rus
OMK Annual Report 2020
5

Sustainable development

5.1
Sustainable development practices

One of the priorities of OMK’s business strategy is to achieve sustainable development goals and adhere to the principles of corporate social responsibility. The company contributes to the betterment of society and sustainable development in the regions where its plants are located, including through the creation of an inclusive environment, with opportunities for education and creative implementation of local communities.

The choice of priority areas for the development of the corporate social responsibility system is based on the company’s mission and strategy, the formal opinion of stakeholders, as well as current national projects in Russia and the provisions of international sustainable development and human rights standards.

The corporate constitution and corporate social responsibility policy define the strategic goals, and the company’s CSR and sustainable development priorities in terms of work with staff, the environment, liaison with suppliers, customers, authorities, communities, and residents of the regions where the company's plants are located. The remit of specific divisions and employee rights and guarantees have been determined.

OMK’s long-term social programs have been highly praised by experts, with the company ranked in 15th place. This year, due to the pandemic, the company financed projects aimed at helping vulnerable groups of the population and medical institutions, and provided support to local entrepreneurs. The company implemented all its initiatives in partnership with representatives of government, business, and non-profit organizations. Social investments in 2020 amounted to RUB 1 billion.

In terms of environmental responsibility, OMK was 34th among the country’s leading domestic companies in the RAEX-Europe ranking. The company is reducing its ecological footprint by eliminating outdated production methods, overhauling equipment, and applying the most advanced environmental and energy-saving technologies. OMK’s plants are systematically reducing the emissions of harmful substances into the air and water, and almost all solid waste is recycled.

OMK is a Russian leader in the field of sustainable development according to the RAEX-Europe ranking and the ESG indexes produced by the Russian Union of Industrialists and Entrepreneurs and the Moscow Exchange. In 2020, OMK programs were highly praised by RAEX-Europe, which placed it 15th in Russia in the Social component of its ESG rating. These include programs related to human capital development, industrial safety, human rights, and community development.

In 2020 OMK entered the top 50 major Russian companies in terms of sustainable development according to the RAEX-Europe rating agency and is a leading Russian company according to the ESG indexes of the Russian Union of Industrialists and Entrepreneurs.

In the ESG Ranking of Russian Companies 2020, OMK was assessed in three areas: environmental responsibility, social investments, and disclosure of information on governance.

5.1
Sustainable development practices

Contribution to the UN
Sustainable Development Goals

3
8

An important and integral part of the company’s sustainable development and the achievement of the UN SDG s is the observance of human rights. Monitoring this includes protection against discrimination, occupational safety and health, ensuring the right to participate in trade unions, fair monetary remuneration, and ensuring working conditions conducive to personal development and professionalism.

Safe working conditions

Respecting the human right to work as part of the achievement of SDG 8, Decent Work and Economic Growth, OMK creates decent jobs and safe and supportive working conditions. The company’s overall goal is zero injuries. The total number of occupational injuries and general injuries has been decreasing in recent years. This has been facilitated by the introduction of an integrated production safety management system, the use of the best international practices in the field of production safety, the recording and investigation of industrial and general injuries, and the creation of a modern production safety culture. At OMK’s plants, managers of all levels conduct daily behavioral

safety audits. Special events, training courses, and safety briefings for employees are also organized.

The prevention of accidents is of particular importance. In 2016, the company set a goal of reducing LTI FR to 1.4 within five years. At the end of 2020, LTI FR had fallen to 0.79, which is almost half the target figure. To ensure production safety, OMK has a production safety committee, which initiates, directs, coordinates, and monitors work in the field of production safety, resolving issues of importance for the entire company. The committee includes the production safety director, the HR director, the business systems development director, and the managing directors of plants. The committee is chaired by the Chief Executive Officer of OMK.

Image

The Vyksa plant achieved the greatest success. OMK’s flagship production site has slashed the level of industrial injuries by 2.5 times over the past five years and has maintained a zero level of accidents and incidents. During the same period, not a single fatal incident was recorded among plant employees.

According to the Russian Steel Association’s benchmarking data, OMK is one of the safest companies in the iron and steel industry.

5.1
Sustainable development practices
Health support

OMK attaches great importance to fostering a culture of looking after health. The company has developed and implemented corporate standards and guidelines in the field of industrial medicine. OMK has adopted a policy on the use of alcohol, drugs, and toxic substances. We have developed corporate programs to develop sport for all in the regions and improve the health of employees.

Corporate healthy lifestyle programs

The goal of the programs is to create optimal conditions for preserving and improving the health of OMK employees, to foster a healthy lifestyle, proper nutrition, physical activity, and a negative attitude toward bad habits. Under the programs, instructive and methodological materials were created for health initiatives covering the most common diseases among workers: obesity and diseases of the cardiovascular and musculoskeletal systems.

Tracking program indicators (in real time):

  • Body mass index of the team (average value of compliance with the norm)
  • % of workers who smoke
  • % of employees actively involved in sports, including % of employees who have passed certain physical standards.
  • Morbidity rate (number of sick days per 100 employees).

In view of the restrictions caused by the pandemic, thematic video tutorials were created on the basis of the health initiatives. Now OMK employees can listen to lectures at a convenient time, using their notebooks to record information, and, if necessary, contact health workers for help and clarifications. Video lessons were created and recorded by experienced practicing doctors and employees of the Research Institute of Occupational Medicine of the Russian Federation.

Image

The various restrictions introduced as a result of the pandemic have made assessing the results of the healthy lifestyle programs in 2019–2020 a challenge, as it was difficult to conduct largescale events. There was also an increase in the number of OMK employees due to business expansion.

Positive factors:

  • The percentage of BMI compliance with the standard increased from 62.4% to 68%;
  • The share of employees actively involved in sports increased from 10.66% to 29%;
  • The number of employees who passed physical exams increased from 4.03% to 18%.
5.1
Sustainable development practices
Cultural rights
11
4
8
9

To ensure equal access to culture and art, and in order to achieve SDG 11, OMK and the OMKUchastie charitable foundation have staged the Art-Ovrag festival of contemporary culture in Vyksa for ten years. When implementing programs to support cultural initiatives, the company adheres to the principle of equal opportunity for all.

Vyksa is the oldest metallurgical center in Russia, a single-industry town with a population of 50,000, where every third person works at OMK.

The town’s cultural scene is typical for a provincial single-industry town (the town boasts a museum of local lore, a park, a cultural center with a cinema, etc.).

The company decided to support the cultural rights of the region’s residents and help them access the cultural agenda of the capital cities and the corresponding infrastructure.

Support for vulnerable groups
4
8
10
11

Guided by the principle of equal opportunities in the field of culture and the creation of an inclusive environment, OMK and OMK-Uchastie are implementing a number of projects aimed at supporting people with disabilities.

The Vyksa. Dostup Est (Vyksa Is Accessible) project was launched in 2018. Its goal is to enable people with disabilities to become active participants in the cultural life of the city. At the same time, the emphasis of the project is on an inclusive approach, i.e., on working simultaneously with people with and without disabilities, on developing the best inclusive practices in the museum environment, and on ensuring tolerance towards people with disabilities in society.

In 2020, the social project Vyksa. Rabota Est (Vyksa, There’s Work) was launched. This project helps people with different forms of disabilities with employment and social integration. It is being implemented in partnership with government authorities, employers, the region’s social services, and non-governmental organizations for people with disabilities Perspectiva, Kovcheg, and Sozvezdie.

Image

The first project undertaken by the company and OMK-Uchastie was Art-Ovrag, which is now one of the largest festivals of contemporary culture outside Moscow. Over the years, the main focus of the festival has been transformed and is now directed toward the integrated development of the urban environment of Vyksa and surrounding areas and the cultural self-fulfillment of residents.

As part of a dialogue with the employees of the Vyksa plant about the Art-Ovrag festival, OMK conducted a survey on levels of engagement with the project (OMK-Dialogue). This showed that 90% of the plant’s employees agree that the festival is contributing to the transformation of Vyksa, and that it has improved their quality of life.

For more details about the festival and OMKUchastie projects, see section 5.8.

5.1
Sustainable development practices
Corporate responsibility management system

The company has had a social responsibility committee since 2017 (in 2020, it fell under President* Natalya Eremina). The committee examines issues related to the development of the corporate social responsibility system in accordance with OMK’s corporate constitution and the OMK Corporate Social Responsibility policy. It provides ESG management for sustainable development.

The committee includes representatives from the HR, production safety, procurement, quality management, corporate communications, and government relations departments. Two meetings were held in the reporting year.

Meeting date Agenda
28.04.2020
  • Approval of the annual report for 2019
  • Monitoring of the healthy lifestyle program
  • CSR goals report for 2019, approval of goals for 2020
24.12.2020
  • Annual OMK reports in ratings, trends in corporate non-financial reporting
  • Preparation of the OMK Annual Report for 2020, concept approval
  • Dialogues with consumers of OMK products about OMK’s non-financial reporting
5.2
Sustainable development practices

During the reporting period, HR management at OMK was carried out on the basis of the functional strategy for 2018–2020. HR specialists improved recruiting processes, employee development, headcount management, engagement, payroll and social spending, and organizational design.

We continued the project to optimize staff numbers at the Vyksa plant and sent the freed-up employees to new production facilities under construction. HR management of OMK’s new business units was integrated into the overall system.

Since 2020, the company’s main functions have been managed by HR consultants. This helps to address business problems and enables us to pay more attention to people. We have achieved all of our CSR targets in HR management. The company has also developed a new employer brand that conveys OMK’s value proposition for current and potential employees. The HR brand’s motto is “Growth is mutual,” meaning that the company is keen to help employees grow while in return employees drive the company forward.

Total employees by plant at the end of the year
2018 2019 2020
Vyksa 13 988 14 322 14 741
Chelyabinsk 1 702 1 671 1 649
Blagoveshchensk 1 695 1 719 1 425
Chusovoy 2 206 2 413 2 570
Almetyevsk 786 752 728
Belgorod - - 3 797
OMK Steel Way - - 5 829

Total employees at the end of the year

2018
22 801
2019
23 167
2020
32 953

increased by more than 40% due to the addition of new business units – a plant in Belgorod and OMK Steel Way.

5.2
HR management
* The average age of employees is 39 and has remained unchanged in recent years.
Employees by gender and category at the end of the year
2018 2019 2020
Senior managers (men) 57 57 75
Senior managers (women) 10 11 13
Heads of functional divisions (men) 1 278 1 393 1 935
Heads of functional divisions (women) 380 375 475
Specialists (men) 2 259 2 455 3 348
Specialists (women) 2 970 3 092 4 155
Office workers (men) 42 40 165
Office workers (women) 145 140 237
Manual workers (men) 11 035 11 041 16 348
Manual workers (women) 4 625 4 563 6 202
2018
Image
2019
Image
2020
Image
Employees by age* at the end of the year
2018
Image
2019
Image
2020
Image
  • 25 or younger
  • 26 to 30
  • 31 to 40
  • 41 to 50
  • 51 to 55
  • above 55
  • pension-age employees
5.2
HR management
Employees by education at the end of the year
2018 2019 2020
Higher vocational
manual workers 2 411 2 353 2 968
specialists, office workers, support staff 3 473 3 549 4 928
managers 1 766 2 011 2 939
Two degrees
manual workers 56 59 74
specialists, office workers, support staff 328 354 450
managers 244 303 394
Degree 51 44 48
Secondary vocational education, primary vocational education
manual workers 10 458 10 462 12 047
specialists, office workers, support staff 820 826 953
managers 295 291 348
Secondary (complete) general education, basic general education (incomplete secondary) 2 899 2 915 7 804

Employee development

Corporate development programs are divided into the following areas: adaptation, development of competencies through individual development plans, programs to develop skills for specific roles, talent pools at various management levels, and non-training programs.

