Integrated annual report | Samruk-Energy JSC

CATEGORY “SOCIAL”

Recognizing the principle of the priority of human life and health, the Company is fully aware of its responsibility for ensuring accident-free operating activities, safe working conditions for employees and contractors, and for maintaining the health of the population residing in the regions where the Company operates. On October 6, 2011, “Samruk-Energy” JSC joined the UN Global Compac, following within its sphere of influence the 10 principles of the Global Compact in its strategy and day-to-day operations. Annually, the Company prepares a Progress Report, which is a statement of the continued support of the UN Global Compact, describes actions taken in accordance with ten principles and places this information on the UN Global Compact website: https://www.unglobalcompact.org/what-is – gc / participants / 14917 # cop

Aspect “HUMAN RIGHTS”

“Samruk-Energy” JSC is an employer that provides equal rights in obtaining access to training and development programs, career advancement and employment opportunities for the Company’s group.

We do not tolerate discrimination based on social and economic status, gender identity, age, health, religion, national origin, race, etc.

In accordance with the legislation of the Republic of Kazakhstan on employment, enterprises of the Company’s group makes a commitment to employ persons with disabilities, persons who are registered with the probation service and released from places of deprivation of liberty.

So, as of December 31, 2017, 135 employees with disabilities were employed.

Permanent conciliation committees, the Committee for settlement of social and labor conflicts were established for the purposes of prevention, the resolution of complaints and appeals, prevention of social and labor conflicts among employees.

To register employee complaints, “hot lines” operates in the Company, special boxes of complaints and appeals, personal blogs of Company’s CEOs, the institution of the ombudsman and mediators has been operating at the company since 2011.

Therefore, the Company registered 67 complaints in 2017, 63 of which were settled during the reporting period. four appeals are under consideration.

In addition, the Company regularly conducts activities aimed at a common understanding and solution of labor issues, advocacy work for the resolution of social and labor disputes, a study of the involvement of personnel, which results in the development of corrective and preventive measures.

In order to regulate and protect the professional, economic and social labor rights and professional interests of employees, 23 trade union organizations operate in the Company, of which more than 90 % of employees are members.

Number of complaints about the practice of labor relations filed, processed and settled through formal grievance mechanisms

Indicator

value

1.

The total number of complaints about the practice of labor relations filed through

formal grievance mechanisms during 2017, among them

67

1.1.

Processed during the reporting period

67

1.2.

Settled during the reporting period

63

2.

Indicate the total number of complaints about the practice of labor relations filed

before the beginning of the reporting period and settled during the reporting period

3

Presentation of health and safety issues in formal agreements with trade unions

Indicator

value

1.

Do official agreements (global or local) with trade unions address health and safety issues

yes

2.

If yes. information on the extent to which health and safety issues are covered by local agreements signed by an organization. Local level agreements usually address issues such as:

 

2.1.

Individual protection means

yes

2.2.

Joint health and safety committees with participation of representatives of

management and employees

yes

2.3.

Participation of employees’ representatives in health and safety inspections, audits

and accident investigations

yes

2.4.

Education and training

yes

2.5.

Grievance mechanism

yes

2.6.

The right to refuse dangerous work

yes

2.7.

Periodical inspections

yes

3.

If yes. information on the extent to which health and safety issues are covered by local agreements signed by an organization. Local level agreements usually address issues such as:

 

3.1.

Compliance with recommendations of the International Labor Organization (ILO)

yes

3.2.

Actions or mechanisms for solving issues

yes

3.3.

Commitments to target performance standards or the level of applied practical

approaches

yes

Aspect “Safety and healthcare”

The company pays special attention to occupational health and safety of our employees. The work on ensuring on-the-job health and safety at Company’s production facilities is carried out in accordance with current legislative, regulatory instruments of the Republic of Kazakhstan. The company strictly adheres to safe working conditions at every stage of the production process.

In accordance with the Action Plan for Prevention of Occupational Injuries for 2017 and the Company’s Policy in the area of Occupational Safety and Health, all SA have developed and, according to the established procedure, approved work plans for labor protection, environmental safety, as well as conducted a number of organizational and preventive measures.

In accordance with Article 203 of the Labor Code of the Republic of Kazakhstan, production councils (formerly committees) for occupational health and safety were established at all SA of the Company, which are directly subordinate to CEO of a company or to a person authorized by such CEO. It comprises representatives of an employer, representatives of employees, including technical inspectors for labor protection on a parity basis.

Official production councils for occupational health and safety are represented by an average of 2.8 % of the Company’s group employees with the participation of representatives of management and employees.

