The present chapter covers main results of the Fuel Company activities in the context of implementation of the basic values of State Corporation.
Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014
n 2014 the subsidiaries of TVEL FC fulfilled the plans on the products and services to the full extent, which enables compliance with all contractual commitments of the Company to Russian and foreign customers.
Considerable increase in labor efficiency in TVEL FC over a period from 2012 to 2014 speaks for production efficiency, that is success in addressing the major business task; this has been achieved primarily through implementation of ROSATOM Production System [ i ] and increase in the Company revenue, and owing to headcount optimization during the Fuel Company restructuring.
For the forthcoming years the management of the subsidiaries of JSC “TVEL” set a task on further transformation of production relations in the subsidiaries, formation of smaller groups [ i ] with dynamic form of production management covering 100% of regular workers, man-loading increase, development of system of interaction between all management levels through monitored performance indicators, development of the internal communications system [ i ].
Stable long-term relations with the end-product consumers allow development of long-term production and scientific plans, leading to reliable provision of subsidiaries and research establishments of the Fuel Company with the orders. The foreign orders portfolio is formed amounting to USD 10,391 million up to the year 2024, and comprises commitments on supplies of nuclear fuel and its components for foreign reactors of Russian design, as well as the commitments on supplies for European reactors BWR, PWR in production cooperation with AREVA NP, for reactors PHWR and BWR in the context of cooperation with Nuclear Power Department of the Government of India.
Major production event 2014:
Concentration of sublimation production at SC “SGChE”.
This project enables reduction in TVEL FC conversion expenses, and substantial increase in capacity load of conversion (sublimation) production facilities.
Main objectives of the separation-sublimation complex of TVEL FC for the year 2015 and in the midterm:
launching of works intended to remove depleted uranium from the site of SC AECC, its transportation to SC “PA ECP”, and processing into the safe form for long-term storage.
|Subsidiary companies||2012||2013||2014||∆2014/ 2013|
|SC "PA ECP"||3.9||4.8||5.57||16%|
Nuclear Fuel Fabrication Complex
In 2014 share of revenue received by TVEL FC from FA sales made 58.8% in total consolidated revenue.
Over the period from 2012 to 2014 revenue from FA sales increased by RUB 13,505 mln (by 20%), including all categories of consumers.
Products consumption structure of the subsidiaries of the given complex has not been changed materially, main consumers are Russian and European NPP (42.7% and 52.3% of the complex revenue in 2014, respectively).
In 2014 the plan of TVEL FC on nuclear fuel production was adjusted in accordance with the customers’ orders, and was fulfilled to the full extent.
The planned volume of the produced fuel products is determined in accordance with preliminary orders made by consumers based on the plans of fuel charging and recharging.
Major production events 2014:
Main objective of the nuclear fuel fabrication complex of TVEL FC for the year 2015:
Fuel assemblies production and supply for Tianwan NPP (China), and execution of current orders.
|Subsidiary companies||2012||2013||2014||∆2014/ 2013|
|Revenue from FA sales, RUB mln||67,550||73,595||81,055|
|Category of consumers||2012||2013||2014|
|Russian consumers||31,022 (45.9%)||31,973 (43.4%)||34,650 (42.7%)|
|European consumers||36,528 (54.1%)||39,689 (53.9%)||42,390 (52.3%)|
|Asian consumers||0 (0%)||1,933 (2.6%)||4,015 (5%)|
|Total||67,550 (100%)||73,595 (100%)||81,055 (100%)|
|FA FN-600, FN-800||437||485||291||286|
|FA for research reactors||227||79||0||96|
|FA PWR, BWR||204||337||352||164|
|Ceramic fuel pellets, tU||1,534||1,392||1,508||1,482|
Gas Centrifuge Complex
In 2014 the share of revenue received by subsidiary companies of the gas centrifuge complex in external market outside the Fuel Company made 0.02% from consolidated revenue of TVEL FC. The plans for production of gas centrifuges were fulfilled to the full extent.
Major production event 2014:
PJSC “KMP” produced and put on tests the pilot batch of 9+ Generation gas centrifuge.
Main objective 2015:
Preparation to serial production of 9+ Generation gas centrifuge at the subsidiaries PJSC “KMP” and UGCMP LLC.
|Subsidiary companies||2012||2013||2014||∆2014/ 2013, %|
|SC "VPA "Tochmash"||1.1||1.05||1.5||43%|
Non-nuclear Products Manufacturing
Major production event 2014:
In 2014 TVEL FC continued its forward motion within the directions that are considered promising and new both for the industry and for Russia, such as “Lithium-ion energy storage” and “Electrochemical generators on the basis of hydrogen fuel cells”.
Main objective 2015:
The year 2015 will be even more intense as regards the objectives set by the Company. Efforts should be made to accelerate the achieved rates of growth, to leverage the accumulated scientific engineering potential of the industry through creation and launching of new science- and technology-intensive sophisticated non-nuclear products.
Change in the volume of revenue from sales of non-nuclear products in 2014 is stipulated by reduction of the volume of energy services sales and completion of deliveries under ITER project.
Despite negative factors the Fuel Company exceeded the goals set for production and sales, works and services by 4% due to increase in sales of calcium core wire, titanium alloys rolling, lithium and isotope products.
|Indicator||2012||2013||2014||∆2014/ 2013, %||2015, plan|
|Revenue from general industrial activities||13,466.78||11,669.4||12,135.6||4%||12,648.65|
|including energy services and outgoing services (superconductor, etc.)||8,373.39||7,094.18||6,507.03||-8%||6,411.69|
Financial management is maintained in accordance with the approved Financial policy of the enterprises of the Fuel Company, agreed upon with ROSATOM State Corporation.
Main provisions of Financial policy of TVEL FC:
Budgeting in the subsidiaries of TVEL FC is set in accordance with the Unified budgeting procedure and standards of ROSATOM State Corporation.
Budgets of the subsidiaries of the Fuel Company are approved at the meetings of the Board of Directors of SC based on the results of consideration of the consolidated budget of the Company by the budget committees of JSC “TVEL” and ROSATOM State Corporation.
In 2014 all KPI and target production indicators applied to evaluate the Company performance were achieved.
In 2014 the export products were sold to the total amount of USD 1,523 mln. Sales of nuclear fuel and its components amount to 95.3% — the largest share in the export revenue.
|Indicator||Unit of measurement||Target||Actual value||Deviation|
|AFCF FC [ i ]||RUB bln||21.90||33.33||52.19%|
|Labor efficiency||RUB mln/person||4.91||5.49||11.89%|
|Foreign orders portfolio||USD bln||10.33||10.39||0.63%|
|Semi-fixed costs||RUB mln||43,600||39,963||-8.34%|
|LTIFR [ i ]||Preservation of base period level within 0.30||0.07||—|
|No INES events of level 2 and above||No events||No events||—|
|Proceeds from sales of enriched uranium products (including within FA, pellets) for NFC in whole.||RUB bln||50.40||69.3||37.5%|
|Indicator||2012>||2013||2014||∆ 2014/2013, %|
|Revenue (net) from sales, RUB mln||121,958||131,436||137,962||5%|
|Gross profit, RUB mln||39,289||39,628||44,663||13%|
|Ratio of gross profit to sales revenue, %||32.22%||30.15%||32.37%|
|Share of general and administration costs in revenue, %||2.29%||2.27%||2.28%|
|EBITDA, RUB mln||42,668||51,163||48,959||-4%|
|Net profit, RUB mln||19,642||23,866||20,870||-13%|
|Free cash flow, RUB mln||-470||1,801||4,202||133%|
|Net assets, RUB mln||566,427||579,708||590,006||2%|
|Return on sales, %||16.11%||18.16%||15.13%|
|Return on equity %||0.035%||0.042%||0.036%|
|EBITDA margin, %||34.99%||38.93%||35.49%|
|Ratio of borrowed and own funds||0.11||0.13||0.14||8%|
|Current liquidity ratio||2.52||2.42||2.76||14%|
|Labor efficiency, RUB mln/person||3.6||4.5||5.49||22%|
|Gross tax liabilities, RUB mln||23,419||27,695||25,774||-7%|
|Dividend payout, RUB mln||19,500||18,937||16,291||-14%|
|Types of products||Volume of sales|
|Nuclear fuel and components||75,017.3||79,603||89,055.6|
|Services on conversion and enrichment||18,403.2||23,505.1||23,154.7|
|Gas centrifuge products||2,916.7||4,214.3||25.1|
|Types of products||Volume of sales|
|Nuclear fuel and components||1,353.5||1,437.1||1,451.9|
|Calcium, titanium, zirconium||12.4||12.3||14.8|
Total increase of revenue of the Fuel Company in 2014 made RUB 6,526 mln as compared to 2013.
The revenue was influenced both by negative and positive factors.
The following can be referred to the negative factors:
The above stated negative factors were offset by:
|Dividends paid to JSC "AEP"||19,486.7||18,937.5||16,291.2|
|Dividends paid to JSC "TVEL" from SC||515.8||4,150.9||3,036.1|
Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014
Based on the results of 2014 the Fuel Company was acknowledged as the most efficient division of ROSATOM State Corporation.
The need to expand the order portfolio with a view to achieve strategic objectives, and severe and ever-growing competition in global markets always required special approaches to production and management processes and the development of performance efficiency management system.
In 2008 the companies of the nuclear industry, including the subsidiary companies from the Fuel Company’s management system started the integration of RPS (ROSATOM Production System).
RPS (ROSATOM Production System) is a large-scale industrial project intended not only to increase the performance up to the level of foreign competitors of ROSATOM State Corporation and reduce the costs, but also to increase salaries and to form new rules for career advancement.
RPS is based on the system of scientific organization of labor, production and management as formulated by the Ministry of Medium Machine-Building Industry of the USSR. Furthermore, RPS included and adjusted the best developments and instruments from other modern systems, in particular the principles used in Toyota Production System by Toyota Motor Corporation. The key principle of RPS, the same as in Toyota production system, lies in meeting the requirements of consumers within shortest possible time limits at the lowest possible resources spent and with the required level of quality.
The aim of RPS introduction is to create based on the best national and foreign experience the universal methodology for complex optimization of production and management procedures, its practical approval within the facilities of ROSATOM State Corporation.
In 2014 the Fuel Company accomplished projects of three levels: industrial (20 projects), division (7 projects) and projects of enterprises (212 projects).
Criteria for the project dividing are the following:
The basic indicators for the project monitoring are as follows: flow rate, labor productivity, occupied space, and production cost. The goal is transformation of local projects focused on competitiveness increase into a complex program for efficiency enhancement and creation of a team of like minded managers with leadership practices.
2014 was marked by an increase in number of suggestions for improvement (SFI) filed per employee: in 2013 it was equal at average to 1.6 SFI /person, and in 2014 — 3.0 SFI/person” [ i ].
In 2014 SC AECC was acknowledged as the winner of sectoral competition of RPS (ROSATOM Production System) in nomination “The most active branch company in terms of filing and implementation of suggestions for improvement”.
In 2014 there were filed more than 60 thousand SFI, accepted for implementation — 91,5% and adopted — 88,4 % (in 2013 — 80%). The result achieved is also due to the automated filing system for SFI and to the enhancement of implementation process control.
Examples of 2014 projects and their outcomes:
Plans for 2015
Further development of RPS is planned in the form of program solutions focused on productive efficiency of the key products, and on integration of RPS expertise from other companies into TVEL FC operation.
TVEL FC carries out its investment activities in line with the Uniform Industry-Specific Policy of ROSATOM State Corporation and its organizations. Investments management system of the Fuel Company is based on the principle of efficiency.
Documents regulating investment activities:
Investment Committee (further on "the Committee") is a permanent collegiate advisory board acting under the guidance of the Chairman and following the principles of the investment policy of ROSATOM State Corporation and its organizations.
Primary objective of the Committee is to reach common agreement on the following:
|Chairman||Yu.A. Olenin – President of JSC "TVEL"|
|Deputy Chairman||N.V. Nikipelova – Senior Vice-President of JSC "TVEL" for Finance, Economy and Corporate Management|
|Secretary||S.A. Lazarev – Director of JSC "TVEL" Investment Department|
|Members||V.V. Rozhdestvensky – Senior Vice-President of JSC "TVEL" for Production|
|P.I. Lavrenyuk – Senior Vice-President of JSC "TVEL" for Science, Engineering, Technology and Quality|
|Yu.A. Kudryavtsev – Senior Vice-President of JSC "TVEL" for New Business Development|
|K.K. Sokolov – Vice-President - Business and Fuel and Power Resource Manager of JSC "TVEL"|
|E.V. Lyakhova – Director for Investments and Operations Efficiency of ROSATOM State Corporation|
|V.I. Korogodin — Director for Lifecycle Management of Nuclear Fuel Cycle and NPP of ROSATOM State Corporation|
|N.S. Khlebnikova – Director of Department of Investment Management of ROSATOM State Corporation|
|S.V. Komova – Head of Investment Control Department of ROSATOM State Corporation|
Investment control mechanisms include:
n 2014 the Investment Committee of JSC “TVEL” convened 28 meetings. The amount of investment projects financing reached RUB 29,466 mln (RUB 36,920 mln in 2013). TVEL FC implements over 250 investment projects simultaneously, and the amount of funding tends to vary year after year, depending on combination of various stages of their life cycles.