The OMK Corporate University oversees all educational processes in the company, and is an internal integrator and driver of innovation. One of its main goals is to standardize external and internal employee development programs based on OMK’s corporate culture and values.

During the pandemic, the company quickly adapted the programs to an online format. This required the purchase of new platforms (Zoom, Webinar. ru, Teams, Miro, GroupMap, etc.). We developed and conducted a series of webinars to support employee performance when switching to remote work under the OMK-Dom (OMK-Home) program.

5.2
HR management

Competency model

The corporate competency model is based on OMK’s values and consists of general corporate and management competencies. The management competencies depend on the category of the position: the higher the level, the higher the requirements.

The current competency model is used to assess employees: when recruiting, to support decisions on job rotation, and to create development programs. Employees improve their competencies through various development program formats and levels. Each competency is assessed on a five-point scale, which shows to what degree the employee’s abilities meet the company’s requirements.

OMK employee competencies
specialists and manual workers
managers
managers reporting to senior executives
senior executives
Long-term thinking
Ambition
Entrepreneurial spirit
Business mindset
Process management
Performance management
Systems thinking
Initiative
Commitment to procedure
Results-oriented mindset
Accountability
5.2
HR management

Implemented programs

  • Targeted educational programs based on individual development plans were continued.
  • For Unified Service Center employees, we developed and delivered a development program for functional competencies: customer focus and change management (33 training events, 812 trained employees).
  • We launched a corporate Digital Awareness program aimed at consolidating digital technology skills.

In 2020, new employees completed newly developed courses to help them adapt to their new environment:

  • Welcome to OMK seminar, designed for all newly hired employees. At the seminar, employees learn about the history of the company, its leaders, products, culture, and employee opportunities. It consists of corporate (common to all) and local (individual to each business unit) components. All new employees complete the course at the time of hiring.
  • Basic Management Skills course. The purpose of this course is to help new leaders understand the key process related to working with people and master key management skills.
  • New Leader seminar, which introduces employees to business processes and provides detailed information about the areas of influence and responsibilities of the new leader in these processes.
  • Mandatory online courses in the first days of work.

In 2020, OMK adopted the Leadership Pipeline concept to develop the management team. The concept comprises critical points which leaders must pass to transition to the next level of management. The transition means that employees are able to manage more important tasks and effectively apply managerial competencies. As part of the concept, for each management category, development programs have been created to help them gradually climb the career ladder.

The first step in the system is the Basic Management Skills course, part of the individual development plan, as well as the OMK Leaders competitive selection project, launched in 2020. The finalists, who successfully passed all selection stages, were offered new-generation leader development programs in line with the level of their position and their potential.

There were only two requirements for participants: to work in the company and to have a higher education. About 1,500 employees took part in the first stage of selection process, with a quarter reaching the final. The company’s senior managers also undergo training.

Image

The OMK Fundamental Leader Competencies program provides managers with a comprehensive understanding of best practices, technologies, and management methods.

During the course, participants study modern management tools, apply them in practice, expand their understanding of the role of a leader, and boost the potential of the company. About a hundred top-level executives participate in the program.

The Corporate University also attracts senior managers as mentors for individual teams.

5.2
HR management

Person-hours spent on courses

2018
42 779
2019
72 334
2020
62 640*
* The number of teaching hours in 2020 decreased due to restrictions on group sessions during the pandemic
2018 2019 2020
Vyksa 32 539 48 218 28 852
Managers 3 001 5 413 2 276
Specialists 4 129 4 676 3 760
Office and manual workers 25 409 38 129 22 816
Chelyabinsk 3 909 6 744 5 514
Managers 248 926 303
Specialists 1 484 2 182 2 011
Office and manual workers 2 177 3 636 3 200
Blagoveshchensk 3 883 3 830 2 823
Managers 412 386 392
Specialists 303 312 304
Office and manual workers 3 168 3 132 2 823
Chusovoy 1 585 12 383 5 001
Managers 54 62 1469
Specialists 1456 2360 8567
Office and manual workers 1374 1950 1741
Almetyevsk 863 1 159 932
Managers 201 264 218
Specialists 88 167 123
Office and manual workers 574 728 591
Belgorod - - 16 049
Managers 2 849
Specialists 264
Office and manual workers 12 936
OMK Steel Way - - 3469
Managers 689
Specialists 200
Office and manual workers 2 580

Average number of training hours per employee, h

2018
8,29
2019
20,33
2020
27,55
2018 2019 2020
Vyksa 62,16 42,21 22,12
Chelyabinsk 12,1 17,84 14,5
Blagoveshchensk 10,2 10,4 10,3
Chusovoy 2,5 3,08 2,72
Almetyevsk 15 36,82 43,04
Belgorod 28,2
OMK Steel Way 72
5.2
HR management

ОEmployee assessment

In connection with the transition of a significant number of employees to remote work in 2020, OMK developed an online questionnaire based on the Delta.ai corporate competency model. It enables the potential for the development of competencies to be assessed according to the OMK model, and the effectiveness of problem solving in respect of the described competencies to be predicted

The online questionnaire is used to recruit staff, to regularly assess competencies, and to create optimal training programs in the career planning process. A total of 388 employees were assessed.

The focus of attention in 2020 was the sales staff. Functional competencies were developed for this group, and then a comprehensive assessment was carried out and plans for employee development were drawn up. We also developed functional competency models for the procurement and logistics departments, and conducted an assessment in form of an online assessment center.

Employee qualification level,* %

2018 2019 2020
OMK 90 87 87
Vyksa 92 92 92
Chelyabinsk 78 80 80
Blagoveshchensk 81 82 58
Chusovoy 92 88 90
Almetyevsk 87 81 83
Belgorod** - -
OMK Steel Way - 81

* Ratio of qualifications obtained by employees to the mandatory qualifications.

** At the plant in Belgorod, qualifications are not assessed using the OMK methodology.

5.2
HR management

РCollaboration with Industry Universities

In 2020, the value of collaboration with educational institutions was RUB 84.7 million which is almost twice the value for last year (RUB 40.6 million) by adding new business units. The relatively high value of collaboration with education institutions for train repair company (26 million roubles) is related to the fact that the business unit holds a lot of mandatory training as required by railway standards. в области железнодорожного транспорта.

Collaboration
value in 2020 84,7million roubles
Primary areas of collaboration between OMK and the various universities and colleges:
  • development, approval, and modification of the educational institutions’ long-term development plans;
  • development of collaborative training curricula for students;
  • assistance in improving the educational institutions’ general equipment, laboratory, and training and methodology status;
  • on-the-job training and pre-graduation internships for students as well as visits to the various facilities;
  • participation of facility representatives in research workshops, round tables, and reflexive seminars;
  • Company representatives sitting on State Examination Boards;
  • training requests for specialists and requirements for graduates;
  • мrequests for training in a second worker qualification for students at the Vyksa campus of NITU MIS iS using the resources of the Vyksa College of Metallurgy;
  • monitoring of training quality and degree of adjustment for recent graduates;
  • consulting students on presenting themselves, finding their professional niche, and open vacancies;
  • job placement assistance for graduates;
  • participation of Company representatives in career days and job fairs.

Corporate University

OMK operates an in-house corporate university established in 2018.

It is an integrated education center that develops Company employees using effective and efficient training curricula.

In 2020, a project to construct the OMK corporate university building in Vyksa was initiated. The university will be located next to the Company's largest facility. It will be able to train up to 460 people simultaneously. All employees will be able to upgrade their professional skills and develop useful competencies to create new technologies and innovative products as well as help the Company implement its large-scale initiatives.

The design of the future educational center includes 11 state-of-the art training labs to train in Future and Business Skills, including areas like automation, mechatronics, operation of industrial lines, information technologies, and electric drives. OMK will establish the nation's first specialized labs to develop lean manufacturing and industrial safety tools.

5.2
HR management
OMK's Educational Partners
  • MIS iS National Research and Technology University (NITU )
  • Russian Presidential Academy of National Economy and Public Administration
  • Nikolai E. Bauman Moscow State Technical University
Vyksa Facility Educational Partners
  • A. A. Kozeradsky Vyksa College of Metallurgy, including Vyksa Industrial Technical College and Navashino Polytechnic College
  • Kulebaki College of Metallurgy
  • R. Ye. Alekseev Nizhniy Novgorod State Technical University
  • Nizhniy Novgorod State University of Architecture and Construction
  • Alexander G. and Nikolai G. Stoletov Vladimir State University
  • Murom Institute of the Vladimir State University
  • Nikolai I. Lobachevsky Nizhniy Novgorod State University
  • Nikolai E. Bauman Moscow State Technical University
  • MIS iS National Research and Technology University (NITU )
  • MIS iS National Research and Technology University (Stary Oskol Campus)
  • MIS iS National Research and Technology University (Vyksa Campus)
  • Ivanovo State Institute of Power Engineering
  • Perm National Research Polytechnic University
  • Mordovia State Technical University
  • St. Petersburg Mining University
Chusovoy Facility Educational Partners
  • Boris Yeltsin Urals Federal University
  • Perm National Research Polytechnic University, Lysva Campus
  • Chusovoy Industrial College
Blagoveshchensk Facility Educational Partners
  • Ufa State Petroleum Technical University
  • Blagoveshchensk Multi-Disciplinary Professional College
Educational Partners of OMK Steel Way
  • Mikhail T. Kalashnikov Izhevsk State Technical University
  • Mikroakustika
  • St. Petersburg State Railway Engineering University
  • Perspektiva Training Center
  • Urals Certification Center
  • Siberian State Railway Engineering University
  • Chelyabinsk Railway Engineering Institute affiliated with the Urals State Railway Engineering University
  • Taiga Railway Engineering Institute affiliated with the Omsk State Railway Engineering University
  • Bologoe College
  • Interregional Certification and Qualification Center
  • Asfalia Training and Consulting Center
  • Arzamas College of Construction and Business
  • Samara State Railway Engineering University
  • Urals State Railway Engineering University
  • Personnel Training Center
  • Research and Production Center of Welding, Installation Technology, and Control
  • Proficlass Institute
  • Perm Neft Non-Profit
  • Skill Upgrade Center
  • UralTechExpertiza
  • Svarka Certification Center
  • Aton Educational Academy
  • Kuzbass Fire Safety
  • PromExpert
  • Krasnoyarsk Railway Engineering Institute affiliated with the Irkutsk State Railway Engineering University
  • First Polytechnic
  • Federal Skill Upgrade Institute
  • Omsk State Railway Engineering University
  • Vladimir G. Shukhov Belgorod State University of Technology
  • Russian Transportation University
  • South Urals Institute of Management and the Economy
  • Irkutsk State Railway Engineering University
Chelyabinsk Facility Educational Partners
  • MIS iS National Research and Technology University (NITU )
  • South Urals State University
  • Chelyabinsk State University
  • Automotive College
Almetyevsk Facility Educational Partners
  • Almetyevsk Professional College
  • Almetyevsk State Petroleum Institute
  • Andrey N. Tupolev Kazan National Research and Technology University, Almetyevsk Campus
  • Quantorium Technopark
Belgorod Facility Educational Partners
  • Vladimir G. Shukhov Belgorod State University of Technology
  • Tomsk Polytechnic University
  • South Western State University
  • Belgorod Industrial College
  • Belgorod Engineering College
  • Belgorod Construction College
  • Belgorod Mechanical Technology College
  • Shebekino College of Industry and Transportation

Recent Graduates Hired out of University

2018 358
2019 316
2020 230
5.2
HR management

Candidate Selection

ОOMK utilizes advanced technologies based on global best practices to search for and hire specialists. The Company guarantees equal opportunity for all candidates and complies with all the labor laws of Russia.

