Annual Report 2022 UTLC ERA — Sustainable development

History

clear history

Larisa
Korshunova

Governmental Relations Director

Sustainable Development

Human capital Corporate Social Responsibility Occupational and Fire Safety Environmental Performance as a Competitive Edge People Come First: Charity Uniting People and Countries: UTLC CUP 2022 Procurement Use of Energy Resources

Human capital

How many are we?

By the end of 2022, 160 people were actually employed by UTLC ERA (with the staff size at 170 people). 69 of them hold management positions. We also have 88 specialists and 6 office employees.

2022 was marked by growing container traffic volumes, expanded service geography and a larger fleet of fitting platforms. UTLC ERA implemented a risk management system. The procurement processes also underwent significant changes.

The combination of these factors resulted in changes in the company’s organizational structure and staff list as required to develop customer service, maintain high service quality, manage the own fitting platform fleet and engage in market monitoring and integrated reviews.

Company’s staff size growth in 2022

In 2022, the company hired 27 people, which is 4 people, or 12.5%, more than in 2021. 9 people were dismissed.

Staff turnover ratio in 2022,
with the standard ratio of 5-7%

Irina

Kuchurina

Chief Specialist for HR Administration

UTLC ERA’s Organizational Structure as of December 31, 2022

units

Headcount

units

Headcount

Company’s personnel number

Personnel breakdown by categories (people)

managers

specialists

office staff

workers

Personnel breakdown by education (people)

secondary vocational education

basic general education

higher education

academic degree/rank

Personnel breakdown by age (people)

21 to 30

31 to 40

40 to 50

older than 50

The average age of the company’s employees in 2022 was 39, showing that the staff was well-balanced. Experienced specialists share their knowledge with young employees who, in turn, promote further development of the company by implementing innovations.

Personnel breakdown by gender (people)

Men

Women

In 2022, a number of UTLC ERA’s internal regulations were amended, with the following documents updated and approved:

Internal Labor Regulations, which establish the corporate labor regulations

Bonus Award Regulations for Employees in Production and Commercial Personnel and Business Support Groups, which outline the bonus award principles and conditions

Bonus Award Regulations for Employees in Management Group, which outline the bonus award principles and conditions

Onboarding Regulations, which define the uniform requirements and procedures for personnel onboarding management in the company Appendix No. 6 to the UTLC ERA Onboarding Regulations was supplemented

Employment Procedures

We recruit our personnel based on two fundamental principles stipulated in the Russian laws: objectivity and absence of any form of discrimination. All other criteria depend on the strategic and tactical priorities, the company’s HR management system and core business.

UTLC ERA’s HR processes consider the following:

Candidate’s motivation, alignment with corporate culture and team

Expertise level

Assessment of the candidate’s hidden potential, strengths and career development prospects

Generally positive behavioral response

Adaptivity: how quickly the candidate can get the hang of things and start making connections with peers, suppliers, customers and managers

A streamlined employment process includes stage-by-stage selection in order to assess candidates and find out whether they meet the job requirements.

The personnel recruitment, onboarding and development processes adopted at the company are regulated by:

Personnel Recruitment and Onboarding Regulations

Corporate Code of Conduct

Corporate Competencies Model

Personnel Training and Development Regulations

Selection stages:

Search and processing of CVs by reviewing all job applications, and search by keywords at HeadHunter

Telephone interview aimed at obtaining information about the candidate’s education and experience and learning more about their motivation behind searching for a new job

Personal interview aimed at assessing the candidate’s conformity to the job requirements, professional and personal qualities, motivation and alignment with the corporate culture

Contacting the previous employer for references, if still in doubt

Interview with the corporate security staff

Pre-employment medical examination

Corporate Culture

Our Corporate Code of Conduct outlines the basic standards and principles of individual and collective behavior. The Code contains the company’s core values.

Leadership

We strive for leadership in our business areas. Finding the best solutions is our key objective. We have an inherent “competitive spirit”: we are confident in our abilities and we can solve any task quickly and efficiently; we hit the target better than our competitors.

Effectiveness

We strive for effective use of resources, competent management, prompt and accurate completion of the assigned tasks, high productivity and the best possible performance. We can mobilize and complete our tasks at a very short notice.

