Sustainable development

Hr policy implementation results

The headcount for 2021 was 7,416 people, which is 0.2% higher than in 2020. A slight increase in the headcount is due to the natural movement of personnel.

Headcount of Rosseti Tyumen JSC in 2019–2021, persons

Headcount of Rosseti Tyumen JSC: breakdown by branches in 2021

The staffing level of the Company’s production personnel is 96.6%.

Active turnover in 2021 was 6%.

The average age of employees is 42 years. Rosseti Tyumen JSC is focused on rejuvenating the workforce through the implementation of measures and creating conditions for attracting young professionals. Thus, in 2021, the percentage of employees under the age of 35 admitted to the Company amounted to 49.2% of the total number of employed employees.

Almost half of the Company’s employees are aged 35 to 50 – 49%. Young workers under the age of 35 – 26%. There is a slight decrease in the percentage of employees in the category “over 50 years old” by 0.1 p.p. as compared to 2020.

Staff breakdown by age in 2019-2021

Rosseti Tyumen JSC employs high skilled staff: 3 employees have a Ph.D. degree, 87.1% of the Company’s specialists have professional education, 23% of whom have higher education, a sign that the production staff is well trained.

Staff breakdown by education in 2019-2021

Percentage of women in each category of employees in 2021, %

25% Women's share of total
number of employees
Societies

Breakdown by gender and type of contract, pers. (GRI 102-8 )

Number of employees: breakdown by type of contract and gender, pers. (GRI 102-8 )

Total number of employees: breakdown by type of contract and by subdivision (GRI 102-8 )

Employees hired in 2021: breakdown by age, gender and branches (GRI 401-1 )

Employees dismissed in 2021: breakdown by age, gender and branches (GRI 401-1 )

Staff training and development

Staff training and career development is a key element of the Company’s HR policy: in 2021, 7,138 employees completed training programs, which is 96% of the Rosseti Tyumen JSC headcount. Most of the training programs were implemented with the use of distance technologies (71%).

The HR policy is aimed at developing the intellectual, professional and managerial potential of employees to implement the Company’s strategic priorities and the adopted concept of “Digital Transformation 2030”.

Training prioritizes engineering staff as well as the Company’s candidate pool. Production staff accounted for 91% (6,531) of those trained.

Breakdown of staff who completed training is given below.

Percentage of staff trained and training costs to payroll ratio in 2021, %

Staff trained in 2021: breakdown by categories

In 2021, actual training costs totaled 0.6% of the payroll (0.5% in 2020).

On average, training time was 39 hours per employee in 2021.

Average training hours per employee: breakdown by gender and staff categories (GRI 404-1) ( GRI 404-1 )

The system of continuing education of the Company’s staff is based on the following principles:

•  unconditional compliance with the frequency of mandatory types of employee training;
•  prioritization of training programs aimed at developing innovative and digital competencies of employees;
•  maintaining a balance between the development of advanced professional and corporate competencies.

The COVID-19 pandemic significantly adjusted the training process, including at the Company’s Corporate Training Center.

In 2021, Rosseti Tyumen JSC adopted 49 educational programs, the project of the Moodle-based corporate distance learning system was developed, the programs are being converted into the digital format. The launch of a distance learning system will ensure the continuity of production processes, improve the training effectiveness, and will also ensure the compliance with a single educational standard in a geographically distributed Company.

Besides, as part of internal corporate training, more than 1,000 employees of the Company participated in the Knowledge Day educational project aimed at improving professional competence, adapting new employees and creating a high-quality knowledge management system.

The system of continuing education created in the Company allows employees to perform well at professional events and championships. In 2021, the combined team of Rosseti Tyumen JSC won prizes in the Open Corporate Championship of Professional Excellence of Rosseti PJSC Young Professionals according to the WorldSkills methodology.

Candidate pool is formed at all levels of management and covers all positions from the operations manager to the top manager. As a result of candidate pool development measures, candidate pool covers 95% of the targeted positions.

When selecting personnel for vacant management positions, priority is given to candidates, including young specialists of the Company, and only in exceptional cases – to the best specialists in the industry recruited by competition. The Company seeks to create conditions that enhance the personnel efficiency and their involvement in solving corporate tasks. Candidates are actively involved in training events, advancement trainings and competitions held by Rosseti PJSC and Rosseti Tyumen JSC. In 2021, the Company’s candidates became the winners of the 2nd All-Russian competition “Energy Leaders”, Interregional professional competition for the personnel of the RPA and APCS of Rosseti PJSC’s SDCs.

Labor productivity improvement

Improvement of labor productivity is a key performance indicator of the Director General of Rosseti Tyumen JSC.

In accordance with the order of the Ministry of Economic Development of Russia No. 748 dd. December 28, 2018, an updated methodology for calculating the KPI “Labor productivity improvement” was approved, calculated as the ratio of value added to the number of insured persons for all companies included in the perimeter of consolidated IFRS statements, in 2020 – in indicative, starting from 2021– in the target mode. The methodology provides for an annual improvement of labor productivity by 5%. In 2021, the Company exceeded the target value.

In order to achieve the relevant target values, the Company is systematically working to improve the organizational and functional structure, optimize work schedule and increase the workload of the staff, and automate business processes.

Personnel remuneration system

The Company’s social and labor relations with employees are governed by the Collective Agreement of Rosseti Tyumen JSC, where the employees are represented by the Tyumen Interregional Organization of the All-Russian Electrical Trade Union. The Collective Agreement helps balance the interests of the parties to this social partnership pursuant to the current law and the terms and conditions of the Tariff Agreement for Electric Power Industry of the Russian Federation.

