Publication of annual and financial reports on a yearly basis is a part of the transparency policy of IDGC of the North-West. Disclosure of financial results of activities helps maintaining the image and reputation of the Company at a sufficiently high level. However, such information meets interests of a narrow circle of stakeholders only and provides no opportunity to demonstrate the Company’s achievements in the social sphere.

Non-financial statements, including a Sustainability Report, allow to see the Company’s activities at a different angle and to inform the public about the results of its impact on economic, social and environmental areas. By publishing this Sustainability Report, we declare our determination to develop the dialogue with the society, strive to consider the interests of all stakeholders — employees, consumers, shareholders, investors, local communities, the state, suppliers and contractors — within the framework of social partnership. Moreover, public disclosure of socially important initiatives evidences transparency of the management system which in turn raises the image and reputation of our Company to a principally new level.

In 2011 we issued our first Sustainability Report for the year of 2010 in which the Company was declared a socially responsible organization and the economic, social and environmental results of activities of IDGC of the North-West were reported.

In 2013 we prepared and issued a report which reflects material facts and results of the Company’s activities in the area of sustainable development for 2011-2012: assurance of reliability and availability of power supply, preservation of natural resources, development of the regions of its presence and responsible management of social impacts on employees and the society.

Materiality and contents of the report

The concept of the report was developed on the basis of the information obtained from our stakeholders using the feedback channels. The report contains achievements and successful results as well as challenges faced by the Company in the reporting period. In order to increase the quality and accuracy of information disclosure we work on improvement of the system of collection of non-financial information.

The Report consists of three parts:

The first part contains general information about our company, including performance indicators and main events in the reporting period.

In the second part we describe our approach to social responsibility and interaction with stakeholders. In determining contents of the second part we had two key objectives in mind: to describe the process of the Company’s functioning, including production activities, Corporate governance, HR policy and to take into account all aspects of financial, social and ecological aspects of our activities, including principles of social partnership, support of regional development and responsible attitude towards natural resources and environment.

In the third part we describe the process of the report preparation in accordance with rules and principles set forth in the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI G3.1). It also contains contact information and glossary.

In defining topics to be included in the Report we considered the degree of their materiality both for the Company and its stakeholders.

Materiality matrix

Vertically the topics are located by the degree of influence on stakeholders, horizontally — by the degree of influence on the Company and its activities. The topics are divided into three zones by the degree of influence on the Company and stakeholders: zone 1 – tangible influence, zone 2 – increased influence and zone 3 – significant influence. The topics are in three colors depending on the priority level at the moment and on the need in particular actions: grey — sufficient attention is paid to the topic and relevant measures are taken, beige — the topic is defined as a priority one and requires particular actions, orange — high-priority topic and a critical need in particular actions.