Climate Change Data

Public Joint Stock Company «Research and production corporation «United Wagon Company»

Climate Impact & Sustainability Data (2019)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:3,333 tonnes (atmospheric emissions at Tikhvin Industrial Site)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:158,000 tonnes (Tikhvin industrial site)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Protection
  • HR Management
  • Occupational Health and Safety
  • Development of the Regions of Presence

Environmental Achievements

  • Spent RUB 87.4 million on environmental protection (4% more than in 2018).
  • Reduced atmospheric emissions by 6.7% compared to 2018 (when including CHPP).

Social Achievements

  • Increased salaries for 21 professions, affecting over 4,000 employees.
  • Installed prevention rooms for welders in the facility health center.
  • Established a single dispatch center for rapid response to emergencies.
  • Trained almost 2,500 Industrial Site employees in production system principles.
  • Installed a modern playground rope complex at Generations Park in Tikhvin.

Governance Achievements

  • Implemented a Risk Management and Internal Control Policy.
  • Held three General Meetings of Shareholders (one annual, two extraordinary).
  • Restructured debt portfolio, reducing debt by 24.1%.

Climate Goals & Targets

Long-term Goals:
  • Maintain leadership in the railcar industry in the Russian Federation and boost the Company’s value for all shareholders.
Short-term Goals:
  • Increase transportation revenue.
  • Fully liquidate Lease segment by the end of 2020.
  • Manufacture 270 articulated flat cars for Deutsche Bahn.

Environmental Challenges

  • Market entering a cycle of decline, with expected production volume reduction by almost half by 2024.
  • Shortage of wheels, steel castings, and other components at the beginning of 2019.
  • Falling export prices for cargo transported by rail.
  • Non-compliance with certain financial and non-financial covenants set out in loan agreements.
Mitigation Strategies
  • Strengthening competitive position in specialized rolling stock segment.
  • Increasing exports of railcars and components.
  • Improving labor productivity and optimizing production costs.
  • Debt restructuring, extending circulation period and setting a fixed annual interest rate.
  • Developing alternative sourcing strategies for critical materials and components.
  • Working with major creditors to restructure debts, lowering interest rates and changing repayment schedules.

Supply Chain Management

Supplier Audits: Technical audits carried out at 11 enterprises of suppliers of particularly critical units and components.

Responsible Procurement
  • Competitive methods of conducting procurement procedures; attracting the maximum number of participants; no restrictions on admission; holding tenders in several stages; equality, fairness, non-discrimination; transparency.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO/TS 22163:2017 (TAP “Titran-Express”), OHSAS 18001:2007 (TVSZ)

Third-party Assurance: AO Deloitte & Touche CIS

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • New-generation railcars with improved technical and economic characteristics; articulated tank cars, gondolas, hoppers, and flat cars.

Awards & Recognition

  • Gold Award in the Best IP Department 2020 in Russia & Central and Eastern Europe (Innovation & IP Forum and Awards)