Funding of industrial and technological base of primary production accounts for the biggest share in overall investment outlay.
|Direction||2012||2013||2014||Share in total amount of investments in 2014|
|Development of general industrial activities||1,088.0||931.0||536.0||1.8%|
|Development of infrastructure||5,255.0||3,585.0||1,244.0||4.2%|
|Safety and encumbrances||5,221.0||4,128.0||2,645.0||9.0%|
|Total for TVEL FC:||41,328.0||36,920.0||29,466.0||100.0%|
|Direction||2012||2013||2014||Share in total amount of investments in 2014|
|JSC "TVEL"||10,422||9,253||2,049||7.0 %|
|SC "SGChE"||5,930||3,471||3,542||12.0 %|
|SC "PA ECP"||7,184||3,118||2,957||10.0 %|
|UGCMP LLC||151||120||10||0.0 %|
|SC "VPA "Tochmash"||645||388||77||0.3%|
|SC "United Company ESC"||5,524||6,681||22.7%|
|SC "EC "RGC"||311||13||0.0 %|
|Total for TVEL FC:||41,328||36,920||29,466||100.0 %|
Basic documents of JSC “TVEL” and its subsidiaries that regulate procurement activities and set the supplier and contractor selection criteria are:
The Fuel Company supports, respects and protects basic human rights, and builds its external business relationship on the principles of honesty, integrity and openness.
UIPS prohibits introduction of any requirements other than stipulated by law to the admission criteria for suppliers and contractors participating in the procurement procedure. Suppliers and contractors are evaluated using the critatia of labor practices, impact on society and environment only subject to availability of all permits and licenses set by the law. Such criteria also include availability of management system certificates as evaluative ones i.e. forming the final evaluation for a member of procurement procedure. The Company performs no evaluation study of actual and potential impacts in the supply chain, all concluded contracts are checked for compliance with the Russian legislation.
Procurement procedures are implemented using the following electronic platforms: “UEMP” JSC, Fabrikant LLC and A-K-D LLC.
|Indicator||Unit of measurement||2012||2013||2014||2015 (plan)|
|Share of procurement through public competitive procedures under the UIPS||%||96.20||95.22||95.46||94.00|
|Total amount of procurement of TVEL FC||RUB mln||133,386.70||161,199.80||168,962.30||133,895.50|
|Total amount saved by TVEL FC from procurement through public competitive procedures||RUB mln||2,051.00||2,534.20||2,601.10||–|
This approach to procurement management promotes its openness and transparency and saves labor and financial resources.
Total amount saved by the subsidiaries of TVEL FC in 2014 through the procurement procedures made RUB 2,601.1 mln.
More than 90% of competitive procurement procedures are carried out through on-line sales platforms.
Division of suppliers and contractors according to cost criterion:
The largest procurement groups are the following: the products and services purchased from the companies of nuclear industry, power supply, natural gas supply. These are the largest categories in procurement from sole supplier.
Basic groups of competitive procedures:
Pursuant to provisions of the Uniform Industrial Procurement Standard of ROSATOM State Corporation the Company may not provide any preferences to the suppliers on a territorial basis. The exception is only envisaged for outsourcing companies founded during the restructuring of the Fuel Company. UIPS guarantees to such companies certain volumes of orders over a period of five years from the date of incorporation in the following way: for the first year — 90%, the second year — 75%, the third year — 60%, the fourth year — 40%, the fifth year 25% of total annual demand of the client.
Local suppliers participate in competitive procedures on a common basis, specific approaches to local suppliers are not applied. The Company maintains no special records for such suppliers.
Some of the key suppliers and contractors of TVEL FC enjoy monopolist position on the market [ i ]. Under the provisions of UIPS (Uniform Industrial Procurement Standard of ROSATOM State Corporation) no tender is provided for such contractors (natural monopoly entities), only the “Procurement from Sole Supplier” procedure.
In September 2012 JSC “TVEL” appointed an arbitration committee vested with authority to consider complaints against actions (or omission thereof) of any customer, competent authority, procurement manager and/or procurement commission during the implementation of procurement procedures on behalf of organizations of TVEL FC management system.
Over the reporting period 158 complaints were submitted to the arbitration committee with respect to procurement procedures, amounting to RUB 3,500.37 mln, where: 52.1% were found to be unjustified; 7.5% — justified; 4.7% — partially justifued; 15.5% — revoked by the lodger; and 20.2% dismissed due to wrong jurisdiction and other technicalities, such as wrong procedure, form and terms of filing.
In furtherance of the plan [ i ] aimed to admit small and midsized businesses to procurements of infrastructural monopolies and government-linked companies, JSC “TVEL” approved the order d/d March 25, 2014 specifying the list of goods, works, services which can be purchased from small and midsized businesses.
In 2014 the works within the frameworks of the Project “The Fuel Company Logistics Management System Optimization” were continued; this project is planned for implementation till 2016.
Purpose of the project:
The project on energy consumption reduction and energy efficiency improvement in industrial companies of ROSATOM State Corporation is one of the major projects aimed to improve competitiveness in the specific industry. The subsidiaries of the Fuel Company are considered to be pilot ones in the process of organization and implementation of methods and accounting system of energy saving in the specific industry in general, starting from energy inspections, long-term programs and specific measures for energy conservation.
In 2014 energy consumption by the subsidiary companies of TVEL FC (PJSC “MSZ”, SC CMP, PJSC NCCP, SC “MZP”, SC “VNIINM”, SC AECC, SC UEIP, SC “PA ECP”, SC “SGChE”, SC “VPA “Tochmash”, PJSC “KMP”, UGCMP LLC, Uralpribor LLC, NRDC LLC, EDB-Nizhny Novgorod JSC, SC “Centrotech-SPb”) was reduced by 22.6% [ i ] (880 mln kWh), heat energy — by 36.9% (1,511 thous. Gcal) as compared to the basic figures of 2009 under comparable conditions. The reduction in energy resources consumption (under conditions comparable with 2009) in monetary terms was 27.4% (RUB 2,191 mln) with the target indicator — 23%. Reduction of energy consumption is not related to reduction of the volume of the Fuel Company’s production program, it was achieved through realization of activities under the Program “Energy Saving and Efficiency Improvement” effective in the subsidiaries of TVEL FC since 2011. In 2014 the amount of financing under the Program was equal to RUB 573.72 mln.
The main activities that were carried out by the companies of TVEL FC and made it possible to achieve the planned target of reduction in energy resources consumption in 2014 were:
In 2014 the consumption of electric power and heat energy by the subsidiary companies in monetary terms was RUB 3,819 mln and RUB 1,237 mln respectively.
In 2015 as a part of activities for improvement of energy efficiency the following is planned:
With the view of increasing the efficiency and optimizing business processes TVEL FC uses the latest information technologies and solutions.
In 2014 TVEL FC Information Technologies Department fulfilled the following works:
These activities resulted in the following:
Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014
Main purpose of scientific and technological activity of the Company is to promote competitiveness and safety of production. The main activities are regulated by the following documents:
The research and development scope is defined by the decisions of the management of ROSATOM State Corporation, contractual obligations, and is subject to revision on an annual basis at the meetings of the Scientific and Technical Council No. 2 of ROSATOM State Corporation — “Nuclear Materials and Technologies of Nuclear Fuel”, the STC of JSC “TVEL” and its sections.
Scientific and technological activities of TVEL FC are focused on:
Employees of the R&D complex of TVEL FC provide training and advanced training to the highly skilled personnel in the sphere of radiation chemistry, physics of metals, adaptive metallurgy and solid-state physics, fissile and structural materials, metallurgy and technology of rare, scattered and radioactive metals.
SC “VNIINM” serves as the basis for the Postgraduate School with specialization in Adaptive Metallurgy and Thermal Treatment of Metals and Alloys; Nuclear Power Units, including Design and Decommissioning; Metallurgy of Ferrous, Non-ferrous and Rare Metals; Technology of Rare, Scattered and Radioactive Elements.
The Institute has two Dissertation Councils that admit for examination doctoral and candidate dissertations. The Institute expands its cooperation with the leading educational institutions. The branch of the 9th Department of MEPhI NRNU, complex branch of the Department of D. I. Mendeleev University of Chemical Technology of Russia and M. V. Lomonosov Moscow State University of Fine Chemical Technologies operate based on SC “VNIIM”. The Institute also has entered into cooperation agreements with the leading industry-specific higher education institutions, for example, with Tomsk Polytechnic University (TPU). As part of these agreements, students take practice and training, and write theses on the promising areas of the Institute activities.
TVEL FC subsidiary employees take part in the annual international scientific conferences (e.g., “Zirconium in the Nuclear Industry”, “Top Fuel”) and seminars, conduct meetings of the Scientific and Technical Councils of ROSATOM State Corporation and JSC “TVEL”.
In 2014, the Scientific and Technical Conference of TVEL FC was held, the specialists of TVEL FC took part in the 9th International Scientific and Technical Conference “Safety, Efficiency and Economics of the Nuclear Power”, the symposium of the International Association for Physics and Safety of VVER reactors, the Conference “Half-Century Safety Assurance of NPP with Pressurised Water Reactors in Russia and Abroad”, the Conference “Zirconium in the XXI century”, the traditional workshops carried out in Finland and Russia with participation of representatives of operators, supervision authorities of the countries. Within these workshops the discussion was held of the experience of manufacturing, operation and prospects of improvement of fuel and fuel cycles of nuclear power plants with reactors VVER-440, VVER-1000. The problems of reactor material science were discussed at the conferences in Research Institute of Atomic Reactors SRC JSC, at the Institute of Power Engineering (in the framework of the Halden Reactor Project). The workshop, held in Obninsk, was devoted to the issues of intensification of heat transfer in fuel assemblies of VVER-100 of new design, there were also discussed the arguments to support increase of the power unit capacity to 107% of nominal value.
The research activities carried out by the subsidiaries of the Fuel Company are of applied nature, some of them address the issues of fundamental science. Such research includes, for example, works on the study of the properties of mixed uranium-plutonium nitride fuel carried out in 2014, determination of the behavior mechanism of structural steels (ferritic-martensitic, dispersion hardened by oxides) under conditions of irradiation in the fast fission reactor, determination of the properties of composite claddings (silicone carbide) for the purpose of their application instead of zirconium, determination of the properties of superconductors made of magnesium diboride and pnictides. The development of computer simulation models of technological conversions for fabrication and reprocessing of nuclear fuel should be also referred to fundamental research activities. Such works include mathematical description of physical and chemical processes in the specific conditions of a process equipment with subsequent verification of the model.
Modernization and Technical Upgrade of Research and Development Complex
TVEL FC continues modernization and development of infrastructure of its R&D complex within the framework of the projects of technical upgrade of enterprises that comprise the complex and in accordance with Federal Target Program "New Age Nuclear Energy Technologies for the Period of 2010-2015 and up to 2020" (FTP NANET).
Technical upgrade under the FTP NANET aims to create national wide information structure, a number of stand and experimental areas for development, manufacture and research of quality and certification of structural and superconducting materials. Research departments are upgraded, modernized and re-equipped first to promote comprehensive and thorough study of the structure and physical and mechanical characteristics of materials at all stages of technological conversions, and other necessary (including nanoscale) material researches. To this effect, purchase of appropriate modern equipment is provided.
Purchased new equipment will more effectively solve the problems. For example, technical upgrade in SC "VNIINM" will allow to increase the level of safe operation of equipment, engineering systems, and to increase the performance on contractual obligations associated with improved technical parameters and upgraded equipment of scientific and engineering units.
The following measures were taken in 2014 in the frameworks of the Project:
Involvement of Universities in Implementation of the Investment Projects
In 2012-2014, MEPhI NRNU was involved in the frameworks of implementation of the investment projects on development of new types of fuel for nuclear power plants, research reactors (RR), low-capacity nuclear power stations (LNPS). The fields of works of MEPhI NRNU are as follows:
Moscow Institute of Steel and Alloys (MISA), branch of MEPhI NRNU in Seversk, N.I.Lobachevsky State University of Nizhni Novgorod, Ural State University were also involved by sub-contracting with branch organizations (SC “VNIINM”, SC CMP) in the development of mathematical models of processes, investigations of the properties of different materials, etc.:
In the period 2012 to 2014, R&D funding in universities averaged to RUB 85.18 million per annum.
Services and products of FE NFC form the basis of subsidiaries comprising the Fuel Company (more than 80% of revenue following the results 2014), and that is why innovative activities in nuclear industry are critical for ensuring long-term competitiveness and sustainability of TVEL FC.
In 2012 — 2014, investments of JSC “TVEL” in research and development amounted to more than 1.5 billion rubles annually.
Main R&D projects are as follows:
As for the operating and new power units of NPP, the works are aimed to increase the discharge burn-up range, increase service life of FA, improve operational reliability of nuclear fuel, prove the working efficiency of FA in terms of increased capacity of power units (104-107% of nominal) with unconditional security. Works on optimizing the design of TVS-KVADRAT assemblies (for PWR), new fuels for the RR, floating power unit, new cores for NPIB offer many innovations and ensure the strategy of entering new markets.
Results of activities on improvement of nuclear fuel properties and production technologies in 2014:
Design and adaptation of nuclear fuel and cores for Russian reactors
Design of nuclear fuel for western reactors
Design of nuclear fuel for LNPS, RR, NPIB
2015 Plans for nuclear fuel design and improvement
“TVS-KVADRAT “design is based on long experience in manufacturing and operation of nuclear fuel in VVER-1000 reactors. In particular, “TVS-KVADRAT “design employs frame and spacer grid design solutions tested and approved in fuel assemblies for VVER-1000, which allows to increase the operational reliability of nuclear fuel in PWR reactors. Advanced Russian alloys based on zirconium are used as structural materials. Russian design of fuel for PWR reactor has a stable geometry, is not prone to damage and has higher degree of fuel burn-up.