The international standard “Occupational health and safety management system OHSAS–18001” was introduced.

The Company together with international companies “Bureau Veritas” LLP, “Intertek International” LLP and “Russian Register Eurasia” LLP conducted audits at Bogatyr Komir, APP, AZhC and ESDPP–1 for compliance with management systems ISO 14001 and OHSAS 9001. Corrective/Preventive action plans were developed and adopted after considering the results of on-site audits reports.

Three extended meetings on occupational health and safety were held at the Company. The reports of CEOs of SA on the work carried out in the field of occupational health and safety were presented; further tasks for improving the work and the action plan for preventing accidents at work were set based on such reports.

An on-site seminar was held with managers supervising occupational health and safety matters in the Company’s subsidiaries and affiliates during the reporting period in order to maintain occupational safety.

Following the meeting, the minutes were drawn up and measures to prevent accidents at work were developed and implemented.

Occupational health and safety is a continuous, daily process that requires monitoring compliance with all applicable rules.

Thus, in accordance with Article 185 of the Labor Code of the Republic of Kazakhstan, workers engaged in work related to increased danger machines and mechanisms, undergo a medical examination before and after the shift.

At the same time, According to Order No.175 dated February, 28, 2015 of the Minister of National Economy of the Republic of Kazakhstan “On approval of the list of harmful industrial factors and professions due to which obligatory medical examinations are conducted” Rules of obligatory medical examinations”, approved by the order of acting Minister of National Economy of the Republic of Kazakhstan No.128 dated February, 24, 2015, personnel of the Samruk-Energy Group of Companies undergo preliminary and regular medical examinations.

Medical examinations are conducted by healthcare institutions holding licenses for medical evaluation of professional aptitude according to the health status. According to the results of preliminary and periodic medical examinations, the commission recommends a set of actions focused on promoting an employee’s health, particularly hospital examinations and treatment, rehabilitation treatment, health resort therapy. In accordance with the Article 185 of the Labor Code of the Republic of Kazakhstan a certain circle of workers undergoes daily pre-shift medical examination. The Group of Companies carries out the vaccination for their employees on a regular basis, and also it uses other forms of maintenance of immunity in order to prevent diseases.

During the reporting period, all subsidiaries and affiliates of the Company assessed workplaces for working conditions. In accordance with the assessment of workplaces, workplaces with harmful and dangerous working conditions have been identified. At the same time, all employees are provided with the appropriate privileges, including personal protective equipment and protective clothing in compliance with the Order of the Minister of health and social development of the Republic of Kazakhstan dated December 28, 2015 No.1054 “On approval of Rules for distribution of milk, healthy and dietary meals, special clothes, special footwear and other personal protection equipment to workers, provision of collective protection equipment, sanitary facilities and amenities at the expense of the employer”.

Number of employees receiving benefits, disaggregated by years

Subsidiaries and affiliates

2015

2016

2017

APP

2,109

2,098

2,340

ESDPP–2 Plant

1,101

1,109

1,129

ESDPP–1

926

902

904

AZhC

164

141

210

Shardarinsk HPP

119

125

121

Moynak HPP

55

81

54

Bogatyr Komir

5,929

4,414

5,200

p>In order to improve the safety culture at all SA of the Company, Action Plans have been developed to improve the working conditions of employees working under harmful and dangerous working conditions.

97 % of the Company’s employees have entered into collective agreements. The procedure for concluding collective agreements is regulated by Chapter 14 of the Labor Code of the Republic of Kazakhstan (LC of the RK). The content and structure of the collective agreement, as defined in Article 157 of the RK LC, includes the creation of healthy and safe working and living conditions, the amount of financing of activities on occupational health and safety and health care improvement. Collective agreements 100 % covers health and safety issues of employees.

We have developed internal regulatory documents that provides for requirements for the selection of contractors, based on their compliance with the requirements of the regulatory legal acts of the Republic of Kazakhstan in the area of occupational health and safety, industrial and fire safety, and the availability of certificates of international standards in the field of quality, environmental safety, OHS. For example, a system for admitting contractors and subcontractors to the enterprise territory has been developed and operates at ESDPP–1, namely: the organization’s standard STP 03.004.1.05.016–11 “Rules for arranging contractors’ work on the territory of the enterprise”. In accordance with the above-mentioned standard, all contractors and subcontractors are checked for compliance with safety requirements prior to commencement of work and submit documents to the Occupational Safety and Health Service (OSHS) in accordance with the List of documents required for admission to the territory of ESDPP–1, including the list of workers who undergone medical checkup. After verifying the compliance of the documents, the contracting organization sends lists of employees entitled to be managers. manufacturers and members of the team in compliance with the work order (including general and intermediate) to OSHS for the further processing of instructions in respect of the enterprise and are given permits for performing works in the territory of ESDPP–1.

