As a member of the UN Global Compact, PJSC Inter RAO makes every effort to comply with the fundamental principles of the Global Compact in the sphere of human rights, labor relations, environmental protection, and anti-corruption management. Inter RAO Group shares the UN Goals in the sphere of Sustainable Development Goals (SDGs) and contributes to their achievement, including through the timely identification, assessment, and response to risks in the sphere of sustainable development.
The climate change risks are one of the priority issues in the formation of plans and development strategy of Inter RAO Group.
Climate change can primarily affect the production and distribution of heat and electricity.
With the increase in the mean annual air temperature in the areas of power plant placement, the heating season will be reduced, which would entail a reduction of heat supply and lower revenue for the heat distribution companies in comparison with previous periods. Coincidently, high summer temperatures will lead to an increase in the demand for electric energy and to an increase in the revenue figures of the companies of the Group.
The risk of negative consequences arising from accidents due to violations of labor protection requirements, industrial, fire, and environmental safety requirements in production activities is included in the list of critical risks for Inter RAO Group. Critical risks are given special attention; monitoring and reporting on the effectiveness of critical risk management are carried out quarterly on an ongoing basis.
Health and employee safety risks are also taken into account when forming the strategy of the Group. The strategic priority of the Group in the sphere of health, safety, and environment is the continuous improvement of processes that ensure safe work performance, which is inextricably linked with the adaptation of the best practices in the sphere of industrial safety. It is also worth noting that the risk appetite of the Group determines the minimum threshold for the financing of the measures to improve labor conditions and safety.
Inter RAO Group includes the following situations into the list of the risks that affect the meeting the goals of providing affordable and clean energy:
- Change in sales of electricity and capacity (net supply).
- Reduced availability of equipment for operation (breakdowns in the power industry).
- Occurrence of negative consequences arising from accidents due to violations of labor protection requirements, industrial, fire, and environmental safety requirements in production activities.
- Failure to achieve project success indicators (including deadlines for construction and commissioning of new facilities).