In 2014, a pilot lot of TVS-KVADRAT was manufactured, delivered and, on obtaining permission from the State supervisory authority of the European country, fed into reactor of the European company for operation.
By the end of 2014, specialists of JSC “TVEL”, PJSC NCCP, SC CMP, SC “VNIINM”, and JSC “Afrikantov OKBM”, responsible for the implementation of TVS-KVADRAT Project, were recognized as the winners in the special category “One step ahead” of the annual industry competition “ROSATOM’s Person of the Year”.
“One Step Ahead” Award
Dolgov Aleksey Borisovich, Director of Department of JSC “TVEL”
Goncharov Yuri Valerievich, Deputy Director General for Development and Innovations of JSC “NCCP”
Enin Anatoly Alekseevich, Chief Design Manager of JSC “NCCP”
Samoylov Oleg Borisovich, Cheif Design Manager of JSC “Afrikantov OKMB”
Novikov Vladimir Vladimirovich, Deputy Director General of SC “VNIINM”
Troegubov Aleksey Vladimirovich, Process Engineer of the Rolling Plant of SC CMP
“Proryv” Project of ROSATOM Nuclear Energy State Corporation is implemented in the framework of the Federal Target Program “New Age Nuclear Energy Technologies for the Period 2010–2015 and up to 2020”, The purpose of the project is to develop fast neutron reactors with closed nuclear fuel cycle, and to arrive at the solution of safe nuclear energy sector creation and irradiated fuel disposal problems. The project includes the construction of an Experimental Demonstration Energy Complex on the basis of SC “SGChE” with the reactor BREST-OD-300, the irradiated fuel radiochemical processing module and module of fuel production from derivatives. In the framework of the Project the works are ongoing on development of new reactor and industrial technologies, including a new mixed nitride uranium plutonium fuel characterized by high density and thermal conductivity.
Research of reactor plant goes in two directions: BREST type reactor with lead coolant, and FN-1200 reactor with sodium coolant. Despite very similar solutions and operation parameters, the type of coolant provides for some significant differences in core design and new structural materials used.
Participants of “Proryv” Project are JSC “TVEL” and its subsidiaries: SC “VNIINM”, SC “SGChE”, PJSC NCCP, PJSC “MSZ”, Elemash-STP LLC, NCCP-Engineering LLC, etc.
In 2013, by the order of ROSATOM State Corporation No. 1/200-P, SC “SGChE” was designated as the operator of fuel fabrication/refabrication and spent nuclear fuel reprocessing modules, and the working group was established under the leadership of P. I. Lavrenyuk, senior Vice-President of JSC “TVEL”, to organize interaction and coordination of the project participants for construction of nuclear fuel cycle facilities of EDEC. To implement “Proryv” project there was established the directorate at SC “SGChE”.
In 2014, the following results were achieved in the implementation of “Proryv” Project:
In order to create new and innovative industries aimed at the development of the second core business of the Fuel Company, there are implemented projects on four programs: “New Energy”, “Machine building”, “Metallurgy”, “Chemistry”.
The subsidiaries of the Company establish industrial centres (clusters) for development of innovative non-nuclear production. Creation of the new knowledge-based innovative industries at the subsidiaries of the TVEL FC will create more jobs, give employment to highly qualified staff released due to restructurisation, and attract young professionals, form the business environment in the cities of presence of TVEL FC subsidiaries, improve living standards and attractiveness of the territories.
Grounds for development of the second core business of the Fuel Company:
Total revenue from the sale of innovative projects in non-nuclear sphere in 2014 reached RUB 6,059 mln, which is 26% higher than in 2013 (RUB 4,819 mln in 2013, RUB 4,054 mln in 2012).
In 2012–2014, TVEL FC invested annually more than RUB 1 bln of own and borrowed funds in the implementation of innovative projects in non-nuclear sphere.
TVEL FC owns more than 1,600 items of intellectual property.
Among the objects protected by law there are inventions, utility models, production secrets (know-how), software for electronic computing machines, databases (DB), trademarks and industrial designs.
Intellectual Property Identification and Legal Protection System as it applies to the items created by subsidiaries and affiliates of TVEL FC is implemented in accordance with applicable laws of the Russian Federation, Standard Industry Methodological Recommendations, and by local regulations of the entities comprising the Company.
Functions to identify and secure legal protection of the items of intellectual property created by the subsidiaries of the Fuel Company are assigned to the Patent and Licensing Department of JSC “TVEL”, as well as to technical departments, development design offices, intellectual property protection teams and patent-information departments of TVEL FC subsidiaries.
|Companies of TVEL FC||Inventions, ea||Utility models, ea||Russian Production secrets (know-how), Russian, ea|
|SC "PA ECP"||1||-||1||-||-|
|EDB-Nizhny Novgorod JSC||1||-||3||-||-|
|Applications for inventions: Russian||65||68||54|
|Applications for inventions: foreign||1||1||3|
|Applications for utility models: Russian||12||13||7|
|Applications for utility models: foreign||1||1||-|
|Applications for software and DB: Russian||2||19||57|
|Applications for software and DB: foreign||-||-||-|
|Applications for production secrets (know-how)||32||60||76|
|Companies of TVEL FC||Applications for inventions (Russian)||Applications for utility models (Russian)||Applications for software and DB (Russian)||Applications for production secrets (know-how)|
|SC "PA ECP"||5||-||22||-|
|EDB-Nizhny Novgorod JSC||4||-||-||-|
Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014
HR Policy of TVEL FC is implemented in accordance with TVEL FC Development Strategy, and is intended to ensure efficient use of human resources contributing to the achievement of the Company’s strategic goals.
HR Policy of TVEL FC is focused on achieving balance between the interests of its employees and the employer, and it is aimed at making the employees to consent to the efficient development of their professional and management capabilities in accordance with the long-term development strategy of the Fuel Company.
Main long-term goals of TVEL FC HR policy:
|TVEL FC headcount at the year-end, persons||30,964||27,159||23,717|
|TVEL FC average headcount in the fiscal year, persons||34,088||29,238||25,169|
|Employees being employed by TVEL FC more than 5 years ago, %||78||76||81|
|Candidates and Doctors of Science, persons||290||312||281|
|Holders of MBA degree, persons||11||12||16|
All HR management activities, which are undertaken to achieve the goals set, are focused on the long-term personnel stability of the Fuel Company.
Steady decrease in headcount in 2011–2014 was caused by restructuring processes, centralization of management functions and personnel outsourcing. The ultimate goal of these processes with regard to HR management is to enhance labor efficiency in TVEL FC subsidiaries to match major foreign competitors.
TVEL FC subsidiaries hire its employees in strict compliance with the Labor Code of the Russian Federation. The top managers are sorted out of the members of succession pool program.
All Fuel Company subsidiaries (except for JSC “TVEL”) have collective agreements that cover 100% of these subsidiaries’ employees (98% of average headcount in the Fuel Company). If any considerable changes are intended in the business, the company shall notify their employees at least 2 months prior to the effective date of any such changes. This provision is stipulated by labor laws of the Russian Federation and by the Collective Agreement of each subsidiary. Payments and benefits provided to temporary or part-time employees are stipulated by the collective agreements and vary from one subsidiary to another. All payments and benefits comply with requirements of the labor laws.
In 2014, TVEL FC subsidiaries hired 1,892 persons, including JSC “TVEL” — 63 persons, whereof 10 persons were transferred from the Fuel Company subsidiaries and 2 persons — from Rosatom State Corporation. About 60% of hired employees are men, around 70% — persons under 45 years old. Among the hired employees the highest per cent of new employees is in the Moscow Region and the city of Moscow (44.6%), the Vladimir Region (17%), the lowest per cent — in the Krasnoyarsk Territory and the Irkutsk Region (1.6% each).
5,225 persons terminated their employment with the company. At the end of 2014, the retirement rate [ i ] by the business regions of TVEL FC varied from 42.3% in the Sverdlovsk Region and 35.6% in the Vladimir Region to 10.4% in the Moscow Region and 11.9% in the Novosibirsk Region. The retirement rates vary by gender as well: men — 21%; women — 24%. Overall retirement rate for the Fuel Company is 22%.
Personnel turnover rates [ i ] vary by the business regions of TVEL FC from 5.1% in the Vladimir Region and 4.5% in the Moscow Region to 1.0% in the Udmurt Republic and 0.1% in the Krasnoyarsk Territory. Overall personnel turnover rate for the Fuel Company is 3.2%. The most mobile age group (turnover rate is 8%) is comprised of employees up to 24 years old; male employees are more mobile than female (turnover rate is 3.4% and 3% respectively).
|Direction||2012||2013||2014||∆2014/ 2013, %|
|As per consolidation circuit (total), persons||30,964.0||27,159.0||23,717.0||-12.7%|
|including top management (General Directors, their Deputies)||132.0||96.0||97.0||+1%|
|Indirect labor group||116.0||32.0||28.0||-12.5%|
As of December 31, 2014, TVEL FC headcount was 23,717 persons. Overall majority of subsidiaries’ employees (over 98%) work under the open-term labor contracts and during normal business hours (40 hours a week). As of the end of 2014 the headcount of employees under civil law contracts, external part-timers and women on maternity and childcare leave was 673 persons.
TVEL FC upholds the principle of equality and tolerates no gender discrimination: male and female employees working in the Company get the same salary, regardless of categories.
The highest per cent of employees are men (64.7% of all employees, 90.7% of top managers). The highest per cent of employees at the age of 45-54 are women (43%); the lowest per cent of employees under 24 are women (18%).
Average age of TVEL FC employees is 42. Employees under 35 years old comprise 23% of total staff.
Recruitment of prospective young people is one of the top priorities in HR policies of the Fuel Company. By hiring young specialists, the Company intends to preserve and strengthen its position in the sphere of science and advanced technologies in the years ahead.
The Company cooperates with educational establishments under the divisional program of arrangements aimed at employer brand building, training, recruitment and employment of educational establishment graduates subject to annual updating.
To promote career guidance, school students are taken on tours at the enterprises of the Fuel Company where they meet young specialists and take part in informational and educational events (intellectual environmental game “First Step Into a Nuclear Project”, Science Festival “Energy of Intelligence”, etc.).
The major areas of cooperation with educational establishments of higher and secondary education:
Over the reporting period the Company employed 81 graduates of the higher educational institutions and vocational secondary schools, 6 of them took target preparation classes for employment by TVEL FC.
Criteria for efficiency of interaction with educational institutions
About 1.2% of TVEL FC average headcount take parental leave annualy. The majority of them are women (over 99%). This indicator is the highest (about 2%) for the Fuel Company subsidiaries in the city of Moscow and the Sverdlovsk Region, and the lowest one (about 0.8%) – in the Tomsk Region and the Irkutsk Region. Over 90% of employees who took parental leave, return to the company later on, and 80% keep working in the Company after 12 months.
TVEL FC mostly hires the local residents, and attracts specialists from other regions only if and when no properly qualified candidates to the vacancy are available at the local labor market.
|Region||Headcount||Key staff||Supporting staff||Managers/senior management (General Directors, their Deputies)||Specialists||Office workers||Indirect labor group|
|Total in 2014||23,717||7,608||4,144||1,964/97||8,717||256||28|
|Total plan for 2015||22,788||8,487||3,933||2,325/90||7,805||220||18|
Increase of Personnel Engagement
Personnel engagement, personal interest in business and success of the Company have direct effect on business performance and efficiency. The Company implements a set of arrangements aimed at increase of personnel engagement, encourages the employees to progress towards professional improvement.
Engagement study is conducted under the unified industrial slogan: “ROSATOM cares about your opinion”. Arrangement plans, aimed at increase and retention of personnel engagement, are approved and implemented at the annual management meetings on study findings analysis in 12 subsidiaries of the Fuel Company. In general, annual surveys allow to estimate comprehensive efforts within the project according to 19 job satisfaction factors, and this determines per cent of employees, who:
Comprehensive efforts within the project are made both through arrangement plans implemented by the subsidiaries, and through execution of the unified divisional projects. Thus, in 2014 the Fuel Company executed the projects in the following key directions:
|Engagement rate||TVEL FC||JSC "TVEL"||SC AECC||PJSC NCCP||SC "PA ECP"||SC CMP||PJSC "MSZ"||SC "VNIINM"||PJSC "KMP"||SC UEIP||SC "VPA "Tochmash"||UGCMP LLC|
Motivation and Reward
Arrangements planned for 2015:
In 2014 the average salary in the Fuel Company, except for JSC “TVEL” amounted to 66,077 rubles (including in scientific institutions — 83,477 rubles), that is higher by 21.4% than in the preceding year.
KPI System for Top Executive Management and Junior Management
Business performance management system applied by the Fuel Company is based on generating of KPI list ensuring comprehensive development of division for company’s top management. Maximum preference is given to such spheres as nuclear, radiation, industrial safety and ecology; social security in regions of presence; gain of operational efficiency; nuclear products and industrial operation markets share, where TVEL FC improves its performance by introduction of new products.
Remuneration scheme for President, Vice Presidents of JSC “TVEL”, Directors General of companies included into the management system of the Fuel Company:
KPI for directors of subsidiaries:
Remuneration consultants are not engaged in determining of remuneration rate. Remuneration rate must be approved by ROSATOM State Corporation.
