SUSTAINABILITY REPORT 2020 - Sveza
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SUSTAINABILITY
REPORT
2020
About Sveza Sustainable Corporate Green Local Employees About 1
Development and Governance Production Communities the Report
CSR Strategy
4
Table of Contents
GREEN PRODUCTION
Sustainable Forest Management 60
6
Lowering Environmental Footprint 68
Responsible Consumption 74
Industrial Safety and Labor Protection 80
EMPLOYEES
Staff Structure and Personnel Policy 110
Recruitment and Promotion System, 112
Respect for Human Rights
1 3
Motivation and Remuneration 116
Evaluation of Employees Performance 118
Training and Devolepment 119
Social Support for Employees 122
ABOUT SVEZA CORPORATE Corporate Culture and Volunteering 124
Sveza in 2020 6 GOVERNANCE
Corporate Governance Structure 42
Business System 43
2 5
Risk Мanagement 44
Tax Administration 46
Innovation Management 48
Quality Managment 50
SUSTAINABLE Customer-Oriented Approach 52 LOCAL
54
DEVELOPMENT AND
Information Transparency
Anti-Corruption 56 COMMUNITIES
CSR STRATEGY
Economic Impact on the Regions of Presence 94
7
Managing Sustainable Development Issues 18 Social Projects 98
Stakeholders Engagement 25
About the Report
Appendice 133
Sustainability report 2020 About Sveza Sustainable Corporate Green Local Employees About 1
Development and Governance Production Communities the Report
CSR Strategy
for plywood, Sveza has managed to and infrastructure development first place in the social nomination
increase a number of key indicators. projects have been selected for of the Forest Stewardship
The consolidated revenue of the all our enterprises to participate Council (FSC Russia) competition
Message Сompany increased to 36 billion rubles in implementing. Kostroma and “Green Project of the Year”. At the
from CEO against 35 billion rubles in 2019.
Sveza confirmed its leadership in the
Manturovo have been identified as
priority areas for the implementation
enterprises of the timber industry
complex, the issue of fire safety is
birch plywood market, strengthened of a comprehensive development always especially acute. Here we have
its position in key markets, and program for 2021. In this work we also made some progress. The number
entered seven new countries with count on the assistance of our of fires due to unsatisfactory
its products. In the reporting year, volunteers, members of the Sveza storage of raw materials and by-
contracts were concluded with Active movement. By the end of products of production, as well as
more than 150 new clients. 2020, about 200 activists have poor cleaning decreased by 23%.
carried out more than 100 events.
At the same time, we continued to In 2020, the implementation of a
implement the planned improvements. Our most important action in this systematic approach to environmental
About 4 billion rubles were spent difficult time has been to ensure the safety management was introduced
on modernization of production, health and safety of our employees at all Company's mills. We analyzed
improvement of working conditions, during a pandemic. In 2020 without the sources of impact on the
environmental projects, improving preliminary preparation, in a short atmosphere, water bodies and soil,
fire safety, developing new business time we were able to transfer almost identified the necessary measures
lines and releasing new products. a thousand people to a remote work to minimize the negative impact
600 million rubles per year accounted format. All the necessary sanitary and allocated resources to achieve
for the cumulative effect of and epidemiological measures were environmental goals. Sveza is
51 completed investment projects. taken to maintain the stability of building a system for monitoring air,
our Company. We have done our water and raw material flows using
At the end of 2020 the tax payments utmost to ensure that our employees unified data collection approaches.
of Sveza Group Companies to the have been able to continue their We are working to reduce energy
budgets at all levels exceeded work as usual, and that they were consumption and carbon footprint,
3.5 billion rubles. In particular, over provided with everything they and to reduce water consumption
2.5 billion rubles were transferred required to feel protected. and waste generation. It is planned to
to the federal budget and almost complete the process of deploying the
1 billion rubles to regional budgets. All our employees trust that Sveza environmental management system
Our contribution to the socio- is a reliable employer, that together in the Company by the end of 2021.
economic development of the we form a strong team. This is also
territories where we are present is confirmed by the record agreement 2021 is not going to be easy.
not limited to budgetary payments. scores of the last personnel survey: However, we gained new experience,
We provide support to small- and the employee engagement level worked hard on the development
medium-sized businesses involved was 73%, employee satisfaction and cohesion of our team and can
in the supply chain. Purchasing raw was at 75%, which is 5 percentage look to the future with optimism..
materials, services, and supplies points higher than previously.
from local suppliers contributes The personnel security scores have Sveza Chief Executive Officer
Dear Friends! Goals (SDGs), an ambitious plan for The COVID-19 coronavirus pandemic to our Company's sustainability also grown due to the systematic Аnatoly Frishman
transformation aimed at preserving was undoubtedly the key factor that and creates a favorable economic work with the personnel reserve.
I am pleased to present the the natural environment and improving influenced the implementation of environment around its businesses.
second Sveza Group Sustainability the lives of people around the world. our plans. The new conditions that In 2020, the volume of purchases Sveza consistently introduces
Report, in which we discuss the the whole world has faced forced from local suppliers increased by 1%. measures to improve workplace
achievements and challenges Our movement towards a more us to demonstrate flexibility, the safety. In 2020, working conditions
our Сompany faced in 2020. sustainable future and our decision ability to quickly adapt and develop We are moving from providing improved for 20% of jobs. The level of
to contribute to the achievement of new formats of interaction. charitable assistance at the request industrial injuries at the Company's
Last year, we made a commitment the SDGs are among the priorities of partner organizations in the regions mills has decreased by more than
to uphold the principles of the UN of our Сompany's long-term In a constantly changing global where we are present to systematic three times over the past five years.
