© 2017 SE NNEGC Energoatom

All rights reserved

APPENDIX 1

ABOUT THE REPORT

GENERAL INFORMATION

Energoatom Non-Financial Report 2016 (the Report) is the Company’s first non-financial report prepared on a voluntary basis and addressed to a wide range of stakeholders. The Report discloses non-financial data that provide a comprehensive picture of the Company's sustainability activities.


The Report targets all the stakeholders of the Company: government authorities, local communities and local governments, employees, contractors, academic and expert communities, international organisations and NGOs, civil society organisations and mass media.


The Report has been prepared in line with:

  • Global Reporting Initiative (GRI G4 Guidelines, Core);
  • UN Global Compact 10 Principles;
  • AA1000 International Stakeholder Engagement Standard (Institute of Social and Ethical Accountability)

The Report builds upon the UN Sustainable Development Goals adopted in September 2015.

REPORT STRUCTURE

The Report presents information on economic, environmental and social aspects of Energoatom's operations.

It provides description of the Company's activities in the following area:

Corporate governance

Nuclear, radiation and environmental safety of NPPs

Transparency and accountability

HR management, including employee engagement, competitive salaries and social benefits, professional development of employees;

Business ethics and fight against corruption

Safe working conditions

Stakeholder engagement

Environmental protection and energy efficiency

Development of local communities


Energoatom has included references to additional sources of information, including the Company's website, and other documents available in the public domain to make the Report reader-friendly.


In the Report, the words “Energoatom”, “the Company” and “we” have the same meaning and refer to Energoatom and its separate subdivisions within the scope of the Report.

SCOPE OF THE REPORT

The Report covers the data about operations and performance of Energoatom and of separate subdivisions that are included in the consolidated financial indicators of the Company:


ZAPORIZHZHYA NPP


RIVNE NPP


SOUTH-UKRAINE NPP


KHMELNYTSKA NPP


ATOMREMONTSERVICE


ATOMKOMPLEKT


SCIENTIFIC AND TECHNICAL CENTER


ATOMENERGOMASH


AUTOMATION & ENGINEERING


EMERGENCY AND TECHNICAL CENTER


ATOMPROJECTENGINEERING


SKLADSKE GOSPODARSTVO


ATOMPRYLAD


UPRAVLINNIA SPRAVAMY


The scope of the Report corresponds to an annual reporting cycle. The Report highlights operations of Energoatom in 2016. In addition, the Report covers the events before or after the reporting period when they give better understanding of the information presented in the Report.

INDICATOR CALCULATION METHODOLOGY

The reporting statements which are annually submitted by the Company to the State Statistics Service of Ukraine serve as the source of quantitative information disclosed in the Report.


The Company collects and calculates some of the indicators according to the internal reporting forms audited by the competent representatives of the Company. Appendix 4 provides explanations on some GRI indictors that have been revised.

STATEMENT OF LIMITATION OF LIABILITY FOR PUBLICATION OF PROJECTION DATA

The Report contains the information on the Company's plans and initiatives for a long and medium term. The plans are forward-looking and their implementation depends, among other things, on a number of economic, political and legal factors beyond the Company’s control (economic and political situation inside and outside Ukraine, changes in the taxation, environmental and other legislation, etc.). Thus, the actual performance data of future periods can vary from the projections published in this Report.

REPORT PREPARATION PRINCIPLES

Principles for Defining Report Content


The Company reports against GRI G4 guidelines. Appendix 4 contains information on GRI disclosures in the Report.


Material Aspects


The Company has followed GRI recommendations in terms of defining material aspects to be disclosed in the Report:

  • there is a list of material aspects in connection with the nature of the Company's operations (see matrix below);
  • the Company provides an assessment of the materiality aspects on the basis of external and internal environment assessment, including:
    • analysis of internal environment: monitoring of documents regulating different aspects of the Company's activity, interviews with the representatives of the key subdivisions of the Company that are responsible for sustainable development.
    • analysis of external environment
      • review of sustainability reports of global nuclear companies;
      • analysis of media landscape (monitoring of important topics in mass media relating to Energoatom’s operations);
      • analysis of stakeholders' opinion using such channels as public hearings (held in 2015–2016 to discuss the environmental footprint of the company) and analysis of issues raised by NGOs (including by environmental NGOs) and sent to the e-mail specified in the Contacts section.

The Company is going to improve its approach to tale stakeholders' opinion into account while preparing its non-financial reports.


Principles for Defining Report Quality


The quality of the Report is ensured by the following GRI principles:

  • Balance. The Company has tried to provide an unbiased picture of its operations and performance and included both achievements and areas of improvement.
  • Comparability. The Report covers indicators for several years (2014-2016).
  • Accuracy. The Report provides detailed information (in text format and in the form of quantitative data) to help stakeholders assess the Company’s performance on each material aspect. All data in the Report are officially recognised by the Company and confirmed by internal and external (public) documents.
  • Clarity. The Report is written in clear language and contains a glossary.
  • Reliability. The Report provides references to the relevant sources.
  • Timeliness. The Report contains information for the calendar year 2016. The Report is to be published in 2017.

INTERNAL PROCEDURES FOR ENSURING REPORT QUALITY AND RELIABILITY


The Company is now building an internal system of non-financial reporting. Structural subdivisions of the Company that are responsible for the provision of information on each focus area of sustainable development have checked the quality and reliability of the text and the quantitative data provided in the Report. Thus, this ensures the accuracy and reliability of the information disclosed in the Report.

Materiality Matrix

Low

High

Material for stakeholders

Low

High

Material for Energoatom

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

ka

1

Nuclear, radiation and environmental safety

ka

2

Environmental footprint minimisation

ka

3

Nuclear facilities upgrade

4

Corporate governance

ka

5

Dialogue with stakeholders

ka

6

Contribution to Ukraine's social and economic development

ka

7

Compliance with national and international laws

ka

8

Transparency and accountability

ka

9

Minimisation of negative environmental implications, the so called heritage of past years, which arose during the construc-tion of NPPs

ka

10

Competitive salary and social benefits for employees

ka

11

Professional development of employees

ka

12

Safe working conditions

13

Business ethics and fight against corruption

ka

14

Reliable and safe electricity supply

15

Human rights

16

Charity

ka

17

Improvement of the standards of living in the areas of the Company's presence

ka

18

Development of local communities

19

Energy efficiency

ka

20

Fight against climate change

ка

- Key material aspects