CHAPTER 5
SUSTAINABLE DEVELOPMENT

5.2. Interaction with Stakeholders

Traditional concept of the sustainable development provides that this is development that meets the needs of the present without compromising the ability of future generations to meet their own needs (The UN International Commission for Environment and Development, 1987). This approach may be implemented only taking into account the interests of the key stakeholders (interested parties) upon structural interaction with them and integration of this practice into all business processes of the Company.

By virtue of scale and specific character of the activities the RusHydro Group has a wide range of the interested parties. The focused work with the stakeholders is aimed first of all at achieving the Company’s strategic goals.

Due to existence of several areas of the core activities (electrical power generation, sales, development of innovative technologies, etc.) each area has its interested parties, and the Company builds systematic and planned interaction with them. At the same time, the Company organises interaction with a wide range of the interested parties through public accounting, corporate web-sites, contacts with journalists, exhibitions and forums, etc.

About stakeholders engagement see Sustainability Report.

Interaction with the territorial authorities

Aware of the need for a mutually beneficial long-term cooperation with the regional and municipal authorities, aimed at sustainable socio-economic development of regions and to increase the efficiency of activities in the regions, PJSC RusHydro concluded a cooperation agreement with the regional authorities.

As of 31.12.2015, the acts of a cooperation agreement with the authorities of the following regions:

Republic of Altai,
Republic of Bashkortostan,
Republic of Daghestan,
Republic of Khakassia,
Krasnoyarsk Territory,
Stavropol Territory,
Amur Region,
Irkutsk Region,
Moscow Region,
Sverdlovsk Region.

The Company believes that the stable contacts with the regional authorities in the implementation of regional programmes of socio-economic development and investment projects of PJSC RusHydro will serve as the key to success in the regions.

Interaction with the Stakeholders

Stakeholders	Stakeholders’ interests	Basic mechanisms of interaction
Federal, regional and municipal authorities	Provision of reliable and uninterruptible power supply Support of development of the regions of presence Development and modernisation of electrical energy Development of the renewable and alternative sources of energy	Agreements for social and economic cooperation with the subjects of the Russian Federation nvestments in development of the regions of presence Conduct of public hearings on the power plants construction project Work in joint committees, commissions, expert groups on the issues of the fuel power complex development
Shareholders and investors	Economic efficiency Company’s business continuity Transparency of business processes	Shareholders meetings and other corporate events IR-presentations and IR-events Disclosure of financial results
Employees	Professional and career development Safe working conditions Worthful compensation terms	Personnel development Social support of employees Informing and communication through internal channels Cooperation with trade union organisations
Regulatory and supervisory bodies	Observance of requirements of the Russian and international law	Reporting Working out of proposals on legislation improvement
Business partners, suppliers and contractors	Fair competition and responsible conduct in the market Transparency of activities, as well as transparency of procurement activity	Forums, exhibitions, conferences, dialogues Open and competitive procurement procedures Common projects
Customers and consumers	Sound power supply Improvement of the products and services quality High standards of service	Online consultations on the web-sites of the sales companies "Helpline" Mobile service centers Virtual reception area Contact center Personal accounts of the consumers of the guaranteed suppliers Development of the client offices
Local communities in the regions in which the Company operates	Improvement of quality of life in the regions of presence Reduction of negative impact on the environment	Investments in development of the regions of presence Social programmes and projects, including charitable and ecological programmes and projects Conduct of public hearings on the construction facilities
Professional associations and non-profit organisations	Development and modernisation of the electrical energy industry Transparency of activities	Cooperation with specialised Russian and international organisation Participation in professional and business associations Cooperation with public organisations
Higher Education establishments and other educational institutions	Targeted personnel training Development of the sectoral science Development of innovative technologies, incl. the ones reducing negative impact on the environment	Cooperation in the field of scientific and research activity Personnel preparation, retraining and competence development Orders for R&D
Mass media	Provision of the real time access to the information about the Company’s activities	Arrangement of events for mass media Initiation of publications in the all-Russian, regional and local mass media Updating of information on the corporate web-sites, official blog and company resources in social networks (Facebook, Live Journal, Instagram, etc.)

5.4.
Personnel and social policy

CHAPTER 5 SUSTAINABLE DEVELOPMENT

5.2. Interaction with Stakeholders

CHAPTER 5
SUSTAINABLE DEVELOPMENT