in electricity
production
in the Top 10 biggest taxpayers in the energy sector
was given to the Company for Energoatom Non-Financial Report 2018 at MarCom Awards
the highest score, was assigned to Energoatom by Sustainable Ukraine corporate sustainability rating
5
ENSURING SUSTAINABLE
DEVELOPMENT
NON-FINANCIAL REPORT 2019

Message from our representative

Successful development of the Company is impossible without economic efficiency and financial stability. Despite a difficult situation in the domestic energy sector, which has certainly affected Energoatom, we responsibly fulfilled all financial and social obligations towards our employees, local communities, and the country. We have delivered them in full, remaining one of the largest taxpayers in Ukraine. In 2019, Energoatom paid UAH 19,392.2 million in taxes to national and local budgets, including insurance payments. The Company paid over UAH 437 million as the social and economic compensation duty for the exposure risk faced by the residents of NPP supervised areas.

For us, sustainable development means unconditional fulfilment of obligations towards all stakeholders. Among our focus areas are cultivating a responsible attitude to production, the environment, and society, caring for future generations, and creating good working and living conditions for employees. Energoatom is the most powerful electricity producer and the largest employer in the energy sector, so we dedicate all our efforts to maximise our contribution to the sustainable development of society, while taking into account all economic, social, and environmental aspects of our operations.

Our objective is to maintain an effective system of corporate values, which ensures transparency and prevents any corruption. Continuous introduction of new anti-corruption measures increases public confidence in Energoatom’s operations. The Company’s achievements in this area were once again recognised by external independent parties: Energoatom became one of the leaders in the Transparency of State- Owned Enterprises in Ukraine rating.

In 2019, we made another important step towards our sustainability by setting priority sustainable development goals for the near future. Increasing our performance efficiency amid external challenges and maintaining a constructive stakeholder engagement, in particular, adjustment of our actions to meet the expectations of the society, are priorities on the way to achieve these goals.

Signing of the Declaration on Gender Equality and the Prevention of Domestic Violence was one of our highlights in 2019.

Energoatom is a leader among energy companies in Ukraine in terms of the number of female employees. Signing this document was another important step for us towards the development and improvement of previously implemented practices and procedures aimed at preventing any labour discrimination and creating every condition for equal rights and opportunities for our employees.

We are proud that our efforts in the field of corporate communications were highly praised at a global level: Energoatom Non- Financial Report 2018 won main nominations of the international MarCom Awards and was recognised as one of the benchmarks in terms of disclosing the information about the Company’s performance and contribution to sustainable development.

Our successes in 2019 prove once again that Energoatom is fully aware of its responsibility as one of the main drivers of progressive changes in the energy industry, while improved resilience and operational efficiency of the largest energy generating company in Ukraine are the keystone to a stable energy future of the country.

HARTMUT JACOB,

Vice President of Energoatom

Management Principles

Energoatom has consistently pursued a course of sustainable development, which includes economic growth, social welfare, environmental protection, and creation of good working conditions for the staff. We do our best to continuously develop and improve our performance in each of these aspects.

Compliance with the highest standards of nuclear and radiation safety is our priority. The Company is fully aware of its responsibility for the operation of nuclear facilities, which requires special training of personnel, a special approach to production, and a special understanding of the safety culture by everyone involved in the operation of nuclear power plants. In 2019, no accidents or incidents occurred at Ukrainian NPPs, according to the INES classification. For more information, please read Enhancing Safety Culture section.

Serious attention is paid to health and safety. Energoatom makes it possible to work safely at every workplace. Zero Injuries is an extremely important goal for us. Therefore, we continue to implement programmes aimed at improving occupational health and safety. In 2019, the Company spent UAH 464.85 million on H&S.

Energoatom has traditionally high environmental policy standards. We work to reduce the negative impact on the environment and support biodiversity, use natural resources sustainably, and take actions to preserve the climate. In 2019, the environmental programme funding amounted to UAH 3.595 million. For more information, please read Caring for the Environment section.

Energoatom is a partner of Ukraine’s first online course on corporate social responsibility

Being one of the most socially responsible companies, Energoatom joined to create Ukraine’s first online training course on corporate social responsibility.

The purpose of this course is to raise awareness about CSR mechanisms and engage as many stakeholders as possible into corporate social responsibility projects.

The online CSR course includes theoretical and practical cases on 14 topics: what the corporate social responsibility is; impact of CSR on a company; key elements and stakeholders; CSR strategy; non-financial reporting; typical mistakes in CSR implementation; corporate governance; fair operational practices; human rights; environmental protection and green office; community development and engagement; consumer relations; employeremployee relations; responsible supplier networks.