In 2014 the ratio of total annual remuneration of the President of JSC “TVEL” to average annual remuneration of all TVEL FC employees (except for remuneration of the President) was 60.7.
In 2014 increase in total annual remuneration of the President of JSC “TVEL” as compared to average annual increase in remuneration of all employees (except for remuneration of the President) was 10% [ i ].
|Assessment type||Target group||Results of the reporting period|
|"RECORD" assessment||Managers, specialists, employees (MSE)||98% of MSE headcount were assessed; this figure corresponds to target indicators. All TVEL FC subsidiaries took part in the assessment.
Following the results of assessment there were made recommendations concerning alteration of personal additional incentives, choice of training program and recruitment of employees to succession pool.
|Corporate employee assessment system by professional and personal competences||Staff||95.9% of staff headcount were assessed.
Following the results of assessment there were made recommendations concerning reconsideration of personal additional incentives. The average grade for professional competences grew by 2-5% as compared to the previous year.
In 2014 4.13% of employees were not covered by the assessment. These are women, who were on parental leave, the employees, who worked at the company for less than 3 months, the employees, who were to be withdrawn from subsidiaries under the restructuring processes.
TVEL FC motivation and reward policy is aimed at maintenance of salary competitiveness.
Ratio of standard entry level wage of TVEL FC subsidiaries to minimum wage varies from 1 to 1.5 (Moscow and the Moscow Region, the Vladimir Region, the Sverdlovsk Region, the Udmurt Republic), from 2.5 to 3 (the Krasnoyarsk territory, the Irkutsk Region and the Novosibirsk Region).
Personnel Efficiency Assessment
In 2014 annual personnel efficiency assessment system was successfully implemented and applied in all Fuel Company subsidiaries.
About 14,500 thousand men and 8,000 thousand women were involved in the assessment.
In October 2014 the following occupational competitions took place:
78 workers from 19 enterprises of TVEL FC took part in competitions.
On November 13-14, 2014 at PJSC “MSZ” there was held the XVIII branch professional efficiency contest for the best “maintenance fitter” and “machining and fitting inspector”. 54 workers of the nuclear industry participated in the branch contest, including 15 participants from the Fuel Company enterprises, who have won 6 prizes out of 12.
In the period from July to December 2014 the contest was held for the Best solution/development in 6 categories:
There were nominated the works on creation and application of innovative technologies, design projects, environmental activity, financial-economical and HR management, business efficiency enhancement.
System of non-material benefits for the employees of TVEL Fuel Company is aimed to encourage professional growth, increase in efficiency and performance, attainment of the goals and the best final results of activities, enhancement of the work quality and arrangement of conditions for creative activity.
Achievements of the employees of TVEL FC were marked with state awards, awards of ROSATOM State Corporation and JSC “TVEL” in accordance with the Uniform Industry-specific Award Policy.
During the year 2014 in celebration of commemorative days and anniversaries more than 2.5 thousand workers and veterans of TVEL FC received rewards and bonuses for work achievements, contribution to development of enterprises, the Fuel Company and the nuclear industry, in particular:
HR Development and Training
raditionally, HR development and training is in the focus, and it is one of the top priorities of HR policy of the Fuel Company.
According to HR Development and Training Provisions, TVEL FC subsidiaries regularly implement training programs to enhance competencies of their managers, as well as ordinary workers.
Total number of TVEL FC employees, who underwent training in at least one program, was 11,227 persons.
Average length of training in 2014 per one employee of the Company was 43 hours (44 hours in 2013)
Total scope of training in policies and procedures related to human rights amounted to three hours and included familiarization with:
This kind of training is mandatory for each employee, which means 100% coverage of the staff.
Educational events, that contribute to development of skills, are implemented by efforts of the internal coaches, as well as the external providers of training services.
Formation and Development of TVEL FC Succession Pool and Succession Plans
TVEL FC pays great attention to development of succession pool and training of managers.
Training in this sphere is based on the following principles:
2014 was the year of implementation of the mandatory integrated development program “Leadership School” intended for the key industry managers. For managers there are provided training programs on development of value-based indicators. In 2015 the training of the managers at management and industrial HR school is scheduled.
Priority development programs in the subsidiaries of TVEL FC:
HR training and development policy is focused on maximizing of internal potential of the industry. Educational events that contribute to development of skills are implemented with involvement of the internal coaches of the Company, the trainers.
Key Priorities for 2015 in the Sphere of HR Training and Development:
|Indicator||2015 [ i ]||2013 Uniform industry-specific succession pool [ i ]||2014Uniform industry-specific succession pool||2015 Uniform industry-specific succession pool (plan)|
|Number of employees included to succession pool||450||153||151||197|
|Number of employees included to succession pool and running for major posts||450||153||151||197|
|Number of employees included to succession pool and transferred to major posts||238||26||40||79|
Social Programs Implementation
In addition to mandatory social guarantees, benefits and privileges envisaged by the labor laws, TVEL FC subsidiaries prepared corporate social programs, such as:
TVEL FC social programs represent a strong motivating factor. According to personnel engagement surveys, up to 65% of employees find their social package satisfactory.
Total amount spent by TVEL FC on its social programs in 2014 is RUB 1,471.1 million, RUB 56 thous. per worker; this indicator exceeds the indicator of 2013 (RUB 53 thous.) by 5.6 %.
|Corporate social program||Funds allocated under the program in 2014, RUB mln||Basic facts|
|Voluntary health insurance (VHI)||162.36||99% of TVEL FC employees are insured under VHI policy.
Maximum amount under the VHI policy in 2015 is increased by 15%
|Accident and health insurance||11.43||80% of TVEL FC employees are covered by accident and health insurance.|
|Sanitary and resort treatment, children recreation programs||169.30||4,756 employees got vouchers to sanitary and rehabilitation resorts in 2014, where 2,995 are persons working in harmful conditions.
Maximum amount of each voucher in 2014 was increased by 10% — to RUB 50.4 thous. for a 21-days leave.
|Assistance in improvement of housing conditions||68.39||852 employees have improved their housing conditions under the program, and 479 of them are young specialists. [ i ]|
|Benefits||48.68||4,571 workers of the Company got their benefits in 2014.
Average benefit amount was RUB 10,650 thous.
The amount of benefit does not depend on the official position.
Types and criteria of benefit provision are unified.
|Sports and cultural events||259.15||The subsidiaries of TVEL FC held more than 936 corporate and sports competitions in 2014.
Total number of participants — over 37 thous. of workers and members of their families
|Assistance to non-working pensioners||525.39||Assistance to non-working pensioners is provided in accordance with the Uniform Industry-Specific Public Policy of ROSATOM State Corporation and ROSATOM enterprises. The main target of corporate social programs of assistance to non-working pensioners is to provide social assistance to non-working pensioners, who made significant contribution to the industry development. In 2014, corporate social program of assistance to non-working pensioners was implemented to the full extent in accordance with the approved budget.
There are over 40,000 non-working pensioners in the Fuel Company. 1,607 of 40 thous. pensioners got vouchers to sanitary resorts.
Total amount spent for assistance to pensioners was 525,39 million rubles, which amounts to 13,000 rubles per pensioner annually.
|Non-state pension provision (NPO)||226.44||By the end of 2014, 25% of TVEL FC workers were involved in the non-state pension program; the highest rate was achieved at SC CMP (36.1%), SC “PA ECP” (28.9%), SC UEIP (26.7%) and PJSC “MSZ” (23.9%).
Pension accruals under [ i ] the NPO program were accumulated mostly at the Non-State Pension Fund Atomgarant.
Interaction with Trade Unions
Primary trade unions function in all TVEL FC subsidiaries. Each employee of the Fuel Company may join a trade union that represents the interests of the workers. Management of ROSATOM State Corporation and TVEL FC supports self-organization of the employees. Share of employees being the members of trade unions reaches 98% in some subsidiaries. The Fuel Company interacts with trade unions under the social partnership program. The management acknowledges the important role of trade union in implementation of corporate social programs and in awareness rising. Social stability at the enterprises and in the cities of presence of the Fuel Company is the result of cooperation between JSC “TVEL” and Russian Union of Nuclear Power and Industry Workers (RUNPIW), subsidiaries of the Fuel Company and primary trade unions, veteran councils and other workers’ associations.
On December 17, 2014 in the city of Moscow the Industrial Agreement on Nuclear Energy, Industry and Science for 2015–2017 was signed between ROSATOM State Corporation, All-Russian Industrial Association of Employers “Employers’ Association for Nuclear Energy, Industry and Science of Russia” and RUNPIW; this agreement stipulates general concept of social and labor relations regulation in the nuclear industry, including mutual commitments concerning reward, labor conditions and safety, work and rest schedules, employment, social guarantees, benefits and privileges for employees. Subject to the Industrial Agreement and Collective Agreements the social programs are applicable to all subsidiary employees, whether the employee is a member of a trade union or not.
Association of primary trade union organizations of the Company subsidiaries operates in TVEL FC; JSC “TVEL” and RUNPIW hold regular meetings with participation of the chairmen of primary trade union organizations and HR directors (3 meetings were held in 2014), and the meetings of the working group of experts of the Fuel Company and the trade union (5 meetings were held in 2014).
Excerpt from the JSC “TVEL” Health and Labor Protection Policy.
The main directions, directives and commitments in the sphere of safety and health of the Fuel Company workers are recorded in the JSC “TVEL” Health and Labor Protection Policy.
System-based application of the guiding principles of the Policy — the uniform methodology for the identification and assessment of occupational risks — allows the Company to reduce the impact of harmful and hazardous production factors in the workplace, to allocate targeted funds to solve the most important labor protection problems. Priority goals and objectives aimed at reducing occupational risks are an integral part of the planning process; they are included in Occupational Safety and Health Objective Achievement Program. Goals are updated annually and assume the special assessment and the improvement of working conditions, reduction of injuries, rising of awareness and competence to perform job tasks in a safe manner. In 2014, these positions were also a priority.
In the Fuel Company subsidiaries, where collective bargaining agreements are concluded, Occupational Safety and Security Tripartite Committees comprised of representatives of management, workers and unions have been established and are functioning. The number of employees of the Fuel Company subsidiaries, which have such committees, is 97% of the total number of employees of the Fuel Company.
Owing to preventive measures in the sphere of labor protection, in 2014 the Company continued the downward industrial injuries tendency. As compared to 2013 the number of injured at work went down by 50% (from 6 to 3 persons).
At 17 subsidiaries of TVEL FC 3 persons were injured in 2014 (2 persons at SC “VNIINM”, and 1 at SC UEIP).
No emergencies at hazardous facilities or mass accidents occurred.
Excerpt from the JSC “TVEL” Health and Labor Protection Policy.
Most industrial injuries occurred due to organizational faults, such as failure of managers and specialists to ensure labor safety, as well as failure of the injured persons to observe labor and production discipline, labor protection rules and regulations.
Registration of accidents and generation of reports is carried out on the basis of the following regulatory documents:
In the reporting period, ROSATOM State Corporation undertook the following measures: “Plan of additional measures to ensure safety and prevent injuries in the construction, repair, reconstruction and modernization of nuclear facilities”; “Plan of measures to prevent contracting personnel injuries during construction and assembly works at ROSATOM State Corporation facilities”.
In 2014, the Company launched the Corporate register of injuries of contracting personnel employed on the Company facilities and in subsidiaries of TVEL FC.
No violations of safety parameters or limits of the effective and equivalent doses set by the nuclear and radiation safety regulations were registered at the subsidiaries of the Company in 2014.
All production enterprises of the Fuel Company operated within the approved effective dose limits applicable to the personnel, there is no Group A personnel (individuals exposed to the effective dose of 100+ mSv [ i ] over a period of five successive years, or effective dose of 50+mSv during a year).
In 2014, the Department of Nuclear, Radiation, Industrial and Environmental Safety of JSC “TVEL” together with the Inspectorate for Control over Safety of Nuclear and Radiation Hazard Facilities of JSC “TVEL” carried out 17 inspections, including 2 unscheduled inspections by the orders of the JSC “TVEL” management. The inspections revealed 497 violations (549 in 2013): 72 of which were related to labor protection issues; 151 — industrial safety; 87 — radiation safety; 44 — environmental safety; 10 — fire safety; 12 — nuclear safety; and 121 — other violations.
For the purposes of prevention and mitigation of the impact of hazardous and harmful production factors during the operations in hazardous and harmful conditions, the workers are provided with special and properly certified clothing, footwear and individual protection means for free. Average cost of individual protection equipment per each worker exposed to hazardous or harmful labor conditions in 2014 amounted to 11.39 thousand rubles (10.8 thousand rubles per person in 2013).
|less than 1 mSv||58.60 (6,830 persons)||61.05 (6,301 persons)||60.63 (5,854 persons)|
|1-2 mSv||25.25 (2,943 persons)||23.70 (2,446 persons)||21.08 (2,035 persons)|
|2-5 mSv||12.24 (1,426 persons)||11.60 (1,197 persons)||12.86 (1,242 persons)|
|5-20 mSv||3.91 (456 persons)||3.65 (377 persons)||5.43 (524 persons)|
In accordance with provisions of federal laws, TVEL FC organizes regular medical examination of its workers involved in operations with hazardous and harmful factors. Workers involved in operations in harmful conditions are entitled to privileges and bonuses in accordance with applicable laws of the Russian Federation and the “List of Occupations and Positions of Workers and MSE Entitled to the Early Retirement and Benefits for Working in Unfavorable Labor Conditions”, in particular, medical and preventive meals, compensations, extra leaves, etc. Subsidiaries of the Fuel Company implement programs of voluntary health insurance, accidents and sickness insurance, and health resort treatment [ i ].