Global Compact for Responsible development strategy. We have market situation, we face difficulties social investments. We plan to sign Our businesses are challenged to
Business Conduct and joined the selected six goals where our efforts in the area of products sale. In 2020, agreements on regional development achieve a zero injury rate. For this,
collective efforts of governments, can have a tangible effect and have production volumes decreased by 7%. with executive authorities, which will we also use the latest developments.
businesses, and communities to identified indicators by which we However, despite the general crisis take into account the urgent needs The project of a virtual simulator
achieve the Sustainable Development will measure the results achieved. and decline in the global demand of the territories. Improvement for the safety of employees won
2 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 3
Development and Governance Production Communities the Report
CSR Strategy
1
Key Sustainable
Development
Achievements
in 2020
Read more on p. 8
ABOUT SVEZA
Capital Assets
Read more on p. 10
Sveza in 2020 6 The long-term development
strategy of Sveza is aimed
at the most efficient use of
the forest resource through
integrated wood processing
Read more on p. 11 Products
Read more on p. 14
About Sveza
Values
SVEZA IN 2020
Economy
No. 1
in the world in production
200+
of birch plywood product sizes and thicknesses options
7 >90
countries-customers
mills
on five continents
1.2 million m
of products per year
3
Environment
>1 million
trees were planted as part of
1.367million
rubles have been spent on
reforestation process environmental activities in 2020*
* current costs and investments
People
Safety
≈7,000
employees
43%
proportion of female managers
Customer-oriented approach
Teamwork
1.05
Lost Time Injury Frequency
73% Efficiency and responsiveness
employee engagement rate
Rate (LTIFR) in 2020 Respect for people
>12 million rubles
investments in training (selection
156 m
per 1 employee —
3
and training) of personnel in 2020 labor productivity in 2020
6 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 7
Development and Governance Production Communities the Report
CSR Strategy
About Sveza
Key Sustainable Development Achievements in 2020
1st place among On March 17, 2020 Sveza
forestry companies joined the UN Global
Compact. The world's leading
in the rating of producer of birch plywood
the HeadHunter has also become a member
of the Russian community
Sveza Group was portal “100 best of participants in the
assigned the category employers in Russia”, initiative — “National Network
“C — Emerging Practice” UN GC” Association and took
of the “Leaders of
27th position
commitments on compliance
Corporate Philanthropy among companies with the fundamental
2020” rating. with more than principles of the Global
Compact in the field of
5,000 employees. human rights, labor relations,
environmental protection The Sveza mill in Kostroma became winner in the
and anti-corruption, as regional stage of the All-Russian competition “Russian
well as participation in Organization of High Social Efficiency” in the nomination
the achievement of the “For the Development of Human Resources in Industrial
UN Sustainable Development Organizations” and “For the Reduction of Industrial Injuries
Goals until 2030. and Occupational Morbidity in Industrial Organizations”.
On December 17, 2020 Sveza The Sveza mill in Novator Sveza mill in Manturovo
released the first Sustainable was included in the occupied 3rd place in
Development Report TOP‑10 investment the financial rating of
prepared in accordance projects of Vologda companies in Kostroma
with GRI standards. Region at the end of Region and reached
The Report contains the 2020 as part of the the top 10 companies
analysis results of the Group Regional Investor according to the
priorities in the field of competition. rating of “Financial
sustainable development, Director” magazine.
their comparison with the Winner in the social
UN Sustainable Development nomination of FSC Russia
The “Trainee's Way” project of Sveza Company took 1st place Goals (SDGs) and data on the award “Green Project of
at the regional stage of the All-Russian competition for Company's contribution to the the Year 2020” for the
the best practices of youth self-determination “Trajectory achievement of priority SDGs. “Virtual Reality” project.
Prize” and became a participant in the federal stage of the
competition in the “Personnel for Development” nomination.
8 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 9
Development and Governance Production Communities the Report
CSR Strategy
About Sveza
Capital Assets Development Strategy
Sveza Group is one of the largest Company SVEZA-Les LLC, which also Sveza mills are located in areas that The long-term development strategy production technology, but also in The Company was one of the first
vertically integrated companies in the sells finished products of the mills in are traditionally rich in birch forests. of Sveza is aimed at the most improving business processes. One of in Russia to start developing a
timber industry. Production of plywood the target markets. In addition, the The convenient geographical location efficient use of the forest resource the directions of Sveza updated bioeconomics that focuses on the
and other products is organized at Group includes Sveza Resource LLC, of the mills ensures optimal logistics. through integrated wood processing. strategy is to expand the volume of use of renewable energy sources.
seven Russian mills. The activities which is engaged in the procurement Delivery of products is carried out The Company introduces innovations its own logging. At the same time, the
of production organizations are of wood raw materials, as well as by sea, rail and road transport. not only in the field of creating new Company strives to reduce the impact
regulated by the management a number of other companies. types of products and improving of its enterprises on environment.