The technology to look for and select personnel is always being enhanced with new capabilities. The candidate selection process has been fully automated using the Potok recruitment platform. We introduced remote hiring and candidate evaluation using the VCV system, and added the video interview tool in the current year. We implemented a process for an online group interview and a group assessment center for front offices distributed throughout Russia.

During the time of the pandemic, the Company introduced remote work locations not associated with Company offices, including candidate search, selection, and new hire onboarding. These trends are going to continue in the future. The bulk of the jobs created in the course of OMK's investment projects are filled with internal candidates, and optimization, production upgrades, process automation, and skill development are the primary tools used to fill new jobs.

The total percentage of employees transferred to new jobs as part of HR optimization projects is 80%. In addition, OMK makes extensive use of internal transfers at times of low utilization which helps use personnel efficiently taking advance of the relevant employee competencies and mobility. The outside market is normally used by the Company to source uniquely qualified personnel familiar with new technologies or construction personnel.

Total Number of 2020 New Hires
2018 2019 2020
New HIres 2 899 3 335 4 185
Percentage of Employees Hired in Reference Year (new hires/staff) 12,6% 13,9% 12,6%
Percentage of New Hires Employed for Over 12 Months* 71,2% 65,1% 58%
Under 25 862 1 047 760
Between 26 and 30 490 500 648
Between 31 and 40 929 1 059 1 401
Between 41 and 50 427 507 913
Between 51 and 55 96 115 222
Over 55 95 107 241
* number of employees hired in 2019 and still with the Company as of December 31, 2020. Number of employees (as of the end of the reference period) hired in the previous year / total number of employees hired in the previous year.
5.2
HR management
New Hires
2018 2899
Image
2019 3335
Image
2020 4185
Image
New Hires by Facility
2018
Image
2019
Image
2020
Image
Image
Распределение вновь принятых сотрудников по предприятиям, чел. 2018 2019 2020
Vyksa Facility 1636 1872 1303
Chelyabinsk Facility 383 241 95
Blagoveshchensk Facility 128 319 50
Chusovoy Facility 268 368 327
Almetyevsk Facility 150 139 103
Belgorod Facility - - 412
OMK Steel Way - - 1307
Moscow 180 274 302
5.2
HR management

The Company mostly looks for the personnel that it needs in Russia and the CIS , prioritizing local hires from the areas where OMK facilities operate.

OMK’s Candidate Selection Approaches

1. Basic (traditional) recruiting: candidate search, candidate selection based on the outcomes of interviews, testing, etc. as well as verification of references

2. Executive or “special” candidate search. The technology is designed to look for rare professionals or managers.

а) Headhunting. The search approach centers around precision recruiting of a certain candidate.м.

b) Management selection. Attracting the most successful managers from a specific business segment.

c) Sourcing (talent search). Search for and selection of specific subject-matter experts that have knowledge of desired technologies.

3. Screening or candidate selection based on requirements. It is based on contrasting manager requests and candidate resumes available from an agency’s database. This activity implies looking at a large number of candidates.

4. Networking. Improving the standing of the Company as a preferred place to work and creating an outside pool of candidates by enhancing Company recognition and loyalty. It is closely related to the notion of HR marketing but unlike it is designed to hire from a network.

5. Preliminaring. Hiring promising young professionals, students, and graduates through on-the-job training and internships. These will become the company’s passport to success in the future. This approach is being used to effect by HR personnel as part of the Industrial Tourism project in Vyksa.

OMK facilities collaborate with a number of top universities in Russia which gives the Company an edge in having access to the most promising young professionals.

Personnel Stability Factor, %
2018 2019 2020
OMK Overall 91,5 93,3 92,5
Vyksa Facility 92,7 94,4 91,4
Chelyabinsk Facility 87,7 92,3 94,1
Blagoveshchensk Facility 89,2 90,5 88,3
Chusovoy Facility 94,7 94,7 94,4
Almetyevsk Facility 84,3 82,6 91,4
Belgorod Facility - - 95,5
OMK Steel Way - - 99,5
Holding Company 89,9 91,8 91,9
5.2
HR management

Percentage of Internal Candidates

(All Types), %

2019 24%
2020 25%

Productivity Improvement

To improve productivity, OMK facilities utilize organizational structure optimization tools, hand tools, and process automation.

OMK accomplishes organizational structure optimization by streamlining activities, efficiently managing the available pool of time (timely transitioning of personnel to idle mode if production slows down, and temporary redistribution of personnel to other busier departments, flextime).

In 2020, gain from productivity improvement measures was RUB 717.3 million.

The Company strives to hold on to efficient and qualified personnel. To accomplish this, OMK uses skill upgrades, rotation, training in upstream/ downstream and second trades.

5.2
HR management
OMK Home Program to Support Employees During Pandemic

After the pandemic started and employees at the OMK headquarters were urgently required to work from their homes, processes needed to be restructured, psychological support provided to employees, and new communication rules developed.

Psychological Support

To help employees adjust, weekly pulse polls were introduced. They help gage the team’s mood and regularly demonstrate to each employee that he or she is important and valuable.

A plan of changes is drafted following each poll. And a summary of changes is put together for the following poll. President Natalya Eremina informed employees during live sessions of facility workload, measures to combat the pandemic, and answered questions.

This helped keep the team informed. The executive was able to impart confidence and a business-like attitude to other members of the team. We put on a series of webinars to help set up under the new circumstances.

Technical Support

Once free movement restrictions were put in place because of the pandemic, the information technology directorate was charged to give the team efficient tools for remote work. To begin, priorities were defined for provisioning employees with mobile equipment. If a laptop could not fit the bill, employees were told that they could take home their CPU s with remote access software pre-installed.

Laptops were procured very quickly despite fierce competition for office equipment. Employees were allowed to take home their monitors which is especially useful for those that have to handle large spreadsheets. More bandwidth was added so that users could work uninterrupted while working remotely.

For communications, the Microsoft Teams platform was quickly set up for employees. At the same time, a separate OTP Home support team was set up to handle issues (support requests) from employees working remotely.

Image
Remote Communication

The OMK Home remote etiquette rules were developed with employee involvement. Drafting rules became something everyone could participate in by offering suggestions. Based on the outcomes of a poll in December 2020, there was 92% buy-in for the new remote etiquette standards. The Company quickly changed the way its front office operated to enable employees to control document flow remotely and track individual documents. For this to happen, the front office had to take on the responsibility for building document packages for signature and to send to vendors and customers.

5.2
HR management

Incentive Programs

Employee incentive programs are based on the principles of legality, transparency, timeliness, relevancy, and appropriateness. The Company uses a time and a piece bonus remuneration system.

Salaries are made up of a semi-fixed and a variable portion. The semi-fixed portion includes payment for an employee’s skill (wage, rate, piece rate), payment for working conditions (hazardous conditions, day and night shift, northern surcharges, etc.) as well as miscellaneous payments.

When calculating the semi-fixed portion, the Company complies with federal minimum wage requirements (minimum remuneration) as well as the requirements of industry agreements, such as those within the mining and steelmaking industry.

The variable portion includes both regular and one-time bonuses. Regular bonuses have a regular frequency (month, quarter, year) and follow transparent rules.

It pre-supposes specific expectations regarding total compensation depending on whether targets are achieved. One-time bonuses are compensation for accomplishing certain outcomes over and above regular activity.

They are awarded for participation and for achieving project targets, for implementing improvement initiatives designed to derive actual benefits. One-time bonuses are recognition of an employees’ contribution to the Company’s accomplishments.

There is no expectation of the amount. The bonus amount is a reflection of an employee’s contribution to the end result obtained by the Company.

The Chusovoy facility has revised wages for the critical trades as of July 1, 2020, and in QIV of 2020 for all the remaining positions. As a result, wages increased 20% for all except those employed in stand-alone business units and projects.

2018 2019 2020
Correlation between wages at OMK facilities and the regional labor markets (Vyksa, Chusovoy, Almetyevsk, Chelyabinsk, Blagoveshchensk) is ±15%. yes yes yes
Parenthood Support Costs (Vyksa), million roubles 22,6 26,9 26,9
Parenthood Support Costs (Chusovoy), million roubles 3,3 2,3 2,0
5.2
HR management

Supplemental Social Support

OMK is a socially responsible entity and it takes very good care of its employees’ well-being by putting together appropriate benefits packages.

Such packages include various kinds of aid, benefits and meal reimbursement, supplemental paid and unpaid leave, healthcare (insurance and treatment vouchers for specialized facilities), Christmas, etc. gifts for employees’ children.

Private Pension Plans

OMK facilities provide private retirement coverage through the Hephaestus Private Retirement Fund. The Company pays private retirement coverage a lot of attention to maintain employees at a respectable standard of living after they retire.

Based on 2020 statistics, these private retirement plans cover 5,450 company employees, and cofinanced government retirement programs cover a further 3,000. The amount of retirement benefits paid by the Hephaestus Private Retirement Fund in 2020 was about RUB 22 million.

Social Support Areas*, million roubles
2018 2019 2020
Direct social payments to employees (benefits, aid, severance pay, social leave, etc.) 222 267,4 280,2
Healthcare Benefits (supplemental medical insurance, clinic costs) 274,7 264,5 268,8
Private Pension Plans 46 72,7 26
Health resort and rehabilitation treatment for employees and families 44,7 51,3 12,4
Meals 107,1 110,7 57,6
Miscellaneous 88,1 97,4 156,2
Social support for employees, million roubles
2018
782
2019
864
2020
801
* metric is included in CSR KPI s at two of OMK's facilities: Vyksa and Chusovoy
5.2
HR management

Employee Engagement

The Company regularly conducts employee polls enabling everyone to express their opinion regarding all aspects of their employment and keep management abreast of existing problems and suggestions. Polls are followed by a review of the results, development of corrective measures, and advising employees of the decisions made.

The largest of these studies is the annual OMK Dialog employee engagement study held in September in 2020. It encompassed 20,524 respondents (about 64% of the total Company workforce). To support employees and quickly address issues related to the emergency transition to remote operation because of COVID -19, certain business units, including the parent company, launched pulse polls every one to three weeks.

The OMK personnel engagement metric is stable overall. Different business units have a different dynamic for the metric. Based on focus group data, the significant increase within the parent company is explained by the transition to working from home (see the OMK Home case). The Vyksa facility continues to demonstrate a very high level of engagement. The Company believes that the downturn in Chusovoy and Blagoveshchensk is related to the organizational restructuring projects.

This year, OMK Steel Way and the Belgorod facility were included in the engagement cycle, and for the first time, the two business units drafted action plans for personnel engagement.

Engagement Level, %
2018 2019 2020
Vyksa Facility 74 79 77
Chelyabinsk Facility 62 62 62
Blagoveshchensk Facility 38 39 35
Chusovoy Facility 36 55 47
Almetyevsk Facility 99 56 61
Belgorod Facility - - 45
OMK Steel Way - - 28
Holding Company 76 66 78
OMK’s Engagement Level*, %
2018
65
2019
68
2020
59*
* data include the new business units If these are disregarded, there has been no change in engagement since 2019.
5.2
HR management

Level of Company Employee Satisfaction, OMK Average, %

2018 69
2019 70
2020 64

In the course of an engagement study, the Change Compass questionnaire was completed by all the Company’s employees for the first time. The method helps identify differences between the Company’s declared goals and the objectives the employees would like to accomplish. Overall, the employees and the Company have the same understanding of the objectives; however, some employees are negatively motivated by a bonus system that they consider non-transparent, and an assessment system that they do not understand.

