Interaction with Stakeholders

Social responsibility is a part of a sustainable development approach and a foundation of Metalloinvest’s long-term policies and its approach to the implementation of business tasks and interaction with its stakeholders. The Company’s policies are as follows:

  • unwavering compliance with the law and with ethical standards;
  • the ongoing improvement of the Company’s product quality;
  • a reasonable balance between the Company’s business interests and those of its stakeholders (shareholders, investors, employees, consumers and suppliers, governmental authorities, etc.);
  • relationships with stakeholders that are based on partnership, dialogue, openness, and accountability;
  • the concentration of the Company’s efforts on areas where its impact is the most significant and where it can contribute to sustainable development;
  • the ongoing improvement of management and practices using the best available experience and technology.

For more information on the principles of responsible business management, see the Sustainability section on the Company’s website: http://www.metalloinvest.com/en/sustainability/

The key areas, principles and strategic actions through which the Company looks to improve its activities in economic, social and environmental fields are detailed in the Memorandum of Corporate Social Responsibility.

The Company issues a Report on Corporate Social Responsibility at least once every two years to disclose the economic, social and environmental results of its operations to its stakeholders: http://www.metalloinvest.com/en/sustainability/csr-reports/

Employees

How we interactWe formalise labour relations with the employees, in compliance with the labour code
 We organise regular occupational safety training and offer courses for employees to improve their qualifications
 We sign collective bargaining agreements to ensure that current employees, their families, and retired employees receive social support
We monitor employee engagement
What our employees expectJob safety and safe working conditions
Fair remuneration
 Opportunity for professional and career development
 Access to social programmes
How we respond to expectationsWe pay fair remuneration, above the average wage in the regions where we operate
 We invest in production to create new jobs and in occupational health and safety measures to ensure safe working conditions
 We provide education, training and re-training
 We offer social support programmes to our current employees, their families and retired employees

  Trade unions

How we interactWe cooperate in the development of the industry tariff agreement
 We cooperate in the development of key provisions of collective bargaining agreements and monitor how they are being enacted
 We hold regular workers’ meetings and consultations in order to prevent trade disputes
What trade unions expectFair remuneration for their members
 Job security and safe working conditions
 The development of social programmes for our current employees, their families and retired employees
How we respond to expectationsWe pay fair remuneration, above the average wage in the regions where we operate
 We cooperate with the trade unions on key local regulation that affects the interests of their members
 We invest in production to create new jobs
 We coordinate the work of authorised trade union representatives in regards to occupational health and safety issues
 We offer additional social support programmes to our current employees, their families and retired employees

 Investors

How we interactWe publish reports on the Company’s performance
We participate in briefings and presentations
 We hold one-on-one investor meetings
 We organise investor visits to the Company’s facilities
What investors expectOpen and transparent information
 Continued improvement in the Company’s investment prospects
 The continued increase in the Company’s shareholder value
How we respond to expectationsWe ensure the timely and complete disclosure of information in our quarterly reports
 We interact with ratings agencies for assessment of the Company’s credit-worthiness
 We invest capital in projects and manage costs to increase the Company’s operational efficiency and the Company’s value

  Consumers

How we interactWe meet with customers, participate in conferences, and meet with industry associations
What consumers expectConsistency in our product quality
 Competitive pricing
 Reliable and timely product shipments
How we respond to expectationsWe enter into long-term contracts
 We ensure the efficient operation of our logistics services
 We ensure the reliable operation of our key production units
 We continue to modernise our equipment and our technological capabilities

 Authorities

How we interactWe hold regular meetings with heads of regions and towns in the areas where we operate
 We enter into social and economic partnership agreements
What regional and municipal authorities expectConsistent levels of employment
A reduction in our environmental footprint
 Social programmes in the regions where we operate
 Investment in the regions where we operate
How we respond to expectationsWe invest in projects that protect the environment
 We invest in new projects that expand production and create new jobs
 We develop and implement social investment programmes in the regions where we operate

  Local communities

How we interactWe hold regular meetings with representatives of local communities
What local communities expectThat the Company considers the interests of local communities as it conducts business
 The Company’s participation in resolving issues that face local communities
How we respond to expectationsWe implement corporate charity programmes and joint projects to benefit local communities
 We support social activities in the regions where we operate
 We examine and apply national and international best practices in our relationships with local communities

The support of the Company’s employees is an important aspect of Metalloinvest’s social policy. A key tool in supporting this policy is the employer-employee Collective Bargaining Agreement that guarantees employees’ rights to safe working conditions, holiday, health resort treatment and rehabilitation, compensation for work related injuries, hardship support, and other benefits. In 2013, new collective bargaining agreements were signed for 2014–2016 at all Company’s enterprises.

The priorities of the Company’s social programmes are:

  • healthcare and wellness of employees and their children;
  • support for families and parents;
  • support for retired employees.

In 2014, the Company assigned a budget of USD 30.541 million to its three main social support programmes. This figure included expenses for maintaining healthcare services for employees.

In 2014, the Company led charity and social investment programmes worth USD 19.75 million in order to contribute to the development of the regions where it operates.

The Company is particularly dedicated to the development of the towns where its production facilities are located — Stary Oskol and Gubkin in the Belgorod Region, Zheleznogorsk in the Kursk Region, and Novotroitsk in the Orenburg Region.

The Company cooperates with local authorities to make the towns where steelworkers and miners live more comfortable and more exciting for young people. The Company collaborates with the town and regional authorities to initiate and implement programmes aimed at introducing the reforms and developing the potential of the towns as a whole, as well as improving individual aspects of the community.

The Company priority areas in its charity and social investment programmes are:

  • сcreating a comfortable social and cultural environment through the development of physical infrastructure and initiatives that improve quality of life and social services;
  • supporting local education;
  • improving the quality of health services;
  • developing sporting facilities and promoting sport among children;
  • supporting vulnerable groups within local populations;
  • promoting entrepreneurship as a means of strengthening of the services sector, creating new jobs and supporting the local economies in the towns where the Company operates.

Priority Areas of Social Investment and Charity in Towns in 2014, % of total expenses

Metalloinvest awarded second place in the “Leaders of Corporate Charity 2014” contest

Metalloinvest was named second among all contestants in the VII Annual national “Leaders of Corporate Charity 2014” contest. The Company was also ranked first in the Mining & Steel Industry category.

Metalloinvest enterprises received prizes for their social impact

In 2014, Metalloinvest’s Lebedinsky GOK and OEMK were named among the winners and runners-up of a regional stage of the Russian Organisations with highly-effective CSR national competition. Lebedinsky GOK won the Production Companies Encouraging a Healthy Lifestyle category, while OEMK won the Contribution to the Resolution of Social Problems and the Developement of Corporate Philanthropy category. OEMK and Lebedinsky GOK took second and third place respectively in the Developing Employee Potential in Production Organisations category.

Metalloinvest won two awards at the PEOPLE INVESTOR 2014 contest

Metalloinvest was among the winners in the PEOPLE INVESTOR 2014 corporate competition. The Company was awarded prizes in the Developing Local Communities and the Employees’ Health categories for two of its projects, School of Communcal Good and Women’s Health.

Metalloinvest enterprises won the XI Social Impact in Metals and Mining Industry competition

Metalloinvest’s Mikhailovsky GOK and Ural Steel won the Employee Development category at the XI Social Impact in Metals and Mining Industry competition. The contest was held by the Russian Association of Metals and Mining Industrialists and the Central Council of the Russian Metals and Mining Union.

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