Remuneration for the staff is set forth in the Regulations on the Single Remuneration System for Workers, Managers, Specialists, and Officers of Rosseti Tyumen JSC, which is an annex to the Company’s Collective Agreement.

The Regulation specifies uniform rates and salaries and procedures of calculating these rates and salaries for workers, managers, specialists, and officers; it also describes the procedure for setting forth reimbursements and incentives, as well as a system of bonuses and other rewards.

The incentive system for employees is based on objective-based management, is consistent with the Company’s objectives and Rosseti PJSC’s strategy, and contains a number of KPIs designed with such objectives in mind.

Key performance indicators revolve around the Company’s priorities and are balanced for each functional focus area.

Cascading is one of the key principles behind KPIs; it stipulates that the goals and objectives of each higher level are translated or decomposed onto lower levels in order to involve all of the Company’s staff in the pursuit of the same. The remuneration system also uses cross-functional assessments, in which certain indicators become part of related functional verticals.

Incentives for top managers are based on the Director General’s KPIs translated for senior managers and cascaded onto the personnel of the Head Office’s and branches’ subdivisions.

As of year-end 2021, the average pay rose by 3.0% YoY to 109.9 thousand rubles per month.

Average monthly pay of staff in 2019-2021, thousand rubles

Youth policy

The Youth Policy of Rosseti Tyumen is aimed at promoting the professional growth of young employees and attracting talented young professionals to work for the Company.

The Company’s Youth Policy identifies three areas of activity:

• increasing the attractiveness of Rosseti Tyumen as a future employer, popularizing the profession of a power engineer, generating interest in the Company’s activities;
• development of mutually beneficial cooperation with specialized higher and vocational educational institutions;
• labor socialization and adaptation of young professionals in the corporate environment of the

Company, as well as promoting advanced training, professional growth of young specialists, development of professional and leadership qualities, a proactive life stance and production initiative.

Schoolchildren activities

Career guidance for school students, aimed at building a positive image of the electric power industry through the prism of digital technologies, as the most attractive industry for professional self-realization, as well as increasing awareness and loyalty to the Rosseti brand as the largest industry employer, begins with career guidance events in grades 8-9 of general education institutions.

Graduates of the 9th grade have the opportunity to become students of specialized energy groups of institutions of vocational education or transfer to the 10th grade and continue their education in specialized energy classes of general education institutions.

On the Company-served territories, 3 energy classes for high school students were created and are in operation (in the cities of Surgut, Nizhnevartovsk, Novy Urengoy). The training program in energy classes involves advanced training in engineering disciplines, meetings with representatives of the energy sector, open lectures, tours of grid facilities, as well as engaging the project’s participants in research activities.

The Rosseti Group’s Olympiad for Schoolchildren became an annual event. The main objective of the project is to discover gifted high-school students capable of engineering creativity and innovative thinking. The intellectual competition is held remotely in two stages. In the qualifying round, the jury evaluates the knowledge of teenagers in physics, mathematics and computer science. In the second stage, school students solve cases aimed at testing their creativity and ability to put knowledge into practice. Prize-winners and total winners are awarded with memorable prizes and diplomas at the HQ of Rosseti PJSC in Moscow. As a bonus, power engineers invite winners to take part in the Energy Project Session in one of the best children’s health centers in the country. In 2021, 208 schoolchildren from the region took part in this project.

As part of developing partnerships and strengthening ties with educational organizations in the region, in 2021, Rosseti Tyumen organized an online championship in mind games for students from schools, lyceums and universities. The tournament brought together more than 60 students and was held by video conferencing Representatives of educational institutions of the KhMAO and YNAO took part in the intellectual tournament. Schoolchildren and students from Surgut, Nizhnevartovsk and Novy Urengoy competed in the most popular types of intellectual games: “What? Where? When?”, “Multi-games” and “Scrabble Quartet”. The contestants who made the podium were awarded with diplomas and valuable gifts.

The most motivated graduates of energy classes and participants of corporate projects for schoolchildren enter universities that are partners of Rosseti Tyumen. After graduating, they can join the Company because social policy is primarily aimed at developing the regional economy so that young people choose in favor of working at our territory of presence in the three constituent entities of the Russian Federation.

Student activities

Компания на постоянной основе поддерживает и развивает взаимовыгодные отношения с образовательными организациями, осуществляющими подготовку профильных кадров в регионах присутствия. Заключено более 20 соглашений о сотрудничестве с образовательными организациями, созданы 2 базовые кафедры для подготовки студентов образовательных организаций высшего образования на территории присутствия компании.

The Company systematically maintains and seeks mutually beneficial cooperation with specialized educational institutions that provide specialized training the Company-served area. More than 20 cooperation agreements with educational organizations were signed, 2 specialized departments were created to train students of educational organizations for higher education in the Company-served area.

Across nine branches of Rosseti Tyumen, 507 students worked at the Company’s facilities during field training in 2021, 67 of them on a reimbursable basis.

In order to select candidates for the Company in 2021, a six-month internship was organized for 12 full-time senior university students.

Within the framework of the current scholarship support program aimed at encouraging students of educational organizations with which the Company has cooperation agreements, 15 scholarship agreements were concluded this year.

To provide for a practice-oriented preparation of students of energy fields, and for their professional commitment to work in the Company, as well as the revival of traditions of labor education of the youth, Rosseti Tyumen recruited 103 energy students in the summer working season of 2021. In terms of location, the workplaces of the members of the Energetik student brigade were in nine branches of the Company. The employment period was one and a half months.