Assets Map
Customer Centricity Operational
1 Sveza
in St. Petersburg Become a customer-centric Efficiency
company
Plywood production Be the cost leader in
the industry
2 Sveza
in Kostroma
Production of plywood
and particle boards
3 Sveza
Санкт-Петербург
СВЕЗА
in Manturovo
Усть-Ижора Plywood production 1
Производство
St. Petersburg
фанеры
4 Sveza
СВЕЗА in Novator 8 Veliky Ustyug
Кострома
Производство фанеры Plywood production 2 3
древесных плит
4
Kostroma
СВЕЗА 5 Sveza
Мантурово in Uralskiy Moscow
Производство
фанеры Production of plywood
Perm
and particle boards
СВЕЗА 6
Новатор 5
Производство 6 Sveza
фанеры
in Verkhnyaya Ekaterinburg 7
СВЕЗА Sinyachikha
Уральский Plywood production
Tyumen
Sustainable New Points of Growth
Development
Производство фанеры
древесных
Innovation is the driver of the
плит
7 Sveza Company's growth
СВЕЗА in Tyumen Increase the level of environmental, social
Верхняя Синячиха
Plywood production and economic sustainability, reduce risks
Производство
фанеры
СВЕЗА
8 Sveza Resource
Тюмень Vologda Region
Производство
фанеры Forest operation
10 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 11
Development and Governance Production Communities the Report
CSR Strategy
About Sveza
Market Position
No. 1 in the world No. 1 in Russia No. 1 in Russia
in production of in production in plywood export
birch plywood of plywood
20% 26% 31%
90
countries where Sveza's
+9
new countries with new
80%
is the share of exports in
products are exported customers in 2020 the total revenue of Sveza
Main Industries — Consumers of the Company Products
Construction Transport Furniture and interiors
Slab formwork Buses Furniture frames
Panel formwork Trailers, semi-trailers Furniture boxes
Agricultural buildings Vans Close-fitting furniture
Industrial floors, decking Minibuses Wall panels
Scaffolding Campers Engineering plank
External finishing of buildings Transportation for animals Underlays for floors
Interior decoration of buildings LNG tankers Laser forms
Playgrounds Boats, yachts, launches Toys, souvenirs
Passenger trains Audio speakers
Aircraft
12 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 13
Development and Governance Production Communities the Report
CSR Strategy
About Sveza
Products Plywood
The Company's enterprises specialize The Company's product portfolio Total Production, m3
in the production of birch plywood. includes plywood and panel
This product is distinguished by products in more than 200 sizes
its exceptional strength, surface and thicknesses, entirely made from
hardness, unique ability to withstand birch raw materials, including special 226
heavy loads, beautiful wood texture, plywood grades that meet the highest 174
ease of mechanical processing, as well requirements of industries, which are
as the ability to maintain properties produced under their own brands.
at different temperature conditions.
The decrease in production volumes
in 2020 was effected by the situation 1,098 1,029 Laminated plywood Plywood brand FC
in the global birch plywood market
and, in particular, by the reduction Film faced plywood covered with a High quality construction material
in demand for plywood and panels. special wear‑resistant material for interior use with high durability
and attractive appearance
2019 2020
Panels
Plywood
Plywood brand FSF Specialized plywood products
High quality plywood for indoor and 15 special products with special
outdoor use with high strength and performance characteristics, tailored
increased moisture resistance to the needs of the end user
Chipboard
Chipboard Laminated chipboard
A construction material made of birch Base plate covered with high
chips and a binder by hot pressing quality melamine films
14 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 15
Development and Governance Production Communities the Report
CSR Strategy
2
SUSTAINABLE
DEVELOPMENT
AND CSR
STRATEGY Sveza Group
and Sustainable
Development
The Сompany builds relationships
with stakeholders on the
basis of an equal dialogue
and balance of interests.
Agenda.
Read more on p. 25
Read more on р. 20
Sveza is in constant
Managing Sustainable Development Issues 18 dialogue with federal
and regional authorities,
including on issues of
Stakeholders Engagement 25 increasing the investment
attractiveness of
the industry.
Read more on р. 35Sustainable Development and CSR Strategy
The Main Directions of Sveza CSR
MANAGING SUSTAINABLE Landscaping and Caring for socially Support for projects
DEVELOPMENT ISSUES infrastructure
development
vulnerable groups
of the population
in the field of
culture and art
Sveza's long-term development strategy is based on four
key priorities. Along with customer-centricity, operational
Ecology: ecological Support for mass Health support:
efficiency and new growth points, the strategy implies an actions, ecological sports and promoting helping fight the
increased focus on sustainable business development. education of children healthy lifestyle pandemic
and youth
Striving for leadership in the timber and socially responsible forestry Social responsibility extends not
processing complex, Sveza pays great approach. The Company is also only to employees, but also to the
attention to taking care of nature. As actively looking for opportunities territory where the Company operates.
part of the new strategy, the Company to create new products. Here Sveza contributes to the
intends to use the tree as efficiently socio-economic development of the Basic forms of Participation in social programs within the
as possible, because it is not only a Sveza is a reliable employer. regions, provides regular charitable CSR framework of multilateral cooperation
matter of profit, but also of preserving The Company creates modern assistance, builds and maintains
the environment for future generations. and well-paid jobs in the Russian social infrastructure facilities. Charity and sponsorshi.