Industrial sites of the Company’s subsidiaries are subject to regular control over the contents of harmful chemicals in waste water, exhaust from ventilation systems, radiation and chemical status monitoring, organization and performance of all kinds of supervision in accordance with the Production Control Programs.
Certification of work places at the subsidiaries of TVEL FC serves to carry out the assessment of conditions and labor safety at the said work places, establish the extent of deviation from the parameters of the production environment and work process [ i ], following the results of certification the arrangements are scheduled for improvement of the labor conditions.
All subsidiaries provide regular labor safety training to their workers in accordance with GOST 12.0.004-90 and fire safety training in accordance with the Federal Law No. 69-FZ “On Fire Safety”, as well as all types of briefings and tests with respect to the abovementioned spheres. The Company takes preventive measures to mitigate industrial injuries and occupational illness.
In 2014, each employee of TVEL FC involved in functioning and maintenance of nuclear and radiation-hazard facilities took on the average 54.78 hours of training in standards of nuclear and radiation safety.
The Company spent grand total of 2.2 bln rubles (79 thousand rubles per each employee) on labor protection arrangements in 2014.
Total hours of training / Average training hours per employee
TVEL FC in its environmental activities is committed to promotion of environmental, nuclear and radiation safety.
One of the priority directions of the Fuel Company in the field of environmental protection and ecological safety is involvement in the functioning of the Integrated Management System, where a Corporate Environmental Management System is a constituent.
The main objective of the corporate IMS is to identify the environmental aspects and potential environmental risks that affect the environment, safety and health of employees, and to set tasks for improvement of these activities and development of programs to address these tasks subject to constant monitoring.
Excerpt from the JSC “TVEL” Environmental Policy
System-based application of guiding principles of the Policy — the unified methodology of environmental aspect identification and environmental risk evaluation — allows to allocate funds to solve the most important problems, which leads to improved performance in the field of ecology. Priority goals and objectives aimed at reducing environmental risks are an integral part of the planning process; they are included in the Fuel Company’s Environmental Objective Achievement Program and Environmental Policy Implementation Plan.
Ecologically significant subsidiaries of TVEL FC [ i ] issue annual public reports on environmental safety to inform the stakeholders, partners, local government bodies, public at large, and publish them on Websites of the enterprises.
In 2014, in the course of the implementation of the Environmental Policy by the companies included in the Fuel Company’s management system, there were implemented the production and technical activities aimed at environmental protection and ecological safety, in particular:
No emergencies and incidents resulting in negative environmental impact occurred in 2014 at the subsidiaries of the Fuel Company.
Use and processing of materials
The quantity of materials necessary for the manufacture of products at TVEL FC enterprises is determined by the production program.
Enterprises of separation-sublimation complex use uranium and synthetic materials. Enterprises of fabrication block use raw materials represented by enriched uranium product obtained at the enterprises of separation-sublimation complex. Synthetic materials, ferrous and non-ferrous metals are basically used in the manufacture of gas centrifuges.
All raw materials used by the TVEL FC enterprises are acquirable. No renewable materials are used in production. The examples of the used materials see in the Table below.
|Material||Enterprises||2012||2013||2014 [ i ]|
|Sulfuric acid||SC AECC,
|Nitric acid||PJSC “MSZ”,
|Hydrochloric acid||PJSC NCCP
|Ferrous metals||PJSC “MSZ”,
Uralpribor LLC, UGCMP LLC,
EDB-Nizhny Novgorod JSC,
Industrial and Consumer Waste Disposal
In 2014, total amount of industrial and consumer waste of TVEL FC Enterprises was increased by 3.1% and made 306.4 thous. tons.
Waste increase in 2014 was caused by:
The bulk of waste (91%) was represented by Hazard Class 5 (slightly hazardous) waste, such as ash slag resulting from solid fuel burning at the HPPs. Ash slags are dumped by the HPP and the bulk of other waste is delivered to specialized organizations.
In 2014, there were processed 3.6 thousand tons of materials representing recycled or reused wastes (5.5 thousand tons in 2013, 5.2 thousand tons in 2012) generated at TVEL FC subsidiary enterprises. The use of wastes is mainly organized at PJSC “MSZ”, SC CMP and PJSC NCCP; in 2014 these subsidiaries used in their production 31.3%, 16% and 6.1% of their waste, respectively.
TVEL FC subsidiary companies are not engaged in waste transportation across international borders.
|Enterprise||Waste generated, tons a year||Waste recycled, tons a year|
|SC "PA ECP"||15,949.8||9,031.6||8,547.5||2.0||0.0||0.0|
|SC "VPA "Tochmash"||2,732.6||2,475.2||1,778.7||83.2||29.5||9.8|
|EDB-Nizhny Novgorod JSC||21.9||24.5||28.1||0.0||0.0||0|
|Indicator||2012||2013||2014||∆2014/ 2015, %|
|Total waste, including:||368.10||297.30||306.42||3%|
|Hazard Class I||0.07||0.03||0.05||77%|
|Hazard Class II||8.57||8.88||5.86||-34%|
|Hazard Class III||0.90||1.07||1.05||-2%|
|Hazard Class IV||30.25||29.81||20.74||-30%|
|Hazard Class V||328.27||257.50||278.72||8%|
Water Consumption and Water Disposal
In 2013, withdrawal of water by TVEL FC enterprises decreased by 3.5% as compared to the previous year, and was 545.4 mln m3. The main sources of water withdrawal are natural sources from which 515.8 mln m3 were withdrawn. 29.7 mln m3 were withdrawn from public and other water supply systems. Water withdrawal by TVEL FC enterprises has no material impact on natural water sources.
The enterprises of the Fuel Company apply the actual consumption method in calculation of water consumption and water disposal.
The decrease in volumes of water withdrawal by the Fuel Company is mainly caused by the following:
In 2014, the standard of water withdrawal was set at 670 mln m3, the actual volume of withdrawal was 81% of the set standard.
About 98% of consumed water is used by the TVEL FC enterprises for the equipment cooling.
In 2014, the volume of return water was 263.8 mln m3. The share of return water of the total amount of withdrawn water was 48%, the share of reused water of the total volume of withdrawn water was 10%.
There are slight fluctuations in water consumption in return water supply systems at the TVEL FC enterprises over the last few years.
In 2014, 440.8 mln m3 of water were disposed by the TVEL FC enterprises, while the standard is 692 mln m3. All water was disposed into natural water bodies. The volume of water disposal directly depends on the water consumption.
In 2014, the volume of disposal of polluted waste water by TVEL FC enterprises decreased by 7%. The change in the volume of waste water is directly related to reduction of water withdrawal by the enterprises of the Fuel Company.
In 2014, total pollutant emissions into the atmosphere by TVEL FC enterprises were 20.7 thousand tons (30.5% of the standard set by TVEL FC for 2014), which is 3.0 % less than in 2013.
The largest volumes of emissions were reported at the enterprises of the Fuel Company (SC “SGChE”, SC CMP) that are directly related to the emissions generated in the production of electricity and heat power, at SC “SGChE” and SC CMP HPPs. It should be noted that these HPPs supply heat and electricity to the settlements located in areas of location of the enterprises.
Emissions of ozone-depleting substances at TVEL FC enterprises decreased in 2014 by 1.8 % and amounted to 262.4 tons. The decrease in emissions was caused by modernization of equipment at the enterprises of the Fuel Company.
The enterprises of the Fuel Company apply computational method for calculation of emissions of ozone-depleting substances.
Reduction of nitrogen oxide emissions was caused by decrease in the proportion of gas burned by HPPs being a part of the Fuel Company (SC “SGChE”, SC CMP). The increase in sulphur oxide emissions was caused by the higher proportion of coal burned by the HPP of SC “SGChE” and SC CMP.
|Enterprise||The share of emissions of the enterprise of the total volume of the TVEL FC’s emissions in the reporting year, %||2012||2013||2014|
Carbon monoxide emitted into the atmosphere from anthropogenic sources is oxidized to carbon dioxide. In 2014, carbon dioxide emissions of TVEL FC enterprises amounted to 1,010.4 tons, which is 12.6 % less than in 2013.
The bulk of greenhouse gas emissions was caused by emission of the energy facilities (HPP, boiler houses) and transport.
The impact of the subsidiaries of the Fuel Company on the climate is negligible in comparison with organizations of mining industry and thermal power companies. Climate change has no impact on the activities of the subsidiaries of TVEL FC and their employees. The issue related to assessment of the financial aspects and other risks and opportunities associated with climate change was not considered in the reporting period.
Greenhouse gas emission intensity is 7.32 kg/mln rubles of revenue.
|SC "PA ECP"||2.70||2.70||2.60|
|SC "PA ECP"||0.50||0.60||2.60|
|In terms of equivalent CFC-11 [ i ]||253.20||249.90||253.37|
The relative impact of the Fuel Company subsidiaries on the environment in the regions of presence
The TVEL FC enterprises are located on lands that are owned by the enterprises, as well as on lands that are used on a leasehold basis and are owned by the Russian Federation. Industrial sites of the subsidiaries and adjacent areas are not classified as the areas with high valued biodiversity, they are not inhabited by animals and plants included in the IUCN (International Union for Conservation of Nature and Natural Resources) Red List and the national list of protected species. In accordance with the Russian Federation nature protection laws TVEL FC enterprises set the standards of admissible impact on the environment that ensure the quality of the environment. Strict compliance with the standards of admissible impact on the environment by the Fuel Company enterprises ensures the absence of threats to animals and plants inhabiting the areas adjacent to TVEL FC enterprises.
The impact of the subsidiaries on the environment of the regions of presence is in general less than 5% of the total impact of the industry on the environment of the corresponding regions. Figures of SC “PA ECP” (5.4% of the total discharge of waste water in the Krasnoyarsk Territory), SC CMP (5.7% of the total discharge in the Udmurt Republic), SC AECC (3.9% of the total discharge in the Irkutsk Region) are close to the said impact. The 5% level was exceeded by SC “SGChE” (25.2% of total wastes, 79.5% of the total discharge of waste water in the Tomsk Region). The proportion of the rest of TVEL FC enterprises in the total impact of economic activities on the environment of the regions of presence is low.
Expenses of TVEL FC related to minimization of the environmental impact
In 2014, operating expenses of TVEL FC enterprises for environment protection amounted to RUB 2,371.17 mln. Target funds allocated in the framework of the investment and project activities of TVEL Fuel Company and ROSATOM State Corporation, were used to finance both technical and organizational measures.
Planning of production and technical measures aimed at ensuring of environment protection by the subsidiaries included in the management system of the Fuel Company is carried out in the framework of the investment and project activities of TVEL Fuel Company and ROSATOM State Corporation.
|Expense item||2012||2013||2014||2015 (plan)|
|Radiation safety assurance||973.1||1,059.2||1,123.1||1,000.0|
|Wastewater collection and treatment||427.5||335.1||374.4||400.0|
|Atmosphere air protection||209.1||187.7||178.2||190.0|
|SC "PA ECP"||136.8||26.7||59.2|
|SC "VPA "Tochmash"||24.5||24.0||24.2|
|EDB-Nizhny Novgorod JSC||0.0||0.0||0.0|
Prior to its inclusion in investment projects, each action is subject to justification and assessment from the view point of the final result effectiveness at the meeting of the Investment Committee of JSC “TVEL”.
The bulk of expenses is related to activities for environment radiation safety assurance (RUB 1,123.1 mln). Considerable expenses are also related to collection and treatment of waste water (RUB 374.4 mln), and to other activities in the sphere of environment protection (RUB 482.5 mln).
The bulk of environment protection expenses of TVEL FC falls on SC “SGChE”, SC UEIP and SC CMP.
In 2014, total amount of payments for negative impact on the environment decreased by 22.3 % as compared to the previous year, and amounted to RUB 19.34 mln.
In 2014, there were no substantial fines and penalties for the impact on the environment in respect of subsidiaries included in the management system of TVEL FC, no damage was caused to the environment.
Assurance of nuclear and radiation safety (NRS) of facilities of the Fuel Company subsidiaries, prevention and exclusion of any possibility of inadmissible exposure of the personnel, population and environment to radiation are among the priority activities of TVEL FC.
In 2014 TVEL FC subsidiaries registered no violations which can be assigned to category 2 or higher on the INES scale, no excess of the limits of the annual effective radiation doses of the personnel, no Group A personnel exposed to the effective dose of 100+ mSv over a period of five successive years.
Prevention of radiation accidents requires the constant monitoring of compliance with the rules, regulations, instructions, observance of technological discipline.
General management of work to guarantee NRS in TVEL FC subsidiaries, responsibility for compliance with the Federal laws, the regulatory, requirements of Rostekhnadzor concerning NRS are imposed on Technical Directors (Chief Engineers).
Lists of nuclear hazardous sections are elaborated for all nuclear-hazardous facilities and approved by the Director of the Department for Nuclear and Radiation Safety of ROSATOM State Corporation. Design documentation and the conclusions on the nuclear safety issued by the Department of Nuclear Safety of IPPE RF SSC FSUE are provided for all nuclear hazardous sections. All nuclear hazardous sections are equipped with emergency alarm systems in the case of self-sustaining fission chain reaction.
Radiation safety in TVEL FC subsidiaries is ensured by regulatory radiation safety requirements, development of necessary documentation justifying radiation safety activities, personnel training, compliance with rules, regulations, instructions on radiation safety, and radiation control in the units, buffer areas, and the area of professional responsibility of enterprises.
