance |
| 45 | LA6. Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on occupational health and safety programs | Labor Protection and Industrial Safety. No joint committees and commissions comprising of representatives of employees and employers are created for this purpose | Full compliance |
| 46 | LA7. Rates of injury, occupational diseases, lost days, and absenteeism, and number of work- related fatalities by region and by gender | Labor Protection and Industrial Safety | Full compliance |
| 48 | LA9. Hea 1th and safety topics covered in formal agreements with trade unions | Labor Protection and Industrial Safety | Full compliance |
| 49 | LA10. Average hours of training per year per employee by gender, and by employee category | Personnel Management | Full compliance |
| 50 | LA11. Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings | Personnel Management. No programs to assist change of career/lifestyle are envisaged for the retiring or dismissed employees |
Full compliance |
| 51 | LA12. Percentage of employees receiving regular performance and career development reviews, by gender | Personnel Management | Full compliance |
| 52 | LA13. Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity | Personnel Management | Full compliance |
| 53 | LA14. (GRI G 3.1) Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation | Personnel Management | Full compliance |
| 54 | LA15. (GRI 3.1) Return to work and retention rates after parental leave, by gender | Personnel Management | Full compliance |
| Performance Indicators - Society | |||
| 55 | SOI. Percentage of operations with implemented local community engagement, impact assessments, and development programs | Social Capital | Full compliance |
| 56 | S02. Percentage and total number of business units analyzed for risks related to corruption | Corruption Management and Settlement of Conflicts of Interest | Full compliance |
| 57 | S03. Percentage of employees trained in organization's anti-corruption policies and procedures | Corruption Management and Settlement of Conflicts of Interest | Full compliance |
| 58 | S04. Actions taken in response to incidents of corruption | Corruption Management and Settlement of Conflicts of Interest | Full compliance |
| 59 | S05. Public policy positions and participation in public policy development and lobbying | Legal Scope of Activity of TVEL FC. ROSATOM State Corporation, TVEL FC does not participate in shaping of public policy and lobbying activities, excluding however development of suggestions related to legislative initiatives |
Full compliance |
| 60 | S06. Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country | TVEL FC is not engaged in contributions, whether financial or in kind, to any political parties, politicians and related institutions | Full compliance |
| 61 | S07. Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes | No serious violations of applicable laws by TVEL JSC and its enterprises were detected in 2013 | Full compliance |
| 62 | S08. Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations | No serious violations of applicable laws by TVEL JSC and its enterprises were detected in 2013 | Full compliance |
| 63 | S09. (GRI G 3.1) Operations with significant potential or actual negative impacts on local communities | Nuclear and Radiation Safety | Full compliance |
| 64 | SOIO. (GRI G 3.1) Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities Performance Indicators - Product Liability | Nuclear and Radiation Safety | Full compliance |
| Performance Indicators - Product Liability | |||
| 65 | PR1. Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures | Quality Management | Full compliance |
| 66 | PR2. Total number of incidents of non- compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes | Labor Protection and Industrial Safety. Nuclear and Radiation Safety |
Full compliance |
| 67 | PR3. Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements | Not applicable due to specifics of products manufactured and services provided by TVEL FC enterprises | not applicable |
| 68 | PR4. Total number of incidents of non- compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes | Not applicable due to specifics of products manufactured and services provided by TVEL FC enterprises | not applicable |
| 69 | PR5. Practices related to customer satisfaction, including results of surveys measuring customer satisfaction | Quality Management | Full compliance |
| 70 | PR6. Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship | Due to specifics of activities conducted by TVEL FC, no programs related to the provision of correspondence to the legislation, standards, requirements of voluntary certification related to marketing communications, including publicity, product promotion and sponsorship are available | Full compliance |
| 71 | PR7. Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes | Not detected | Full compliance |
| 72 | PR8. Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data | Not applicable due to specifics of products manufactured and services provided by TVEL FC enterprises | not applicable |
| 73 | PR9. Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services | No fines charged in 2013 | Full compliance |
| Human Rights Performance Indicators | |||
| 74 | HR1. Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening | Procurement Activities | Full compliance |
| 75 | HR2. Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken | Procurement Activities | Full compliance |
| 76 | HR3. Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained | Personnel Management | Full compliance |
| 77 | HR4. Total number of incidents of discrimination and corrective actions taken | No discrimination cases detected in 2013 | Full compliance |
| 78 | HR5. Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights | Personnel Management. The Company did not conduct any analysis of the suppliers in 2013 with respect to this indicator due to the absence of applicable regulatory requirements |
Full compliance |
| 79 | HR6. Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor | No child labor is possible in this company. Complex engineering of the enterprises implies that the worker should have at least secondary vocational education, therefore, employment of children is out of question. The Company did not conduct any analysis of the suppliers in 2013 with respect to this indicator due to the absence of applicable regulatory requirements | Full compliance |
| 80 | HR7. Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor | TVEL FC is conducting its business in accordance with applicable laws of the Russian Federation which expressly forbid any use of forced labor. No cases of forced labor were detected in TVEL FC in 2013. The Company did not conduct any analysis of the suppliers in 2013 with respect to this indicator due to the absence of applicable regulatory requirements | Full compliance |
| 81 | HR8. Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations | Personnel Management | Full compliance |
| 82 | HR9. Total number of incidents of violations involving rights of indigenous people and actions taken | Not detected | Full compliance |
| 83 | HR10. (GRI G 3.1) Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments | TVEL FC does not evaluate any processes in the context of human rights or transactions evaluated for impact on human rights, excluding however the rights envisaged by labor laws and personal data laws | Full compliance |
| 84 | HR11. (GRI G 3.1) Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms | No complaints were filed against TVEL FC in 2013 with respect to violation of human rights | Full compliance |