Giving necessary social guarantees, adhering to a culture of safety, and creating comfort in the workplaces — all these aspects of employer-employee relations are extremely important to the Company. The Collective Bargaining Agreement is an effective tool for securing appropriate guarantees. The Collective Bargaining Agreement 2019–2020 signed on December 27, 2018 was in force in the reporting period. It covered the full range of employee rights and opportunities for professional development, career advancement, rehabilitation, and recreation. In 2019, Energoatom increased investments in staff development and training by 20.8%. For more information please read Investing in People section.

We take care of local communities. By creating new jobs, the Company provides employment opportunities for the local residents and contributes to the social and economic development of the regions. Energoatom’s social policy in its local communities includes actions to improve people’s quality of living, participation in the environmental protection actions, and the implementation of social and charitable projects. In 2019, Energoatom paid UAH 473.4 million as the social and economic compensation duty for the exposure risk faced by the residents. For more information please read Investing in People section.

The Company continues to develop international cooperation. Energoatom has a permanent membership in the World Association of Nuclear Operators, World Nuclear Association, EUR Group, etc. In 2019, the Company signed a landmark agreement with Holtec International to establish an international consortium. The goal of cooperation matches the UN Sustainable Development Goal 7, Ensure access to affordable, reliable, sustainable and modern energy for everyone.

For more information, please read Practising Effective Governance section.

Key sustainability awards won by Energoatom
International
MarCom Awards
Energoatom Non-Financial Report 2018 won the MarCom Awards international competition held by the Association of Marketing and Communications Professionals. The Company received a platinum statuette in the Best Printed Version of the Annual Report category.
National
Sustainable Ukraine
Energoatom became the only company that gained AAA, the highest score for the corporate sustainability, in Sustainable Ukraine 2019 Rating, which covered 250 largest taxpayers in the country. The rating evaluated the quality of corporate governance in companies, their ability to make a positive impact on society, manage non-financial risks and opportunities, as well as secure their sustainable development.
Partnership for Sustainability Award 2019
Energoatom became a finalist of Partnership for Sustainability Award 2019 initiated by the UN Global Compact in Ukraine. It is a competition of partnership projects of different groups to achieve the Sustainable Development Goals. The Company received an award in the Economic Development nomination for its business case, Spring School of Energoatom.

Prioritising UN Sustainable Development Goals

Adherence to the principles of sustainable development and corporate social responsibility is an important component of Energoatom’s operations, engagement with stakeholders, and environmental impact management. We fully share the approaches of 17 UN Sustainable Development Goals (SDGs) adopted in 2015 and seek to follow these approaches through management and practical actions.

The Company identified a list of priority UN SDGs in 2019, where it could make the most significant contribution to their achievement. The analysis found that five SDGs were the most significant.

Priority UN Sustainable Development Goals for Energoatom
Sustainable Development Priorities for Energoatom

Our Contribution to Achievement of UN SDGs

UN SDG Highlights 2019

End poverty in all its forms everywhere

  • UAH 19.39 billion paid in taxes to the national and local budgets in 2019.
  • UAH 11,024.2 million in payroll.
  • UAH 140.6 million in one-time retirement allowances paid to 653 employees of the Company.

For more information, please read Practising Effective Governance section.

Ensure healthy lives and promote well-being for all at all ages

  • 18,077 employees enjoyed health treatment and disease prevention services in the Company’s resorts.
  • 7,170 children of Energoatom’s employees improved their health in resorts.

For more information, please read Investing in People section.

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

  • 96,833 man-courses were conducted for staff training.
  • 611 students took internships and industrial placements at Energoatom.
  • The Company became a partner of an online educational course on corporate social responsibility.

For more information, please read Investing in People section.

Achieve gender equality and empower all women and girls

  • 33.4% of the total headcount were women.
  • 13.7% of women held managerial positions.
  • No discrimination incidents were registered.
  • Energoatom became the leader among energy companies by the percentage of employed women (according to the Women and Men in the Energy Sector of Ukraine study).
  • The Company signed Ukraine’s first Business Declaration for Gender Equality and Prevention of Domestic Violence.

For more information, please read Investing in People section.

Ensure access to water and sanitation for all

  • Completing Tashlyk Hydroelectric Pumped Storage Power Plant with phased raising of the level of Olexandrivske Reservoir on the Southern Buh River. The project will help ensure water needs of Mykolaiv Oblast. In 2019, the adjusted project was re-approved, and works to complete hydropower unit No. 3 continued.