Therefore, in its activities Sveza is regions, employing thousands of
guided by the principles of responsible experienced professionals. The safety
Corporate volunteering
production and rational use of forest of employees and the creation of a Educational activity
resources. Sveza adheres to the comfortable working environment
philosophy of “zero waste”, strives for are paramount. Sveza develops
integrated wood processing, practices corporate culture, provides
a circular economy and increases the opportunities for professional
share of green energy. Consumers can growth, trains employees and creates The governance structure
be sure that all Sveza products come conditions for self‑realization and of SVEZA-Les LLC includes Department of Department of
from forests with environmentally development within the Company. functional departments that are Economics and Finance Communications
also responsible for economic, Economic development issues Corporate social responsibility
environmental and social topics and sustainable development,
that arise in the Group activities. engagement with local communities,
corporate volunteering
The following departments
are responsible for making Production Department Department for Interaction
key decisions in the field of
Environmental impact and other with Government Authorities
sustainable development: environmental issues. Industrial Relations with authorities at
safety and labor protection all levels, including regulatory
and supervisory authorities
Department of Purchasing and Logistics
Organizational Development Department
and Personnel Sustainable forest management and
Human resource management, social reforestation control, support for
issues related to labor relations small and medium-sized businesses
18 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 19
Development and Governance Production Communities the Report
CSR StrategySustainable Development and CSR Strategy
Sveza Group and Sustainable Sustainable Development Goals and Objectives What has been done in 2020
Development Agenda 8.8 Protecting labor rights and promoting • Trade union organizations operate
a safe and secure work environment at four Sveza enterprises
In 2020, Sveza Group joined the strategy with the global priorities to the achievement of Sustainable • 62% of employees are covered by collective agreements
UN Global Compact and committed of the world community, as Development Goals. During online Sections: • From April 1, 2020 salary was indexed
itself to adhere to the fundamental articulated in the Sustainable voting at the 2019 annual conference, for 6,325 employees
“Protection of workers' rights”, p. 113
principles set forth in this document Development Agenda for the period Company leaders expressed their views “Prevention of occupational diseases and • All enterprises have a health and
in the field of human rights protection, up to 2030 and the United Nations on the SDGs, priority for the Group, improvement of working conditions”, p. 88 safety management system
labor relations, environmental Sustainable Development Goals. including for the period of 2020. “Digitalization and Innovation”, p. 49 • The level of occupational injuries has
protection and the fight against more than halved in a year
corruption. Participation in this For this purpose Sveza analyzed the • All enterprises have a social and household
standard that determines working conditions
initiative challenges responsible Group's short-term development
companies to align their business strategy in terms of its contribution
Goal 9 Industrialization, Innovation and Infrastructure
Goals, Identified as Priorities for 2020 9.3 Increase access of small-scale industries • More than 50% of the total number of
and other enterprises to financial services, timber suppliers are local producers
strengthen their integration into value chains • 660 million rubles were invested in improving the
fleet of equipment, forest transport logistics and
Sustainable Development Goals and Objectives What has been done in 2020
infrastructure of suppliers of wood raw materials
Section “Local Supplier Support section”, page 97
Goal 3 Good Health and Well-Being 9.4 Upgrade infrastructure and re-equip • 2.5 billion rubles11 were allocated for the modernization
of equipment, improvement of working conditions,
industrial enterprises to make them sustainable
environmental projects and improvement of fire safety
3.8 Universal health coverage • Most of the staff members are covered by the by increasing the efficiency of resource use
• Project “Novator +52”: construction of a high-
voluntary health insurance system. They are
tech production line for the production of
paid for sanatorium‑resort treatment
Sections: large format film faced plywood, increase
• All enterprises are equipped with first-aid posts. in production volume to 200 thousand m3
“Employee health”, p. 123
Medical examinations are carried out annually. A new annually, total investment 8 billion rubles
“Protecting employee health amid the spread medical center was opened at the mill in St. Petersburg • Project “+40”: modernization of the mill in Uralsk, increase
of coronavirus infection”, p. 90
• 1,255 people were tested according of birch plywood production by 40 thousand m3 per year.
to specialized programs Increase in labor productivity, energy and environmental
efficiency with the total investments of 3.5 billion rubles
• More than 67 million rubles were spent on measures
to prevent and fight coronavirus infection.
9.5 Intensify scientific research, build up the • More than 120 million rubles were spent on the
• Support for mass sports and a healthy creation of our own R&D center in St. Petersburg.
technological potential of industrial sectors
lifestyle is carried out at all enterprises. • 83 initiatives are in the project portfolio of the
• The Company has corporate teams in Sveza Technological Development Centers
various sports (football, volleyball) Section “Innovation Management”, p. 48 • The mill in Kostroma patented flexible plywood production
technology and plywood peeler splicing technology
Goal 8 Decent Work and Economic Growth
Goal 11 Sustainable Cities and Towns
8.2 Increasing labor productivity through • 4,331 ideas submitted to the Idea Factory
11.6 Reducing the cities’ negative • Modernization / replacement of gas cleaning
technical modernization and innovation • Over 1.1 billion rubles invested in projects to units at the mill in St. Petersburg
improve technology and product quality environmental impact
• Replacement of outdated heat-generating equipment
Section “Innovation Management”, p. 48 • The defect rate has decreased by 37% over the year with modern, with a high degree of purification of
• The share of value-added products Section “Impact on atmospheric air”, p. 70 atmospheric emissions in Verkhnyaya Sinyachikha
increased from 4% to 7% • Total emissions through the Company
were decreased by 14%
8.4 Improving global resource efficiency in • The coefficient of consumption of raw materials
in the Company on average decreased by 11.7 Free access to safe green spaces • Improvement and landscaping of
consumption and production systems
1.1% over the year, which is equivalent to the Uralskiy was completed
and public spaces
saving about 30 thousand m3 of wood • The concept was developed and the design of the
Sections: square in the village of Pontonny was completed
• The method of gluing firewood from sawing residues
“Saving raw materials”, p. 76 Section “Local Communities”, p. 92 • The concept of a public garden in
will save up to 40 wagons of raw materials per year
“Impact on water bodies”, p. 72 Manturovo was developed
• The consumption of water at the enterprises
“Rational energy consumption”, p. 74 of the group has decreased by 2% • Projects of the “People's Budget” in the field
of improvement of public areas in the village.
• 14 million rubles were saved through the Novator, Veliky Ustyug and Totemsky District
activities of the energy efficiency roadmap of Vologda Region have been implemented
20 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 21
Development and Governance Production Communities the Report
CSR StrategySustainable Development and CSR Strategy
Sustainable Development Goals and Objectives What has been done in 2020 Sustainable Development Goals and Objectives What has been done in 2020
Goal 12 Responsible Consumption and Production Goal 6 Clean Water and Sanitation
12.4 Environmentally sound management • The Company's development strategy provides 6.3 Improving water quality by reducing pollution • A modern multistage ultrafiltration system for river
of chemicals and waste management for 100% use of forest resources water was launched at the mini-CHP in Manturovo.
