To increase the transparency and accountability of the Engineering Division, representatives of the main stakeholders are involved in the preparation of the report by participating in discussions of the important aspects of the Division activities and reflection of such activities in the report and by participating in public verification of the report. Interface with stakeholders is a requirement of international standards АА1000SES Institute of Social and Ethical Accountability, Global Reporting Initiative (GRI Standards), Integrated Reporting International Framework.
During the preparation of this Report, public consultations and two dialogues with representatives of the main stakeholders were held (protocols of the dialogues are published at panel of interface with stakeholders).
A dialogue for determining the important subjects to be reflected in the Report was held in the Moscow Branch Office of JSC ASE EC on 31.11.2016. The dialogue was held with application of Rapid Foresight technology which made it possible to perform a full cycle of works for the development of materiality matrix of significance due to joint work of the Company top-management and representatives of the main stakeholders.
Dialogue for priority subject of the Report: “Achievement of leadership in project management” was held in the Moscow Branch Office of JSC ASE EC on 02.03.2017.
Public consultations on draft report were held in the Moscow Branch Office of JSC ASE EC on 19.04.2017. Representatives of Moscow Branch Office of JSC ASE EC, Novovoronezh NPP and stakeholders in Novovoronezh participated in the event in the video-conference mode.
Fifty proposals and recommendations were put forward in the course of all the dialogues. 86 % of the proposals were related to inquiries about the publication of certain information in the Report, the other proposals were related to the development of public reporting system of issues of Interactions with Stakeholders. Proposals related to the activities of the Company were submitted to appropriate structural divisions. The company has responded to recommendations on the draft report (about the structure, contents, format of the reporting documentation) and improvement of the public reporting system. In total 80 % of proposals were taken into account; 6 % were not taken into account (justified answers were provided); 14 % of proposals will be taken into account or reviewed during the preparation of reports for the next reporting periods.(GRI 102-44)
|Stakeholders’ proposals||Stakeholders||Consideration of proposals by the Company|
|More detailed presentation of environmental priorities||Environmental organizations||taken into account, see “Natural capital” chapter|
|To illustrate the company’s achievements, in particular to disclose information on a third class of competence in the field of project management||Taken into account in the chapter “Manufactured capital management”|
|To cover the topic of efficient use of resources and enhancing of labor efficiency in the report||Taken into account in all main report chapters|
|Include the results of reports on audits performed by environmental organizations at the construction sites of nuclear companies.||Taken into account, see “Natural capital” chapter|
|Reduce specialized terminology use for convenience of stakeholders||ROSATOM||Taken into account|
|In the beginning of the report to draw attention to the start-up of Novovoronezh NPP unit||Taken into account|
|To provide a more detailed comment on revenue results in the report||Taken into account, see “Financial capital” chapter|
|To indicate information on average salary for the 2016 in the report||Taken into account, see “Human capital” chapter|
|To be future focused when including information on the company in the report||The scientific community||Taken into account|
|Implement risk map when showing information on risks||Taken into account in the chapter “Key risks”|
|Provide assessment of Multi-D project’s contribution to the methodology of the company projects’ management||Taken into account in the chapter “Manufactured capital management”|
|To underline the fact that Multi-D system is a basis for further development of the company||Media||Taken into account in the chapter “Manufactured capital management”|
|To include in the report information on a number of employees subject to advanced training with different specializations||Education organizations||Taken into account, see “Human capital” chapter|
|To show in the report that the company’s activity is in line with the UN goals for sustainable development adopted in 2015||Taken into account in the chapter “Agenda for the sustainable development”|
|Indicate return on investment R&D and patents (including patents of 1990-s)||International organizations||Not considered. These information is considered as commercial secret|
|To include in the report information on headcount by specialties and assess a quantity of specialists to be prepared in future||Partially taken into account in the chapter “Results of human resources policy implementation”|
|To include in the report information on agreements with educational institutions||Partially taken into account, see “Human capital” chapter|
|Include specific information on radiation, ecological and industrial safety and labour protection in the report||The scientific community||Taken into account, see “Human capital” chapter|
|To indicate specific information on a quantity of concluded contracts and, if possible, their amounts, or delete this chapter when no specific events took place in 2016, in the chapter “Construction of research and low-power reactors”||Customers||Not considered. Information on contracts/amounts is a commercial secret and a general approach of the Company on these activity is included in the report|
|Provide more detailed information on the condition of labour protection at the power units under construction, in particular the industrial injury rate with comments||Taken into account, see “Human capital” chapter|
|To include information on the assets allocated for the safety culture||Shall be accounted for in the 2017 report|
|To include the results of audits performed by environmental organizations and researches of environmental organizations at the construction sites of nuclear companies||Taken into account, see “Natural capital” chapter|
|Stakeholders’ proposals||Company’s Liabilities|
|Confirm information on future prospects of nuclear industry state financing||Shall be considered in the process of concept development for the 2017 report|
|To cover the topic of public involvement in the company’s projects in more detail|
|Add information on cooperation with higher educational institutions within the framework of scientific and research activity into the chapter 2.3.|
|To indicate in the report information on the company’s intention to participate in the implementation of the RF Strategy for scientific and technology development||Shall be accounted for in the report of the next year|
|To underline in the report the activity for handling with RW, SNW and NPP decommissioning as important components for operation sustainability and to consider them as key components of integrated proposal during the construction of NPPs under russian projects abroad|
|Prepare a program of actions on sustainable development|
|To show in the report connection of charity to the basic activity of the company|
|Consider new NPP safety standards in preparation of the report|
Engineering Division (hereinafter referred to as the Company) has provided us with a possibility to evaluate the Annual Report for 2016 (hereinafter, the Report), including the completeness and the materiality of the disclosed information and response of the Company to requests of the stakeholders. For this purpose, we and our representatives were given a possibility to participate in the public consultations on Draft Report which took place on April 19, 2015, as well as in two dialogs with the stakeholders:
Our conclusion is based on the comparative analysis of two versions of the Report (Draft Report for public consultations and final version of the Report) and submitted materials following the results of the dialogs and consultations (records of events, summary tables on comments of the stakeholders), as well as comments made by Company managers and employees in the course of the external assurance of the Report.