Units of the enterprises for processing, storage, production involving nuclear materials and radioactive substances, radioactive wastes treatment have sanitary-epidemiological statements of conformance stating that the work with radiation sources is in compliance with sanitary rules.
Activities of JSC “TVEL” and the Fuel Company subsidiaries are carried out in accordance with the laws of the Russian Federation pertaining to the use of nuclear power with due account to IAEA requirements.
The main program documents providing for realization of activities in the area of NRS are the Federal Target Program “Nuclear and Radiation Safety Assurance for 2008 and up to 2015” (FTP NRS) and draft Federal Target Program “Nuclear and Radiation Safety Assurance for 2016–2020 and up to 2030”.
In accordance with FTP NRS, the Fuel Company subsidiaries scheduled 38 events by 2015, amounting to RUB 10.1 bln, including RUB 7.6 bln from the federal budget, and RUB 2.5 bln from other sources. It is planned to liquidate 55 Nuclear and Radiation Hazardous Facilities (NRHF), to put into operation 1.71 thousand m3 of facilities of radioactive wastes (RW) repositories, to put 2.74 RW power blocks into an environmentally safe state, and to rehabilitate 155.9 thousand m2 of radiation-contaminated areas.
Over the period 2008–2014, works on 22 events were accomplished. The total volume of works amounted to RUB 8 bln, including RUB 5.6 bln from the federal budget, and RUB 2.4 bln from other sources. 51 NRHF were liquidated, 1.71 thousand m3 of RW repository facilities were put into operation, 2.74 RW power blocks were set into an environmentally safe state, and 143.28 thousand m2 of radiation-contaminated areas were rehabilitated.
In 2014, the total volume of FTP NRS activities 2008–2015 amounted to RUB 1.2 bln, including RUB 0.9 bln from the federal budget, and RUB 0.3 bln from other sources. 6.5 NRHF were liquidated.
SC AECC received approval from state ecological expertise of a license justification documents in the framework of preparatory work for decommissioning of casing 2, building 802, and casing 4, building 804, as part of the Nuclear Facility for uranium isotope separation.
|Subsidiary||Scope of finance, RUB mln|
|Emission of RN into the atmosphere, Bq||7.81*109||7.54*109||9.49*109|
|Areas contaminated with RN, thousand m2||13,601.4||15,444.6||16,081.4|
|Discharge of waste water containing RN, Bq||4.78*109||5.15*109||1.56*109|
Radiation hazardous facility was decommissioned, and test station No. 2 of shop No. 14 of SC “VPA “Tochmash” was released from the regulatory supervision. This work was financed by own funds of the subsidiary.
In 2013–2014, Urangeologorazvedka Russian Geoecological Centre conducted radiological survey of the entire area of PJSC “MSZ” under the agreement with PJSC “MSZ”. The survey revealed localized areas of radioactive contamination, areal anomalies and zones of local anomalies. PJSC “MSZ” made a decision to eliminate small areas of radioactive contamination using own resources. In 2014, PJSC “MSZ” began the works — a part of the identified contaminants with a total area of ~ 5 m2 was eliminated.
In 2014, there were implemented 16 activities amounting to RUB 716.95 mln at the expense of the special reserve fund No. 3 “Decommissioning and R&D” of ROSATOM State Corporation, including 12 events that are not included in the FTP NRS 2008–2015 amounting to RUB 437.35 mln.
In 2015 and subsequent years works for liquidation of the nuclear “heritage” will be continued.
In 2014 RN emissions into the atmosphere were increased as compared to 2012 and 2013 due to increased scope of work at SC “SGChE” and SC CMP, as well as the commissioning of a new site at SC CMP. The emissions of all subsidiaries of the Fuel Company are within the permissible limits.
The area of lands contaminated with RN has increased due to newly discovered territories that were contaminated with RN during the construction of the first nuclear project, and also owing to additional complex engineering and radiation survey of previously identified areas.
Areas contaminated with radionuclides are within the area of professional responsibility of PJSC “MSZ”, NCCP JSC, SC CMP and SC “SGChE”. No industrial activity is carried out at the said areas, access is highly restricted.
All identified contaminated areas are consequence of activities of enterprises that were intended for improving the defensive ability of the country in the period of the “nuclear shield” creation.
As of the end of 2014, the total area of territory contaminated with radionuclides subject to rehabilitation amounted to 16,081.4 thousand m2.
According to the conclusions of regulatory authorities on the results of inspections, it was noted that the radiation and nuclear safety in the Fuel Company subsidiaries, in general, conforms with the regulations and rules in the field of use of nuclear power. TVEL FC registered no cases of cancellation of any license related to nuclear energy application.
A large portion of RW located at the sites of JSC “TVEL” subsidiaries is placed in long-term RW storage facilities (39.6% of the total volume in m3) and RW special disposal sites (60.3%). In the reporting year, 270 thousand m3 of RW were delivered to specialized organization for disposal.
|Subsidiary||Areas contaminated with radionuclides|
|Total||Buffer areas||Area of professional responsibility||Industrial site|
|Indicator||Unit||Level of radioactivity|
|RW on the sites of the Fuel Company subsidiaries at the year end. total||m3||13,110||292,766.6||5,573,321.9||5,678,217.2|
|Accumulated before July 15. 2011 ("heritage") [ i ]||m3||13,000||291,262||4,073,130.60||5,659,046|
|Produced after July 15. 2011. total||m3||110||1,504.6||1,500,191.3||19,171.2|
|Produced in the reporting year||m3||30||106.6||400,120.6||6,163.4|
Emergency Preparedness and Response
Work to ensure emergency preparedness and response of the Fuel Company subsidiaries is carried out in the following key areas:
To reduce the impact of production activity of the Fuel Company enterprises on the environment the following is developed:
At the enterprises involved in transportation of dangerous goods, special emergency teams are formed and supported.
At the enterprises with potentially dangerous facilities outside emergency response teams are kept ready.
In the reporting year, special attention was paid to the quality of recruitment, training and performance review of outside rescue workers in special educational institutions. In 2014, to improve the readiness of such units, Divisional Personnel Review Board was established at JSC “TVEL”, and On-site Personnel Review Boards headed by Technical Managers of the companies were established at the enterprises included in the management system of the Fuel Company. The structure of On-site Personnel Review Boards was reviewed and approved by the decision of the Personnel Review Board of JSC “TVEL”.
These Boards carried out periodical review of four emergency response teams, initial performance review of citizens, holding the status of a rescuer (72 persons), periodical review of rescuers with confirmed qualification of 1st class rescuer (49 persons), 3rd class rescuer (108 persons), 2nd class rescuer (12 persons). Emergency response teams confirmed the high level of emergency preparedness.
In accordance with the current legislation, accident prevention and response plans developed at all potentially hazardous facilities of the Fuel Company must be updated every two years (for hazard Class I facilities), every three years (for hazard Class II facilities), and every five years (for hazard Class III facilities). The plans must be reviewed at least fifteen days prior to the expiration of the previous plan. The plans must provide for possible accidents scenarios at the facility, composition, organization and interaction of material and human resources, their disposition, activities aimed at ensuring the safety of the population.
Preparedness and response of the subsidiaries to accidents (emergency situations), is controlled by the State Supervisory Authorities, and is checked by commissions of JSC “TVEL” structural subdivisions responsible for security issues.
Sudden drills are used to control the readiness of management bodies, material and human resources of the subsidiaries to prompt response in cases of emergency.
In 2014, the enterprises of the Fuel Company held eleven sudden emergency response drills (SC “VNIINM”, PJSC NCCP, PJSC “MSZ”, SC “SGChE”, SC CMP).
Emergency response drills include interaction between emergency response teams of the Fuel Company enterprises and Departmental Services of ROSATOM State Corporation and the Russian Federation (EMERCOM of Russia, FMBA of Russia, etc.).
Subsidiaries that have passed the tests, have worked out the plans on corrective actions, organized control of correction.
Plans of accident prevention and response at hazardous production facilities provide for logistics, engineering and financial support. Subsidiaries, included in the management system of the Fuel Company annually form stock of means for accident response at hazardous production facilities. Availability of the required resources is monitored in the course of comprehensive and targeted inspections conducted by the Supervisory Authorities, Department of Mobilization Work, CD and ES, and the Department of nuclear, radiation, industrial safety and ecology of JSC “TVEL”.
In accordance with legislative requirements and procedures stipulated by the internal standards of the integrated management system, emergency preparedness of subsidiaries is ensured by the following:
Annual drills allow to determine requirements to the sufficiency of the measures taken for incident and emergency prevention and response.
JSC “TVEL” takes steps to prevent traffic accidents, emergencies, and eliminate their consequences with the assistance of regional emergency teams of the Emergency Centre SPb FSUE. JSC “TVEL” annualy pays for services rendered by the Emergency Centre SPb using the special-purpose reserve funds. The Contract between JSC “TVEL” and the Emergency Centre SPb FSUE stipulates targeted funding to keep in constant readiness the professional emergency response team, fitted with the necessary equipment, devices and means of communication, which must implement the action plans for protection of workers and population in the event of an accident.
JSC “TVEL” subsidiaries developed documents defining the procedure of interaction with the Emergency Centre SPb FSUE and its affiliates to ensure emergency preparedness in the transportation of dangerous goods and industrial safety.
The established on-duty dispatching service system (ODDS) performs everyday control over the functional subsystem of emergency response of JSC “TVEL” and companies included in the management system of the Fuel Company.
ODDS ensures receipt, processing and transmission of information on current activities, emergency situations at the Fuel Company enterprises and drills under emergency response plans.
To maintain the sustainable management of the ODDS, JSC “TVEL” updates data on the organization of information exchange with FC enterprises on a monthly basis.
Every day the Duty Dispatcher of JSC “TVEL” prepares a report based on the data from subsidiaries’ ODDSs about the situation in the Fuel Company, which reflects the results of the monitoring of radiation, chemical, fire, natural environment, transportation of special cargo and major events in the current activities of the subsidiaries.
On a quarterly basis, ODDS checks the communication with of the officials of JSC “TVEL” and the heads of FC subsidiaries in order to maintain readiness to alert in case of emergency (accident).
In 2014, a training seminar of the heads of the Fuel Company ODDSs was held in JSC “TVEL” to improve the work of ODDSs and develop a unified algorithm and methods of actions in case of emergency situations.
Formation and Operation of the Unified State Radiation Situation Control Automated System of the Russian Federation
At the Fuel Company enterprises, the Automated Radiation Monitoring System (ARMS) has been successfully functioning and has been constantly improved.
ARMS of the enterprises are a part of the Sector Automated Radiation Monitoring System (SARMS) of ROSATOM State Corporation. IARSMS is linked to the Unified State Automated Radiation Monitoring System (USARMS).
ARMS control stations work at all NRHF of the Fuel Company and are located at production sites, sanitary protection zones and monitoring zones (professional responsibility areas) of the subsidiaries.
The radiation situation is measured in real-time mode, data from monitoring sensors of the subsidiaries’ ARMS are transmitted to the Situation and Crisis Management Centre of ROSATOM State Corporation.
In the period 2013-2015, the Investment Project "Modernization of the ARMS system" aimed at ensuring compliance of the ARMS of SC UEIP with the requirements of the Regulations on the industry automated radiation monitoring system of ROSATOM State Corporation has been implemented at SC UEIP.
In 2014, ARMS of SC AECC was modernized as follows: obsolete and worn-out control and measuring equipment of eight existing control stations was replaced with modern one, providing high stability of system operation and improvement of the efficiency of measurements.
Since January 1, 2014, the ARMS of SC "VNIINM" was accepted for commercial operation. Measuring equipment of the ARMS provides continuous measurement of an ambient dose equivalent rate of gamma radiation on the territory, volumetric activity of radioactive aerosols (containing alpha and beta emitting nuclides) in the emissions of special ventilation systems, meteorological parameters (direction and speed of wind, temperature, atmospheric pressure, humidity, amount of precipitations).
Physical Protection of Nuclear Facilities
In general, the state of physical protection in subsidiaries of the Fuel Company is assessed as complying with the rules and departmental normative documents. In 2014, no stealing and sabotages in relation to the objects of physical protection were registered; there were no cases of failure to prevent unauthorized actions; the deficiencies identified by departmental and technical inspections were eliminated completely and promptly; performance of technical equipment and preparedness of personnel and security teams were at acceptable level.
Physical protection systems were improved in accordance with the approved plans. Works were financed mainly at the expense of the funds of reserve No. 2 of ROSATOM State Corporation and own funds of the subsidiaries of TVEL FC. All activities were performed in a timely manner.
In terms of nuclear terrorism threat countermeasures, anti-terrorism security certificates were developed at all nuclear hazardous facilities and approved in the prescribed manner. The facilities are subject to departmental inspections and inspections by the State Regulatory Authorities.
In 2014, the Fuel Company continued to improve emergency prevention, and response and fire safety systems.
The second phase of the “Concept of the complex threat and emergency warning system” approved by the Government Commission on emergency prevention and response and fire safety in 2013, was implemented.
JSC “TVEL” drafted and presented a summary of the Fuel Company’s offers for the Project of “Guidelines on the development of action plans on suppression of fires and other emergency situations of natural and technogenic character in the territories of restricted administrative and territorial entities of the nuclear industry” prepared by EMERCOM of Russia.
In pursuance of the instructions of the Government of the Russian Federation and ROSATOM State Corporation, control over the response to emergency (accident) announcing was made a part of the compulsory audit of the Fuel Company subsidiaries.