The percentage of employees of contract organizations that have received relevant training in occupational safety and health is 100 %.

Every case of industrial injuries at any of the Company’s subsidiaries and affiliates acquires a high status of importance and is promptly submitted for consideration to the Boards of Directors / Supervisory Boards of the Company’s subsidiaries and affiliates.

Registration, reporting and recording of accidents at work were carried out in accordance with Chapter 20 of the LC “Investigation and recording of work-related accidents” and other regulatory legal acts of the Republic of Kazakhstan. The report on monitoring in the area of occupational health and safety and workplace injuries was developed every month for submission to the authorized state body for labor of the Republic of Kazakhstan. At the end of the year, the Agency for Statistics of Kazakhstan provided reports on work-related injuries and occupational diseases in the form of “7-TPZ”.

Despite a large number of preventive and corrective measures implemented, in 2017 there were seven cases of workplace injuries: three of them with light outcome, four with severe outcome. However, the dynamics of the indicator’s improvement was noted in 2017 by 47 %, it is lower than the average indicator of the previous seven years (15 cases). For comparison – in 2016 13 cases were registered (15 injured).

Number of accidents

Number of injured by types of injuries

Name of an injury

2013

2014

2015

2016

2017

Chemical burn

1

Bruise

1

2

1

Traumatic amputation

1

1

Electric injury (thermal burn)

4

1

4

4

2

Fracture

5

3

4

5

4

Combined injuries (fracture, bruises, tears of internal organs)

1

4

1

Eye injury

1

Total

12

4

12

15

7

Figures

Indicators

2013

2014

2015

2016

2017

Accident frequency rate (AFR)

0.06

0.02

0.07

0.08

0.06

Occupational illness rate (OIR)

0

0

0

0

0

Lost day rate (LDR)

6.24

1.0

4.7

0.3

0.5

Work absence rate (WAR)

9.8

20.5

9.2

10.1

5.2

Number of fatal accidents

0

1

1

3

0

Notes:

Accident frequency rate (AFR): AFR = total number of injuries* 200.000 / Total number of hours worked.

Lost day rate (LDR): LDR = total number of lost days* 200.000 / Total number hours worked.

Work absence rate (WAR): WAR = total number of missed days (absence) for the period* 200.000/ Total number of days worked in the same period.

No fatal injuries of the population with the participation of the Company’s assets were registered in 2017, and there were no appeals to the law enforcement agencies on this matter.

Actions taken to eliminate workplace accidents

The following measures are taken in order to reduce the industrial injury rate in all SA of the Company:

  1. 1.   All employees are informed about circumstances and causes of accidents.
  2. 2.   All production personnel receive unplanned instructions.
  3. 3.   Unscheduled test of employees for OR, occupational safety rules knowledge is held at business units at which an accident took place.
  4. 4.   Occupational safety days attended by CEOs of entities are organized on a monthly basis. Actions aimed at elimination of identified violations are taken according to the results of the occupational safety days.
  5. 5.   Occupational health and safety services organize comprehensive inspections of equipment, buildings, facilities and workplaces. Action plans with deadlines and persons in charge based on results of comprehensive inspections are developed.
  6. 6.   All production personnel are trained according to the Rules for training, instruction, and testing of employees’ knowledge of occupational safety.
  7. 7.   Before the repair campaign, all the SA hold seminars and meetings with engineers and technicians of structural subdivisions authorized to give assignments, manage and perform works, with practical trainings on the correct access for teams to perform works and formalize assignments.
  8. 8.   At least once every five years, enterprises are certified for workplaces according to working conditions.
  9. 9.   Scheduled replacement of equipment that exhausted its service life and posing a serious threat to production personnel is carried out.
  10. 10. The Action Plan for the prevention of workplace injuries for 2017 was developed and implemented.

Aspect “Diversity and Equal Opportunities”

An analysis of the social stability rating was carried out in 2017 in order to diagnose the psychological climate in the team, as well as assess the level of social sentiment among employees, including the social tension of production personnel, the level of social development in the Company.

To monitor the involvement rate, the Company’s administrative personnel were surveyed to determine sensitivity to factors such as organization and conditions of work, career opportunities, recognition of personal labor contributions, support for initiatives, etc.