Professionalism

The relations inside the company are based on the personnel’s direct commitment to high performance, enabling us to become professionals in various disciplines. Making the best decision, or giving competent advice within their remit, is a matter of honor for each team member. All corporate decisions are based on competence and feasibility rather than someone’s ambitions or lobbying.

Innovations

Are relevant for any business aspect: marketing, financial operations, HR policy, IT, etc. We encourage our personnel’s initiatives, because we firmly believe that living ideas not only enhance work engagement, but also affect motivation and proactive attitude among the team, enabling the company to develop new attractive directions.

Customer focus

We understand customer focus as development of partner relations with the external and internal customers (employees), close attention to their interests and needs, quick and effective solutions to their problems.

Fairness and integrity

These principles underpin our relations with both external and internal customers. We give no empty promises and honor our commitments. We guarantee only what we are able to fulfill. So, we expect every customer, business partner and, primarily, every team member to comply with these principles.

Corporate Social Responsibility

Elena

Schmidt

Chief Specialist for Internal Communications

CSR is an integral part of UTLC ERA’s business.

The company’s establishment, growth and development envisage CSR progress, such as process alignment, enhanced engagement by the company and its stakeholders and larger funds to be allocated to CSR as the economics gradually improve.

UTLC ERA CSR principles

Consistency

Personnel
engagement

Environmental friendliness

Partnership

Ethics

Care about public welfare

Commitment
to tradition

Transparency
and integrity

Key directions

Personnel care

Education
development

Environmental protection

Charity
and sponsorship

Support for industry veterans

Our CSR principles are based on our understanding of the additional contribution that we can make to social development and environmental protection, taking into account potential changes affecting the industry, countries of operation and the whole world.

By sharing the social responsibility concept, the company strives to promote CSR ideas among its customers, partners and other stakeholders, to implement CSR principles throughout the supply chain and, in the longer term, throughout the industry.

Caring About People

People working for UTLC ERA are our key competitive edge, and their well-being is an integral part of our corporate culture. UTLC ERA is committed to creating all possible conditions for respecting the interests of our personnel, therefore, the company attaches great value to:

Professional and personal development of each employee

Favorable moral and psychological climate and normal workplace conditions

Fair assessment of the individual contribution and proactive approach

Health and well-being of our employees and their families

The company goes above and beyond ensuring the decent remuneration levels and strives to render maximum social support and offer training and development opportunities to the personnel. We care about the well-being of our team members, improvement of their mental and physical state, as well as their satisfaction level.

In 2022, the company implemented the well-being programs that included establishment of an employee support service, which grants unlimited access to psychological, financial or legal advice from subject matter experts.

Corporate Events

We regard events as a special way of promoting corporate values, a key component of corporate culture, and an effective team-building tool.

The events enable to translate our values into real-life experiences for our personnel rather than present them as abstract notions. The company traditionally celebrates February 23 (Defender of the Fatherland Day in Russia), March 8 (International Women’s Day), the company’s incorporation day, the Railway Worker Day (a professional holiday), the New Year, etc.

Health and Medical Support

Although many COVID-19 restrictions in Moscow have been cancelled, we give most of our staff an opportunity to work remotely and visit the office on an as-needed basis.

To ensure uninterrupted and effective team work, we have arranged remote access to the corporate web resources and allocated personal computers to our employees. The employees hired in 2022 start working remotely upon passing their probation period.

Employees can work remotely

For those working in the office due to operational needs, we have purchased disinfectants, hand sanitizers and personal respiratory protective devices. Wet cleaning is made very three hours.

The company places special emphasis on enabling its personnel to obtain the best medical service in the most advanced medical institutions of Moscow and the Moscow Region.

To support health and stable emotional state within the team during the pandemic, the company has considerably expanded the voluntary health insurance plan and its geography.

The company has a health resort treatment program in place. The program defines the procedures for booking, distribution and payment of vouchers to health improvement institutions, which are focused on health resort treatment, health improvement and recreation.

employees

Got health resort treatment in 2022

We also care about our personnel’s children. A new social guarantee is available since May 2022, namely reimbursement (compensation) of the child’s recreation and health improvement.