The modernization of the discharge of conditionally
• All plants are equipped with workshops for the Section “Impact on Water Bodies”, p. 72 clean waters into the Unzha River was completed
production of fuel briquettes from wood dust
Sections: • Storm water treatment facilities were
• The production of fuel briquettes was launched at
“Production of Organic Products”, p 78 installed at the Novator mill
the plants in St. Petersburg and in the Uralskiy
“Environmental Performance of Products”, p. 78 • Reconstruction of sewerage networks with
• All Sveza products are recognized as products
wastewater discharge to treatment facilities of
with ultra-low formaldehyde emission
Verkhnyaya Sinyachikha was completed
12.6 Applying sustainable production practices • The second report on sustainable development 6.b Support and strengthen the participation • More than a kilometer of the Volga coastline
and reporting sustainability information of the Sveza Group was prepared of local communities in improving water has been cleared of debris in Kostroma
and sanitation management
Section “About the Report”, p. 130
Section “Corporate Volunteering”, p. 124
Goal 13 Combat Climate Change
Goal 7 Affordable and Clean Energy
Sections: • Development of production of organic products
from by-products of production 7.1 Providing access to affordable, • Provision of energy supply to settlements in the regions
“Production of Organic Products”, p. 78 reliable and modern energy supply of presence, including with the use of carbon-neutral fuel
• Introduction of innovative products
“Innovation Management”, p. 48 • 84% of the thermal energy of the TPP of the Sveza
• Implementation of sustainable forest Novator mill is consumed by the residents of the village
“Reforestation Work” and “Fire-fighting measures management practices Section “Local Communities”, p. 92
in forest areas”, pp. 61–62 • Mini-CHP plant in Manturovo provides
• Reducing the use of fossil fuels and using heat to 12 residential buildings
“Rational Energy Consumption”, p. 74 carbon neutral biofuels as an alternative
• The new CHPP in Pontonny heats dozens of residential
buildings and social infrastructure in the village
• Providing firewood for local residents
and social infrastructure
Other Sustainable Development Goals to which the Сompany Сontributes
Goal 15 Terrestrial Ecosystems Conservation
Sustainable Development Goals and Objectives What has been done in 2020
15.1 Conservation, restoration and sustainable use • All products manufactured under the Sveza brand
of terrestrial and inland freshwater ecosystems are the result of processing legally harvested
Goal 4 Quality Education wood and comply with FSC requirements
Sections “Independent Forest Certification”, p. 63 • Preservation of high environmental value forests
4.4 Increasing the proportion of people with • More than 12 million rubles — investments in training
in‑demand vocational skills for employment
• 19% of employees completed full-time training 15.2 Implementation of methods of rational • Restored 1,481.2 hectares of land plots
• 17.5 hours of training on average per one trained employee
use of all types of forests, expansion of • Planted 1.2 million spruce seedlings and 1.3 million seedlings
Sections: afforestation and reforestation
• 3.3 hours — the average number of training • 273 km of new ones were created and more than 1,757 km of
“Education and Development”, p. 119 existing fire-prevention mineralized belts were put in order
hours per employee per year
Section “Reforestation”, p. 61
“Universities and educational institutions”, p. 37 • More than 40 million rubles were invested
• 1,612 employees (+ 5%) completed distance learning
in forest fire prevention
• 25 partner higher and secondary educational institutions
• 26 students completed a paid internship Goal 16 Peace,Justice and Effective Institutions
4.7 Knowledge and skills of students to promote • 35 participants of school scientific and 16.5 Reducing corruption and bribery in all its forms • The Anti-Corruption Policy is implemented at all enterprises
sustainable development, including through practical conferences on ecology and • 45 employees attended the distance
education on sustainable development responsible environmental management Section “Anti-Corruption”, p. 56 course “Anti-Corruption Policy”
“Winter Readings-2020” in Uralskiy and Manturovo
• Five corruption offenses were identified
Section “Eco-Education of Children and Youth”, p. 100 • 65 students were trained in a three-week
children's environmental camp in the Uralskiy 16.10 Ensuring public access to information • About 200 press releases of the Company were published
• Competition for schoolchildren “Grow Your Tree” in Uralsky • There are 17.5 thousand subscribers to corporate
Section “Information Transparency”, p. 54 accounts in social networks (+ 56%)
• Interactive lessons “Forest and Climate” for
• About 132 thousand visitors are registered
schoolchildren of Verkhnyaya Sinyachikha
on the official website of the Company
22 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 23
Development and Governance Production Communities the Report
CSR StrategySustainable Development and CSR Strategy
The main Directions of Sustainable Development of Sveza for 2021
Socio-economic direction:
Ensuring decent, favorable working conditions
and well-being of employees
STAKEHOLDERS
ENGAGEMENT
Reduction in injury rate LTIFR = 1.07
Increasing the level of personnel protection Approaches towards Engagement with Stakeholders
for employees of the “TOP 4000”
category from 52% to 60%
Sveza carefully examines the views The key Sveza stakeholders are: The Сompany builds relationships with
Reaching 78% employee engagement rate of stakeholders on issues that are stakeholders on the basis of an equal
Customers (В2В);
important to them and applies a wide dialogue and balance of interests.
Reduce unwanted employee turnover by up to 4.5% range of interaction mechanisms. Consumers (В2С); Thus, in particular, a list of projects
At the same time, the Company uses is formed, the financing of which
Development and implementation of a feedback channels to assess the Suppliers and contractors; the Сompany undertakes within the
comprehensive regional development program satisfaction level of stakeholders with framework of its social responsibility.
