Socially Responsible Approach

Social Programmes for Employees

A benefits package in Federal Grid Company is a tool for employee motivation and social security and includes voluntary medical insurance, accident insurance, non-governmental pension, financial assistance to employees in need (connected with marriages, childbirths, etc), and wage/salary advance.

The Company has a Corporate Housing Programme. To provide qualified personnel for key power facilities that are in remote areas or under construction, a corporate housing stock of Federal Grid Company has been created. In 2015, 34 company-owned apartments were commissioned and provided for rent to the Company employees in Novy Urengoy and Pyt-Yakh. Employees of MES Western Siberia branch electric facilities located in remote areas will live in these apartments, including employees who will work under rotation system.

To attract high quality specialists and the youth, whose activities involve moving to another place, the Company reimburses their housing rental costs (this programme is included in the corporate benefits package). In 2015, the Company provided assistance in housing rent to 398 employees including 230 young specialists.

In addition, Federal Grid Company provides corporate assistance according to its commitments under the programme for improving employees’ housing conditions. In 2015, corporate assistance in the form of interest-free loans and compensations was rendered to 686 employees, including 315 young specialists.

Corporate Values

Federal Grid Company is a unique infrastructure company that embraces generation and consumption units in Russia in one national system. Wellcoordinated teamwork of thousands of the Company’s employees largely depends on whether they have the same understanding of ethical and professional guiding principles that have been formed in the Company.

The Company’s Code of Corporate Ethics is available on our website www.fsk-ees.ru in the section About Us/Corporate Governance/Corporate Documents.

This is why we have a Code of Corporate Ethics which is based on the best global practices of corporate governance and is aimed at raising the level of corporate culture among all employees.

Development of Corporate Culture

Federal Grid Company maintains the traditions of strengthening corporate culture and developing respect and interest in the profession of a power engineer.

Corporate events

In 2015, most corporate events in Federal Grid Company focused on the 70th anniversary of victory in the Great Patriotic War. In accordance with a programme designed by the Russian Ministry of Energy, a delegation of Federal Grid Company’s executives and veterans took part in the ceremonies that included the laying of wreaths to the Tomb of the Unknown Soldier and a monument to Marshal Zhukov; war veterans’ meeting with A. V. Novak, Minister of Energy; and a concert for veterans and employees of the power sector companies. Besides, we organised a special event on the eve of Victory Day for long-service employees of Federal Grid Company and the electric grid complex.

Festive events were held on the eve of Victory Day in all branches of Federal Grid Company. War veterans, home front workers, city residents of Leningrad who survived the blockade and worked in backbone grid enterprises received greetings from Andrey Murov, Chairman of the Management Board, and valuable gifts from the Company. War veterans met with the labour teams, photography exhibitions about the work of the electricity sector during the war were held, and an action “St. George Ribbon” was run.

In March and April 2015, the Company held a competition of children’s drawings “The Energy of Victory” dedicated to the 70th anniversary of victory in the Great Patriotic War. Over 450 children of Federal Grid Company’s employees participated. The best drawings were sent to the Russian national contest and exhibition that were organised by the Russian Ministry of Energy.

Sports

Involvement of employees in sport and physical activities, as well as promotion of a healthy lifestyle that helps them to strengthen their health and raise labour productivity is a priority in Federal Grid Company’s corporate life.

In 2015, the Company continued to organise trainings in sports that are popular among its employees, and offered them partial reimbursement of gym membership (annual contracts). The Company’s volleyball and indoor soccer teams participated in competitions that were held between the companies of the fuel and energy complex with support from the Ministry of Energy.

In November 2015, Federal Grid Company, together with JSC R&D Centre of FGC UES, held the Fifth Open Chess Tournament in memory of Mikhail Botvinnik, a great chess player and outstanding electrical engineer.

Non-Governmental Pension Programme

In order to increase motivation, retain highly qualified employees and ensure high living standards for them after they reach the retirement age, non-governmental pension programme for the Company employees was approved in 2004 and is now successfully implemented. Its key principles are:

• A uniform approach to the organisation of nongovernmental pensions in Federal Grid Company
  
• Differentiated size of a non-governmental pension
  
• Incentives to employees for their service to Federal Grid Company and the electricity industry for long and conscientious work

RUB 327 million was allocated for the non-governmental pension fund in 2015

Insurance

Medical Insurance

In accordance with its social policy, Federal Grid Company has a corporate system of voluntary medical insurance of employees (VMI). It guarantees timely and high-quality additional medical and other services, and their scope and terms are over and above the services provided under the mandatory medical insurance programme.

