The Company and Results of Operations > Message from Director General

Dear colleagues,

in recent years the topic of corporate social responsibility has been the focus of attention of the leaders in the Russian business sector. As many other Russian companies, JSC IDGC of the North-West has been performing a systematic work in the area of corporate social responsibility. We consider corporate social responsibility a valuable base of our dialogue with stakeholders, of increasing their trust to our activities and, hence, we see it as a long-term investment in the Company’s intangible assets.

Social responsibility is an integral part of our strategy and tactics.

Our company is focused on a wide circle of stakeholders: the state, shareholders, investors, employees, local communities and consumers. Interaction with stakeholders enables us not only to resolve day-to-day tasks but also to forecast possible problems, create conditions for mutually beneficial partnership. Social responsibility is a phenomenon of an evolutional nature and we use our best efforts to respond promptly to challenges of the external environment and stakeholders’ expectations.

When we make strategic decisions we base them on the values of sustainable development and forecast economic, social and environmental impacts of our activities.

Today our company and its priorities in the field of corporate social responsibility are influenced by such large-scale tendencies as a moderate growth and changes in the geography of the demand for electricity, the substantial physical and technological obsolescence of electric grids and the necessity of implementation of new technologies. These trends determine our top-priority tasks in the field of corporate social responsibility: power supply reliability, social investment, information openness, good-faith business practice, environment protection, energy efficiency. We ensure increase of investments in personnel training, labor and environment protection. For example, the current environmental protection expenditure was RUB11,151.1 thousand in 2011 and RUB12,862.2 thousand in 2012; labor protection costs per employee grew as well: RUB17.3 thousand in 2011 and RUB21.1 thousand in 2012.

We are responsible not only for our employees’ health and safety. In our work we pay much attention to prevention of third-party electrical injuries, including child electrical injury prevention. This resulted in a considerable reduction in the number of electrical injury incidents.

As any other electric grid organization, IDGC of the North-West by definition bears a huge responsibility: for the quality of life of the population and economic development of territories of its presence, for creation of optimal conditions for work of thousands of employees, for the environment condition.

We believe the cooperation with the labor union to be one of the key areas of our social activities. In our constructive dialogue with the labor union we develop solutions which enable us to harmonize employees’ interests with economic opportunities of the Company. The employer’s expenses under the Collective Agreement were RUB460.6 million in 2011, RUB474.4 million in 2012.

As any other electric grid organization, IDGC of the North-West by definition bears a huge responsibility: for the quality of life of the population and economic development of territories of its presence, for creation of optimal conditions for work of thousands of employees, for the environment condition. And it is not only about today, it is also about long-term prospects.

Among the objectives we set for 2012-2017 are the increase of reliability and quality of power supply, increase of investment effectiveness, process and system optimization, workplace safety improvement, etc.

We are open to the society’s expectations in the field of social responsibility and ready to respond to these expectations.

Sergey Titov
Director General of IDGC
of the North-West