Employees;
various aspects of its activities, to Sveza annually informs stakeholders
determine reasonable expectations State Authorities; in the regions of presence with whom
and concerns of stakeholders and cooperation has been established
to consistently respond to them, Shareholders; about partnership, co-financing
including through reporting in the or the opportunity to prepare an
Media and social networks
Environmental direction: field of sustainable development. application for the provision of
(journalists, bloggers, influencers);
material or financial assistance.
Reducing the impact on the environment and the impact on the vital The Company's publications in the Universities and educational
activity of the region of presence during the operation of the enterprise media and on the corporate website, as institutions;
well as Sveza's social media accounts
NGOs, environmental activists.
are a universal channel of interaction
with all categories of stakeholders.
Reducing energy consumption A special group of stakeholders
At the stage of preparation for the consists of individuals and
Reducing water consumption
release of the first sustainability organizations with any legitimate
Reducing waste generation report of Sveza Group, a list of interest in the products and services
key stakeholders was identified. that are generated in the management
Reducing carbon footprint The procedure was attended by of forest areas, as well as those with
directors of all divisions of the an interest in the environmental and
Company. The preliminary list included social effects of forest management.
24 categories of organizations Consultations with such stakeholders
and social groups that have an are an integral part of the FSC audit
impact on the achievement of and include both questionnaires
individual goals or on the work of and direct meetings. For more
the Company as a whole, as well information, see the Sustainable
as are influenced by its activities / Supply Chain and Supplier Social
products. Based on the voting Impact Assessment sections.
results, a list of priority stakeholders
was formed. This list is not final
and may be revised in the future.
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Key Interests and Topics for Interaction Channels of Interaction Key Interests and Topics for Interaction Channels of Interaction
Customers (В2В) Media and Social Media (Journalists, Bloggers, Influencers)
• Competitive prices • Bargaining • Investment and development of the Company • Distribution of press releases and messages in social media
• Stable supply • Study of customer satisfaction Survey “Voice of the Client” • Environmental aspects and environmental impact • Press conferences
• Product quality • Handling complaints and dealing with requests • Economic stability • Round tables
• Timely delivery • Client services on the corporate website • Responsible forest exploitation and management • Press-tours to enterprises
• New products and services • Participation in industry conferences and exhibitions • Participation in the socio-economic
• FSC certification • Customer events (visits to production facilities) development of territories
• Responsible forest management
• Aspects of sustainable development Universities and educational institutions
of the Company, ESG factors
• Cooperation in the field of personnel training for LPC • Information meetings with students
Consumers (В2С) • Career opportunities • Career days
• Research and development • Internships at the enterprises
• Quality and variety of products • Handling complaints and dealing with requests
• Product safety • Participation in industry conferences and exhibitions • Career guidance lessons, lectures and field trips
• Sustainable production • Corporate website • Preparation and signing of cooperation agreements
• FSC certification
• Responsible forest management NGOs , environmental activists
• Fast feedback in the confirmation of • Reducing negative impact on environment • Public hearings
orders and resolution of claims
• Responsible forest management • Working parties
• Production and delivery time
• Biodiversity conservation • Round tables and conferences
Suppliers and Contractors • Responsible reforestation
• Prevention of forest fires
• Transparency and accessibility of • Meetings and negotiations
• Resource saving
procurement procedures • Information activities
• ustainable production • Industry exhibitions and conferences
• Occupational health and safety • Corporate website
• Environmental impact
• Compliance with labor and environmental laws Resolving Conflicts with the Local Population
• Long-term partnerships
• Ensuring raw material security, investing
in wood raw material suppliers
St. Petersburg administration and an initiative group As a result of the appeal of local
Employees of local residents. The representatives residents to the controlling authorities,
• Competitive salary and social package • Corporate magazine In the fall of 2020, commissioning of the mill talked about how they are unscheduled inspections of the mill's
• Safe working conditions • Single hot line works were carried out at a new mini- working to eliminate the problem of compliance with environmental and
• Training and development • Ethics Committee CHP at the mill in St. Petersburg. At ash emissions, about the timing of the sanitary legislation were also carried
• Promotion opportunities • Informational meetings with management: this time, residents of Pontonny, living completion of the work and agreed out, which did not reveal significant
• Discrimination and violations of ethics cascade meetings and annual conference in close proximity to the production with the residents to coordinate violations, including exceeding the
by colleagues and management • The Survey “Sveza Voice” site, drew attention to the episodic efforts to resolve this situation. In maximum permissible concentration of
• Collective bargaining appearance of ash traces on their particular, it was decided to involve pollutants in the emissions of the mill.
• Dialogues on goals backyards. The reason for this was the Company representatives in the work
• Personnel committees ingress of ash into the gas-air ducts of the municipal council on the issues The Company builds relationships
• Social media during the routine adjustment of the of effective interaction between the with stakeholders on the basis of
• Newsletters email
mini-CHP, which was accompanied by mill and the public. The Company has an equal dialogue and balance of
• Information stand
short-term testing of the operation been attentive to the appeals of local interests. Thus, in particular, a list of
• Corporate events
of the boiler units at the maximum residents, has shown understanding projects is formed, the financing of
• Training events and trainings
permissible capacities. On the and loyalty to their problems. The which is undertaken by the Company
initiative of Sveza, an open meeting Company's employees answered within the framework of its social
State Authorities with the residents of the district took questions from citizens both in responsibility. Sveza annually informs
• Stable payment of taxes • Participation in the work of Advisory and place in the municipal administration person and through social networks. stakeholders in the regions of
• Ensuring raw material safety expert councils under governance of Pontonny. It was attended by the The situation at the mini-CHPP presence, with which cooperation has
• Responsible forest management • Investment agreements head of the Pontonny municipality, the contributed to building a direct and been established, about partnership,
• Compliance with legislation • Investment agreements director of the mill, representatives frank dialogue between the mill and co-financing or the opportunity to
• Deep processing of raw materials • Participation in industry associations and business events of the general contractor, the residents of Pontonny, the result prepare an application for the provision
• Attracting investments • Vis-a-vis meetings and bargaining representatives of the district of which both parties were satisfied. of material or financial assistance.