In 2021, an agreement was signed on the implementation of the EMF Yugra Educational Energy Grid project, the parties to which are Rosseti Tyumen JSC, Nizhnevartovsk, Surgut, Yugra State Universities, as well as the Department of Education and Youth Policy of the Khanty-Mansi Autonomous Okrug – Yugra. The agreement is aimed at providing enterprises of the fuel and energy complex of the Khanty-Mansi Autonomous Okrug – Yugra with qualified personnel.

The Company also involves its employees in teaching activities, including through membership in the State Examination Commission for the defense of graduation theses.

Young professionals activities

In 2021, young specialists of the Company took part in events and projects aimed at developing project and team work skills, managerial competencies, involvement in the industry youth agenda:

• the Youth Electricity Council under the Ministry of Energy of the Russian Federation (Youth Council for Electricity); - competitions between teams of the youth league of the CASE-IN championship;
• educational project Ugra Business Management Cup Point of Growth;
• International Youth Scientific and Practical Forum Oil Capital.

As part the scientific and engineering activities of the Council of Young Professionals, Rosseti Tyumen JSC traditionally holds the Research Paper Competition among young professionals of the Company, which is focused on involving young people in solving pressing production issues, enhancing scientific and engineering creativity and discovering young potential.

Social policy

Rosseti Tyumen JSC prioritizes corporate social responsibility as a development factor.

For more than 25 years, the Company has been successfully implementing a Non-State Pension Program to ensure a worthy standard of living for its retired workers.

The award campaign for employees with state awards, awards from the Government of the Russian Federation, the Ministry of Energy of the Russian Federation, the All-Russian Industry Association of Employers in the Electric Power Industry Energy Employers’ Association of Russia (Association ERA of Russia), awards from heads of local governments, Rosseti PJSC and corporate awards is successfully implemented. The Company encourages those who achieve high production performance, demonstrate professionalism, show courage in preventing or eliminating accidents, make a significant contribution to the construction and reconstruction of power grid facilities, and enjoy prestige with and respect of their colleagues.

As part of the Unified Industry Social Policy, corporate social programs of voluntary medical insurance, voluntary insurance against accidents and work-related diseases are implemented. Their main purpose is to maintain and protect the employees’ health. Every year, the Company runs its recreation programs for children and families.

To attract high-skilled specialists and young people whose work involves moving to another area, the Company has a Housing Allowance Program.

Family sports and cultural events are held for the Company’s employees and their children. More than 250 children took part in annual creative competitions: the corporate drawing competition Rosseti: Children Draw, the reading and drawing competitions #RossetiTyumentotheGreatVictoryand Energy of the Great Victory, the New Year’s contests #The BrightestChristmasTree and Energy of Childhood, competition of LEGO construction Energo-Lego were held.

In order to ensure a healthy lifestyle, promote regular exercise and sports activities, the Company annually holds the Spartakiad for the personnel. In 2021, competitions were held in 7 sports (athletics, kettlebell lifting, football, basketball, volleyball, chess, swimming), in which more than 500 athletes took part.

The combined teams of the Company are active participants in All-Russian competitions, as well as competitions held with the support of the Ministry of Energy of the Russian Federation.

The Company traditionally honors industry veterans and retired professionals. For the senior generation, the Company organizes festivities dedicated to the Victory Day and to the Power Engineer’s Day.

The Company’s employees are also active participants of events that are co-organized with the region’s charities and seek to disadvantaged strata. Volunteering has become an integral part of the Company’s corporate culture and social mission.

Awards received by Rosseti Tyumen JSC’s employees in 2021

Milestones of 2021:

• Based on the results of the collective negotiations between the parties of the social partnership in 2021, an agreement was signed to extend the term of the Collective Agreement of Rosseti Tyumen JSC for 2022.
• An agreement was signed on the implementation of the EMF Yugra Educational Energy Grid project, the parties to which are Rosseti Tyumen JSC, Nizhnevartovsk, Surgut, Yugra State Universities, as well as the Department of Education and Youth Policy of the Khanty-Mansi Autonomous Okrug – Yugra.
• A cooperation agreement was signed between Rosseti Tyumen JSC, the Department of Education of the Administration of the city of Nizhnevartovsk, FSBEI HE Nizhnevartovsk State University and MBOU Secondary School No. 5. Specialized energy classes were opened in the cities of Nizhnevartovsk and Novy Urengoy.
• A cooperation agreement was signed with Tomsk Polytechnic University with a cooperation plan for the 2021/2022 academic year.
• With the support of the Company, an exposition dedicated to the 100th anniversary of GOELRO and the development of one of the country’s largest energy systems was opened. A centralized visit to the exposition was organized for the students of Surgut State University, Surgut Polytechnic College, lyceum students of the specialized energy class of the city of Surgut, and employees’ children.
• On the basis of the INPO Regional Sanatorium Health and Education Center Vityaz, a children’s energy shift was organized for 100 children of the Company’s employees aged 7-15 years.
• The Company’s candidates became the winners of the 2nd All-Russian competition Energy Leaders, Interregional professional competition for the personnel of the RPA and APCS of Rosseti PJSC’s SDCs.
• An open regional championship in intellectual games was held among employees of organizations of the fuel and energy complex of KhMAO-Yugra.
• An online championship in intellectual games was held among students of specialized energy classes and educational institutions of secondary and higher professional education – partners of the Company.

Occupational health and safety management

Rosseti Tyumen JSC’s Occupational Health and Safety Policy prioritizes life and health of the employees over the Company’s economic performance.

Rosseti Tyumen JSCconsistently seeks to reduce the risks of occupational diseases and prevent occupational injuries.

Pursuant to the Labor Code of the Russian Federation and in order to improve the performance of its Occupational Health and Safety Management System, Rosseti Tyumen JSC has Regulations on the Occupational Health and Safety Management System that was put into force by Order of Rosseti Tyumen JSC No. 373 dd. October 1, 2021. The document sets forth the OHS Policy and the procedures of the Occupational Health and Safety Management System (“OHSMS”).