Insurance coverage is based on the VMI programme which meets the Company’s high standards and includes the following sub-programmes for all categories of employees: Outpatient Care,” “Dental Care,” “Emergency and Planned Hospital Admission,” “Office Doctor” (on-the-job medical services), “Vaccination,” “Disease Prevention Services” (including mandatory medical examinations and extended preventive medical checks at the health centres), “Medical Insurance during Foreign Travel,” “Diagnosis and Treatment in the Leading Research Institutions.”

The voluntary medical insurance programme contains an extended list of medical services including expensive high-technology medical care, a broad list of medical specialists, and medical care in the best Russian medical and prevention centres.

Property Insurance

This type of insurance is aimed at the recovery of losses that the Company might incur as a result of loss or damage of its assets in case of an unexpected event. Property is insured against all risks, including fire, natural disasters, dangerous weather events, third parties’ wrongdoings, terrorist acts, and direct actions.

In 2015, the Company took actions to cut property insurance costs while maintaining the same scope of insurance. The effective insurance rate is 0.0354%.

Liability Insurance

The Company also insures liability of members of its Board of Directors, members of the Management Board, Chairman and deputy chairpersons of the Management Board, and Chief Accountant. Its insurance policy covers losses caused by damage to third parties or Federal Grid Company as a result of unintended / erroneous actions or omissions by the insured persons when they perform their functional duties.

Youth Policy

Engagement with Educational Institutions

In 2015, the Company continued to develop mutually beneficial relationships with industryspecific higher-education institutions and specialised secondary schools.

The main area of co-operation with educational institutions is still the organising practical and pre-degree training for students. Over the course of 2015, about 770 students developed practical skills at the Company’s facilities. Temporary jobs with time wage were created for 200 of them.

In April and May 2015, a traditional annual Day of Federal Grid Company was organised in all branches and the Executive Office, involving more than 1,500 students from 40 higher education institutions and 8 specialised secondary schools.

A special focus in this event was on the in-depth communication of specialists and heads of the Company’s units and branches with students. Most events were held in the form of students’ meetings with the Company’s specialists at the electric grid facilities.

The Company organises annual guided tours to its facilities for students of higher-education institutions and specialised secondary schools, thus making the teaching processes more effective. More than 1,000 students took part in such tours in 2015.

In the reporting year, 32 power engineering students received additional theoretical and practical knowledge in the «School of Young Engineer» organised at the premises of the Personnel Training Centre “Bely Rast” of MES Centre.

In total, about 3,600 students, tutors and the Company’s employees took part in events that Federal Grid Company arranged in order to develop co-operation with educational institutions in 2015.

Co-operation
Federal Grid Company co-operates with several Russian educational institutions:

Charity

Federal Grid Company has been traditionally providing charity support (to individuals and organisations) in the following areas:

• Support of educational, scientific and cultural activities, and public awareness campaigns
• Support of physical culture and sport activities (except professional sport)
• Social support and protection of citizens including the improvement of financial situation of low-income people, social rehabilitation of the unemployed, the disabled and other persons who are unable to implement their rights and lawful interests on their own due to their physical or intellectual specific features or any other circumstances
• Protection and adequate maintenance of buildings, facilities and territories of historic, religious, cultural or environmental importance
• Social rehabilitation of orphaned children and children without parental care, neglected children and children in difficult life circumstances
• Support of activities in the field of health care, healthy lifestyle promotion, improvement of moral and psychological condition of citizens
• Assistance for those who have suffered from natural disasters, environmental or industrial disasters or other catastrophes, as well as social, ethnic or religious conflicts, victims of repression, refugees and forced migrants
• Support of individuals who need surgery to protect their life and health (including for prevention of disability and long-lasting rehabilitation), and those who need treatment of serious disease.

In 2015, the Company allocated RUB 50.9 million for charitable aid to individuals and legal entities¹.