The plan includes:

Online appointment with a general practitioner

Online booking of appointments with specialist doctors via an application

Free psychological aid for employees and their families

24/7 access to the programs aimed at keeping health records, maintaining team welfare and promoting commitment to a healthy lifestyle

Possibility to obtain voluntary health insurance policies for close family members at corporate prices

Issue of medical certificates for health resort treatment

Travel insurance policy for trips outside the Russian Federation

Rehabilitation treatment for insured employees recovering from viral pneumonia, including COVID-19

Treatment of newly diagnosed critical diseases

rubles
per year

Reimbursement of costs for children’s recreation or health improvement

employees

Took advantage of this opportunity in 2022

In addition, we have an ongoing corporate sports development program focused on personnel’s health improvement. Employees can attend various sports activities, such as yoga, pilates and dance classes. We also rent a football training facility.

Financial and Other Aid

Employees are entitled to financial aid on the occasion of first marriage, birth of a child, milestone birthdays, death of close relatives, as well as to cover medical treatment.

employees

Received financial aid in 2022

In terms of soft incentives, the company encourages its best employees by awarding certificates of appreciation, provides learning, career and horizontal rotation opportunities, arranges participation in cross-functional internships, holds trainings and other activities.

employees

Received various awards

8 employees were awarded in 2022 in accordance with the effective regulations:

3 employees were awarded by JSCo "RZD" to honor their dedicated work and high professionalism

5 employees were awarded by Belarusian Railway to honor their great contribution to improving the operational interaction with the Belarusian Railway divisions and ensuring growth of transit container traffic volumes, high professionalism and dedicated work

Support for Education

UTLC ERA is committed to raising the education level and HR potential in the transport industry.

students

Underwent on-the-job training in the company in 2022

The company supports transport-oriented educational institutions, arranges joint programs, invites students and young specialists for on-the-job training, and is generally open to any other education development forms.

During 2022, employees of UTLC ERA participated twice in an offline event called "Career Day" at the Russian University of Transport (MIIT). The meetings were interactive: with presentations about the company and opportunities for internships, as well as career mini-consultations and quizzes on railway-related topics being conducted for the students.

Training and Development

Our employees undergo training and advance training.

66 people passed training in 2022 (short-term courses, webinars, professional conferences), which is 7% below the 2021 level. The training costs were reduced in order to maintain the company’s liquidity.

Training and Professional Development (People)

Short courses (seminars)

Professional development

Conferences

In 2022, our employees continued their studies of the English and Chinese languages.

Some employees took part in the preparation for the finals of World Skills – RZDSkills 2022 as experts on such competencies as Railway Logistics Management, Sale of Transport and Logistics Services and Customer Support. The competition established the basis of the integrated professional community and the new approaches to workplace culture based on the World Skills international standards.

The company makes an annual sample assessment in accordance with the approved model of corporate competencies. In 2022, 11 people were assessed, with every participant obtaining recommendations and annual individual development plans.

To enhance the professional level and personal growth of employees, throughout 2022, the company provided access to an electronic library from the publishing house.

Books were downloaded by employees free of charge (equivalent to 3,010 classroom hours)

There is a library available in the company’s office, which contains professional publications, business and self-development books. The employees have arranged an exchange of children’s books and fiction. The collection of books is replenished every month.

Trainings and Conferences

In 2022, our employees attended the following trainings:

Tied Together – an offline training to promote personnel productivity, team-building and team communications.

Activation – an online game to raise awareness and address the online communication issues.

Development of Team Communication and Interaction Skills – a business training to build interpersonal communications and to improve performance according to the company’s tasks.

Risk Management – a training course to integrate the risk management system in the company’s operations.

A series of trainings on management competencies for new and experienced managers.

Our company traditionally awards a “Ticket to the Future” to its young specialists on an annual basis. The awarded young specialists can use this ticket to participate in cross-functional on-the-job training and discipline-specific conferences. Under this program, 3 young specialists took part in ESE-2022: Container Logistics in New Realities, an international container forum in Sochi in 2022.

6 employees participated in the 4th Conference of JSCo "RZD" Holding Transport and Logistics Business Unit in Nizhny Novgorod. Within the section dedicated to young specialists, experts and facilitators assessed the participants. Two of our employees made the TOP 30 young and promising specialists based on this assessment. In the HR section, our Organizational Development Director made a presentation on the Sales Unit Incentive System.

The Business Development and Risk Analysis Director participated in the business simulation of JSCo "RZD" Transport and Logistic Business Unit called “Synergy and Effectiveness United”, and the team led by him took home the win.