Rosseti Tyumen JSC’s OHSMS seeks to prevent occupational injuries and diseases, teach the employees the principles of safe work and hazard prevention, and continuously improve the labor conditions. OHSMS was established with a focus on continuous betterment of the effort to preserve lives and health of the Company’s and third-party employees.

Rosseti Tyumen JSC’s injury prevention and OHS improvement efforts are organized in compliance with its Comprehensive Staff Injury Risk Reduction Program 2020–2021 and Comprehensive Third-Party Injury Risk Reduction Program as approved by Rosseti Tyumen JSC’s Order No. 77 dd. February 25, 2020.

With respect to occupational health and safety, Rosseti Tyumen JSC mainly undertakes to:

• provide a healthy and safe working environment;
• consistently and continually reduce occupational injury and disease incidence;
• create and maintain a positive image as an employer;
• teach the employees to work safely and prevent hazards at work;
• create an advanced corporate culture of safety;
• continuously improve labor conditions.

* Fires resulting from technological incidents.

Fire Safety

In 2021, three fires were reported to happen at Rosseti Tyumen JSC’s facilities; investigations did not reveal any fire safety breaches. Fires resulted from:

• fires occurred at third parties – 2;
• emergency operation of the power grid – 1.

In order to improve fire safety and to prevent fires, the Company’s branches organize monthly Occupational Safety Days and conduct fire safety inspections as part of those events. The inspections produce lists of steps to address the identified breaches.

Ever since 2015, the branches also participate in the competition for best fire safety. Kogalym Electric Grids won the competition in 2021.

As part of the training of fire safety personnel, 3,628 scheduled fire drills and 187 joint drills were held with units of the EMERCOM, authorities, municipal governments and organizations located in the Company’s regions of operation.

Share of total personnel represented in the official joint committees for health and safety, with the involvement of managers and employees that monitor, and make recommendations on, occupational health and safety programs

Rosseti Tyumen JSC has structural units responsible for industrial safety and production control (“ISPC units”, “ISPCU”) that employ specialists trained in Occupational Health and Safety.

Pursuant to Article 218 of the Labor Code of the Russian Federation, Rosseti Tyumen JSC has by virtue of organizational and administrative documents established committees (commissions), which on a parity basis consist of persons representing the employer and the elective body: Primary Trade Union.

These committees (commissions) are mainly tasked to elaborate coordinated managerial decisions on how to improve the Company’s OHSMS, to ensure compliance with OHS requirements, to prevent occupational injuries and diseases.

Occupational health and safety commissioners have been elected by the staff of each production unit; these officers are guided by the Labor Code of the Russian Federation, other laws and regulations applicable to OHS.

In total, 114 OHS commissioners were elected in Rosseti Tyumen JSC. In 2021, 42 such commissioners had training. In 2021, OHS commissioners ran 777 audits and made 393 proposals, 369 of which were followed by the employers in 2021, and 24 scheduled for completion in 2022.

Occupational injury and disease

Occupational injury types and incidence, occupational disease incidence, lost-day and absenteeism coefficients, total casualties: breakdown by regions and gender

No occupational disease cases were registered at Rosseti Tyumen JSC in 2021.

In 2021, Rosseti Tyumen JSC had four industrial accidents in which four employees of the Company were injured (for the relevant period in 2020, there was one accident in which one employee of the Company was injured).

There were no accidents as a result of electrical shock in 2021 (for the relevant period in 2020, there was one accident in which one employee of the Company was injured).

The overall injury frequency rate in 2021 is 0.54.

The fatal injury frequency rate in 2021 is 0.

Occupational accidents were investigated pursuant to Article 227 of th Labor Code of the Russian Federation, in full compliance with Resolution of the Ministry of Labor and Social Development No. 73 dd. October 24, 2002 On the Approval of Forms for the Investigation and Reporting of Occupational Accidents, Regulations on the Investigation of Occupational Accidents in Specific Industries and Organizations (revisions No. 103n dd. February 20, 2014, and 640n dd. November 14, 2016).

As a result of the investigation into said accident, acts of the established form were produced, orders were issued in the branches:

• Noyabrsk Electric Grids – dd. April 21, 2021 No. 250 On priority measures to prevent injuries when using road transport;
• Noyabrsk Electric Grids – dd. May 13, 2021 No. 305 On the organization of safe maintenance of the territories of production bases in winter season;
• Nefteyugansk Electric Grids – dd. May 20, 2021 No. 376 On the results of the investigation into severe accident on April 18, 2021;
• Urai Electric Grids – dd. 11/25/2021 No. 641 On the results of the investigation into the accident with Denisov A. A., – in which the implementation of measures aimed at preventing similar accidents is prescribed.

Jobs at High Risk of Occupational Injury or Disease

Power engineering is one of the areas where the risk of injuries is rather high. That is why Rosseti Tyumen JSC lays a special emphasis on OHS.

Rosseti Tyumen JSC’s OHS Policy sets forth objectives pertaining to creating a safe and healthy working environment, prevention and maximum possible reduction of occupational risks that could compromise the health of employees, including those of contractors working at Rosseti Tyumen JSC’s grid facilities.

The Company’s OHS objectives are set by the management with the account of the following:

• requirements of regulatory acts;
• occupational risk assessments;
• opinions of workers and their representatives.

