The UN Global Compact, the Social Charter of Russian Business, and the Global Reporting Initiative (GRI): Consistency of Principles and Indicators

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1 Appendix 5. The UN Global, the, and the Global Reporting Initiative (GRI): Consistency of Principles and Indicators 1 The Social is based on key international documents pertaining to human rights, labour, and the environment developed by the UN, the International Labour Organizations, and the European Council. Through it the Russian companies that have decided to join the Social and to adhere to its principles are included in the world-wide drive for sustainable development. By planning and evaluating their operation and measuring, participants in the Social can position themselves with respect to the international principles of corporate social responsibility. In the document below principles of the Social are compared with the principles of the UN Global and the GRI Performance Indicators (GRI Guidelines). The comparison vividly shows that the is in line with international sustainable development initiatives. Russian corporate participants in the Social, seeing the importance of participation in international agreements, are well placed to join the Global. The UN Global is to bring the business community and civil society together to jointly uphold the ten universal principles concerning human rights, labour, and the environment, and to resolve issues of globalization. The Global is a voluntary initiative based on corporate citizenship. It promotes openness and transparency of operation in realization of its principles based on well thought-out business interests, and requires appropriate long-term corporate management strategies. The Global Reporting Initiative is a long-term international process aimed at establishment, dissemination, and international application of the Sustainability Reporting Guidelines. The Guidelines are to be voluntarily used by organizations in their economic, environmental, and social reporting. The purpose of such reporting is to identify and explicate the organization s contribution to sustainable development through a system of indicators (GRI Guidelines 2002). The Social and the Global lie at the foundation of corporate strategies. The GRI is a tool for adequate description and measurement of corporate. For the purposes of this document, only those GRI indicators that reflect against the principles of both the Global and the Social have been used. 1 The table was prepared using the following documents: GRI Sustainability Reporting Guidelines (2002), Russian translation ( The Global. The Ten Principles ( UN Global Principles and GRI Performance Indicators ( the (

2 The UN Global, the, and the Global Reporting Initiative (GRI): Consistency of Principles and Indicators UN Global Human Rights GRI Category GRI Index Indicators 1. es should support and respect the protection of internationally proclaimed human rights We recognize inviolability of human rights, impede their violation, support observance of all human rights pertaining to companies activities We support, when appropriate, the authorities and civil initiatives in the field of strengthening society s democratic foundations, protection of civil rights and freedoms, and private property rights In our activities we observe employee labour rights stipulated by the law, we recognize the employee right for a fair remuneration based on, contribute to Contributing to development of local communities Strategy and management Non-discrimination HR1 HR2 HR3 HR4 Description of policies, guidelines, corporate structure and procedures to deal with all aspects of human rights relevant to operations, including monitoring mechanisms and results. Evidence of consideration of human rights impacts as part of investment and procurement decision, including selection of suppliers/contractors. Description of policies and procedures to evaluate and address human rights within the supply chain and contractors, including monitoring systems and results of monitoring. Description of global policy and procedures/programs preventing all forms of discrimination in operations, including monitoring systems and results in monitoring

3 UN Global prevention of any form of discrimination and forced labour 2. Make sure that their corporations are not complicit in human rights abuses 2. Make sure that their corporation are not complicit in human rights abuses For us employee labour rights are inseparable from human rights. In our activities we observe employee labour rights stipulated by the law GRI Category Strategy and management Labour practices and decent work Occupational health and safety GRI Index HR2 HR3 Indicators Evidence of consideration of human rights impacts as part of investment and procurement decision, including selection of suppliers/contractors Description of policies and procedures to evaluate and address human rights within the supply chain and contractors, including monitoring systems and results of monitoring For us human life is of highest value. For us there can be no compromise between health and safety of an employee and profit- LA7 Standard injury, lost day and absentee rates and number of work related fatalities

4 UN Global making. Labour safety and employees health are our key priorities LA14 Evidence of substantial compliance with the ILO Guidelines for Occupational Health Management Systems Labour 3. es should uphold the freedom of association and the effective recognition of the right to collective bargaining In our activities we observe employee labour rights stipulated by the law and in involve employees in the process of decision-making in relation to enterprise s fundamental development issues GRI Category Freedom of association and collective bargaining Labour practices and decent work Labour/management relations GRI Index HR5 LA3 Indicators Description of freedom of association policy and extent to which this policy is universally applied independent of local laws, as well as description of procedures/programmes to address this issue Percentage of employees represented by independent trade union organisations or other bona fide employee representatives broken down geographically or percentage of employees covered by collective bargaining agreements broken down by region/country Policy and procedures involving information, consultation and negotiation LA4 with employees over changes in the reporting organisation's operations (for example, restructuring) 4. Elimination In our activities we contribute Description of policy to prevent forced and