Information regarding the incentive system and the feedback culture was included in all the facilities’ plans (the system itself may be modified as needed). Managers with fewer than 10 reports participated in the study, received back the results itemized for their organization, and put together change management plans.

* Data include the new business units If these are disregarded, there has been no change in employee satisfaction.

Because of the pandemic restrictions, the qualitative phase of the research is almost impossible to perform in the old format, i. e. through face-to-face focus groups. HR has implemented a method of conducting focus group research remotely using the GroupMap resource.

Thereby, they were able to increase process efficiency significantly by having the people in a focus group work in parallel and through simple organization. Different departments continue to utilize the method as a tool for talking to employees even outside engagement research.

Image

IT Kitchen

The OMK Information Technology Directorate launched the IT Kitchen communication platform. The idea was to create a platform for equals of like minds. The Kitchen is a space that unites through shared activities. It is used to cook and discuss new products, and same as in information technology, it involves different ingredients and understandable discussion. In the kitchen, employees get information regarding the principal projects and news, exchange views, ask questions, and get answers. In the span of a year, there have been 7 “kitchen” sessions involving over 400 employees.

5.2
HR management

Non-Cash Incentive Programs

The existing non-cash employee incentive programs are designed to recognize employee contributions and importance, to build a single cohesive team of like-minded individuals sharing common values.

The non-cash incentive system effectively operated motivational programs for employees that include federal, departmental, regional, municipal, and corporate awards as well as awards from the individual OMK facilities.

In 2020, departmental awards were presented to 83 employees, regional awards to 105 persons, municipal awards to 56, and corporate to 86, including awards in the form of the Ivan and Andrey Batashev Prize which is OMK's principal competitive award as well as corporate awards for best functional leaders and specialists. Facility awards (CEO commendations and certificates of appreciation) were presented to 808 people.

Employee Rights
2018 2019 2020
Filings with Labor Dispute Commission / Rulings in Employees’ Favor (Pre-Trial) Labor Disputes* 17/18 23/8 21/12
Employee Filings with Government Labor Inspectorate and Prosecutor’s Offices 25 44 45
Regarding Violations of Employee Rights 10 12 4
* employee rights filings with labor dispute commissions, memos (filings) to employer and the courts.

Labor dispute commissions are contacted by employees with complaints regarding bonuses and disciplinary actions. If violations are identified, appropriate discussions are held. Most disputes are resolved out of court.

In 2020, court filings were made by employees wanting to be reinstated, looking for compensation for pain and suffering related to workplace incidents, occupational health issues, suspensions, and other disputes.

To resolve disputes, the Company holds meetings and educational events for managers. Follow-up investigations of complaints filed with the labor inspectorate regarding violations of employee rights identified no violations on the employer’s part in 2020.

5.2
HR management
Resolved Labor Disputes
2018 2019 2020
ОМК 29 41 31
Vyksa Facility 17 23 14
Chelyabinsk Facility 4 5 8
Blagoveshchensk Facility 2 7 2
Chusovoy Facility 3 6 1
Almetyevsk Facility 0 0 0
Belgorod Facility - - 1
OMK Steel Way - - 6
Holding Company 0 0 0

The OMK ethics committee reviewed all 13 incoming issues. The employees were mostly unhappy with managers’ improper conduct. The measures implemented by the ethics committees helped correct issues and rehabilitate relationships within teams. Three such complaints came in from VR K employees. The internal audit function mounted a campaign within the new business units to disseminate information regarding the OMK hotline as well as the ethics committees.

5.2
HR management

Social Partnership

OMK supports the employees’ right to associate. Employee associations operate at all Company facilities and are provisioned with everything they require. Written collective agreements are in effect at all Company facilities covering 100% of the workforce. The agreements contain no provisions limiting employees’ rights or downgrading the guarantees available to employees with respect to the standard established in labor legislation.

The collective agreements establish compensation rules, on and off times, a list of benefits and guarantees, industrial health and safety regulations and standards, programs for young people as well as other employee rights and guarantees. OMK complies with labor statutes as well as the relevant industry rate agreements

In 2020, OMK's associations grew by adding the grass-roots trade-union organization of the railway car repair company belonging to the Russian Union of Railway Employees and Transportation Infrastructure Builders (Dorprofzhel) representing the interests of the VR K employees as well as the Workforce Council of the OMK Belgorod facility.

A new collective agreement has been in effect at VR K since 2020. It maintains all the principal benefits and guarantees as required by the Industry Agreement for Railway Transportation Organizations for 2020 through 2022.

Joining a union is strictly voluntary. Once an application is submitted by an employee, the Company wires the employee’s dues to the specified union on a monthly basis.

The facilities in Vyksa, Chusovoy, and Chelyabinsk continue to be the object of activities on the part of local union organizations of the Russian Mining and Metallurgy Union, the facility in Blagoveshchensk has a relationship with the Russian Industrial Workers’ Union (Rosprofprom), and the one in Almetyevsk with the Agroindustrial Workers’ Union (Profagro).

A meeting of the OMK Social Council was held on November 9, 2020 primarily to discuss improving communications among the parties. An agreement was reached regularly to distribute online questionnaires among union leaders to assess the status of the workforce as well as to include such leaders in facility response teams to combat the coronavirus infection.

Social partnership is based on principles approved by the parties that help address both employer and employee interests through dialog.

The partnership exists on three levels:

  • OMK Social Council made up of the HR Directors from the various facilities, union leaders, and executive management representatives. This is a forum to discuss social partnership and system communication issues.
  • Social dialog at the facility level involving union organization chairs, managing directors, and HR directors.
  • Day-to-day communications on the shopfloor.
5.3
Production safety
2018 2019 2020 2020
цель
Accidents and Incidents at Hazardous Installations 0 0 0 0
Fatal Injury Frequency Rate (FIFR) 0 0 0 0
Lost Time Incident Frequency Rate (LTI FR 1,28 0,72 0,79 0,64
Occupational Morbidity Rate

(number of confirmed cases per 10,000 of average annual headcount)
2,58 3,5 2,92 -
Industrial Safety Tasks and Objectives
  • Improving the vertically integrated industrial safety management system encompassing both current activities and future development projects. Manufacturing Safety Management System Maturity Level: 2020 objective - 3.08 2020 Actual: 3.15.
  • Transition to a risk-oriented approach in all areas of manufacturing. Development of a safe manufacturing culture alongside continuous management system improvement.
  • Development of an automated safety management system (safety information management system) covering all activities related to manufacturing safety.
  • Assurance that personnel are working under the best possible and acceptable working conditions (based on a special assessment of working conditions), reduction of compensation for hazardous working conditions.
  • Safing of all the equipment and equipment operation in safe modes.
  • Involvement in developing a regulatory and statutory framework in the area of manufacturing safety.
Image

Despite the marked improvement in injury rates at the OMK facilities in Almetyevsk, Blagoveshchensk, Chelyabinsk, and Chusovoy, the deterioration in Vyksa impacted the Company’s overall safety performance. The cause is the suspension of the principal monitoring tools because of the pandemic, such as management walkabouts, shift handover meetings, and behavioral safety audits. One of the reasons is that experienced supervisors transferred to other departments. New managers were somewhat unprepared for independent safety responsibility.

5.3
Production safety
Assurance of Workers’ Rights
International certification (safety, working conditions, technologies) as well as system thirdparty assessments by segment.
Vyksa Facility OHSAS 18001:2007,transition to IS O 45001:2018 is scheduled for March 2021.
Chelyabinsk Facility ISO 45001:2018
Blagoveshchensk Facility ISO 45001:2018
Chusovoy Facility ISO 45001:2018
Almetyevsk Facility ISO 45001:2018
Belgorod Facility ISO 45001:2018
Amount invested in industrial safety
million roubles
2018
308
2019
536
2020
1 046
5.3
Production safety
Injury Rates
Number of work-related injuries
Region 2018 2019 2020
Vyksa Facility 20 8 14
Chelyabinsk Facility 7 4 1
Blagoveshchensk Facility 7 4 2
Chusovoy Facility 5 3 2
Almetyevsk Facility 4 4 3
Belgorod Facility - - 3
OMK Steel Way - - 11
Injury frequency rate without lost time
2018
127
2019
85
2020
47

The reason for the increase in injuries is that the principal monitoring and training tools, such as management walkabouts, shift handover meetings, and behavioral safety audits as well as manufacturing safety training sessions, were suspended because of the coronavirus epidemic

5.3
Production safety
Supplemental training programs for industrial health and safety as a component of growing a safety culture
Workshop:

Effective Safety Management Practices for Workers, Office Personnel, and Specialists with Practical Training in Behavioral Safety Audits. Training to be conducted for all workers, office personnel, and specialists or substitutes, succession pool employees. Duration: 16 hours (2 work shifts).

Workshop:

Developing a Deliberate Approach to Safety for Workers. Training to be conducted for all facility workers. Duration: 8 hours

Workshop:

Internal Incident Investigations. Training to be conducted for workers, office personnel, and specialists involved in incident investigations. Duration: 8 hours (1 work shift).

Workshop:

Production Process Safety. Conducted based on the following corporate standards: Mechanical Integrity of Equipment, Pre-Start Safety Checks, Technical Change Management. This workshop is to be conducted for all workers, office personnel, and specialists as well as for workers operating, maintaining, and repairing critical equipment. The workshop is to be witnessed by a representative from the facility’s

Industrial Health and Safety Function. Duration: 4 hours (0.5 shifts).

Workshop:

Defensive Driving. Training to be conducted for all the facility's drivers and workers, office personnel, and specialists operating personal or Company vehicles in the course of their job duties. Training Procedure: classroom instruction for 8 hours (with testing) and a practice session of 1 hour’s “driving with comments” for each student completing the classroom portion and successfully testing.

Emergency Preparedness

All facilities have accident and emergency response plans in place. They have developed a procedure to train employees in accident and emergency response as well as behaviors to assure industrial, fire, and environmental safety when accidents or fires happen, need to be contained, or mitigated. We hold regular drills.

Image
Third-Party Safety

We hold an introductory briefing on all the hazardous and harmful factors, safe behaviors at a manufacturing facility, and issue cheat sheets. We provide personal protection equipment. We provide escorts around the facility.

5.3
Minimizing Production Safety Risks
Minimizing Production Safety Risks

To minimize manufacturing safety risks, we have introduced and are maintaining the following processes:

- Internal incident investigation per Corporate Standard ST K.12-66.1, Internal Investigation Management and Incident Reporting Procedure. The standard prescribes that 100% of the incidents be investigated, including incidents that result in no personal injury or corporate property damage and that the relevant lessons learned be broadcast to prevent recurrence.

- Safety system audits with the outcomes documented in the corporate safety management information system which is common to all the Company facilities. Pulling Company and contractor personnel into safety audits assures a minimization of risks.

2018 2019 2020
Number of Contractor Safety Audits 994 1 086 1 301
Number of Mentoring / Management Sessions Conducted 230 / 230 212 / 212 265 / 271
Communication with Contractors on Industrial

To support efficient communication, OMK introduced Corporate Standard ST K.12-54.2, Contractor Management for Industrial, Environmental, and Fire Safety. The standard is applicable to all Company facilities.

All contracts with vendors include a mandatory annex containing an agreement to comply with manufacturing safety requirements (both statutory and corporate). The Company employs manufacturing safety selection criteria when qualifying and choosing vendors and contractors.

Image

In 2020, a corporate mentoring program was launched and is supported by the industrial safety functions of all the facilities.

It operates in the form of one-on-one interviews with managers at different levels jointly to look for solutions to specific problems based on applying the Company's best practices to each individual area.

5.3
Production safety

Most of the work performed by contractors centers around the Vyksa facility.