OHS objectives are analyzed and assessed with the use of indicators reflecting performance and efficiency of measures of the Occupational Health and Safety Management System (OHSMS) procedures. The main indicators are:

• reduction in accidents and injuries at work;
• reduction in the incidence of occupational diseases;
• reduction in the number of hazardous jobs;
• reduction in jobs associated with high or moderate occupational risks;
• number of employees whose medical checks identify no contraindications, precautions, or limitations;
• reduction in breaches of the OHS requirements on the part of employees, contractors (subcontractors) or other parties at Rosseti Tyumen JSC’s power grid facilities;
• reduction in OHS breaches identified during OHSMS inspections by governmental supervision agencies;
• number of actions taken upon the remarks and comments issued by the governmental supervision agencies after inspecting the OHSMS;
• reduction in accidents and injuries of third-party (subcontractor) employees and other persons present at Rosseti Tyumen JSC’s grid facilities;
• number of OHS-related meetings and consultations with employees and their representatives, including the meeting of the OHS Committee;
• number of implemented and executed resolutions of Rosseti Tyumen JSC’s executives that were made upon previous OHSMS inspections;
• the amount of funds for benefits and compensation to employees employed in work with harmful and/dangerous working conditions;
• funding of benefits and compensations for employees working in hazardous and/or harmful environments;
• funding of OHS activities.

In total, 295,478.598 thousand rubles was spent on OHS activities in 2021, including:

OHS Matters in Official Agreements with Labor Unions

Occupational health and safety matters are described in the Occupational Health and Safety section of the Collective Agreement 2019-2021 (edition No. 1 dd. December 17, 2021, and No. 2 dd. December 29, 2021). This Section stipulates:

• Mandatory social insurance against occupational accidents and diseases.
• Ensuring that the safety and labor conditions of each workplace and each facility/site are compliant with the state occupational safety regulations.
• Evaluating the labor conditions at workplaces to elaborate and take measures for occupational safety and labor condition improvement.
• Training the workers hired for harmful and/or hazardous jobs to use safe methods and techniques in their work, which is supplemented with workplace training and exams; training employees to provide first aid in case of an occupational accident, using state-of-the-art training technology and advice from qualified instructors.
• Timely development of occupational safety rules and regulations with due account of the opinion submitted by the elected body of the Primary Trade Union in due order.
• That employees working in harmful and/or hazardous environments, at extreme temperature, or at contaminated facilities, be provided duly certified protective clothing, shoes, and other personal protective equipment, as well as special food and detergents/disinfectants pursuant to the applicable standards.
• Employer-funded pre-employment and periodic medical checkups; mandatory psychiatric examinations for some jobs; in the implementation of certain types of professional activities of mandatory psychiatric examinations.
• Measures to Improve Occupational Safety and Labor Conditions, Preserve Life and Health of Employees.

Besides, Rosseti Tyumen JSC trains its OHS commissioners, provides them with access to standards, occupational safety rules and instructions. These commissioners have four hours a week to perform their duties, paid at the same rate as their primary jobs.

Safety Training for Employees

In order to set forth uniform requirements to staff management, the Company’s has developed and adopted its Staff Management Standard applicable to people working at the Company’s active energy facilities, which was approved and put into force by Order of Rosseti Tyumen JSC No. 261 dd. July 13, 2021; the Standard, among other things, regulates testing employees’ knowledge of safety regulations, regulatory standards, user manuals of electrical installations, OHS guidelines, fire safety regulations, and other rules and instructions provided by public supervisory agencies.

All employees are trained and tested in occupational health and safety pursuant to Tyumenenergo JSC’s Occupational Health and Safety Testing Routine approved and put into force by Order of Tyumenenergo JSC No. 294 dd. May 21, 2019; specialized training institutions are involved in the process. The Company organizes workmanship contests, OHS briefings and workshops, first-aid trainings, etc. All these activities are consistent with the programs, regulations, and other effective documents.

Rosseti Tyumen JSC has OHS briefings that comply with the legislative requirements. Briefings are tailored to each employee category and falls into the following classes:

• introductory;
• primary on-site;
• repeated;
• unscheduled;
• special.

All briefings are conducted by specially trained and duly qualified employees during working hours at a frequency set forth in the regulatory documents and guidelines.

For the training purposes, Rosseti Tyumen JSC uses ASOP Expert, an automated personnel training system recommended by Rosseti PJSC and Rostekhnadzor. The training sessions take place in special computer-equipped classrooms and at some workplaces that have remote access to ASOP Expert (network edition).

The following classes take place in OHS classrooms: pre-examination training, exams, first aid training. The following programs are used: ASOP Expert for pre-examination and GOSHA, a robotized doll, for first aid training.

This software and hardware allow for detailed studying of the operating instructions, fire safety instructions, and OHS guidelines, as well as acquire first aid skills. Key functions and activities of the OHS classrooms are:

• training staff to work safely and to use necessary protective means;
• studies of OHS regulations and standards;
• familiarizing with hazardous and harmful production factors by which the workers can be affected at workplaces;
• OHS briefings, thematic lessons and OHS knowledge testing;
• simulator-enabled first-aid training with a focus on accidents;
• learning the equipment designed to protect from exposure to occupational hazards and harm.

OHS classrooms are equipped with stands, OHS banners, and TV sets to watch educational films and carry out training sessions.

OHS information desks have the relevant information on the conducted workplace inspections, reviews of the injury rate in the electric power industry, and OHS memos.

Measures to ensure health and safety of employees during work

Rosseti Tyumen JSC has 50 OHS classrooms to comply with the OHS requirements applicable to staff management, prevent occupational injuries and diseases, and verify workers’ preparedness and fitness for their jobs. Rosseti Tyumen JSC’s OHS classrooms are equipped in compliance with the Recommendations for Organizing OHS Classrooms and Information Desks as approved by Resolution of the Ministry of Labor and Social Development No. 7 dd. January 17, 2001; and with the OHS Classroom Standard for Electric Power Companies as approved by Order of the RAO UES of Russia dd. September 27, 2001, RD 153–34.03.107–2001.