For more information, please read Opening Up New Opportunities section.

Ensure access to affordable, reliable, sustainable and modern energy

  • 54.1% was the Company’s share in the total electricity production in Ukraine.
  • 102% of the electricity supply target was achieved.

Promote inclusive and sustainable economic growth, employmentand decent work for all

  • The average salary grew by 35.5% compared with 2018.
  • 100% of employees were covered by the Collective Bargaining Agreement.
  • UAH 295.9 million was spent on the maintenance of social infrastructure facilities.

For more information, please read Investing in People and Practising Effective Governance sections.

Build resilient infrastructure, promote sustainable industrialisation and foster innovation

  • In 2019, a large scope of construction and assembly works was performed to bring construction of Central Spent Fuel Storage Facility closer to the end.
  • We performed a significant scope of construction works to reconstruct the service water supply system for power units No. 1-3 at Tashlyk Reservoir and spray cooling ponds at South-Ukraine NPP.
  • The Company received an award for the best corporate contribution to SDG 9 in the Economic Development nomination at the Partnership for Sustainability Award.

For more information, please read Opening Up New Opportunities section.

Reduce inequality within and among countries

  • Energoatom outfitted administrative buildings and social infrastructure facilities with 6 parking spaces for people with disabilities, 2 bathrooms for low mobility groups, 8 ramps, 9 plates with the name of the institution written in Braille, and 8 emergency call buttons.

For more information, please read Investing in People section.

Make cities inclusive, safe, resilient and sustainable

  • UAH 473.4 million paid in social and economic compensation duty.
  • UAH 687 million in investments in social development.
  • The Company implemented social projects aimed at the development of education, sports, and culture.

For more information, please read Investing in People section.

Take urgent action to combat climate change and its impacts

  • Implementation of the energy management system in accordance with ISO 50001:2018.
  • We launched a corporate programme, Energy of Responsibility, to foster the culture of energy consumption among Company’s employees.
  • Energoatom ranked among Top 5 Green Power Generators: Carbon-Free Generation Capacity.

For more information, please read Caring for the Environment section.

Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss

  • As of the end of 2019, the Central Spent Fuel Storage Facility was 83% ready. The Overseas Private Investment Corporation highly praised the progress and pace of the construction.
  • The Company hit the target to complete the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs.

For more please read Opening Up New Opportunities and Improving Safety Culture sections.

Promote just, peaceful and inclusive societies

  • 100% of employees were informed about the Company’s anti-corruption policies.
  • Energoatom had three channels for reporting possible violations of the Anti-Corruption Programme, corruption or corruption-related offences, as well as other violations of the Law of Ukraine On Prevention of Corruption.

For more information, please read Practising Effective Governance section.

Revitalise the global partnership for sustainable development

  • Actions were taken to join the Plant Engineering Program of the US-based Engineering Research Institute’s (EPRI).
  • Cooperation with participants of the youth leadership programme, SDG Ambassadors, initiated by the Centre for CSR Development.

For more information, please read Practising Effective Governance section.

Stakeholder Engagement

The Company’s corporate social responsibility relies, in particular, on effective stakeholder engagement. Energoatom builds relations with stakeholders on the principles of a dialogue and partnership, mutual responsibility and accommodation of interests. When making decisions, Energoatom continues to engage with a wide range of stakeholders. Engaging various groups of stakeholders, the Company informs them about its achievements and plans, as well as learns about the most important issues or possible concerns about its operations. Nonfinancial reporting prepared in line with GRI’s Core principles is based on stakeholder engagement.

The Company identifies key groups of stakeholders that are most closely related to its operations and can have the biggest impact on the ability of Energoatom to implement its strategic goals.

In our engagement with stakeholders, we adhere to the national legislation and internal corporate regulations.

Energoatom interacts with stakeholders through several communication channels. For more about the communication channels, please read our Non-Financial Report 2018, Sustainable Development section.

The Company promptly responds to any stakeholder requests. Energoatom and NPPs receive information requests via mail, fax, e-mail, and phone or during face-to-face meetings. The requests are handled in line with procedures established by the laws of Ukraine.

TRUSTainability: Partnership for sustainable towns and happy residents

A team of SDG ambassadors visited South- Ukraine Electric Power Producing Complex and its satellite town to promote the Sustainable Development Goals. They were participants of the youth leadership programme initiated by the expert organisation, Center for CSR Development.

Implementation period: 04–15 August 2019.

Goal: Improve communications between Energoatom and the NPP satellite town, raise the Company’s profile in the community, provide recommendations for innovative solutions specific to the town to ensure sustainability, economic growth, and better interaction, promote cooperation between the sectors, public (Ambassadors) and business (Energoatom).