The results of the research showed that the Company’s social stability rating varies within the medium and high levels and is at the level of 73 %.

The engagement rate was 63 % and is still in the positive zone, which describes the Company’s increased attention to social aspects, working conditions, relationships within the team, communications, etc.

An important task in the Company’s social policy is to ensure the security of employees and their families.

Social stability rating

Thus, social payments of KZT 2,902,523 thousand were made in 2017. For the same period in 2016, expenditures on social payments totaled KZT 3,082,651 thousand.

In the structure of payments, the main share is made up of expenses: a one-time allowance for healthcare when granting a leave – 33 %, treatment of employees in health resorts – 7 %, medical insurance – 5 %, one-time benefit in connection with employees anniversary (50.60 and 70 years) – 4 %, financial assistance in connection with the birth of a child – 3 %, expenditures for festive, cultural and sports events – 4 %, etc. of the total amount of social payments Enterprises of the Company maintain compulsory insurance of the employer’s civil liability for causing harm to the life and health of an employee in the performance of his/her job responsibilities, annual medical examination of employees, payment of sick leave sheets, lump-sum assistance for health improvement.

In order to create healthy and safe working and living conditions at the enterprises of the Company, the procedure for providing employees with special protective equipment, milk, soap and detergent were established as well as there are canteens, dining rooms and rest rooms are available at production workshops that operate according to a shift schedule.

The Company’s employees get partial and full reimbursement of expenses for treatment in health resorts and inpatient treatment when they take annual leave, as well as when paying for trips to children’s recreation camps for employees’ children.

Every year, the Company’s enterprises pay great attention to reduce sickness rate and promoting healthy lifestyles, funds for the maintenance and rental of sports facilities, the acquisition of sports equipment, and carrying out sports events are allocated. Employees of the Company regularly participate in sports and mass sports and health-improving events and competitions, including in city events and the ones organized by the Company and the Fund.

As part of the development of corporate culture, the Company held cultural and leisure activities in the reporting year, timed for the celebration of the Women’s Day – 8 March, Nauryz Holiday, Constitution Day, Power Engineer’s Day with honoring the distinguished workers and awarding state, departmental and industry awards – of the CIS Electric Power Council, Kazakhstan Association of Organizations of Oil and Gas and Energy Sectors “KAZENERGY”, ALE “Kazakhstan Electricity Association”, “Samruk-Kazyna” JSC etc.

Share of employees under labor contracts

Indicator

Value (2017)

Measurement unit

1.

Total employees (headcount) as of the end of 2016

17,513

persons

2.

Including employees under labor contracts for 2016

16,980

persons

3.

Share of total employees under labor contracts

97

%

Payments and benefits provided to full-time employees which are not provided to employees who work under conditions of temporary or part-time employment, broken down by core activities

Indicator

For full-time

employees

For employees with

part-time or temporary

employment

1.

Payments and benefits to employees

 

 

1.1.

Life insurance

Provided

Provided

1.2.

Healthcare (medical insurance)

Provided

Provided

1.3.

Compensation for disability

Provided

Provided

1.4.

Maternity/paternity leave

Provided

Provided

1.5.

Granting pension (one-time payment upon

retirement)

Provided

Not provided

1.6.

Transfer of company shares into ownership

Not provided

Not provided

1.7.

Other (health resorts treatment, financial assistance

in connection with the birth of a child, financial

assistance for the treatment of family members,

financial assistance for rehabilitation)

Provided

Provided

Our employees

The Company’s human resource management policy is focused on the constant recruitment and retention of highly qualified employees, their motivation, training and professional development in accordance with the Company’s business objectives. The company pays attention to increasing the involvement of employees, the development of a corporate culture, creating conditions for effective work and personal fulfillment of employees.

Staff composition

The headcount of the Company in the reporting year was 17,513 people, which is 21.3 % less than the same period of 2016. The decrease in the headcount in 2017 is driven by the implementation of actions aimed at optimizing the Company’s assets portfolio.

As before, production personnel the number of which at the end of the reporting period was 15,847 people prevails in the Company’s staff composition. The share of employees classified as senior executives and mid-level executives in 2017 was 15.2 % of the total number of employees.

Calculation of personnel’s figures showed that the average age of employees in the Company as of December 31, 2017, was 36 years. In the staff composition, the main share is represented by employees aged 30 to 50 years – 50 % of the total headcount, employees under the age of 30 years – 19.5 %, over 50 years – 30.5 %.

At the end of the analyzed period, the average length of service in power industry in the Company is 12 years. Employees with more than 10 years of experience in the sector prevail in the total headcount; their share corresponds to 46 %.