• Participation in the socio-economic • Preparation and signing of cooperation
development of territories agreements, selection of projects for support
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Suppliers and Contractors Leading Russian companies in Approximately 36% of the volume of Our partners include 19 shipping
the industry and major European such purchases (excluding purchases lines, more than 20 container
manufacturers are supplying chemical of plywood raw materials) is carried forwarders, and 70% of our fleet of
The goods and services necessary for the stable life of the Company products within the framework of out in the regions of presence. road carriers is occupied by European
are provided by the procurement direction, which is part of the categorical purchases. Approximately (For interaction with timber suppliers, and Russian companies. We carefully
procurement and logistics Department of the Management Company. 16% of the total volumes of purchases, see also the Supply Chain section). select our partners, evaluate the
mainly in the provision of services, are level of tariff offers and service,
carried out in the regions of presence. Sveza conducts an environmental and strive to provide delivery in the
and social assessment of most efficient, fastest and most
Category Investment Technical Technical Services Proposals from industry leaders, suppliers of plywood raw materials convenient way for our customers.
Purchases and Technical Maintenance Purchase global companies specializing in the and contractors who perform
Purchases and Repairs production of specialized equipment, various types of work or provide
regardless of their geographic services on the territory of
• basic (resins and • new equipment for • supply of materials and • centralized provision location, are primarily considered when the Group's enterprises.
films) and auxiliary investment programs services to maintain of technical services investment purchases are regarded.
materials for the equipment operability in the framework of We deliver finished products from
plywood production investment projects Taking into account the course our factories all over the world
• 3,000 items range
and operating activities towards centralization, part of the by road, rail and sea transport.
• 15,000 items range
• 2,000+ suppliers purchases of products of the category At present, Sveza's products are
• 450 tenders per year
• 1,500 suppliers from 20 countries
“Maintenance and Repairs” are made delivered to more than 2,000 delivery
directly from manufacturers or points; more than 15,000 routes
through their official representatives. have been developed for this.
Non-centralized procurement of spare
parts is focused on local suppliers
offering minimum delivery times.
16%
Approximately 70% of other purchases come
from key partners that follow the principles
of sustainable development and implement
of the total volume of various initiatives to improve occupational
purchases mainly in the
field of services provision safety and health of employees, use modern
is carried out in the resource-saving technologies and reduce
regions of presence
negative impact on the environment, respect
human rights and promote sustainable
functioning economy and social sphere in
the regions of presence. The vast majority of
suppliers are ISO 9001 and ISO 14001 certified.
36%
of the volume of non-
centralized purchases of
spare parts is carried out
in the regions of presence
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>200
Customers and Consumers Feedback from customers containers. The data is updated
allows us to adjust the work of daily, as information is received from
enterprises, taking into account the forwarding services. More than
Continuous improvement of processes responsibility area of the Sales competencies in finding clients and the comments and preferences of 200 clients of the Company have
and mechanisms for working Directorate. This division has regional supplying them with the necessary customers. In 2020, another study already connected to the service. customers of the Company
with clients is a key condition for teams, each of which is responsible products, but more often industry and of the level of customer loyalty Anew customer service — an electronic joined the Customer service
maintaining leadership positions. Sveza for supplying products to customers regional teams work in cooperation, was conducted using the NPS queue of shipments — makes it possible
is in constant search of solutions in specific geographic segments: complementing each other. (Net Promoter Score) methodology. to evenly plan shipments, minimize
that allow us to confirm the position Western and Eastern Europe, downtime, and provide customers with
1.5-2
of a reliable supplier and improve the America, Eastern Asia, Western Asia Tasks aimed at improving the quality The “Products” section, structured affordable vehicle delivery windows.
quality of interaction with partners. and Africa, Russia and the CIS. of interaction with customers, by areas of application and equipped A large amount of useful information,
Customer centricity is one of the four increasing their satisfaction, with a system of filters to facilitate including certificates confirming
priorities that the Company adheres Five newly created industry teams improving customer experience are the search, operates to inform the quality and safety of products,
to in its activities in accordance with within the Marketing Directorate: formulated for each Sveza division. customers on the official Company is systematized and organized in
its new development strategy. Land Transport, Maritime Transport, website sveza.ru. A feedback service the “Documents” section. The site thousand of vehicles
Construction, Interior and Decorative Many customers, especially from has been implemented for customers also regularly publishes news about delivering Sveza products to
In 2020, Sveza sales management Coatings are responsible for among foreign buyers, make with the functionality of an online the key events of the Company. customers are monitored in
system was changed from a regional industry-specific sales, direct increased demands not only on the store. Wholesale buyers have the the system at the same time
to a regional industrial one. interaction with key customers quality of products, but also on the ability to control the location of
and development of solutions for environmental and social aspects their order by tracking the shipped
Large wholesale companies are the them. In 2020, the share of direct of the Company's activities, pay products. The system simultaneously
main buyers of Sveza products. and managed sales has grown to great attention to the origin of raw monitors from 1.5 to 2 thousand
Sveza's customers include over 15% (12% in 2019), and by 2025 this materials. Sveza mills are regularly vehicles delivering Sveza products
400 distributors and traders. figure is expected to increase to audited for compliance with the to customers. The service covers
Customers of this kind are in the 50%. Each of the directorates has requirements of key customers. all export vehicles, as well as sea
Cooperation with Employees
>400 15%
distributors and traders share of direct and
50%
NPS* level in 2020
Unified Hotline
An open and honest dialogue
In 2020, the hotline received 13 calls.