IT Resources for Employees

Launched in 2020, the corporate portal is now popular among our colleagues and serves as an effective platform for keeping the team updated on any changes in the corporate life.

The resource helps learn relevant industry news, share ideas, receive comments and support from the colleagues. Useful business and self-development articles are also uploaded to the portal.

To create a transparent and clear system of in-house development opportunities, the Opportunity Marketplace IT solution was implemented in 2021 on the basis of the corporate portal. In 2022, two training packages were developed for Sales and Transportation, where leading specialists and subject-matter experts hold video lessons, telling about the operation of their units and sharing expertise. The employees undergo training, complete assignments, answer questions and ultimately develop a project, which, if successfully defended, will put them in the talent pool.

Occupational and Fire Safety

Tarasova

Galina

Deputy Director of Administrative Department

The company’s occupational and fire safety system is based on the following regulatory documents:

Russian Labor Code (No. 197-FZ dated 30.12.2001)
Federal Law On Mandatory Social Insurance Against Occupational Accidents and Diseases (No. 125-FZ dated 24.07.1998)
Federal Law On Social and Epidemiological Welfare of Population (No. 52-FZ dated 30.03.1999)
Russian Governmental Resolution No. 2464 dated 24.12.2021 On Procedures for Occupational Safety Training and Knowledge Assessment (including the occupational safety training and knowledge assessment rules)
Resolution No. 255 dated February 26, 2022 On Development, Approval and Amendment of Legal Regulatory Acts of Federal Executive Authorities Containing Statutory Occupational Safety Requirements

Order No. 771n dated October 29, 2021 On Approval of Provisional List of Annual Measures to Be Taken by Employer to Improve Workplace Conditions and Occupational Safety and to Eliminate, Mitigate or Avoid Escalation of Occupational Risks
Order No. 772n dated October 29, 2021 On Approval of Basic Requirements for Development and Content of Employer’s Occupational Safety Rules and Instructions
Order No. 774n dated October 29, 2021 On Approval of General Requirements for Safe Workplace Arrangements
Federal Law On Introducing Amendments to Russian Labor Code (No. 311-FZ dated July 2, 2021).

Ensuring safe working conditions and adherence to labor protection standards are the key priorities of the company

Our key priority is to ensure safe work conditions and compliance with the occupational safety standards. General Director’s Order No. 17 dated March 21, 2022 enacted the following instructions:

IOT 001 – Occupational Safety of Personal Computer Operator
IOT 002 – Occupational Safety for Employees on Business Trips
IOT 003 — Occupational Safety for Portable Electric Tool Operation

Our occupational safety specialists identify, regularly review and assess hazards and occupational risks. Specifically, they record and review the reasons and circumstances that caused micro damage (minor injuries). The occupational risk level is also assessed before launching new workplaces. To monitor safe work procedures, our specialists use instruments, devices and equipment and/or packages/systems of instruments, devices and equipment to enable remote video, audio or other recording of processes. Such employees are also responsible for storing the obtained information and maintaining the e-documents related to occupational safety.

Training

Occupational safety training is arranged for personnel in accordance with General Director’s Order No. 15 dated March 21, 2022 Occupational Safety Training and Knowledge Assessment Arrangements. The company has established a commission and made sure that each member has passed occupational safety training.

Workplace Assessment

In August 2022, we made a special workplace assessment, which did not reveal any potentially harmful/hazardous occupational workplace factors.

Likewise, there were no recommendations to conduct periodic medical examinations (the mandatory medical examination under the Russian Labor Code is only required at the start of employment).

Anti-COVID Measures

Throughout 2022, the company continued to take the anti-COVID measures introduced in 2020.

The employees have received personal protection equipment and antiseptics. The offices are equipped with air sanitizers and disinfectant dispensers. Daily temperature checks have become standard practice.

Fire and Electric Safety

We hold annual fire and electric safety briefings for our employees.

In terms of fire safety, all company’s premises are equipped with fire extinguishers and protected by the automatic fire alarm system. The server room is equipped with the automatic fire fighting system. The systems are maintained by the contractor holding a relevant license.

Since the company has no industrial production facilities, there are no industrial safety matters to address.