To improve the contractors’ safety culture, to engage the contractors in production safety processes, and to create a common information environment, in 2020 the OMK Vyksa facility:

- upgraded the safety management information system enabling contractors to self-register safety audits;

- initiated an IT project to implement a computer system to train and test contractor employees before they are certified for work;

- initiated the installation of a video surveillance system at newly constructed facilities, thereby helping improve safety compliance monitoring in the course of activity.

- launched a supervision function using mentoring, training, best practice exchange tools helping continuously monitor compliance with manufacturing safety regulations at construction sites and improve the safety culture in contractor organizations.

Special Workplace Assessment
Region 2018 2019 2020
Vyksa Facility 524 8 474 4 783
Chelyabinsk Facility 93 341 1 166
Blagoveshchensk Facility 343 71 554
Chusovoy Facility 139 81 1 087
Almetyevsk Facility - 45 474
Belgorod Facility - - 1 482
Belgorod Facility - - 216
Holding Company - - 4

OMK Vyksa facility conducted a scheduled re-assessment of manufacturing hazards, which normally occurs every 5 years or following staffing changes or the introduction of new workstations. The principal workplace hazard is noise. To mitigate, the facilities have custom action plans in every case.

5.4
Production safety
2018 2019 2020
Integrated metric for 3 principal environmental impact factors: atmospheric emissions, effluent into bodies of water, and waste disposal. 0,96 1,09 0,91
Total atmospheric emissions, ktons 4,626 3,113 7,371*
Total effluent discharged into bodies of water**, ktons 2,540 3,102 2,018
Total weight of waste generated, ktons 607,0 615,6 569,5***
* Increased value because of increased sampling frequency for industrial emissions from the electric arc furnace at Vyksa’s integrated casting and rolling facility as well as data from the commissioning period being included in reports as well as new facilities (Belgorod and the 36 depots of the railway car repair company) being included in reports.

** the reduction in total emissions results from programs being implemented and a reduction in the discharge from the Vyksa facility (installation for reverse osmosis in Water Discharge 5 and the Wide Plate Mill 5000 closed-water circuit; use of expansion tanks in a number of shops; use of chemically purified water in a closed boiler circuit; mechanical filtering and acidity control in closed water circuits) and the facility in Chusovoy (reduced utilization of new process water by rolling mill 550 and reduced ferroalloy shop production).

*** The reduction in the amount of waste generated is mostly associated with reduced production and the sale of mold sand as a by-product by the Blagoveshchensk facility.

OMK is striving to reduce human impacts to the environment. The Company implements nature conservation measures, increases the percentage of recycled industrial waste, uses natural resources efficiently by recycling and using closed-circuit water.

International
Certifications
by Segment
Vyksa Facility ISO 14001:2015
Chelyabinsk Facility ISO 14001:2015
Blagoveshchensk Facility ISO 14001:2015 (Certificate No. 19.1332.026 dated August 1, 2019 and valid through October 18, 2022)
Chusovoy Facility ISO 14001:2015
Almetyevsk Facility ISO 14001:2015 (GOST R ISO 14001-2016)
Belgorod Facility ISO 14001:2015
5.4
Environmental Safety
Environmental Safety System Certification

OMK's Vyksa facility has had its second integrated management system supervisory audit for compliance with the requirements of ISO 14001:2015. The facility was able to demonstrate overall compliance with standards.

Supervisory audits in Chusovoy helped extend the validity of the ISO 14001:2015 certificate. An environmental safety audit of the Chelyabinsk facility re-confirmed compliance with the requirements of ISO 14001:2015.

The Almetyevsk facility's environmental management system was re-certified without issues by the Russian Registry for the Volga Region.

The re-certification audit of the integrated management system of OMK's Belgorod facility was conducted by the TUV Management Service GmbH certification authority. The Blagoveshchensk facility successfully completed an inspection audit of its environmental management system for compliance with the requirements of ISO 14001:2015.

Principal Environmental Policy Provisions

The Company adopted a manufacturing safety policy. It documents OMK's compliance with the provisions of Russian statutes, its commitment to international production safety standards and best practices, and its desire to integrate such standards and practices into all business processes. We create safe conditions for Company and contractor personnel and are continuously improving the environmental safety of our operations. The life and health of our employees and protection of the environment are OMK's overarching values.

Environmental Technology Long-Term Investment Priorities/Programs
  • Process upgrade cases;
  • Projects at the manufacturing sites;
  • Comprehensive program to implement waste sorting;
  • Implementation of best available technologies;
  • Compliance with the UN sustainable development objectives.

OMK’s facilities are successfully operating a selective industrial and household waste collection system. Temporary waste storage sites are compliant with statutory requirements.

For new facilities, we are planning gradually to introduce a comprehensive waste sorting system and to increase the recycled waste percentage.

5.4
Environmental Safety
Water Usage
Total amount of water used in production, thousand m3 2018 2019 2020
Total 5 603,3 6 058,9 5 249,6
Surface water 3 666,7 4 277,3 3 185,3
Ground water 1 672,1 1 523,3 1 609,1
Third-party waste water 159,2 159,2 109,9
Municipal and other water supply systems 105,2 99,1 345,3

Reduced water utilization is the result of measures as well as reduced amounts of effluent from the Vyksa and the Chusovoy facilities. A considerable reduction in water usage (by a factor of 5.6) was observed at the Blagoveshchensk facility which has stopped using water from the pond. All the other facilities also cut back on their water usage (Vyksa by a factor of 2.2, Chusovoy by 13.4%, and Belgorod by 19.7%).

Total amount of water used for housekeeping needs, thousand m3 2018 2019 2020
Total 2 552,2 2 396,4 2 457,7*
Intake from underground sources 2 086,8 1 904,0 1 633,7**
From central and third-party water supply systems 465,5 492,4 824,0
* Increased volumes in 2020 result from adding new facilities: Belgorod and the railway car repair company

** Reduced water usage results from a part of the workforce working remotely.
5.4
Environmental Safety
2018 2019 2020
Effluent Treatment Methods Utilized Mechanical, Physical and Chemical Mechanical, Physical and Chemical, Flotation Mechanical, Physical and Chemical, Flotation
Amount of Recirculated Water, x 1,000 m3 348 867,3 353 478,0 299 939,5
Доля воды в замкнутом цикле*, % 99,5 99,3 99,5
Percentage of Water in Closed Systems*, % 2018 2019 2020
Total 4 920,3 5 122,1 4 402,3
Discharge into Surface Bodies of Water 2 675,2 3 141,5 2 037,1
Production and Storm Drain Water to Municipal Sewage Systems 49,3 52,3 486,1
Housekeeping to Municipal Sewage Systems 2 195,8 1 928,4 1 879,1
* data from Vyksa facility
5.4
Environmental Safety
Total Weight of Waste by Hazard Class 2018 2019 2020
Total, ktons 607,0 615,6 569,5
Class 1, tons 10,084 19,218 7,466
Class 2, tons 4,318 6,966 301,4*
Class 3, ktons 3,0 2,6 4,4
Class 3, ktons 128,3 131,0 125,5
Class 3, ktons 475,7 482,0 439,3
Waste Reclassified as By-Products, ktons 22,9 22,5 28,1
By-Products Sold, ktons 477,0 696,0 755,8
Total Recycled Waste, ktons 465,6 446,1 419,5
Using In-House Resources, ktons 486,0 486,5 296,2
Total Rendered Innocuous, ktons 76,3 91,6 88,8
Total Disposed, ktons 85,5 75,9 64,0
* Increase related to the added waste from new facilities: Belgorod facility (mostly) and OMK Steel Way. An increase in battery sales was observed at the facility in Chusovoy (shipment).
Total Waste Recycled, %
2018
88,7
2019
88,3
2020
90,7

Reduced amounts of waste discharged to the environment are mostly associated with better waste sorting and subsequent recycling.

5.4
Environmental Safety
Image
Image
Image
2018 2019 2020
Current Costs 849,3 million roubles 637,3 million roubles 593,7 million roubles
Payment for Nature Conservation Services 369,7 million roubles 367,7 million roubles 448,5 million roubles
Cost of capital repairs for nature conservation fixed assets. Cost of environmental protection 52,4 million roubles 54,3 million roubles 27,2 million roubles
Environmental costs, million roubles
2018
1 246,2
2019
1 059,2
2020
1 094,6
5.4
Environmental Safety

Chusovoy has reduced natural gas and electrical power usage by:

  • replacing a defective heating line and thermal insulation in the machining shop;
  • replacing the thermal insulation of a line in the cold stamping area; installing a compressed air metering station for Mill 370
  • replacing the insulation of a heating network in the utility area
  • installing insulation on steam line valves and quick-remove insulation on heating lines;
  • monitoring operations at the newly constructed modular boiler room for 15 MW .
Number of Fume Treatment Installations
2018
188
2019
183
2020
225
Greenhouse Gas Emissions (CO2 Equivalent), ktons
2018
535,3
2019
519,7
2020
511
0,15
Direct Specific Greenhouse Gas Emissions per Ton of Product, t/t
5.5
Energy Efficiency Programs

The energy efficiency program includes modifying the energy supply system of the Vyksa facility.

  • use of steam only for process needs shutting down steam boiler rooms;
  • upgrade to the hot water supply system;
  • changes to the process of air separation by using the resources of the oxygen unit at the integrated casting and rolling facility instead of continuing to generate oxygen at the facility oxygen unit;
  • optimization of day-to-day activities in the various departments;
  • changes to the plate laminar cooling process at the integrated casting and rolling facility.

New OMK facilities utilize effective state-of-theart technologies enabling efficient use of energy resources:

  • gas-based radiation heating systems for the industrial installations;
  • LED lighting with the capability to turn off by zone;
  • modular design with a high degree of automation for lighting deactivation by zone
  • modular design with a high degree of energy installation automation
5.5
Energy Efficiency Programs

Other Energy Efficiency Projects

  • We changed the process for producing oxygen gas using more efficient equipment.
  • We modified the process for preparing topoff water for closed-circuit water systems for minimum use.
  • We modified the process for preparing coolant using automated modular systems.
  • We modified the plate laminar cooling process at the integrated casting and rolling facility.
  • We revamped the lighting systems using energy efficient technologies.
Outside Energy Resource Saving Trends Associated with Energy Efficiency Programs by Facility (million roubles) 2018 2019 2020
ОМК 124,9 123,9 111,3
Vyksa Facility 91,0 103,3 75,3
Chelyabinsk Facility 3,8 4,1 4,5
Blagoveshchensk Facility 21,1 3,4 6,8
Chusovoy Facility 9,0 12,7 22,8
Almetyevsk Facility 57,0 311,0 1 876,0
2018 2019 2020
Total Reduction in Energy Usage, TJ 164,2 263,8 131,7
Fuel 106,1 167,1 95,9
Electrical Power: 58,1 96,7 35,8
2018 2019 2020
Total Fuel and Energy Usage Throughout OMK (tons of reference fuel) 534 184 516 818 471 244
Total Energy Usage, TJ 2018 2019 2020
Total 15 630 15 121 13 786
Fuel 9 963 9 558 8 444
Electrical Power 5 667 5 563 5 342
Heat 0,016 0,016 0,015
5.6
Quality management
OMK Vyksa plant

As part of the goal-setting process, the OMK plant in Vyksa sets KPI s for different management levels. KPI s include quality indicators.

Achievement of the established indicators is reviewed on a monthly basis in a face-to-face report with the managing director and the operating committee. If there are deviations, the reasons are found out and a corrective action plan is developed.

The plant has developed and annually updates the «Quality Management» functional strategy. The company is concentrating its efforts on strengthening its reputation as a reliable supplier of railway wheels, tubular products and rolled metal products.