The Company established a system to respond to OHS breaches pursuant to the Regulations on Responding to OHS Breaches Committed By Employees of Rosseti PJSC’s Subsidiaries and Affiliates as approved by Decree of Rosseti PJSC No. 114r dd. March 6, 2017 and put into effect in Rosseti Tyumen JSC by Decree No. 191 dd. March 30, 2017 On Staff Injury Prevention System.

The System is based on Three Befores and is in line with the Regulations approved by Decree of Rosseti PJSC No. 114r dd. March 6, 2017 and put into effect in Rosseti Tyumen JSC by Decree No. 191 dd. March 30, 2017 On Staff Injury Prevention System.

The Zero Injuries Action Plan “Vision Zero” in Rosseti Tyumen JSC is approved and implemented in Rosseti Tyumen JSC. The concept of “zero injuries” Vision Zero is a series of actions aimed at improving the culture of work, safety, the OHS priority, changing the attitude towards OHS in the minds of employees. The subject matter of the Concept is the introduction of a risk-based approach to the OHS system by analogy with foreign experience in accordance with the international standard ISO 45001 “Occupational health and safety management systems. Requirements with guidance for use”.

The Company works to make sure that officers listed in job orders fully adhered to Guidelines on Primary Authorization to Work Under Job Orders / Guidelines on Repeated Authorization to Work Under Job Orders (approved by Decree of Rosseti PJSC No. 353r dd. July 11, 2017; put into force by Order of Rosseti Tyumen No. 395 dd. July 18, 2017 On Better Specialized Briefings).

In order to ensure safe and normal work environments at all production stages, compliance with OHS requirements at all management levels, enhancement of the efficiency and responsibility of officers organizing and supervising the efficiency of the OHSMS and Internal Technical Control System (ITCS) during the “Days ‘Since’”, the Company conducted inspections of compliance with current OHSMS and ITCS requirements, including compliance with them by officers of the Company’s subdivisions who are responsible for implementation of such requirements. Following the identified violations, directors of the Company’s subsidiaries were given the instructions; execution of such instructions was supervised by the specialists of the Industrial Safety and Production Control Services.

Upon detecting any breach of safety or any industrial hazard, Rosseti Tyumen JSC’s employees can use any available method to report their finding to the manager and to the Industrial Safety and Control Unit by phone, memo, or other channels. Rosseti Tyumen JSC adopted the Rosseti Group of Companies OHS Policy, and also developed and approved OHS guidelines by positions and type work.

Injuries and Casualties of Non-Employees at the Company’s Facilities

There were no injuries and casualties of non-employees at the Company’s facilities in 2021.

Environmental policy

By Resolution of its Board of Directors No. 25/20 dd. September 17, 2020, Rosseti Tyumen JSC joined the Power Grid Complex Environmental Policy and approved it as an internal document of Rosseti Tyumen JSC.

The Policy mainly seeks to preserve a favorable natural environment for the current and future generations.

Decree No. 260r dd. December 7, 2021 approved the Action Plan for the implementation of the Policy for 2021-2022.

The main areas of commitments undertaken to protect the environment, aimed at the implementation of the Policy, include:

• compliance with the requirements of the environmental legislation of the Russian Federation;
• reduction of negative impact on the environment;
• application of voluntary environmental responsibility mechanisms.

Environmental Management System (EMS)

The Environmental Management System is a part of the integrated management system used to develop and achieve the objectives of the environmental policy, manage the environmental aspects of the Company’s activities.

The EMS has been in place in the Company since 2008. It is a tool which improves the performance and effectiveness of the environmental safety activities. To that end, Rosseti Tyumen JSC has:

• identified the processes focused on environmental safety;
• identified the sequence and interconnection of these processes;
• defined the criteria and methods of evaluating the performance of the EMS;
• provided the availability of resources for the EMS functioning;
• undertaken to continuously monito and measure environmental safety;
• undertaken to continuously improve the EMS processes.

In the structural divisions of the Company in 2021, actions were carried out to update and assess the significance of environmental aspects that can be managed and influenced. A register of significant environmental aspects and impacts of Rosseti Tyumen JSC on the environment was compiled.

The Company determined key environmental performance indicators for 2021-2022 related to environmental aspects, and planned appropriate activities to achieve the intended results.

In 2021, the cross internal audit of the EMS was carried out in all branches of the Company. Internal audits of the EMS and inspections within the framework of the ITCS were carried out by independent auditors in such a way that during their implementation complementary tasks were solved, aimed at identifying non-compliance with the requirements of ISO 14001:2015 and the environmental legislation of the Russian Federation.

In the period from 27.09.2021 to 08.10.2021, the Company conducted the first supervisory audit of the integrated management system, including an audit of the EMS for compliance with the requirements of ISO 14001:2015. As part of the external audit, the structural subdivisions of the executive office, the Surgut, Noyabrsk, and Northern Electric Grids branches were examined.

The audit report confirmed that the Company implemented and maintained an EMS, the areas for improvement are identified; the certificate of compliance with ISO 14001:2015 was extended.

In accordance with the principles of the functioning of the EMS, the Company intends to further improve the condition of its environmental protection activities.

Environmental performance

Air Protection

Air pollutants come from the exhausts of the Company’s facilities such as welding stations, metal machining sites, vehicle M&R facilities, garages, carpentry shots, repair shots, paint shops, and diesel generators (used as backup power sources).