Environmental Performance as a Competitive Edge

Khmelnitskaya

Anna

Head of Marketing Communications Section

Climate Impact

Although the global environmental agenda was changed in 2022, responsible people, businesses and states are still committed to reducing the impact on the climate.

Promotion of the rail transport as the most environment friendly transport mode in long-distance freight service is a key step towards reducing GHG emissions by the transportation industry worldwide.

Environmental performance is becoming a competitive edge, and, with logistics being an integral part of almost every business, companies operating in this industry should pay close attention to the environmental aspect of its activities. All Eurasian states increasingly focus on environmental protection.

up to

Of the total air CO2 emissions are generated by the transportation industry

We are engaged in rail transportation, which is a critical component of international trade, and we can confidently state that our traffic services have multiple advantages over other modalities. The rail transport is one of the most resource efficient and environmentally friendly modes of transport.

As a major Eurasian rail container traffic operator making up the bulk of the cargo traffic volume on the China–Europe–China route, UTLC ERA has developed an online CO2 emission meter available at https://index1520.com/en/emissions-co2/. On this page, you will also find a comparison of the carbon footprint during transportation of the same cargo volumes by different means of transport.

The calculated direct СО2 emissions from UTLC ERA’s operations are based on the emission parameters of the Brest–Dostyk key basic route (taken as the average indicator) and the total traffic on all routes.

On the basis of the Brest–Dostyk route parameters, the company calculates СО2 emissions per 1 TEU, GGHGTEU, which is multiplied by the total traffic volume in UTLC ERA’s services. This value is calculated using the following formula:

_ТЭР

—

FER consumption per 1 km (tons, m3, Gcal or kWh)

_КМ

—

full route distance (km)

_СО

—

СО2 emission factor (tons СО2 /t or thousand m3 of fuel, tons СО2 /Gcal of thermal power, kg СО2 /kWh of electrical energy)

_КТК

—

number of containers on a train

To calculate the direct and indirect СО2 emission (WTW) volume generated by UTLC ERA, we used the company's own data to determine direct emissions (TTW) and the calculations and methodology from EcoTransIT portal to determine indirect emissions (WTT). To calculate the environmental impact caused by alternative means of transport, we also used EcoTransIT portal, which is a reputable source in terms of carbon footprint recording and calculations.

The algorithm for correct comparison of emissions by modes of transport is as follows:

The route length is assumed the same for all transport modes, corresponding to the Brest–Dostyk route length, i.e. 5,454 km

The cargo volume is assumed equal to the full load of a container vessel with a registered tonnage of 6,636 TEUs, which is the largest load capacity. This volume can be transported by 44 trains, 1 container vessel, 3,318 trucks with a load capacity up to 26 tons, or 1,106 freight aircraft

The direct emissions (TTW) for transportation of 6,636 TEUs will be as follows:

44 trains: 442,998 kg CO2
1 container vessel: 2,115,677 kg CO2
3,318 trucks with a load capacity up to 26 tons: 39,423,125 kg CO2
1,106 freight aircraft: 233,864,501 kg CO2

The direct and indirect emissions (WTW) for transportation of 6,636 TEUs will be as follows:

44 trains: 19,618,237 kg CO2
1 container vessel: 2,318,405 kg CO2
3,318 trucks with a load capacity up to 26 tons: 46,590,965 kg CO2
1,106 freight aircraft: 285,847,854 kg CO2

Based on these calculations, ratios are obtained for the sea, road and air transport as compared with the rail transport by dividing the emission volume for each mode of transport by the emission volume generated by the rail transport. The actual emission volume generated by the rail transport in the selected period is then multiplied by the resulting ratio for each mode of transport.

СО2 Emission Profile at UTLC ERA

Sustainable development, and, in the longer term, carbon neutrality, are closely linked to UTLC ERA’s commitment to creating a competitive alternative to the sea, road and air freight transport used in the Trans-Eurasian service.

Development of the railway service in long-distance cargo transportation is a key step towards reducing GHG emissions worldwide. According to the online meter, the accumulated emission volume generated by UTLC ERA’s transit traffic in the China – Europe – China direction in 2022 amounted to 27,400 tons CO2. If the same cargo volume had been delivered by sea, emissions would have reached 130,900 tons, while the emissions in case of road and air transport would have amounted to 2,439,500 and 14,471,600 tons, respectively.