Most of them related to personnel
issues (wages, bonuses and other
• Business Support Director;
• Economics and Finance Director;
amoung Sveza customers managed sales in 2020 (46% in 2019) • Head of Legal Affairs Department.
with employees is at the heart of payments, vacation provision).
the Company HR policy. Various All requests were processed, and all
communication channels are used to employees who requested for help The committee is headed by the
* лояльность по всем каналам продаж
obtain feedback. A unified hotline is received the assistance needed. CEO. The members of the Committee
designed to help employees get an discuss each appeal separately
answer to their question as quickly as Ethics Committee and make a collegial decision.
possible. It also allows the Company Each situation is reviewed within one
to timely respond to a complaint or Any employee who encounters month in order to thoroughly analyze all
problem, record important information violations of corporate conduct rules sides of the problem. The Committee
or suggestions. Applications are and who has not been able to resolve also provides clarifications on
accepted by phone, e-mail or through the issue through their immediate the provisions of the Code of
the corporate portal. The service supervisor can contact the Ethics Conduct and works to improve it.
is available 24/7 and provides the Committee. The appeal can be sent to
ability to specify the place of work, the e-mail address of the Committee. In 2020, the Committee reviewed two
department, or maintain anonymity. The Ethics Committee guarantees the complaints from employees. One of the
All calls to the hotline are recorded confidentiality and objectivity of the appeals was partially confirmed, and
in a single database. A responsible investigation. The Committee includes: administrative measures were taken.
executor is appointed for each • Organizational Development
request. The terms for solving and Personnel Director;
the problem are determined.
30 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 31
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Cascading Meetings Annual Business of customer-centricity in the Company. work, it was possible to support New Communication “Sveza Live!” — a special channel
Conference The conference participants rated employees and reduce the degree Channels Based for communication in live mode on
A series of cascading meetings is held the usefulness of the event at of tension in labor collectives at on Modern Digital YouTube video hosting is available to
on a quarterly basis, which begins with At the annual business conference, 4.65 points on a five-point scale. the first stage of the pandemic, all employees. A series of broadcasts
a meeting of the CEO with members of key managers discuss the when various restrictions on work
Solutions is held here, during which important,
labor collectives. At such meetings, the Company annual performance Internal and movement were introduced. In 2020, due to quarantine, many relevant and simply interesting
results of the past quarter / year are and determine the priorities for Communication Tools employees switched to remote topics are discussed with heads of
summed up, priorities are determined its development. This meeting is All employees of the Company have work mode. To support effective departments, specialists in various
and tasks are set for the current period. traditionally joined by the CEO of “My Sveza” magazine, electronic access to the SAP HR Personal work, online broadcasts were fields. Communication is conducted
Each employee who participates in the Severgroup Alexey Mordashov. newsletters and news feed on Cabinet. You can visit your personal introduced with the participation of in the format of a dialogue with a
meeting can ask the CEO a question and the corporate portal, TV screens page from a computer, mobile device the CEO. Regular, once every two moderator, and anyone can join it by
get an answer online. Similar events at the In 2020, the event was held in an and information stands at the or through an information kiosk and weeks, broadcasts were named asking the guest a question via chat.
mills are carried out by branch directors online format and was dedicated to mills are actively used to provide get comprehensive information on “GD Live”. Employees with access
and production managers. Information customer centricity. Global Speaker employ with information about personal issues, arrange a vacation to the corporate network were
from the meetings is additionally placed Janelle Barlow spoke to staff about situation in the Company. or a training, and order a certificate. able to communicate directly with
in the corporate magazine, on information the importance of handling customer the CEO. Half of the 30 minutes
stands and on the corporate portal. complaints. Five major customers Created in March 2020 in the social All this makes it possible to adjust allotted for the broadcast is devoted
from different countries spoke at network Vkontakte, “Sveza in Touch” and improve interactions, increases to answering questions from the
In 2020, all events were performed the event, told about their business, group already has 2,670 members. the level of involvement and participants. Among the most
in online mode. To participate, we expectations from Sveza and talked The group has become a convenient motivation in the Company. Almost popular topics are the issues of
managed to attract all employees to the Company's employees. Also, platform for online events, as well three quarters of employees believe material incentives, new products
of the Company who have accounts the Company's employees took part as a stable communication channel that in the past year they received and new projects of the Company.
in the corporate network. 92% of in brainstorming sessions on the topic that brings together both workers comprehensive information about Employees who have missed the
the participants have assessed the of the conference and discussed and office workers. Thanks to prompt the changes that took place in the live broadcast can watch it in the
quality of the meetings positively. possible obstacles to the development information and active explanatory Company and in their enterprise. recording on the corporate portal.
>60%
At the corporate media
competition “Medialider —
2020”, “My Sveza” magazine
of Sveza employees receive information became the winner in
about events in the Company during
cascade meetings with the participation the “The Best Corporate
of the CEO and the branch director
Magazine” nomination.
86.8 % 73%
of employees trusted corporate the level of awareness of employees
media, which exceeds the based on the results of the survey
previous year number by 4% in the reporting year (+4 pp)
32 Sustainability Report 2020 About Sveza Sustainable Corporate Green Local Employees About 33
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