Besides, Noyabrsk and Northern Electric Grids operate natural gas-fired low-power heating plants. Kogalym EG operates a crude oil-fired heating plant.

The Company tests the performance of its dust and gas collectors on an annual basis.

In 2021, the Company’s facilities release of air pollutants remained at the level of 2020. (28.476 tons) and amounted to 28.23 tons. For the period 2019–2021, the volume of emissions was the lowest in 2019 (27.626 tons), and the highest – in 2020 (28.476 tons).

Emissions of pollutants in 2019-2021-2020, tons

Gross emissions of pollutants into the air across Rosseti Tyumen JSC in 2019-2021, tons

solid

gaseous, including

sulfur dioxide

carbon monoxide

nitrogen oxides (in terms of NO ₂ )

volatile organic compounds

Other

Protection and Rational Use of Water Resources

Rosseti Tyumen JSC’s branches operate artesian wells, mainly for process needs. Nizhnevartovsk EG also uses groundwater as tap and household water.

Rosseti Tyumen JSC is a party to 16 licensing agreements as a subsoil user.

In 2021, the Company complied with the terms and conditions of such agreements in full. Water from artesian wells was tested for quality. Tests proved the quality was no worse than required by the licensing agreements (subsoil licenses). No artesian well was plugged or shut.

20.45 thousand m3 of groundwater was extracted in 2021, which is a 15% decrease against 2020 (24.15 thousand m3) and a 25% decrease against in 2019 (27.3 thousand m3). This reduction was due to the change in the technology of operating the pumped artesian well of Nizhnevartovsk Electric Grid and a partial transition of personnel to remote work in all branches of the Company.

Water extracted in 2019-2021, tons

Waste management

Rosseti Tyumen JSC is licensed to collect, transport, process, dispose of, neutralize, or emplace waste of Hazard Classes I to IV (License No. 66-8956 TOB dd. February 27, 2020).

In total, 3,021 tons of waste were generated in 2021, which is a 32% decrease against 2020 (4,434 tons).

Уменьшение общего количества образования отходов в 2021 году относительно 2020 года произошло за счет сокращения отходов:

Waste generation in the Company over the past three years shows a systematic decrease:

• in 2019 – 4,999 tons;
• in 2020 – 4,434 tons;
• in 2021 – 3,021 tons.

The decrease in the total amount of waste generation in 2021 as compared to 2020 was due to the reduction of waste:

• Class 1 – extreme hazard;
• Class 2 – severe hazard;
• Class 3 – moderate hazard;
• Class 4 – low hazard;
• Class 5 – almost no hazard.

In 2021, 1,514 tons of waste sent for processing, neutralization, and disposal. This indicator decreased compared to previous periods: 3,159 tons in 2020 (-52%) and 2,926 tons in 2019 (-48%). This is due to a decrease in the total amount of generation and transfer for recycling of ferrous scrap, aluminum scrap in 2021.

In 2021, waste sent to specialized landfills remained practically unchanged compared to 2020 (-4%), but decreased compared to 2019 (-23%).

Environmental protection costs

Funding of the Environmental Program mainly goes into ensuring the Company’s compliance with Russia’s environmental laws, international standards, and local corporate standards.

Of the costs of environmental protection in 2021:

• air protection, including instrumentation designed to measure the impact of the Company’s production facilities on the air, an effort that involved specialized accredited centers and included the verification of gas analyzers – 1,065 thousand rubles;
• protecting water bodies, including wastewater treatment (drainage into centralized sewerage systems and pumping out of septic tanks), water quality tests, etc. – 6,342 thousand rubles;
• land protection, including the disposal, neutralization, and emplacement of waste, disposal of stormwater from SS oil collectors, etc. – 20,129 thousand rubles;
• biodiversity conservation, including the purchase and installation of bird protections – 15,674 thousand rubles.

Environmental costs incurred by Rosseti Tyumen JSC in 2019-2021, thousand rubles

water protection costs

air protection costs

soil protection costs

BD purchase and installation costs

Total

There was a reduction in the cost of purchase and installation of bird protection (from 17,366 thousand rubles in 2020 to 15,674 thousand rubles in 2021). This decrease is due to a decrease in the number of installed BPDs (in 2021, 3,740 units were installed, in 2020 – 5,765 units).

The costs for air protection increased from 434 thousand rubles in 2020 to 1065 thousand rubles in 2021. The increase in costs is due to the development in 2021 of documentation for air protection (draft standards for permissible emissions, an inventory of stationary sources and emissions of harmful (pollutant) substances into the air, measures to reduce pollutant emissions during periods of adverse weather conditions).

Pursuant to the legislation of the Russian Federation, the environmental impact fee, calculated based on the results of 2021, will be calculated and added no later than March 1, 2022.

How the company protects air, water, soil and land

Rosseti Tyumen JSC’s activities have little impact on the environment.

The Company’s branches use sphagnum-based petroleum sorbents to localize pollution in case of transformer oil spillage.

These sorbents use a unique technology and have several advantages, as they are naturally capable of biodegrading the absorbed hydrocarbons whilst having a high absorption capacity. The sorbents are perfectly natural, organic, easy to transport and use. This practice showcases the Company’s usage of advanced, safe, and unique technology to make its grid facilities environmentally safe.

Conservation of biodiversity in the Company-served regions is another priority, including measures to prevent the decline in the number of birds.

To that end, the Company keeps equipping its power transmission lines with bird protections (BPs). Thus, in accordance with the multi-year plan for the installation of BPDs, 3,740 units were installed in 2021, 5,765 units in 2020, and 5,680 units in 2019.

Environmental Education for Staff. Environmental Campaigns and Competitions

Every year, Rosseti Tyumen JSC takes effort to educate its staff on the matters of environment, environmental law, environmental risks and their prevention.