Analysis of the educational level of employees in the Company showed that in the composition, 36.6 % of employees have higher professional education, of which 39.3 % of employees have background in power engineering.

The company adheres to the principle of gender equality and ensures equal guarantees for women to realize their rights and opportunities. Thus, as of December 31, 2017, the number of women employed in the Company was 4,680 people.

The rate of turnover of labor resources (for all types of reasons) in 2017 was 11.2 %. The number of employees employed by the Company for the analyzed period was 1,999 people. At the same time, out of 602 open vacancies for administrative positions, 99.8 % were filled through competitive procedures.

Total workforce by gender for 2017

Total workforce by employment type for 2017

Total number of employees by type of employment contract for 2017

Total workforce by region for 2017

Staff turnover by gender for 2017

Stafff turnover by age for 2017

Staff turnover by regions for 2017

Newly hired employees by gender for 2017

Newly hired employees by age for 2017

Newly hired employees by regions for 2017

The composition of the organization’s employees, broken down by gender, age group and indicating minority representation

Indicator

Employees

Share, %

1.

Gender

17,513

1.1.

Men

12,833

73.3

1.2.

Women

4,680

26.7

2.

Minority groups (racial / ethnic, religious, with disabilities)

17,513

2.1.

Kazakhs

10,096

57.6

2.2.

Russians

5,174

29.5

2.3.

Ukrainians

714

4.1

2.4.

Uyghurs

350

2.0

2.5.

Tatars

331

1.9

2.6.

Germans

262

1.5

2.7.

Byelorussians

131

0.7

2.8.

Koreans

65

0.4

2.9.

Others

390

2.2

3.

Age groups

17,513

31.

Under 30 years

3,421

19.5

3.2.

From 30 to 50 years

8,749

50.0

3.3.

Over 50 years

5,343

30.5

h4>Development and career growth

Continuous training and development of personnel in the Company is one of the key directions in the policy of human resources management. We are focused on increasing the effectiveness of each employee through the development of his professional skills and competencies.

To this end, the Company implements various training programs based on business development priorities, recommendations developed based on the evaluation procedures of employees, current trends in training, etc.

Compulsory types of training regulated by legislative requirements in the area of OHS, electrical safety, industrial and fire safety, etc. occupies a special place in the personnel development and training system.

Programs of vocational training, retraining, upgrading of employees’ qualification in the basic energy professions, and refresher courses for engineers and technicians are being implemented on the basis of organizations’ own training centers and technical study rooms.

The use of our own training facilities allows solving the issues of training employees, improving their professional level in a timely, quality manner and at minimum cost.

Taking into account the active transformation of the Company, most of the training programs for executives and specialists are focused on obtaining up-to-date professional knowledge and skills to effectively address challenges and achieving tangible results, developing leadership competencies, innovation and change management skills.

In addition to short-term training, enterprises of the Company support the initiative of employees to improve their professional level, providing opportunities for long-term training, such as master’s, bachelor’s degree programs and basic education.

In 2017 the Company’s investments in personnel’s development and training were at the level of 0.8 % of the total payroll, the number of employees trained was more than 13,800.

The Company also pays special attention to the issues of succession planning for key positions for the business in the medium and long term.

Now, the number of employees included in the pool of talents is 598 people.

In order to motivate them and support successors in building a career, the Company implements special modular training programs and MBA / EMBA / DBA supplementary education programs, provides opportunities for participation in projects, internships and are given priority rights in taking up of vacant posts.

Average hours of training per employee per annum, by category of employees

Personnel category

Total headcount as of the end of 2017

Number of training hours for 2017

Average training hours per employee/year

1.

Top management

63

2,139

33.95

2.

Office and management personnel

1,356

32,791

24.18

3.

Production personnel

15,829

669,105

42.27

4.

Maintenance personnel

265

4,646

17.53

Personnel category

Total headcount as of the end of 2016

Number of training hours for 2016

Average training hours per employee/year

1.

Top management

84

2,297

27.3

2.

Office and management personnel

1,632

109,282

66.9

3.

Production personnel

20,053

718,826

35.8

4.

Maintenance personnel

461

5,972

12.9

Personel assessment

In 2017, the Company, as part of the Company’s Transformation Program, continued the implementation of activities on assessment the compliance of employees (Job matching) with qualification requirements for the positions of of the Company’s target organizational structure.

In compliance with recommendations of the Fund, the Job matching was conducted according to management levels based on “top-down” principle.

