Opinion of the RUIE Council for Non-Financial Reporting on the results of review of the 2011-2012 Sustainability Report of JSC IDGC of the North-West for the purpose of public certification

From September 27 to October 18, 2013 Members of the Council for Non-Financial Reporting of the Russian Union of Industrialists and Entrepreneurs reviewed the contents of the 2011-2012 Sustainability Report of JSC IDGC of the North-West submitted by the Company and made this Opinion in accordance with the Regulation on Public Certification of Corporate Non-Financial Reports approved by the Council.

Economic freedom and responsibility:

The report presents in detail measures for assurance of reliable and uninterrupted process of electricity transmission to consumers, high quality and accessibility of the service. It addresses issues of tariff formation with a special focus on the cross subsidization process. The dynamics of technological connection volumes and the Company’s position on connection of privileged consumers are presented. The solution of the problem of deterioration of electric grid equipment is considered in terms of modernization of equipment of the electric grid complex and organization of repair activities. The Report also mentions the interaction of the Company’s management with governmental authorities on issues of implementation of regional investment programs and plans for development of the electric grid infrastructure by the branches. The corporate governance principles are listed and activities of the Company’s management bodies are described. It also reports the improvement of responsible business practice based on the internal control development and risk management system, anti-corruption policy and assurance of transparency of activities.

Partnership in business:

Interaction with the Company’s partners is a cross-cutting topic of the Report. Information on communication and provision of consumer feedback on the basis of a wide use of Internet-technologies is provided. Detailed information is provided on work with personnel, including issues of creation of safe workplace conditions, training and development, social support system, social partnership with trade unions. Examples of interaction with shareholders, joint work with higher education institutions for improvement of quality of higher professional education of students and training of the Company’s employees, cooperation with government authorities are given. Key principles and system of purchasing activities are displayed.

Human rights:

Information on various areas of work with personnel included in the Report evidences that the Company is committed to respect labor rights of its employees.

Environment protection:

The environment protection is seen as an integral part of the Company’s production activities. The Report describes the new environmental policy adopted in 2012 which establishes unified standards for the Company’s branches and the strategic tasks set until 2014. It contains information on energy saving and energy efficiency increase programs and describes measures taken jointly with regional authorities, education institutions and local communities and aimed at the environment conservation (installation of bird protection devices, forest restoration and planting greenery actions taken by the Company’s employees).

Participation in development of the local community:

The key emphasis in reporting the Company’s participation in development of territories of its presence is made on assurance of reliable energy supply to consumers, including information on technological connection of privileged consumers and reduction of risks relating to energy treatment by the population.