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Sustainability

Results

Key areas of LSR Group’s sustainable development activities

Ensuring decent and safe working conditions (occupational health and safety, human resources)

LSR Group goals and objectives

  • Creating safe and appropriate working conditions for employees.
  • Preventing situations that endanger lives or health of employees.
  • Preventing and reducing general and work-related employee ill health.
  • Carrying out occupational safety risk assessments, as well as health and safety audits and inspections.
  • Establishing requirements for contractor organisations concerning compliance with industrial safety standards when working at LSR Group’s facilities.
  • Guaranteeing a stable income and a timely payment of competitive salaries and wages.
  • Training employees and providing them with opportunities for professional growth and career development.
  • Providing all categories of employees with social benefits and social security.
  • Protecting human rights, including preventing discrimination and ensuring equal opportunities and freedom of speech.

Key outcomes in 2018

Occupational health and safety

  • Adoption of the Occupational Health and Industrial and Fire Safety Policy.
  • Significant reduction in the number of accidents: 10 accidents, down 71 percent vs 2017.
  • No fatal accidents.
  • LTIFR down 59 percent to 0.54.
  • Reinforced monitoring of subcontractor compliance with the safety requirements.

Human resources

  • Centralisation of the HR functions of LSR Group enterprises.
  • A 17 percent increase in average employee wages compared with 2017 (to RUB 57,455).
  • RUB 196 million spent on social programmes for employees.
  • More than 3,600 employees completed training and professional development programmes.
  • Development of a long-term LSR Group incentive programme for 2019–2023, which envisages the utilisation of shares to motivate members of the Board and key LSR Group employees.
  • No confirmed cases of human rights violations.
Ethics and countering corruption

LSR Group goals and objectives

  • Ensuring that the activities of LSR Group and its contractors comply with the principles of honest, transparent and ethical business conduct.
  • Countering corruption and corporate fraud, and identifying and preventing conflicts of interest.
  • Ensuring that stakeholders have access to up-to-date and reliable information concerning LSR Group’s activities and performance.
  • Ensuring that the procedure for selecting contractors is transparent and objective.
  • Monitoring and assessing the activities of contractors.
  • Operating the Trust hotline service.

Key outcomes in 2018

  • No confirmed cases of corruption.
  • Inclusion of anti-corruption clauses in the templates of all standard agreements used by LSR Group in its relations with contractors.
  • Anti-corruption policies and procedures have been communicated to a total of 4,135 subcontractors and business partners, up 18 percent year-on-year.
  • Anti-corruption policies and procedures have been communicated to a total of 10,796 employees.
  • Automation of procurement procedures and launch of our own electronic trading platform.
  • Introduction of a new Regulation on Procurement.
  • Optimisation of the Trust hotline service.
Facilitating the development of regions where the Company operates

LSR Group goals and objectives

  • Improving quality of life by building comfortable and affordable housing.
  • Helping to increase employment in regions where the Company operates.
  • Increasing regional budget revenues.
  • Promoting the development of other economic sectors through the multiplier effect.
  • Participating in the landscaping, construction and reconstruction of important social facilities.
  • Caring for children, orphans and people with disabilities.
  • Supporting vulnerable social groups.
  • Supporting cultural projects and renovating architectural monuments.

Key outcomes in 2018

  • RUB 670 million invested in the implementation of social and charitable projects and the construction of social infrastructure, a 64 percent year-on-year increase.
  • New initiatives in collaboration with charitable foundations and associations: opening of the Family Adaptation Centre as part of our collaboration with the Children Are Waiting charitable foundation; opening of the House of Hope temporary accommodation facility.
  • More than 330 orphaned children placed with families in 2018 as part of our partnership with the Children Are Waiting charitable foundation.
  • Launch of our partnership with the Russian State Specialised Academy of the Arts (RGSAI), the world’s only educational institution giving people with disabilities the opportunity to obtain a fully-fledged higher arts education.
Protecting the environment

LSR Group goals and objectives

  • Implementing contemporary environmental management approaches and methods within LSR Group.
  • Making rational use of natural resources.
  • Preventing environmental pollution and restoring ecosystems.
  • Mitigating negative environmental impact by implementing cutting-edge technologies and upgrading equipment.

Key outcomes in 2018

  • 24 percent reduction in electricity consumption to 181 million kWh compared to 2017.
  • More than 23 percent drop in petrol consumption in comparison with 2017.
  • Compliance of constructed real estate and produced products with strict safety, quality, and environmental efficiency standards; eco-certification of a number of sites.
  • No accidents occurred impacting the environment.
«LSR Group» discloses information on the page on the Internet of LLC Interfax-TsRKI — the news agency accredited by the Central Bank of the Russian Federation to disclosure of information.
Information is available here.



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