Achievement of strategic goals is ensured through continuous improvement of an effective quality management system that meets the requirements of legislation, thanks to customer reviews and the best world practices. All products of the plant are certified, the quality management system meets the requirements of international standards and specifications.

Share of products subject to consumer complaints, %

2018 2019 2020 2020 target
0,056 0,229 0,055 0,156

Quality Management System Certification

The plant's quality management system has certificates of compliance with the following requirements: ISO 9001: 2015, ST O Gazprom 9001: 2018, Association of American Railways AAR M-1003, American Petroleum Institute API 5 L and API 5 CT, ISO / TS 22163, KRTS -CO-Part7-2016 (Korea), the requirements of the directive 2014/68 / EU in accordance with EN 764-5 and AD 2000 – Merkblatt W0.

Annually the company confirms the conformity of the management system. To ensure safety, products are certified and certified for safe use. Railway wheels undergo mandatory certification for compliance with the technical regulations of the Customs Union TR / CU 001/2011 «Safety of railway vehicles», as well as directives of the European Parliament and Council No. 2008/56 EC.

5.6
Quality management

Pipe production is certified with the following approval documents:

  • Compliance certificate ТR TS 032/2013 – for process pipelines within the Eurasian Customs Union
  • Compliance certificate GOST R
  • Gospromnadzor permit – applies to potentially hazardous facilities and compliance certificate for the construction sector in the Republic of Belarus
  • сертификаты соответствия для сферы строительства и разрешение Госпромнадзора для применения на потенциально опасных объектах Республики Беларусь;
  • Compliance certificates GAZSERT and INTERGAZSERT
  • Disease control report – for drinking and hot water supply networks
  • Certificates of the Eurasian Economic Union on the conformity of products for use in drinking water supply systems to unified sanitary, epidemiological and hygienic requirements
  • Compliance certificates of the voluntary certification system «TechSertPB » and requirements of FNP «Safety rules in the oil and gas industry»

Rolled metal products from OMK Vyksa plant have certificates of manufacturer's recognition in the Russian Maritime Register of Shipping and the Russian River Register.

Consumers carry out technical audits at the enterprise to obtain information on the conformity of the product and the technological process to their requirements. Thus, in 2020, audits of Business Trend LL C for Gazpromneft-Snabzhenie LL C, Samara IT C LL C for Rosneft Oil Company PJSC, and the Technical Audit Center for Russian Railways OJSC took place.

To provide consumers with free access to information on the properties of products, the company's website (omk.ru) features current versions of catalogs of all types of the plant's products with an indication of the nomenclature. We hold annual conferences for consumers with visits to production units. Company representatives regularly take part in exhibitions and forums with reports and presentations.

5.6
Quality management
OMK Blagoveshchensk plant

The increase in the share of products with claims from consumers in 2020 relative to 2019 is caused by an increase in the number of claims for the following types:

  • Leakage of the valve (difference in test methods at customers and at the factory). Requires the purchase of test equipment, revision of the design of the valves according to the plan for processing products and expanding the range of mass-produced products.
  • Modernization of products of previous years turned out to be ineffective (design recalculation is required).
  • Casting quality (equipment wear, implementation of a plan to improve the quality of castings).

For each claim received, an analysis was carried out, corrective actions were taken to prevent similar inconsistencies in the future.

Share of products subject to consumer complaints, %

2018 2019 2020
0,57 1,97 3,5

All materials supplied to the enterprise for the manufacture of products undergo incoming control in accordance with ST O.53-662.1 «Incoming control».

The manufacture of parts for assembling products is controlled at each stage at several levels:

  • workers performing operations - 100%;
  • employees of quality management (quality control department - visual control selectively, requirements for the sample size are laid down in technological processes;
  • LNMK - non-destructive testing;
  • PAL - control by destructive methods in accordance with the requirements of STO.53-661.7 «Control at all stages of production.»
5.6
Quality management

When arriving at the assembly site of component parts, the quality control department inspector checks the presence of a stamp and marking of batch / melt numbers on the parts. Each finished product undergoes final control of acceptance tests in accordance with the technological instructions, where a decision is made on its suitability.

Good products are sent for painting. The order, scope, methods of control and testing in the production process, as well as controlled parameters are established in the technological documentation of the plant. The final control of products is carried out by employees of the Quality Control Department, who were not directly involved in their production (provision) or in the direct management of production (provision).

The products of the plant are used at hazardous production facilities, therefore the applied certification systems satisfy the rights of consumers to purchase and use products that do not harm their health and ecological systems.

Quality management system certification

  • ISO 9001: 2015 - Certification Association «Russian Register»;
  • API Q1 specification - American Petroleum Institute;
  • ISO 9001: 2015 - American Petroleum Institute;
  • License to manufacture products according to API 6D specification requirements;
  • STO Gazprom 9001-2018;
  • Certificate of business reputation assessment No. OGN 1.RU .1401.00007.

The products have passed certification tests for compliance with TR TS 10 (safety of machinery and equipment), TR TS 32 (safety of equipment operating under overpressure), TR TS 12 (safety of equipment for working in explosive atmospheres), fire tests, seismic resistance, climatic tests , resistance of materials to environments (СО2, Н2S and other tests).

In the manufacture of products, the plant uses materials that have appropriate quality certificates and safety data sheets. Purchase, temporary storage, use and disposal of materials is carried out in accordance with the requirements of I.53-540.4 «Management of hazardous substances (materials)».

5.6
Quality management
OMK Chusovoy plant

Product parameters are posted on the company’s official website and in the online store to inform consumers about the quality of products. There are basic technical requirements, steel grade, geometry and dimensions, elastic characteristics, appearance, as well as GOST 14959, according to which we manufacture the product.

Quality management system certification

  • OHSAS 18001:2007 Occupational health and safety management systems.
  • ISO 14001:2015 Environmental management systems (the plant's objectives annually include an environmental integral indicator to reduce load on the environment).
  • No.TS RU С-RU .AD 50.B.00377 Safety of wheeled vehicles.
  • Rolled products are certified according to the standard GOST 14959 «Metal products from spring unalloyed and alloy steel».
  • IAT F 16949 (IAT F Certificate No. 333254, issued by Bureau Veritas Certification). According to the requirements of the standard, supervisory audits are held annually; in 2020, the second supervisory audit was conducted. The recertification audit is scheduled for 2021.

The company regularly conducts internal audits of the quality management system, technological processes and product, fulfills the requirements of the current international standard IAT F 16949 using quality planning and production methods:

  • APQP (Advanced product quality planning) - Prospective product quality planning and management plan.
  • PPAP (Production part approval process) - The process of approval of the production of a component.
  • PFMEA (Failure mode and effects analysis) - Analysis of the types and consequences of potential process failures.
  • SPC (Statistical process control) - Statistical process control.
  • MSA (Measurement System Analysis) - Analysis of measuring systems.
  • 8D - a technique for eliminating problems, used when the consumer informs about the identified nonconformities of the product.

The company operates a concept of lean manufacturing, which allows you to constantly reduce the level of losses. To do this, we register and track the status of claims / messages from consumers about low-quality products received by them. We develop corrective actions to prevent the release of low-quality products.

Image

Share of rolled products subject to consumer complaints, %

2018 2019 2020
- 0,13 0,10
Share of spring products subject to consumer complaints, %
- 0,04 0,03
5.6
Quality management
OMK Chelyabinsk plant

Consumers carry out technical audits at the enterprise to obtain information on the compliance of products and technological processes with the customer's requirements.

In 2020, audits were conducted by Samara IT C LL C for Rosneft NK PJSC, Business Trend LL C for Gazpromneft-Snabzhenie LL C. To provide consumers with free access to information about manufactured products, the OMK website has posted a nomenclature list of products, which contains a list of products, technical conditions for which products can be manufactured, and technical and operational characteristics.

Representatives of the enterprise regularly take part in exhibitions and forums with reports. To ensure the proper quality of products, the plant certifies products for compliance with safety requirements for equipment during development (design), production (manufacture). The quality management system at the enterprise takes into account the requirements of the customer and other interested parties, meets the requirements of the enterprise management to the degree of effectiveness of the QMS processes, and allows the customers to demonstrate the ability to provide the consumer with products that meet their requirements.

Share of products subject to consumer complaints, %

2018 2019 2020
0,2 0,02 0,02

Quality management system certification

  • ISO 9001:2015;
  • ISO\TS 29001:2010;
  • GOST R ISO 9001-2015;
  • STO Gazprom 9001-2018;
  • American Petroleum Institute API Q1.
5.6
Quality management
OMK Almetyevsk plant

An increase in claims in 2020 is observed for defects in welded joints and errors during loading. Corrective actions are planned and implemented for the received claims.

To ensure the proper quality of products, the company takes the following steps:

  • The products are certified in the voluntary certification system GOST R.
  • At each stage of production lines, incoming control of materials, acceptance of products for compliance with the requirements of regulatory and technical documentation (GOST , TU , etc.) is carried out.
  • Information on the achievement of quality indicators of the plant's divisions is in the public domain - the «Quality Corner» stand. The data on quality are analyzed and submitted for discussion at the brigade shift-counter meetings, quality circles, workshop and factory «quality watches».
  • Constructed and adjusted work on consumer feedback.

Share of products subject to consumer complaints, %

2018 2019 2020
0,0017 0,005 0,0460

Quality management system certification

  • Re-certification of management systems for compliance with the requirements of ISO 9001:2015 and ISO 45001:2018 processes and documentation of the organization's management system.
  • Re-certification of the company's environmental management system for compliance with the requirements of ISO 14001:2015, which confirms the compliance of the products and materials used with the requirements of the international system in the field of ecology.

Certification of management systems enables the company to confirm its competitiveness in the production of steel welded pipes for the oil and gas industry, utilities and construction.

5.6
Quality management
OMK Belgorod plant

The plant provides high quality products at all stages of the life cycle: from verification of purchased materials and semi-finished products to control of products in the production process and final control of finished products. The staff has the necessary competencies and qualifications. To control the quality of products, modern high-precision measuring instruments and testing equipment are used. The central plant laboratory is accredited to IS O / IE C 17025: 2017 under the ILA C and APA C Mutual Recognition Agreement.

Registration of inconsistencies is carried out using software tools that allow for operational accounting and analysis of trends in the field of quality. Every month, the managing director holds a quality day meeting to review quality metrics and develop strategies for development.

To provide potential consumers with free access to complete information about the properties of the products offered, the company's website contains up-to-date information on all types of the company's products, indicating the technical characteristics. If necessary, consumers conduct technical audits to confirm the enterprise's ability to manufacture products in accordance with all established requirements.

Share of products subject to consumer complaints, %

2018 2019 2020
0,059 0,035 0,054

Quality management system certification

  • Recertification of the integrated management system for compliance with international standards: ISO 9001: 2015, ISO 14001: 2015, ISO 45001: 2018. In January 2021, the certification body TÜV NORD CERT GmbH issued supporting certificates.
  • Recertification of the QMS in the INTERGA ZCERT system for compliance with STO Gazprom 9001- 2018.

In accordance with the certification procedure, the plant eliminates individual minor nonconformities (with subsequent submission of a report to the certification body).

The products of the OMK plant in Belgorod meet the requirements of state and international standards. It is made from materials that have appropriate quality certificates and safety data sheets. At the same time, within the framework of the current legislation and customer requirements, products are also subject to licensing, certification and declaration.

5.6
Quality management
OMK Steel Way

The company has organized a system of internal control in the person of car receivers who report directly to the head of the traffic safety and repair quality department. Employees carry out unit-byunit control of cars at production sites and accept finished products from depot managers. Finished products are accepted by Russian Railways inspectors for admission of cars to operation.