A dedicated committee established by the Fund conducted compliance assessment of CEO–1 level positions and CEO–2 key positions. Job matching was carried out with observance of all established stages – from development, approval, approval of new requirements to jobs prior to carrying out multistaged appraisal of candidates and employees.

The internal committees of the Company’s head office. which comprised independent experts from among the representatives of the Fund. the Kazakhstan Electricity Association and BoD members of the Company’s Head office assessed compliance with CEO–2 level positions not included in the list of key and below.

Perimeter of conformity assessment amounted to 100 % of the actual headcount of the Company. of which 82.5 % of employees were found to be compliant with the new job requirements and 12.7 % of employees will comply with the new job requirements within one year.

In addition. recommendations for inclusion in the personnel reserve, the need to develop professional/personal competencies of the Company’s employees were developed in the course of Job matching project.

Individual development plans based on the recommendations were developed for the Company’s executives and employees, which include the development of project management skills. leadership, language knowledge. the study of best international practices in supervised areas of activity etc.

Appraisal activities are conducted at the Company’s SA on a periodic basis in order to check the compliance of employees’ qualification with positions held.Thus, in 2017 the certification of employees was carried out in “Ekibastuz SDPP-2 Plant” JSC and “AZHC” JSC.

Our youth

The Company pays particular attention to working with young people, which ensures staff security and the training of highly qualified young professionals.

In 2017, as part of the Company’s youth policy development, various programs were actively implemented together with the Fund, including internships for students such as “Zhas Orken”. “Satty kadam” of the youth branch of “Zhas Otan”, EXPO Camp, a children’s excursion tour around Kazakhstan “Tugan elge sayakhat”.

This year, the Company traditionally took part in the Republican Olympiad in Physics and Mathematics among future power engineers, conducted under the auspices of the Almaty University of Energy and Communications, in which eight students received scholarships for education. Following the results of the 2016 Olympiad, the Company paid scholarships to four students in 2017.

In addition, the Company’s enterprises have been closely cooperating with specialized educational organizations for many years, providing sites for the development of research and innovation activities, as well as for undertaking of pre-graduation internships for students and for implementing dual education programs.

At present, the Company is implementing a project to ensure inclusion of education, financed by the European Bank for Reconstruction and Development, in order to develop the system of dual education and improve the quality of training of young specialists in accordance with power sector majors in the educational organizations of the Republic of Kazakhstan. A short assessment of main issues in professional training for electricity supply sector in Kazakhstan will be carried out as part of this project; specific recommendations will be made to eliminate obstacles in the implementation of dual education programs, and development programs for young leaders and qualification standards.

In 2017, the Company’s youth asset was 3,421 people.

Young employees attended meetings within the framework of the Youth Expert Advisory Council established under the Fund in Shymkent and Astana cities, as well as in the intellectual game “PRIME GAMES”, taking the honorable third place.

With the active participation of youth non-governmental organizations and movements operating at the Company, a number of corporate events for the festive dates, professional skill contests and creative competitions, environmental and other cultural events were held this year.

For example, the youth organization ESDPP–2 took part in holding of the citywide and regional Club of Cheerful and Sharp-witted (CCSW), the charitable campaign “Wish tree”, the celebration of the 60th anniversary of Ekibastuz city, the regional forum of working youth, city festive concerts dedicated to the Victory Day, Children’s Day, etc.

To maintain a healthy lifestyle among young generation, in 2017, AZhC held competitions on arm-wrestling and chess, volleyball and mini-football as well as arranged the participation in the 6th running marathon in Almaty city, mini-football competitions among the institutions of the Nauryzbaysky district of Almaty city (1st place).

The second forum of the youth organization “Zhar qyn Bolashaq” was held at Almaty Power Plants on May 26, 2017, which was attended by more than 120 young specialists. In addition, the Company’s young people took part in campaigns such as “Alma Qala” on planting trees and “Almaty city without HIV” at the AIDS Prevention and Control Center, hiked in the Kok-Zhailau mountain area, and also held another bike ride dedicated to supporting healthy lifestyle, under the motto “Youth – for a healthy lifestyle!”.

Competitions of professional skills “Best in profession”, a creative contest “Light your star”, environmental task force “Let’s make the planet cleaner” were held Thanks to the efforts of Bogatyr-Komir youth movement.

Motivation and reward

The company takes care of employees. including offering them competitive base salaries and providing an expanded benefits package. To this end. the Company annually reviews the labor market. which allows analyzing the competitiveness of the Company’s wages in comparison with the external market.