In 2021, 83 persons were trained, of whom:

• 66 persons had training in Ensuring environmental safety – for managers and specialists of general business management systems;
• 14 persons – in Ensuring environmental safety during hazardous waste management;
• 2 persons – in Ecology and environmental safety;
• 1 person – in Environmental management and ISO-based audit.

For comparison: in 2020, 52 persons were trained (23 had training in environmental safety for managers and specialists; 29 had training in waste management).

Training costs totaled 386.3 thousand rubles (in 2020 – 429 thousand rubles). The reduction in costs with an increase in the number of trained employees was mainly due to the choice of the distance learning format in 2021.

The Company annually supports the Clean City environmental campaign. In 2021, employees of Rosseti Tyumen JSC took part in subbotnik.

In 2021, Rosseti Tyumen JSC took part in the International Contest of Scientific, R&D, and Innovative Developments Dedicated to the Exploration and Development of the Arctic and Continental Shelf. The Installation of bird protections on OLs to ensure the conservation of the biodiversity of the Arctic fauna project was awarded the 2nd degree diploma.

The Company also participated in the annual All-Russian 2021 Reliable Partner – Ecology competition for selection of the best regional environmental practices. The Installation of bird protection devices on OLs of Rosseti Tyumen JSC to ensure the conservation of bird fauna in the Company-served territories project was submitted in the category Best Project in Biodiversity Conservation. The implementation of environmental measures of the Company aimed at conserving biodiversity positively impacts the environment and contributes to the conservation of bird population.

Industrial Environmental Control

Industrial environmental control is the main method of monitoring compliance with the environmental legislation at production facilities.

Rosseti Tyumen JSC’s industrial environmental control efforts involve specialized licensed centers for analytics and focus on two areas:

• evaluating natural environment (groundwater and surface water, air quality outside the production facilities, analysis of electromagnetic and noise parameters);
• control of technogenic facilities, including the sites of waste accumulation, platforms of in-house artesian wells, control of emission sources (flue gases of small heating plants, maintenance shops and paint stops).

A well-organized system of industrial environmental control allows evaluating the state of natural environment at the place of production facility location and timely reveal negative changes that can occur under the action of anthropogenic factors.

The largest number of objects (343) was audited under industrial environmental control in 2019-2021. In 2021, the number of audited objects increased by 3% as compared to 2019 (333 objects) and by 5% as compared to 2020 (325 objects).

The number of detected violations (111) in 2021 increased by 76% compared to the previous year (27) and by 46% compared to 2019 (60). Thus, in 2021, the maximum number of violations for the period 2019-2021 was detected, and in 2020 – the minimum number. A significant increase in the number of detected violations in 2021 may be due to on-site inspections. In 2020, inspections due to the sanitary and epidemiological situation were performed remotely. The remote auditing format does not allow to assess the territory of facilities for compliance with environmental safety requirements in full.

Reporting period results were as follows:

• emissions of air pollutants within the legally allowed limits;
• the quality of extracted groundwater (freshwater) in line with the license agreements;
• physical impact (noise, electric and magnetic field) does not exceed the maximum permissible level prescribed by sanitary regulations.

The number of audited facilities and identified violations as part of industrial environmental control for 2019-2021

Environmental indicators

Energy consumption and energy conservation

In 2021, energy conservation and efficiency improvement measures of Rosseti Tyumen JSC were implemented in accordance with Federal Law No. 261-FZ dd. November 23, 2009 On Energy Conservation and Improving Energy Efficiency and on Amendments to Certain Laws of the Russian Federation, Decree of the Government of the Russian Federation No. 340 dd. May 15, 2010 On Setting the Requirements for Programs in Energy Efficiency and Energy Conservation for Companies Engaged in Engaged Regulated Activities, the decision of the Regional Energy Commission of the Tyumen Region, KhMAO, YNAO No. 31 dd. December 12, 2019, and also pursuant to Rosseti Tyumen JSC’s Energy Conservation and Efficiency Program for 2018-2022 (“the Program”), approved by the decision of the Board of Directors of Rosseti Tyumen JSC on May 24, 2021 (Minutes No. 13/21).

The Program seeks to:

• reduce electricity losses in transmission and generation;
• reduce electricity consumed by substations;
• reduce the use of fuel and energy in production;
• optimize and improve Rosseti Tyumen JSC’s internal business processes related to energy management.

Over the course of 2018-2021 since the Program was implemented, it saved 40,966 TOE of energy or 953.344 million rubles.

Throughout the reporting year, the Company pursued energy efficiency improvements based on the mandatory energy audit conducted in 2017.

Effects of energy conservation efforts in 2021:

Equipment with smart metering devices amounted to 70.58% of the total volume, equipment with LED lamps – 85.08% of the total volume.

The cost of implementing the Energy Saving and Energy Efficiency Improvement Program in 2021 – 248.893 million rubles, VAT exclusive.

Energy Management System

Pursuant the Integrated Management System Policy, Rosseti Tyumen JSC voluntarily follows the requirements and takes measures to reduce the in-house demand for fuel and energy.

From September 27 through October 8, 2021 the Company underwent an independent audit that produced a certificate certifying that the Company’s Head Office and branches operated an energy management system compliant with ISO 50001:2018.

*The deviation between the indicators of 2021 and 2020 is due to weather conditions: the average ambient temperature in 2021 was lower than in 2020; HDD indicator increased by 14/3% in the Tyumen region, by 24.6% in the Khanty-Mansi Autonomous Okrug – Yugra, by 25% – in the YNAO. In addition, the number of the Company’s employees performing their duties remotely decreased from 24% to 17%.