Quality management system certification

The quality control system is not certified according to any of the international standards. The company plans to undergo certification in the future.

5.7
Social projects

The company's social programs are aimed at developing local communities and creating stable horizontal ties, involving employees and citizens in solving problems in the regions of OMK's presence.

Projects are coordinated by an internal OMK team with the involvement of regional resource centers and representatives of regional administrations. During the pandemic, the company did not cut funding for system programs - the OMKPartnerstvo (OMK-Partnership) grant competition for social and charitable projects and the Start Your Business program for the development of social entrepreneurship). The focus of the programs was shifted to combating the consequences of the spread of the coronavirus.

OMK-Partnerstvo Charitable and Social Projects Competition

The purpose of the grant competition is to create social partnership and opportunities for the introduction of innovative technologies and sustainable development of the regions of presence, and to involve employees of OMK enterprises in social projects on the basis of their initiative and voluntary participation.

The main principle is the partnership of government, business and society in solving social problems of the regions.

Targets:

  • development of systemic charity through competitive programs for the development of regions;
  • involving employees in the company's charitable programs;
  • implementation and development of corporate volunteering programs;
  • development of systemic programs in the field of charity;
  • attracting additional funds and resources to monotowns and settlements through the development of the “third sector”;
  • assessment of the socio-economic effect of charitable programs and projects in terms of solving social problems and creating favorable socio-economic conditions in the regions of the company's presence.
5.7
Social projects

In 2020, the OMK-Partnerstvo online platform* was launched, through which applications for the competition are submitted.

The application form for the competition completely coincides with the application form for the competition of the Presidential Grants Fund, so in the future it will be easier for participants to attract additional funding for their initiatives. The collection of applications is carried out in accordance with the criteria established in the regulation. The winners are selected by an expert committee from representatives of OMK, factories, local administrations and resource centers.

2018 2019 2020
Projects submitted for the competition 195 186 184
Supported projects 90 94 88
Total budget for grants, million rubles 10,5 9,1 9,25

Start Your Business Social entrepreneurship program

The goal of the program is to promote the development of small business and social entrepreneurship in single-industry towns: Chusovoy and Chusovsky municipal areas (Perm Territory), Blagoveshchensk and Blagoveshchensky municipal areas (Republic of Bashkortostan), Vyksa and Vyksa municipal areas (Nizhny Novgorod region).

The results of the program improve the quality of life in the regions of the company's presence in accordance with the UN SDGs:

1
4
8
10
11
17
5.7
Social projects

During the spread of COVID -19, the goal of the Start Your Business program is to provide comprehensive support to small and medium-sized businesses in single-industry towns where OMK enterprises are located.

In the pandemic, social entrepreneurs quickly integrated into the current agenda and reoriented businesses to meet the needs of the region and the country. Social entrepreneurs Irina Serdykh (Chusovoy), Dilbar and Artur Akhmetovs (Blagoveshchensk) and participants in the Sunflower (Vyksa) souvenir-making project redesigned their business and began to sew protective masks, which have become a scarce commodity in many regions.

In addition, social entrepreneurs have launched authoring online training courses during the self-isolation regime. Many have retained the format of conducting classes online, even after coming out of self-isolation, as distance learning has shown its effectiveness.

In 2020, OMK held a forum on social entrepreneurship. It brought together over 70 leading industry experts and social entrepreneurs from across the country. The Forum was supported by the Ministry of Industry, Trade and Entrepreneurship of the Nizhny Novgorod Region, the Center for Social Innovation of the Nizhny Novgorod Region within the framework of the National Project «Small and Medium Business and Support for Individual Entrepreneurial Initiatives.»

At the forum, representatives of the authorities, nonprofit organizations and the largest companies in Russia discussed measures to support social entrepreneurs in single-industry towns, including in the context of a pandemic, international experience, the creation of an effective franchise, digitalization and access to the Internet. We paid a lot of attention to practice, exchange of experience and promotion of social projects.

2018 2019 2020
Number of people trained 170 149 190
Number of applications submitted for the grant competition 125 110 118
Number of winners of the grant competition and projects that received support 42 40 40
Number of people who have passed the accelerator of the Center for Innovative Social Sphere and the Perm Fund for Entrepreneurship Development 42 40 40
Program fund, million rubles 9 9 9
Grant pool, million rubles 6,6 6,6 6,6
Jobs created 86 74 61
5.7
Social projects

Strategic priorities for regional development

The company is interested in the existence of an effective social infrastructure in the territories of its presence, the formation of a new environment corresponding to the modern level of technology and production, and the expectations of people. The company develops cooperation with a wide range of initiative groups and non-profit organizations interested in sustainable urban development.

The programs supported by OMK are aimed at qualitative changes in the social sphere. Russian President Vladimir Putin has approved 12 national projects for the country's socio-economic development until 2024.

Among them:

  • creating conditions for the development of mentoring,
  • support of public initiatives and projects,
  • development of volunteer initiatives.

When planning social activities, OMK focuses on these priorities and builds up a transparent mechanism to support regional NG Os, and develops long-term volunteer partnerships. For the most effective social investments, the company uses the mechanism of grant competitions. Priority areas of grant programs take into account the international sustainable development agenda, set out in 17 UN goals, including: no poverty, clean water and sanitation, sustainable cities and communities, responsible consumption and production; climate action; life on land; partnership for sustainable development.

Social program partners

The company develops mechanisms of multilateral cooperation to solve specific social problems and develop the social potential of the regions. OMK pursues an open policy of involving stakeholders in joint social activities and gets the opportunity to conduct expert analysis with the involvement of external consultants, risks before the implementation of a new project and analysis of efficiency during implementation and after completion.

Target audience of support

The main beneficiaries of OMK's social programs are residents of the cities in which the company's enterprises operate. These are people with limited mobility, the elderly, large families, families in difficult life situations, the poor, the unemployed, the homeless, people with disabilities, as well as families where a child with a disability is growing up. A separate group is made up of employees of small businesses and individual entrepreneurs. Also, state, municipal and non-profit organizations, public associations, employees who have been released due to redundancy and retirement can take part in the grant competition.

5.7
Social projects

Main partners of OMK social programs

  • Ministry of Industry, Trade and Entrepreneurship of the Nizhny Novgorod Region, Perm Territory;
  • Ministry of Labor and Social Protection of the Population of the Republic of Bashkortostan;
  • Administrations of the cities where the company is present;
  • State Committee for Tourism and Entrepreneurship of the Republic of Bashkortostan;
  • «All-Russian People's Front» (federal, regional and local branches);
  • Nizhny Novgorod volunteer service;
  • «Opora Russia»;
  • Business incubators of Vyksa and Chusovoy;
  • Non-profit organizations (resource centers for socially oriented non-profit organizations of Chelyabinsk, Perm, Nizhny Novgorod, the Republic of Tatarstan);
  • AN O «Center for Social Innovation of the Nizhny Novgorod Region»;
  • AN O «Center for Social Innovation in the Republic of Bashkortostan»;
  • AN O Center for the Development of Social Projects (Perm Territory);
  • Regional and federal media.

Evaluation of the effectiveness of social projects

In 2017, the Fund for the Support and Development of Philanthropy KAF conducted the first assessment of the socio-economic effect of projects implemented during the OMKPartnerstvo competition over the past three years. The assessment was carried out using the SR OI approach.

According to the year's estimate, the social return on investment ratio (SR OI) of the OMK-Partnerstvo competition for the entire company is 3.4: 1. For each ruble invested by OMK, the value of the social results obtained is more than three rubles. SR OI in Vyksa - 3.6: 1, in Novosineglazovo - 3.6: 1, in Blagoveshchensk - 2.5: 1, in Chusovoy - 3.9: 1.

The competition had a positive impact on the interaction of enterprises with regional and local authorities, improved relationships with city residents, representatives of the social sector and the media. In 2021, the company will assess the effectiveness of the Start Your Business program for the development of social entrepreneurship. Also, the assessment of social programs and projects is carried out by internal resources - the internal audit service (IAS ). Based on the data obtained, the IAS makes recommendations for further improvement of social projects and programs.

5.7
Social projects

Sponsorship and charity budget

By directions of support,, million roubles 2018 2019 2020
Total 740,85 860,7 1021
Charitable assistance to educational institutions 89,1 19,04 31,6
Local community development 19,5 18,1 26,5
Assistance to religious and spiritual institutions 11 11 10,5
Patriotic education 1,1 1 5,6
Mass culture 52,5 53,2 79,7
Mass sports 312,9 334, 8 332,6
Other transport services 1,45 1,1 0,9
Other expenses, assistance with appeals 20,4 26,9 13,9
Special projects of the municipality 223,1 386,8 508,1
Social programs 9,8 8,8 11,6

Number of volunteers in the company

2018 2019 2020
Volunteers 8 000 8 056 7 757

Number of blood drives / blood donors

2018 2019 2020
Number of blood drives 5 4 1
Number of blood donors 221 214 58
5.7
Social projects

Volunteer programs for employees

At OMK, corporate volunteering is one of the forms of realizing the personal potential of employees. For them, this is an opportunity to gain public recognition, strengthen a sense of social significance, express a civil position, acquire useful social and practical skills, communication, friendly interaction with colleagues and like-minded people. For new employees, this can be a form of quick integration into the team. Also, corporate volunteering for a company is an effective tool for engaging, creative and professional development of employees, and increasing motivation.

Corporate volunteering in the company has been developing since 2015 in four directions.

1. Conscious volunteering
(individual volunteer projects)

OMK employees can independently implement social projects, receive mini-grants from the company for them, and involve other volunteers in initiatives within the framework of the OMKPartnership competition. In 2020, a volunteer at the OMK plant in Almetyevsk, Daniil Selivanov (Warm Up with Warmth project) was the first to provide support to vulnerable categories of the population during the pandemic, delivering food sets to the elderly, low-income people, residents of the city.

The volunteer initiative “Humanitarian Aid to People in Difficult Life Situations”, implemented by the company's employee Olga Mironova in Lobnya (Moscow Region), brought together local deputies and city activists. Within the framework of the project, humanitarian assistance was provided to the elderly, families with disabilities, families with many children, people in difficult life situations who were injured during quarantine and self-isolation.

In addition, pro bono projects were in demand during the pandemic. For example, a volunteer, winner of the OMK-Partnerstvo grant competition, an employee of the OMK Legal Directorate Vasily Romanov conducted online consultations for nonprofit organizations, social entrepreneurs, where he answered in detail questions regarding changes in legislation, the legal sphere during a pandemic, work in period of self-isolation.

Volunteers of the OMK plant in Chelyabinsk renovated a polyclinic in Novosineglazovo. One of the humanitarian projects “Be Healthy at Home” (headed by Natalya Deeva) provided assistance to more than 50 residents of the village. Low-income large families and single pensioners received food and hygiene products.

5.7
Social projects

The volunteers cooperated with the social protection authorities of the district. They provided up-to-date information about those who need help. Ivan Baranov's project «Warmth to your home» for the delivery of firewood to elderly residents in remote Vyksa villages turned out to be in great demand.

Nadezhda Ivanova's Clean Coast project, a participant in the OMK-Partnership grant competition, won the Champions of Good Deeds competition in the Ecology nomination. The shortlist of the nomination, in addition to the volunteer of the Chelyabinsk plant OMK, included Rusal and McDonald's in Russia.

2. Event volunteering — participation in corporate volunteer campaigns together with the OMK-Uchastie Foundation - «Along the Christmas tree», «Together to school», a charity run «Who's Running? Everyone is running!» etc.

3. Blood donation. Due to quarantine restrictions, in 2020, in the Moscow office of the company, only one donor campaign was held, in which 58 people took part. Company employees donated 26 liters of blood.