So, in 2017, wages grew at least 7 %, and in some regions – up to 12 %. In general, staff costs in the Company increased by 11 % compared to the previous year. The average salary of employees across the Company’s group for 2017 has increased as against the same figure by 9.2 % – from 181,300 tenge to 198,051 tenge. The growth of average salary of production personnel was 9.9 % – from 167,055 tenge to 183,641 tenge, administrative personnel amounted to 7.4 % from 346,449 tenge to 372,137 tenge.

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation

Indicator

Value (2017)

Measurement unit

1.

Minimum wage

24.5

thous. tenge

2.

Wage of entry level employee in an organization in

significant regions of operation

124.6

thous. tenge

2.1.

Men

126.3

 

2.2.

Women

132.8

 

3.

Ratio

508

%

3.1.

Men

515

%

3.2.

Women

542

%

Indicator

Value (2016)

Measurement unit

1.

Minimum wage

24.5

thous. tenge

2.

Wage of entry level employee in an organization in

significant regions of operation

122.7

thous. tenge

2.1.

Men

120.9

 

2.2.

Women

124.4

 

3.

Ratio

501

%

3.1.

Men

493

%

3.2.

Women

508

%

The Company’s system of labor remuneration is based on fairness and transparency and is based on the following basic principles:

  • motivation of employees to achieve business goals by increasing the effectiveness of individual work;
  • Competitiveness of the benefits package on the labor market. taking into account regional special aspects and business specifics;
  • transparency – ensuring that all employees understand the principles of structure and level of remuneration. while respecting confidentiality;
  • compliance of labor remuneration system with the social policy of the Sole Shareholder and current legislation.

A comprehensive performance management system (CPMS) is in effect at the Company; it takes into account both employee performance and the level of development of their potential. Variable part of wages directly depends on the results of this assessment.

At present, across the Company’s group. 10 % of employees of the group’s total headcount have been covered by the performance evaluation system.

Percentage of employees who are subject to periodic performance and career development evaluations

Indicator

Value

1.

Total number of employees (headcount) at the end of 2017

17,513

2.

Number of employees who passed formal performance assessment, incl.:

1,748

2.1.

Men

1,021

2.2.

Women

727

3.

The share of employees who passed official performance assessment

10 %

3.1.

Men

6 %

3.2.

Women

4 %

Aspect “Local communities”

As part of social responsibility of business, for many years, the Company has been contributing to the development of the regions where it operates and maintains continuous interaction with local communities on the Company’s participation in the development of local infrastructure, improving the ecological situation in the region, social support and others.

Employees of the Company systematically participate in charity – provide financial assistance to people affected by natural disasters, low-income families.

Thus, this year, voluntary assistance from employees of ESDPP–1 was provided to those in need – school uniforms, sportswear, footwear for 120 children from two schools No. 9 and No. 11, and also as food packages for 140 children from low-income families. 260 children received assistance during campaign “Road to School” and to the celebration of Eid al-Adha for KZT 2,042 thousand. Eight families affected by the fire in the village of Shiderty received charitable assistance for KZT 1,629 thousand. Charitable assistance in the form of grocery in the amount of KZT 1,369 thousand was rendered to the flood victims and sent to Petropavlovsk by train. In the framework of the celebration of the Children’s Day for children from poor families and children with disabilities, financial assistance was provided – clothes, shoes and sweet gifts for the amount of KZT 2,072 thousand.

Being a town-forming enterprise in the village of Solnechny ESDPP–2, carries out activities aimed at preserving social facilities on the balance sheet and in the enterprise structure: medical and preventive treatment office, a swimming pool, a hotel-type dormitory, a site for landscaping and planting greenery. Funds for their maintenance and operation are allocated each year from the budget of the plant.

Bogatyr Komir conducts full-scale work on social security. The main directions of charitable assistance in 2017:

1.   Development of the region – 70,000 thousand tenge.

2.   Support of socially vulnerable groups of population – KZT 3,836.2 thous. (Veterans of the Great Patriotic War, people with disabilities, pensioners, large families). Means are allocated for treatment, building materials for home renovation.

3.   In order to arrange summer holidays for orphans and children from socially vulnerable groups of population, 11,505 thous. tenge were allocated as sponsorship, as well as free vouchers to “Karligash” Children’s health camp:

–    SO “Department of Education of Ekibastuz’s city mayor administration” – 115 vouchers;

–    Bayanaul district mayor administration – 10 vouchers;

–    PUI “Shelter for minor children and ado-lescents” – 40 vouchers;

–    Station electoral district No. 28–30 vouchers.

