Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• Sustainable Development
• Social Investments
• Environmental Responsibility
• Corporate Governance

Environmental Achievements

• Segezha Group restored about 22,000 ha of forests in 2016.
• Segezha Group invested RUB 85m in environmental projects in 2016.
• Detsky Mir used eco-friendly paper bags from Segezha Group, increasing sales fivefold.
• MTS packaged 8.5m SIM cards in eco-friendly kraft cardboard envelopes.
• MGTS reduced paper bill spending by 6.5% by encouraging electronic billing.

Social Achievements

• Sistema Group companies employed ~158,000 people.
• Paid ~RUB 98bn in taxes, including social security contributions.
• Sistema Charitable Foundation spent almost RUB 1.5bn on social and charitable activities.
• Taking Care of Veterans program provided medical services to ~700 veterans.
• Detsky Mir's Participate! campaign collected over three million gifts worth RUB 112m.

Governance Achievements

• Adopted a new dividend policy with increased transparency and predictability.
• Implemented a co-investment program for senior management.
• Improved corporate governance systems across Sistema Group companies.
• Increased the share of independent directors on the Board of Directors to a majority (55%).
• Consistently high attendance rate at Board meetings (96% average in 2016).

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic conditions in Russia and other operating regions.
• Tough competition in various sectors.
• Geopolitical risks and sanctions affecting business operations.
• Currency fluctuations and risks associated with foreign exchange.
• Potential bankruptcy of Russian or foreign banks.

Mitigation Strategies

• Debt reduction and optimization.
• Diversification of asset portfolio.
• Effective monetization of investments.
• Improved risk management system.
• Open dialogue with all stakeholders.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact, Principles for Responsible Investment (PRI)

Certifications: ISO 14000 (Segezha Group), FSC (Segezha Group)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

Various initiatives across Sistema's portfolio companies contribute to these goals.

Sustainable Products & Innovation

• Eco-friendly paper bags (Detsky Mir)
• Eco-friendly SIM card packaging (MTS)

Awards & Recognition

• Best in class for corporate transparency
• Russian Business Leaders: Dynamics and Responsibility 2016 award
• 8 on the NCGR scale (Advanced corporate governance practice)