In order to improve the emergency preparedness of the Fuel Company subsidiaries there were carried out training exercises and drills with the deployment of material and human resources of the Fuel Company subsidiaries and the interacting structures of the Unified State System of Emergency Prevention and Response (EMERCOM of Russia, FMBA of Russia, Internal Troops of the Ministry of Internal Affairs of the Russian Federation, Atom-Okhrana FSUE, etc.). More than 500 trainings and drill were carried out in 2014.
To control the preparedness of the Fuel Company to floods and natural fires, divisional drill with the deployment of material and human resources of subsidiaries and interactive structures of the Unified State System of Emergency Prevention and Response was conducted under the leadership of JSC “TVEL” on April 25, 2014. It revealed sufficient readiness of the subsidiaries to address potential natural threats, and good cooperation of all material and human resources.
From 4th to 7th October, 2014, the Fuel Company took part in the nationwide civil defence drill intended to control interaction with local government bodies and territorial bodies of EMERCOM of Russia in dealing with possible emergency response. The Fuel Company subsidiaries were positively appraised by the drill staff.
To enhance motivation of proper solution of emergency prevention and fire safety problems, a competition for “The Best enterprise of the Fuel Company in civil protection” award was held in 2014; the winner was SC “PA ECP”.
In 2014, the Fuel Company made considerable efforts to improve fire safety by carrying out organizational and technical measures, which allowed:
Effective organizational and technical fire protection activities allowed for the first time ever to prevent fires at industrial sites of the subsidiaries and to continue the positive trend of reducing their number.
Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014
Opinion of the heads of municipal units
Andrey Aleksandrovich Sukhanov
Head of Electrostal urban district administration (the Moscow Region)
PJSC “MSZ” is one of Elektrostals’ major city-forming enterprises. Its contribution into social, economic, cultural, educational and sport development of the city can hardly be overestimated.
Besides major tax payments to the local budget, the enterprise renders material and other assistance to the Moscow regional polytechnical college under MEPhI NRNU, practices charity activities. Charitable donations of PJSC “MSZ” to municipal needs in 2014 made RUB 1,617 mln.
The enterprise actively develops vocational-oriented education: TVEL FC and Elektrostal Department for Education jointly hold annually educational contest for schoolchildren “First Step into the Nuclear Project”. Besides, information centre of PJSC “MSZ” holds year-round lectures for all upper-formers of the city.
Much attention is paid to environment safety. Besides obligatory execution of actions aimed at monitoring, provision and maintenance of favourable ecological situation in the region of presence, employees every year organize various ecological events and volunteer clean-up. PJSC “MSZ” is a permanent participant and winner of land improvement contest “City flowers”. This interaction is permanent and fruitful in all spheres”.
|The direct generated economic value||137,913.8||162,788.6||159,538.6|
|Distributed economic value Including:||124,772||142,265.1||142,158.1|
|— Operational costs||63,875.2||84,316.4||89,714.0|
|— Salaries and other benefits provided to employees||24,727.3||21,957.5||20,155.7|
|— Payments to capital providers||20,054.2||19,710.7||17,035.5|
|— Investments into associations and charities||560.5||170.3||245.3|
|— Gross Tax Payments [ i ]||15,554.8||16,110.2||15,007.5|
|Undistributed economic value||13,141.8||20,523.5||17,380.6|
Pavel Evgenievich Korchashkin
Mayor of Zelenogorsk of the Krasnoyarsk Territory“According to ROSATOM State Corporation, today city-forming enterprise of Zelenogorsk, SC “PA ECP” has good prospects. It overcame the period of restructuring, a measure necessitated by and implemented under the market conditions. Zelenogorsk is in the list of “Industrial development cities” group. Mainly these are flagships of the nuclear industry, having good prospects for the development. State Corporation considers it desirable and necessary to establish another core enterprise in the Closed Administrative Territorial Units, so that the city could develop as an industrial cluster. It is practicable, but the process of business search and attraction of investments is not a matter of one day. We have submitted our proposals to ROSATOM State Corporation, to the Governor and the government of the Krasnoyarsk Territory. Project support by the constituent of the Russian Federation is guaranteed.”
Achievement of strategic objectives of TVEL FC is impossible without social accord or in terms of non-compliance with social and environmental acceptability requirements. Social strain in regions and on territories may cause irreparable damage to the reputation of the Fuel Company in the world market in the part of supplies reliability, and therefore may cause foreign partners’ re-orientation towards the Company’s competitors.
In this connection, while determining its strategic development objectives, JSC “TVEL” has taken into account the potential social and economic consequences of taken decisions and has worked out projects for development of regions of presence and assurance of their social stability.
To implement projects for the development of regions of the enterprises’ presence, TVEL FC has elaborated and approved the Program “Formation and preservation of social accord environment in regions of the Fuel Company’s presence” which is oriented at all subsidiaries of the JSC “TVEL”, systemizes the Company’s experience in this area and includes three groups of projects:
Agreements on cooperation with the regions
In 2012, JSC “TVEL” initiated the drawing up and signing of Agreements on cooperation between ROSATOM State Corporation and public authorities of the constituents of the Russian Federation.
Now there are agreements with the Sverdlovsk Region, the Tomsk Region, the Krasnoyarsk Territory and the Udmurt Republic.
The key point of each of the Agreements is the understanding on the return of regional taxes surplus from operation of enterprises of ROSATOM State Corporation in the territory of a constituent entity of the Russian Federation to the municipal budget for activities aimed at social and economic development of nuclear power cities. Moreover, the agreements determine the terms of co-funding of Entrepreneurial Development and Supporting Fund and establishment of Physical and Mathematical Lyceums.
In pursuance of Agreements, in 2013 the Entrepreneurial Development and Supporting Fund was organized and Physical-Mathematical Lyceum was opened in CATU Zelenogorsk with the aid of TVEL FC, local and regional authorities. The Entrepreneurial Development and Supporting Funds and Physical and Mathematical Lyceums also operate in CATU Seversk and Glazov.
|City||Scope of finance, RUB mln||Events|
|CATU Novouralsk||878.0 including|
|780.0||Dealing with the debts of city's energy sales organizations|
|98.0||Power use meters installation in town apartments|
|Glazov||387.4||Construction of an ice hall, a gym hall of Physics and Mathematics Lyceum, major repair of sport facilities, city improvement, city sport teams supporting.|
|CATU Seversk||37.0||Construction of a gym hall of Physics and Mathematics Lyceum|
|CATU Zelenogorsk||58.5||Activities provided under the agreements shall be implemented within regional programs of CATU Zelenogorsk social and economic development.|
|City||Region||% of working-age population employed by subsidiaries of TVEL FC|
|Angarsk (SC AECC )||Irkutsk Region||0.8|
|Vladimir (SC "VPA "Tochmash")||Vladimir Region||0.7|
|Kovrov (PJSC "KMP")||1.5|
|Glazov (SC CMP)||Udmurt Republic||6.1|
|Zelenogorsk (SC "PA ECP" )||Krasnoyarsk Territory||6.0|
|Novouralsk (SC UEIP)||Sverdlovsk Region||5.2|
|Seversk (SC "SGChE" )||Tomsk Region||5.9|
|Elektrostal (PJSC "MSZ")||Moscow Region||4.5|
CATU Development Programs
Following the results of the working meeting of the Director General of ROSATOM State Corporation S.V. Kirienko and the President of the Russian Federation V.V. Putin, the commissions of the Russian Federation President and of the Government of the Russian Federation No. PR-335 d/d December 17, 2014 and No. DM-P16-1257 were given on the issues of CATU development.
To carry out the said commissions there were:
IDP were approved by local and regional authorities, and submitted for inspection and approval to the Government of the Russian Federation.
IDP are aimed at consistent, staged sustainable development of CATU economics and social sphere, removal of existing disparity in functioning of territories with special status based on the rational use of city-forming enterprises’ production and technological potential, social and economic natural-resources potential of cities, detection and rationale of CATU development goals and objectives for a mid-term period, and include a package of policy measures to reach those objectives.
For IDP projects the following has been determined:
Goals and objectives of IDP are centred around the following:
On December 29, 2014 Federal law No. 473-FZ “About the territories of advanced social and economic development in the Russian Federation” was adopted. IDPs underlie the concept of the territory of advanced social and economic development of nuclear industry in CATU.
The contribution of the Fuel Company to the social and economic development of the regions of presence means not just the participation in the formation of the regional and local budgets income base, but also the implementation of the whole body of social and charity programs.
The principles of charitable activity of the Fuel Company:
Since 2012 the Charity Council has been working within JSC “TVEL”; its functions include the determining of purposes and priority areas of charitable activity, approval of the budget and charity events, efficiency assessment of the charitable activity of TVEL FC etc.
Charity Council comprises of managers of TVEL FC in charge of economics, finance, HR, regional and social work, public relations. Scheduled meetings of the Charity Council are held on a monthly basis to consider appeals on financial assistance from individuals and organizations.
The Fuel Company sponsors annual city contests “Businessman of the year”, contests of social projects in the regions of TVEL FC subsidiaries presence. The Fuel Company supports socially important projects in cultural, educational and sports spheres in the cities of the Fuel Company presence.
One of the primary areas of the Fuel Company charitable activity is the creation and development of Physics and Mathematics Lyceums for training of future skilled specialists for the nuclear industry.
This project is designed to create conditions for children’s self-expression, to reveal and support talented schoolchildren, bring up of the prospective scientists.
Presently the project is implemented in three cities: CATU Seversk, CATU Zelenogorsk and Glazov under the terms of co-funding with the local authorities and government bodies of the Russian constituent entities.
Coordination Board for Physics and Mathematics Lyceums development coordinates their work and serves a site where teaching stuff and managers of the Fuel Company can exchange ideas. All-Russian training conference for Physics and Mathematics Lyceums is held on a quarterly basis; the teachers discuss essential problems of education in the sphere of physics and mathematics and possible ways to solve them in an actual teaching practice.
In September 2014 Physics and Mathematics Lyceum sport complex was opened in CATU Seversk (jointly with the Tomsk regional administration and local authorities of CATU Seversk).
|No.||Events (Projects)||Funding in 2014, RUB mln|
|1||Support to the activities of the nuclear industry information centres in the regions of TVEL FC subsidiaries presence (ANO "Data Centre of Nuclear Field")||30.46|
|2||Support to the sports activities in the cities of presence of TVEL FC subsidiaries.||40.87|
|3||Support to the Russian Sports Society "Atom-Sport"||4.59|
|4||Support to Atomclasses activities in the cities of presence of TVEL FC subsidiaries.||4.00|
|5||Support to educational institutions in the regions of TVEL FC subsidiaries presence.||14.24|
|6||Support to social and cultural events in the regions of TVEL FC subsidiaries presence.||34.17|
|7||Support to public organizations, charity funds, orphan asylums, boarding schools, disabled persons and people in need.||6.00|
|8||Support to public and ecological initiatives in the regions of TVEL FC subsidiaries presence.||1.45|
|9||Aid to Russian Orthodox Church parishes||2.93|
|10||Participation and holding of a contest "Businessman of the year" (in Elektrostal, Novouralsk, Zelenogorsk, Seversk)||1.20|
|11||Corporate assistance to military units, combat veterans||3.13|
|12||Holding of contests in the framework of social and charitable events in the regions of TVEL FC subsidiaries presence.||4.40|
|13||Participation in ROSATOM State Corporation social projects.||36.25|
|14||Support to health care institutions (CATU Zelenogorsk)||4.75|
|15||"Mercy" program of support to retirees of TVEL FC subsidiaries (Angarsk)||34.00|
|16||Expenses for maintenance of city's social facilities (CATU Seversk).||20.80|
There are atomclasses that operate in the cities of FC presence (Angarsk, Glazov, Zelenogorsk, Kovrov, Nizhny Novgorod, Novouralsk, Seversk, Elektrostal). Atomclasses are specialized classes in the best schools of each of the cities with advanced studying of physics and mathematics. The specific feature of such classes is the profound study of nuclear physics and nuclear technologies. The important part of the project is procurement of advanced laboratory equipment for teachers to demonstrate innovative physical presentations, and for students to have their training laboratory courses and carry out research. Such advanced training will help the students to succeed at academic competitions, contests, school children’s academic achievements festivals. Further on Atomclasses graduates will be able to continue their education in relevant technical universities.
In accordance with the instruction of ROSATOM State Corporation from December 1, 2014 there was introduced a weekly monitoring of social and political situation in CATU (Zelenogorsk, Seversk, Novouralsk) and Glazov prodiving for 29 scenarios of social and political crises and their relevant indicators:
Monitoring purpose: reduction of social strain risks and possible impact of protest moods. The findings help to develop and to correct plans of preservation of social cohesion environment in regions of presence of the Fuel Company subsidiaries.
Indicators of social and political monitoring in the cities of the Fuel Company subsidiaries presence:
TVEL FC always applies the principles of transparency, and constantly interacts with stakeholders, systematizes, analyzes and takes into consideration their requests. This approach allows to respond quickly to potential risks connected with stakeholders relations, in particular with those of social and reputational nature.
In 2014 on the base of the Fuel Company top managers survey, the rank chart of stakeholders was updated, reflecting their interaction with the Company.
System of relationships with each group of stakeholders influences and will influence operation of TVEL FC, that’s why due consideration of their interests in planning and in the course of daily operations is the most important condition of sustainable development. Analysis of key events, major financial and production outcomes and the Company’s performance in the sphere of sustainable development demonstrates that social capital is among major sources of business stability.