4.   Assistance to religious denominations – 10,800 thousand tenge: Ekibastuz city mosque, Seraphimo-Iversky cathedral of Ekibastuz city, Ekibastuz city church.

5.   Charitable assistance to non-profit organizations – 34,344 thousand tenge, including:

–    charitable assistance to individuals – 20,304.0 thousand tenge;

–    holding of sports competitions, holidays – 14,041 thousand tenge.

Bogatyr Komir fully supports various social initiatives aimed at improving the quality of life of people, actively participates in urban social programs. A huge work has been done to improve the playgrounds and sports grounds of the Mountainous Municipal District of the city. Repair and restoration of children’s playgrounds was carried out, sand was brought to sandboxes, landscaping of Shakhtar Park was carried out, a monument to the great folk poet and thinker Mashkhur Zhusup Kopeyev was installed, traffic light on Kunayev street was installed as well.

In 2017, business units teams performed works on landscaping and gardening of territories assigned to the teams – planning of the adjacent territory, lawn and green plantations care. The cost of territories landscaping for the reporting period amounted to 2,604.5 thousand tenge. 60 trees were planted in the city park to the amount of 481 thousand tenge for the 60th anniversary of Ekibastuz city.

Every month, from the 2nd to the 3rd quarter. Bogatyr Komir staff took an active part in city-wide CleanUp day and “clean Fridays”. In total, over 1,600 employees of Bogatyr Komir LLP and 95 units of equipment took part in these events.

To improve the social and living conditions and improve the quality of recreation on the territory of “Zhasybay” Vacation retreat, repair and construction work was carried out to maintain the infrastructure of the vacation center.

3,193 people had rest at the vacation retreat during eleven summer seasons, which is 183 more than in 2016. In the children’s health center, 1,297 children rested, compared to 2016, more than 260 children. 200 places were allocation for children from orphanage and poor families.

Employees of Shardarinsk HPP plant trees and perennial flowers using their own resources – the total number is 730 young seedlings for 92,500 tenge.

Moynak HPP provides constant support to the kindergarten located in the territory of Moynak village.

In order to promote employment of population, enterprises of the Company provide local employment authorities with information on the availability of vacant workplaces, indicating the conditions of work and payment for inclusion in the database of current vacancies and expected jobs.

Enterprises of the Company regularly participate in citywide Cleanup days, landscaping of adjacent territories, interact with religious denominations and public funds, provide financial assistance to pensioners, veterans of the Great Patriotic War, low-income families, people with disabilities, single mothers in the form of monthly giveaways, grocery baskets, vouchers at discount prices, etc.

It should also be noted that the Company adheres to the main provisions of the precautionary principle. Before launching new projects and facilities, the Company compulsorily carries out a number of activities aimed at informing the public about the planned activity and its possible impact as part of environmental impact assessment, in order to know public opinion and considering it in the impact assessment process.

The Company has developed stakeholders’ communication plan, which describes the activities on informing each individual stakeholder group; for more details, please see “Stakeholder Engagement” section.

The Company has an official grievance mechanism. Informing about alleged violations of current legislation, basic principles of doing business or the Code of Business Conduct of “Samruk-Energy” JSC, as well as timely response to such violations are important for our Company. Any reported or alleged facts of theft, fraud, corruption and other violations can be reported by calling 8 800 080 19 94, or send an email to sk.hotline@deloitte.kz or use the “Leave a message” button on the Company’s website: https : //www.samruk-energy.kz/en/hotline

All messages are accepted and processed by an independent company. Messages received on hotline are transferred to the Company’s responsible employees who can provide professional and confidential consideration. In order to process your message more effectively, you will be asked to leave contact information, but you can also leave an anonymous message. All anonymous messages will be considered.

Aspect “Fight against corruption”

“Samruk-Energy” JSC updated Anti-fraud and Corruption Policy in December 2016. The Policy was developed in order to form a uniform concept of the Company employees and other persons about non-acceptance of fraud and corruption of any forms and expressions and to minimize the risks of fraud and involvement of the Company into corruption.

The text of the Policy in Kazakh, Russian and English languages was placed on the web site of “Samruk-Energy” JSC.

Every year, Samruk-Energy employees are tested for knowledge of the Anti-fraud and Corruption Policy. Officials and employees of Samruk-Energy and subsidiaries are tested for knowledge of fraudulent and corrupt practices on an ongoing basis.

The Action Plan for counteracting corruption in “Samruk-Energy” JSC is developed annually. All activities are conducted in a timely manner.

At the end of 2017, there were no facts of frauds and corruptions in Samruk-Energy Group of Companies.