Main activities: Mission of the programme members was to outline the most pressing issues for the community in Yuzhnoukrainsk. They identified problems that local residents could solve on their own and suggested ways to do this. The programme had three stages. On Stage 1, a team of SDG ambassadors visited 39 facilities of South-Ukraine NPP to better understand how local residents lived. On Stage 2, they identified the biggest concerns of the locals based on the survey findings. On Stage 3, the ambassadors reviewed the programme and formulated proposals on how to implement good initiatives for the local development most effectively.

Results: The project became a finalist of Partnership for Sustainability Award 2019.

Dialogue with central government authorities

The Company always considered the dialogue with central government officials an effective tool to support direct investments, improve industry-specific legislation, and strengthen the position of Energoatom in the energy market.

Following the principle of information openness, Energoatom initiates a dialogue with the authorities for constructive and effective cooperation. Representatives of the Company take part in public hearings at the relevant committee of the Verkhovna Rada of Ukraine, in the activities of advisory boards of the government agencies, public councils at ministries and other central executive authorities, commissions, expert and working groups established by government agencies.

Energoatom takes an active part in conferences, forums, and business meetings held with the participation of legislative and executive authorities, develops practical proposals for the optimisation and development of the national legislation and regulations.


Dialogue with non-profit and non-governmental organisations

NGOs represent a special group of stakeholders that prioritise openness and transparency of the Company, its accountability and compliance with high standards of business ethics. Energoatom takes this into account in its production processes and social programmes. In 2019, we engaged with NGOs in various formats, including meetings and joint events. The Company cooperated with the Science and Engineering Union of Power Engineers and Electrical Engineers of Ukraine, Ukrainian Union of Industrialists and Entrepreneurs, First Energy Association of Ukraine, All- Ukrainian Energy Assembly, and the Union of Veterans of Atomic Energy and Industry of Ukraine.

Dialogue with local communities

In 2019, the Company traditionally engaged widely with local communities. In communications, Energoatom and the residents of NPP satellite towns have always focused on extension of the lifecycle of power units, ecology, and reduction of negative environmental footprint.

In 2019, Energoatom held:

  • 10 public hearings attended by 846 citizens to review documents and information materials that substantiated the safety of extension of lifecycle of power unit No. 1 at Khmelnytska NPP;
  • 9 public hearings and 1 meeting attended by 1,315 residents to review the materials that substantiated the safety of extension of lifecycle of power unit No. 3 of the South- Ukraine NPP.

At the public hearings, the Company’s representatives complied with all the requirements of the laws of Ukraine regarding the procedures, terms, and scope of awareness raising about the proposed activities. Everyone was given an opportunity to participate in public hearings.

In addition, we held public discussions on the implementation of the Environmental and Social Action Plan for Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs in satellite towns in 2019. For more information, please read Enhancing Safety Culture section.

Dialogue during preparations of the Report

A non-financial report is one of the tools for regular and transparent dialogue with every stakeholder on any issues related to the operation of domestic nuclear power plants in particular and Energoatom in general. Starting from 2018, Energoatom has maintained contact with all those interested in the public non-financial reporting of the Company. It helped us better understand stakeholder’s concerns and ways to improve the quality of information disclosure. In 2019, the Company conducted the second online stakeholder survey. Questions were sent to government officials, international nonprofit organisations, employees, contractors, academics, experts, and the media.

Respondents shared their suggestions and recommendations on the content and substance of our non-financial report and outlined significant aspects in our operations that should be highlighted there. All comments were taken into account when preparing this Non-Financial Report 2019.

Stakeholder proposals taken into account in the 2019 Report
Stakeholder proposals Sections of the Report with relevant disclosures
Identify issues that need to be regulated by law Different sections of the Report
Highlight the activities to minimise the negative impact of nuclear power plants on the environment and the population Caring for the Environment
Inform about investment effectiveness, medium-term development plans, and preparations for decommissioning of power units Opening Up New Opportunities
Outline the outlooks for further operation of power units Improving Safety Culture
Publish information on the extension of the lifecycle of operating power units in Ukraine, replacement of NPP capacities to be phased out after 2025–2030, and the outlooks for construction of new power units Improving Safety Culture
Provide specific information on localities and regions of the Company's operations Investing in People
Inform about performance of public service obligations in H2 2019, action plans in the liberalised electricity market, environmental protection, and social responsibility Different sections of the Report
Expand information about projects in which the Company participates Different sections of the Report