In the process of the external assurance of the Report we did not set a task to check the data collection and analysis system of the Company. Reliability of the actual data presented in the Report is not a part of this assurance.
All participants of the public consultations could freely express their opinion. We have not received any remuneration from the Company for participation in the external assurance procedure.
We agree in the positive assessment of the Report concerning its format and the scope of disclosed information. It is extremely important that the Integrated Report is prepared on a voluntary basis, and it is a good example of improvement of transparency and openness on the part of the Company. In the process of preparation of the Report the Company demonstrated a high level of aspiration for assurance of public and environmental acceptability of nuclear energy industry development, as well as readiness for open dialog with the stakeholders in various directions of its activity.
In 2016, the Engineering Division of ROSATOM was established completely, all of the NPP design and construction assets were collected under the common governance framework, and the Report was for the first time prepared with such a wide scope: all key organizations (ASE EC JSC, ASE JSC, Atomenergoproekt JSC and ATOMPROECT JSC) and a number of subsidiaries within the governance scope.
Company operates in 20 countries of the world. Following the integration the stakeholders’ scope has been extended due to stakeholders of ATOMPROEKT JSC. Therefore, the importance of the report preparation in compliance with international standards and absolute transparency of operations, including for the foreign stakeholders is extremely high.
The Report is prepared in accordance with the International Integrated Reporting Framework (International <IR> Framework), AA1000 Series Standards (Institute of Social and Ethical Accountability), GRI Sustainability Reporting Sandards (comprehensive option).
The integrated nature of the Report facilitated the integrated disclosure of information on the core activity of the Company, its performance in the field of sustainable development, strategy and plans for the future.
We assess the disclosure of information in the Report as sufficient both in terms of the use of international public reporting standards and in terms of response to the stakeholders’ comments raised during the Report preparation.
To our opinion, it is the Integrated Report that shall present the official position of the Company’s management on all key socially important issues and activity areas of the Company.
We consider that the Company has taken into account the requirements of international standards for determination of materiality. During the report preparation, the Company used the Rapid Foresight technology to define the material topics. The innovative technology allowed the top management of the Company and stakeholder representatives, including members of the Stakeholders Panel to fully develop a materiality matrix.
The suggested material topics were checked for compliance with GRI SRS. The material topics were disclosed in sufficient details. The priority topics of the Report are: “Achievement of leading positions in project management, "Companies integration and establishment of Engineering Division”. All sufficient data on the priority topics was disclosed.
Special attention was given to the environmental protection. And the essentially important point was to proclaim 2017 as the year of Environmental protection in Russia.
Thus, the Report includes all important information either for the Company, or for stakeholders.
We also consider that reduction in the scope of the Report when disclosing all material information complies with the best international reporting practices and enables to present a full description of the activity of the Company, including the creation of value.
This year the Company made serious efforts to comply with the Conciseness principle. Despite the wider scope of disclosure, the volume of the Report was reduced comparing to the previous year. Availability of references to other information sources in the Report enables to get all required information and at the same time reduces Relieve the report from redundant information, which could be found in previous reports, online or in other sources. Furthermore, annexes were published as a separate book, which could be found on the Company’s website. The Company has presented part of the reporting information in the form of graphics, tables and diagrams, and it makes the Report more friendly for readers and reduces volume of the Report even further.
In general, we believe that compliance with Materiality and Conciseness principles allowed all material topics to be fully disclosed.
We recommend the Company to pay attention to the need to disclose the following information in the further reports: detailed description of markets where the Company has business activities (basic competitors, trends, prospects, etc.); detailed description of both direct and indirect Company’s influence on the regions of presence; description of the environmental impact of contractors at the construction sites.
We consider that the Company has demonstrated a significant progress in development of cooperation with the stakeholders and introduction of the public reporting practice into its activities. In the course of the Report preparation, three dialogs with the stakeholders were carried out. One of them was carried out on modern communicative technology Rapid Foresight.
The Company has responded to the stakeholders’ comments by introducing updates and additional information into the final version of the Report. In particular, the following Sections were redeveloped and supplemented with the requested information: “About Engineering Division”, “Social and Relationship Capital” and “Financial Capital”.
The Company undertook to disclose information in subsequent reports on some matters or explained the reason why this requested information could not be disclosed.
In addition, the Company undertook to improve the Public Reporting System in future, particularly to engage with foreign stakeholders more often.
In connection with the expansion of the division management scope, the range of tasks related to the public reporting of the Company has expanded. We hope that the modernization of the public reporting system will be carried out taking into account the opinion of the stakeholder environment. We also hope that the Company will go on with consistent introduction of the principles of responsible corporate behavior into its activities through development of the public reporting system, improvements in the quality of annual reports and cooperation with the stakeholders.