5 of all forms of forced and compulsory labour 5. Effective abolition of child labour UN Global to prevention of any form of discrimination and forced labour Forced labour Child labour HR7 HR6 compulsory labour and extent to which this policy is visibly stated and applied, as well as description of procedures/programmes to address this issue, including monitoring systems and results of monitoring Description of policy excluding child labour as defined by the ILO Convention 138 and extent to which this policy is visibly stated and applied, as well as description of procedures/programmes to address this issue, including monitoring systems and result In our activities we contribute to prevention of any form of discrimination and forced labour 6. Elimination of discrimination in respect of employment and occupation We see our employees as the company s most important asset. We encourage development of professional and personal abilities and expand opportunities for our employees through personnel development, creating a favourable GRI Category GRI Index Indicators Child labour Labour practices and decent work Equal opportunity and diversity HR4 LA10 Description of global policy and procedures/programmes preventing all forms of discrimination in operations, including monitoring systems and results in monitoring Description of equal opportunity policies or programmes as well as monitoring systems to ensure compliance and results of monitoring

6 UN Global environment for professional and career growth, training, enhancing labour efficiency, and creating incentives for productive and efficient labour indicators (additional): Labour practices and decent labour Training and education LA11 LA17 Composition of senior management and corporate governance bodies (including the board of directors) including female/male ratio and other indicators of diversity as culturally appropriate Specific policies and programmes for skills management or for life long learning Environment We believe that preserving the environment is an issue of global importance for humanity. We seek to contribute by our actions to the preservation of the Ecological environment safety We support environmental protection policies, policies aimed at achieving ecological GRI Category GRI Index Indicators Governance structure and management systems Structure and governance Environmental 3:13 Statement on whether and how the precautionary principle is addressed by the organization

7 7. es should support a precautionary approach to environmental challenges 8. Undertake initiatives to promote greater environmental responsibility safety of production, economic use of natural resources as well as their re-use and waste recycling We aspire to produce only high quality goods, favourable and safe for the health of consumers In our activities we use only safe and reliable goods and services Ecological safety Product quality, consumer relations Product quality, consumer relations materials, energy, water, emissions, effluence, waste, and biodiversity Environmental Products and services Environmental Products and services Environmental Compliance EN1 EN13 EN14 EN15 EN16 See GRI Guidelines Sustainability Reporting Guidelines 2 Significant environmental impacts of principal products and services Percentage of the weight of products sold that is reclaimable at the end of the products' useful life and percentage Incidents of and fines for non-compliance with all applicable international declarations/conventions/treaties and national, sub-national, regional and local regulations associated with environment issues UN Global We see our social mission in achieving sustainable GRI Category GRI Index Indicators 2 Specific environmental indicators (EN1 EN13) include information on the use of materials, energy, water, and data on emissions, effluence, and waste, and reflect the impact of production on biodiversity in various ecosystems. It is recommended that those indicators should be considered in the context of sustainable development.

8 9. Encourage the development and diffusion of environmentally friendly technologies Anti-corruption development of independent and responsible companies which brings long-term economic benefits for the business and contributes to achieving social peace, safety, and well-being of citizens, to preserving the environment and to observing human rights We apply our knowledge and experience in the field of ecological safety and health protection in order to enhance safety and well-being of the residents in those areas where we operate, and of society as a whole We seek to contribute by our actions to the preservation of the environment Social mission of business Ecological Safety Ecological Safety Vision and strategy Community Local communities Ecological indicators (additional): Initiatives to use renewable energy sources 1:1 SO1 EN17 Statement on the organisation s vision and strategy concerning its contribution to sustainable development Description of policies to manage impacts on communities in areas affected by activities, as well as description of procedures/programmes to address this issue, including monitoring systems and results of monitoring Initiatives to use renewable energy sources and to increase energy efficiency 10. es should work against all forms of corruption, Relations between business and the state, and business and civil society should be built on a public legal basis Social mission of business Community SO2 Description of policy, procedures/management systems and

9 including extortion and bribery We follow the principles of fair pricing, fair competition and advertising, and ethical business conduct principles Bribery and corruption compliance mechanisms for organisations and employees addressing bribery and corruption

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