4. Volunteer projects of the Council of Young Metallurgists at enterprises.
They plant forests, clean rivers, help veterans of enterprises and wards of nursing homes, equip factory areas.

During the pandemic, Vyksa became the first city in which residents were assisted. The OMKUchastiye Charitable Foundation immediately reacted to the situation and began helping single, elderly and people with limited mobility, large and low-income families. The fund bought food, and Vyksa volunteers (youth and plant employees) delivered food around the city. Residents were assisted in partnership with the local administration, the Vyksa diocese and the city volunteer headquarters in the framework of the All-Russian mutual aid campaign #WeTogether of the All-Russian Popular Front. In a month and a half, the fund purchased, and volunteers donated 3,000 food packages to those who were in a difficult situation, including families with children from 16 to 18 years old who do not fall under any state support program, as well as people who lost their jobs and who remained without a source of income. The number of beneficiaries has reached 7000 people.

Image Image
5.7
Social projects

Support for the State Historical Museum

For many years OMK has been supporting educational projects of the State Historical Museum (State Historical Museum, Moscow). In 2020, the company became a partner of the Alexander III the Peacemaker exhibition dedicated to the 175th anniversary of the emperor's birth. With the support of the company, we have implemented an exhibition media project.

This is the fourth exposition of the museum, the organization of which is supported by OMK. In 2017-2019 the company acted as a financial partner of three significant exhibition projects of the museum: «Energy of Dreams. To the 100th anniversary of the Great Russian Revolution», «Alexander II the Liberator. 200th Anniversary of Birth «and» For Service and Courage. 250 Years of the Order of St. George», which were visited by tens of thousands of people.

The exhibition, which was opened in 2020, is dedicated to the activities of Emperor Alexander III in the field of foreign and domestic policy, industry and culture, reveals the personality of the emperor and his worldview. The exposition presents unique documents from the archive of the foreign policy of the Russian Empire of the Russian Foreign Ministry, which were first shown to the general public, paintings, weapons, family photographs,

Image

personal belongings of the emperor from the Russian Museum, the Hermitage, the Central Naval Museum, and from the personal collections of many other scientific institutions.

During the reign of Alexander III , a large number of metallurgical enterprises were built and modernized. Many of them are successfully operating to this day, leading the industry. Among them are the Vyksa and Chusovoy plants of OMK. The support of the exhibition for the company is a contribution to the preservation of historical memory, strengthening the age-old traditions of Russia.

Image Image
5.7
Social projects

Photo project #EchoofDreams

In honor of the 75th anniversary of the Victory in the Great Patriotic War, OMK presented a multimedia exhibition project in Moscow, Chusovoy, Vyksa and Blagoveshchensk. The materials are also available on the Internet at echo.omk.ru.

The exhibition was recognized as the best social project at the annual national event industry award “Event of the Year”. The award jury and online voting participants singled out the OMK project among 15 other nominees for creativity, artistic value and social significance.

#EchoofDreams is an audiovisual performance. It is based on 19 real stories - the memories of veterans and home front workers from Vyksa, Chusovoy and Blagoveshchensk. The heroes of the project are people who never stopped dreaming, despite the hardships of the war years. Their lives were drastically changed by the war, but decades later, their dreams were still destined to come true. The viewer comprehends this thanks to masterful genre photographs and memories of veterans, voiced by professional actors. Veterans talk about what they dreamed of and what they believed in those harsh years, and our contemporaries - young employees of factories - engineers, technologists, managers, help to make these dreams come true in photography.

Image
5.7
Social projects

Awards and external recognition

OMK was ranked among the leaders of the Responsibility and Transparency and Vector of Sustainable Development indices of the Russian Union of Industrialists and Entrepreneurs based on the results of an assessment of the company's public corporate reporting.

OMK won the annual «Management of Change. Visionaries «in the» Society. Business». OMK's program for the development of social entrepreneurship «Start Your Business» was recognized as the best.

OMK reached the final of the project in the field of social responsibility «Heroes - to be!»

OMK received the Leaders of Corporate Philanthropy award in the Best Program for Overcoming the Consequences of Coronavirus Infection in the Russian Federation. OMK was assigned a «Best Practice» A rating. Together with OMK, this category includes only 12 companies that are leaders in corporate philanthropy in Russia.

OMK took 34th place in the ESG -ranking of the RAEX-Europe rating agency and was again named among the Russian companies-leaders in the ESG - Indexes of the Russian Union of Industrialists and Entrepreneurs.

5.8

Charity

5.8
Charity

The OMK Uchastie (Participation)
charity foundation to support parents, children
and families was created at the initiative
of OMK’s management and staff.

Image

OMK-Uchastie operates in three key areas:

  • It implements systemic changes in the quality of life of children with disabilities or those left without parental care and forms an inclusive environment.
  • It develops culture and arts and creates opportunities for enlightenment, education and creative fulfillment of local communities.
  • It provides targeted assistance to families and children in difficult life situations.

The foundation tackles large-scale social problems and is among the top 30 corporate and private charitable non-profit organizations in terms of partnership potential, according to RAEX.

5.8
Charity

Main projects and achievements of 2020

OMK-Uchastie played an important role in overcoming the consequences of the COVID -19 pandemic in the regions where the fund operates. In partnership with the local administration, the department of social protection of the population and the Vyksa diocese, over 6,500 food packages were handed over to residents who were in a difficult situation during the period of self-isolation and quarantine in two months. This is over 75 tons of products.

For the smooth operation of the city volunteer headquarters, which worked in the framework of the All-Russian action of mutual assistance #WeVeTogether, and the headquarters of the volunteers of the Dobrokhot movement, the fund provided more than 100 volunteers with gloves, masks and antiseptics, and donated special protective suits. Food sets were also purchased for families from Chusovoy.

The project for the employment of people with disabilities “Vyksa. There is a work». 46 applicants took part, four found work thanks to the project, one married couple started their own business, and two more were trained at Microsoft. 13 organizations have confirmed their involvement in the project and are ready to become mentors for

applicants or provide sites for excursions and internships. In the medium term, the fund plans to combine the efforts of business, the nonprofit sector and government agencies to create a comprehensive employment system for people with disabilities.

The project «Family alphabet - to be together!» Has started. Aimed at preventing social orphanhood in the long term. The goal of the project is to make sure that there are as few cases of child abandonment in Vyksa as possible. The OMK-Uchastie Foundation, together with the Partnership for Every Child Foundation, are systematically working with the employees of Vyksa's social services.

16 specialists from the Department of Social Protection of the Population, the Integrated Center for Social Services, the Pelican Social and Rehabilitation Center, the Children's Home and the Commission on Minors' Affairs teach under the program “Practices, techniques and tools for working with families in crisis: active family support”. The program was developed by experts taking into account the needs of specialists from Vyksa social institutions based on conducted surveys.

Image Image
5.8
Charity

The third mural was unveiled in the Industrial Street Art Park at OMK's Vyksa plant. The area of work of Erik Bulatov on the wall of the pipe shop - 2.5 thousand square meters meters. This is the first and largest open-air painting by the legendary author. The painting united two of Bulatov's paintings: «The Barn in Normandy», 2011 and «Stop - Go», which turned 45 in 2020.

With the support of the OMK-Uchastie Foundation, an inclusive exhibition “The Art of Being Together” was held in Vyksa. The organizers are the Gulfstream Foundation and the National Center for Contemporary Arts with a grant from the Vladimir Potanin Foundation. As a result of the exhibition, an online version was created so that you can take a virtual tour and immerse yourself in the world of sounds, colors and light from anywhere in the world.

We organized an online conference “Inclusion in a Small Town. How to make it work». It brought together more than 300 participants from different cities of Russia.

The Foundation presented a vision of possible directions for the development of a singleindustry town on the example of Vyksa from the point of view of inclusion, including the creation of an integrated system of employment for people with disabilities, increasing their

involvement in the cultural life of the city and the implementation of new educational projects. OMK-Uchastie pays attention to the basic conditions for the inclusive transformation of the city and works to create an accessible environment, infrastructure for inclusion and involve the local community in joint activities.

The first social research on the perception of disability was carried out in Vyksa.

Its results formed the basis of the strategy for an inclusive direction. In 2020, the OMK-Uchastie Foundation held a special online event in honor of the Day of Russian Sign Language for the first time. Everyone could learn about the history of the origin and development of the Russian sign language, its features in Vyksa and the life of deaf people in the city.

The Vyksa Art Residence, a project of the OMKUchastie Foundation, was recognized as the best institution of the year according to Cosmoscow. Every year, as part of an expert council, the organization supports cultural figures, institutions and museums.

The winner of the selection receives funding for the implementation of the project within the framework of the Cosmoscow international contemporary art fair - in 2021, the Vyksa art residence will also take part in it.

5.8
Charity

Art-residence «Vyksa» received seven residents, 32 works were transferred to the collection. We signed a cooperation agreement with the branch of the Pushkin Museum, the State Center for Contemporary Art «Arsenal» (Nizhny Novgorod). 278 artists applied to participate in the residence in 2021.

The Foundation has released a documentary film «The Art of the Common Man» for the 10th anniversary of the «Art-Ovrag» festival. Using the example of the famous projects of the festival and other important events of modern culture of the last decades, the film tells about the current trend in world art - the active cooperation of contemporary artists with non-professionals.

In the genre of documentary films and new media, this is the first attempt to talk about this phenomenon, which has developed in the world in the last decade, and about the new era that has spawned it.
In 2020, OMK-Uchastie held traditional charity events - «the Who's Running? Everyone is running!»,«To school together»,«With love in my heart»,«With the world around the tree», Fair «Magic mittens».
More than 10 thousand people took part in them. The collected funds amounted to about 1,100,000 rubles. Non-financial assistance in collecting 95 children to school is estimated at one million rubles.

During the pandemic and the period of selfisolation, OMK and the OMK-Uchastiye charitable foundation took care of the emotional climate and psychological health of residents in single-industry towns. From the quarantined city of Vyksa, Nizhny Novgorod Region, the company and the foundation organized media broadcasts “City of Wonderful People” (“GUL ”). The broadcasts have collected over 10 million views. 120 guests visited the air, including 12 interviews given by the Vyksa residents themselves.

The project was conceived as a temporary alternative to the Art-Ovrag festival, which has been held annually in early summer in Vyksa for 10 years, but in 2020 it was postponed due to quarantine. As a result, GUL has grown into the only media in Russia that is completely built on live broadcasts and broadcasts throughout the country. Since the end of April, online media has helped a wide audience survive self-isolation, discouragement, panic, and new experiences.

The project «A Study Day in Vyksa» was launched. It aims to use the city's socio-cultural space for educational purposes. Key partners are the Moscow Department of Education and Science (city methodological center) and the Tsaritsyno Museum-Reserve.

Image Image

In the Ex Libris space, 179 offline events and 98 online broadcasts were held, which were attended by three thousand people. We have implemented a number of socio-cultural projects: Environmental Awareness, Day of Dreams, School of Leaders.

6
Validation and confirmation

All data presented in the section «Sustainable Development» has been checked internally by those responsible in the operating divisions of the company. This guarantees the reliability of the information disclosed on OMK's sustainable development activities.

Information on the interaction of company representatives with various stakeholder groups has been approved by the Corporate Communications Directorate and OMK official releases for 2020.
In the course of preparing information for the annual report, the OMK Corporate Social Responsibility Committee decided to conduct an internal audit of the procedures for the consolidation of significant environmental indicators.

The Internal Audit Service reviewed the disclosure of “direct total greenhouse gas emissions in CO2 equivalent” and “direct specific greenhouse gas emissions per tonne of production in CO2 equivalent”.

The analysis of primary information sources confirmed the correctness of the data for all business units of the company.