JSC “TVEL” is a member of all-Russian industrial association of employers “Association of the Employers of the Nuclear Industry, Energy and Science of Russia” (President of the Company is a member of the Board), and National Association of Procurement Institutes (NAPI).
|Target group of stakeholders||Key interests||Performance indicators for TVEL FC||Institutes and system-based interaction||Programs and events|
|ROSATOM State Corporation||Better manageability.
|Implementation of advanced management technologies.
|Labor efficiency increase.
Positive dynamics of financial, economic and production indicators.
|ROSATOM production system.
Project management application.
Management system (HR, production, finance, innovations etc.).
|Organizational chart transformation.
RPS introduction plans.
Replication of information solutions for all TVEL FC subsidiaries.
|Consumers||Stability of supplies, price, quality and reliability of supplies, products and services.||Orders stability.
Growth of income.
Rise of income.
Fuel failure probability decrease.
“Zero Failure” project.
|Subsidiary companies||Assistance to operating business and development of new ones.
Expansion of areas of responsibility on individual managerial decisions-making.
Completion of production tasks.
Percentage of completion of production tasks.
Non-nuclear products sales result.
Decomposition of business processes and information decisions.
|Labor collective and trade unions||Stable wage and payment.
Socially responsible employer.
|Labor efficiency increase.
Staff turnover reduction.
Rate of average salaries in subsidiaries and in regions of their operation.
Intercommunication buildup design.
|Staff development programs.
Value strengthening project.
|Mutually beneficial cooperation.
|Growth of income.
Client and resource base expansion.
Joint projects and contracts.
|ALVEL joint venture.
Nuclear fuel production facility in Ukraine.
|Suppliers||Procurement system transparency.
|Quality, stability and reliability of supplies.
|Cost saving. Compliance with contractual terms of delivery , compliance with time, quality and quantity.||Uniform Industrial Procurement Standard.||E-Procurement with feedback.
Uniform Industrial Procurement Standard enforcement.
|Local authorities, regional authorities||Social and economic development of regions.
New investors attraction.
Formation of business environment.
Employment of population.
|Stability in regions of presence.
Number of new jobs.
|Agreements with regional authorities.
Agreement on consolidated taxpayer group formation
Entrepreneurship promotion funds.
Upcoming: Strategic development program for nuclear industry in CATU.
|Joint social and charitable projects with authorities.
Territory development programs (industrial parks, technoparks).
Nuclear Power Information Centres.
Legal framework perfection.
|Scope of funding.
Gross tax allowances.
FTP indicators execution.
Considered proposals on legal framework improvement.
|Federal target programs Intergovernmental agreements.
Statutory legal acts.
Compliance with terms of intergovernmental agreements.
Participation in ROSATOM State Corporation legislative initiatives.
|Public and environmental organizations||Compliance with legal requirements and international standards.
|Social stability in regions of presence.||Charity donations.
Number of comments and suggestions.
Share of positive and neutral publications in mass media.
|Committee of stakeholders.
|Public hearings on the Fuel Company projects.
Activities held in Information centre of nuclear industry.
|Scientific and expert community||Order, funding and commercialization of prospective developments.||Breakaway developments.||R&D outcome.||Scientific and technical councils.
|Programs for implementation of cooperation agreements between JSC "TVEL" and core universities of ROSATOM State Corporation.|
|Complaints concerning environmental impact||
|Complaints concerning social impact||
|Labor Practices Complaints||
|Other appeals (proposals for technical improvement, appeals for material and charitable support etc.)||
Complaints and Appeals Handling
Complaints and appeals handling in JSC “TVEL” is performed in conformity with the Federal law “On procedure for handling the appeals from citizens of the Russian Federation” No. 59-FZ d/d February 2, 2006. Feedback is compulsory: every appeal shall be registered, as well as every answer.
To establish direct communication “employee/President of JSC “TVEL””, “post boxes” are installed in all subsidiaries of the Company, and any employee may address top management of TVEL FC confidentially.
Awards of Subsidiaries of the Fuel Company
Numerous awards and letters of appreciation granted to subsidiaries in 2014 prove public recognition of the Fuel Company’s active position. These are awards for environmental safety, occupational culture and labor safety, charitable activity and social programs in regions of presence, work with young generation and participation in exhibitions. Within the reporting period subsidiaries of TVEL FC won more than 50 different awards.
Cooperation of the Fuel Company with ANO “Nuclear Power Information Centres”
JSC “TVEL” and its subsidiaries have been cooperating with ANO “Nuclear Power Information Centres” since 2010.
One of the main directions of the cooperation is an information and training program “First Step to the Nuclear Project” carried out in regions of presence of the Fuel Company subsidiaries. Program organizers and participants: JSC “TVEL”, SC, educational and public agencies in regions of presence of the Fuel Company subsidiaries, Nuclear Power Information Centres, community.
A closing ceremony of TVEL FC information and training program “First Step to the Nuclear Project” took place in December 2014 in the museum of history of SC “SGChE”. The program overgrew the frames of municipal educational program and became interregional, intended for schoolchildren from the biggest cities of the Siberian Federal District. 9 teams participated in the game, winners of municipal stages from three cities of presence of TVEL FC subsidiaries — Novosibirsk, Seversk (the Tomsk Region), Zelenogorsk (the Krasnoyarsk Territory). Contest was held online within the framework of the regional Nuclear Power Information Centres, in a teleconference bridge format.
Besides, under cooperation with ANO “Nuclear Power Information Centres” the photo exhibitions “Art of TVEL” were held in Russian regions, telling about products and services of the Fuel Company by means of comprehensive creative means.
Stakeholders Engagement Events During the Preparation of the Report 2014
While preparing the Report the principles of Standard AA1000APS were adhered to, in particular,there was ensured the compliance of the published information with the requests of the involved stakeholders. Three on-site dialogues were held for the implementation of this principle while preparing this Report.
Participants of dialogues were the representatives of ROSATOM State Corporation, industry partner organizations, subsidiaries, environmental, public, trade union organizations, higher educational institutions, local governmental authorities, mass media, consultants and auditors.
In December 2014 the TVEL FC held the dialogue on the concept of the Annual Report 2014.
The Report concept developed by the Company with account of the proposals of stakeholders committee was presented; the participants advanced recommendations which allowed finalizing and specifying the concept of the Report.
Results of the reporting campaign 2013 were summed up during the public dialogues held on February 19, 2015. The participants of the dialogue discussed the matters of preparation of TVEL FC Public Annual Report 2014, summarized some outcomes of the reporting year, marked the priority issues to be disclosed in the Report:
The draft annual report of JSC “TVEL” for the year 2014 prepared subject to the comments of the stakeholders in the course of the dialogues was presented during the public consultations on April 29, 2015.
Following the events the proposals were made on improvement of the text content of the Report and the process of interaction.
Public Reporting System of TVEL FC
Due to the specific nature and scale of its activities TVEL FC is in the area of interests of the great number of stakeholders; it influences on and it is influenced significantly by its environment. The business success of the Company depends on the development of the constructive and trust-based relations both inside the Company and with the society. With the purpose to ensure the openness, TVEL FC in 2011 elaborated its public position in the area of sustainable development (see details in the annual reports 2011–2012).
In accordance with the Policy of ROSATOM State Corporation applicable to public reporting, JSC “TVEL” generated the system of public accountability which represents the combination of elements, processes and connections between them ensuring the activity with regard to public accountability and its development.
The primary elements of the public reporting system are the following: the operational centre of responsibility, regulatory framework, the representatives of stakeholders (participating in preparation of the reporting data), and infrastructure support (consultative and instructional support, audit, etc.).
Documents governing the public reporting of JSC “TVEL”:
Data Collection System for Public Annual Report
The Company has developed and successfully operates data collection system for Public Annual Report, covering Russian regulations for annual reports of open joint-stock companies, Public Annual Reporting Standard of JSC “TVEL” and Sustainability Reporting Guidelines GRI G4. Every indicator is controlled by responsible subdivision and employee.
Operational Centre of Responsibility
The operation of the public reporting system of JSC “TVEL” is based on the work of variety of subunits. The main functions are divided between the vice-presidents of JSC “TVEL”, the Committee on public annual reporting of JSC “TVEL”, and the Public Relations Department (see details in the Report 2011–2012).
For the purpose of development of awareness about the Company’s activities the annual reports of JSC “TVEL” participate in federal, sectoral and other contests; the KPI card of the Head of PR Department includes the index “Awards in Federal Contests”.
Development of the Public Reporting System in 2014
JSC “TVEL” Integrated Annual Report 2013 was highly estimated by independent experts:
Following the results of industry-specific contest of public reporting of ROSATOM State Corporation for the year 2013, the Annual Report of TVEL JSC was the third in nominations “Best information disclosure level in annual report”, “Best stakeholder engagement practice” and “Best practice of annual report promotion”. In the overall rating the report ranked fourth.
The Annual report of SC “PA ECP” subsidiary was named among the best reports in public reports contest of ROSATOM State Corporation organizations.
Public Reporting System Improvement Plans 2015
JSC “TVEL” management contacted us with an offer to assure the Annual Report 2014 of the Fuel Company (hereinafter “the Report”) in terms of completeness and relevance of information disclosed therein, and to assess the performance of management in response to re-commendations and comments of stakeholders.
Draft Report Evaluation Procedure
We are sufficiently competent and skilled in the sphere of corporate social liability, sustainable development and non-financial reporting.
We hereby confirm that we are acting independently and commit ourselves to providing objective assessment, thereby expressing our personal expert opinion rather than the opinion of companies we represent. No remuneration has been received from TVEL FC for our efforts and time invested in this project.
Our conclusion is based on the study of the Report and the analysis of information obtained in the course of dialogues and public consultations, where we and our representatives were allowed to participate and freely express our opinion on the matters under discussion.
We are not aware of any facts that compromise reliability of data set forth in this Report. However, checking of the data collection system and verification of reliability and completeness of information is not the subject matter of public assurance.
The results of our work are formalized in this Statement of public assurance containing the agreed opinions.
Estimates, Comments and Recommendations
We all share positive opinion about the Report and note the endeavours of TVEL FC management to apply advanced international standards. Another characteristic feature of the Report 2014 is disclosure of all key performance indicators under the GRI G4 Sustainability Reporting Guidelines (comprehensive option), public reporting indicators of ROSATOM State Corporation and TVEL FC, and compliance with IIRF recommendations.
TVEL FC prepared an informative and well-structured document that meets our expectations. It is our opinion that the issues prioritized by the management and stakeholders of the Company, such as: “TVEL FC: Reliable Supplier” and “Human Capital as the Main Value of the Fuel Company” are fully disclosed.
The Report sums up the results 2014 and demonstrates the dynamics over the period of three years. Detailed description of the value creation process, business model, disclosure of information about contribution of the reporting year into strategy implementation definitely contribute to the merit of this Report. Another obvious advantage hereof is performance disclosure through the prism of the values of TVEL FC. We would like to point out the constructive approach to stakeholders’ engagement demonstrated by the management in the course of preparation hereof and during the dialogues and public consultations, as well as top quality organization of these events.
Complete and relevant information
In our opinion, the Report covers all spheres of core activity of the company, and social, environmental and economic aspects of its sustainable development, essential for stakeholders. The Report contains relevant information that is sufficiently complete for proper understanding of the current state and prospects of the Company by the stakeholders
Company’s response to comments and recommendations of stakeholders
The Company noted the recommendations of the stakeholders in the minutes of dialogues and public consultations, and conducted thorough analysis and used them in the Report and in the Company activities. Hereby we confirm that all our suggestions and comments are set forth in the Table of Comments of Stakeholders (Appendix No. 3 to the Report).
Therefore, TVEL FC demonstrated responsible approach to implementation of requirements set forth in the Public Reporting Policy of ROSATOM State Corporation, and showed constructive attitude to wishes and suggestions of stakeholders.
We are confident that traditionally high quality of interaction of TVEL FC and stakeholders will be preserved and applied in the future.
|Director of the Institute for Industrial Nuclear Technologies of National Research Nuclear University MEPhI||E.M. Glagovsky|
|Leading Expert of the Federal Service for Environmental, Technological and Nuclear Supervision||A.I. Kislov|
|Executive Director of the Association of Closed Administrative Territorial Unit of the Nuclear Industry||A.I. Makarenko|
|Secretary of the Central Committee of RUNPIW||A.G. Vanichkin|
|Deputy Director for Research and Development, Vice-President of the Russian Society for Non-Destructive Testing and Technical Diagnostics||N.R. Kuzelev|
|Head of Project Department of the Nuclear Fuel Life Cycle ROSATOM State Corporation||O.I. Linyaev|
|Deputy Head of Electrostal Urban District Administration||V.P. Davydov|
|Member of Public Council of ROSATOM State Corporation Member of the Board of the Centre for Russian Ecological policy||V.F. Menshikov|
|Chairman of the All-Russian Public Children’s Environmental Movement “Green Planet”, member of the Academy of Medical Sciences||M.D. Medvedeva|
|Head of the Centre for Corporate Social Responsibility and Non-financial Reporting of the Russian Union of Industrialists and Entrepreneurs||E.N. Feoktistova|
|Executive Director of Interregional Public Ecological Organization “GREENLIGHT”||O.V. Plyamina|
|Deputy Head of Kovrov Municipal Administration, Head of Department for Economics, Property and Land Regulations||S.R. Khapalov|
|Director General of the Institute of Natural Monopolies Issues||Yu.Z. Saakyan|