If we look at the total volume of direct emissions generated by UTLC ERA and indirect emissions other than those generated by the company’s operations, the 2022 carbon footprint equaled 1,214,000 tons CO2, whereas transportation of the same cargo volume by road or air would have generated emissions in the amount of 2,883,100 tons and 17,688,400 tons CO2 respectively.

Direct СО2 Emissions by Modes of Transport
Compared with UTLC ERA’s Performance

UTLC ERA

Sea transportation

Road transportation

Air transportation

Direct and Indirect СО2 Emissions by Modes of Transport
Compared with UTLC ERA’s Performance

UTLC ERA

Sea transportation

Road transportation

Air transportation

In August 2021, the EAEU Intergovernmental Council approved a priority action plan for digitalization of rail freight transportation.

Along with the declaration of intent to maintain effective container traffic between Europe and China signed by the Russian, Kazakhstan and Belarusian Railways, this gave a decisive impetus to decarbonization of the Eurasian railway corridor.

The document acknowledges the key role of rail transport in implementing the UN Sustainable Development Goals, including reduction of the carbon footprint in the transport and logistics industry, improvement of energy efficiency, and development of sustainable regional and cross-border infrastructure.

As agreed between the parties, UTLC ERA services will shortly test pilot projects to implement technological innovations based on the principles of transition to carbon-free railway logistics in the Eurasian territories. The process has begun: the uniform e-waybill was tested in the 1,520 mm track gauge area in 2022. As the percentage of the rail container traffic in the total Eurasian transit volume approached 5% in 2021 (whereas in 2015 it was merely 1%), a contribution into the reduction of СО2 emissions and adverse environmental impact will become increasingly evident in the future.

The environmental value of the rail traffic is turning into a true sustainable business philosophy on our continent. The railway could well become a symbol of the Climate Change Conference in Glasgow, as we can confidently say that the transition of increasing cargo volumes to the railway is a crucial prerequisite for both achieving the European Green Deal and facilitating decarbonization of the Eurasian logistics.

Alexey Grom

General Director

Environmental Protection

UTLC ERA’s operations do not cause severe direct environmental damage.

The company works in compliance with the environmental laws of the countries of its operation and is governed by the reasonable diligence principle, which implies incorporation of environmental risks into the business strategy and abandonment of any environmentally hazardous projects at the decision-making stage.

#KeenOnGreen — UTLC ERA's Environmental Initiatives

million rubles

Funds allocated to implement UTLC ERA’s projects in Kazakhstan and Russia in 2022

Since 2020, we have been playing an active role in promotion and implementation of environmental projects. #KeenOnGreen is intended to present the railway as the most environmentally friendly mode of transport, on the one hand, and to support environmental projects in the natural areas of the countries crossed by UTLC ERA’s container unit train routes, on the other hand.

In Kazakhstan

The tugay woodlands of Kazakhstan stretch alongside river beds, tributaries and lakes, creating a habitat for many semi aquatic animal species. Unfortunately, the changes in the climatic and hydrological conditions, reduction in Ili River runoff, wildfires and excessive economic use have brought tugay woodlands to the brink of extinction.

The team of Ili-Balkhash Natural Reserve, with the support of UTLC ERA, is implementing the tugay woodland restoration project, with more than 12,000 new Asiatic poplar, oleaster and willow seedlings planted by the end of 2022. The allocated funds were also applied towards arrangement of an advanced drip irrigation system and development of fire safety measures.

In Russia

Growth of European bison population in the Turmon Natural Reserve

The Kizgych Gorge, a protected natural area, lies in the very heart of Karachay-Cherkessia. It was here that in the 1990s the Soviet scientists began restoring the population of European bison, the only surviving buffalo in Europe, which is regarded as an important part of the Caucasian broadleaved wood ecosystem. Regrettably, human activity caused this specie to become extinct in the natural habitat: the last bison in the Caucasus was killed in 1927.

The Strategy for Preservation of European Bisons in Russia was developed with a view to restoring the number of animals. Thanks to our support, part of the bison population under this program was moved in 2022 to a suitable habitat in the Turmon Natural Reserve in North Ossetia.

+42%

Growth of European bison population in the Turmon Natural Reserve

People Come First: Charity

Baruzdina

Olga

Organizational Development Director

Our goal is to provide comprehensive aid to children, children’s institutions, long-service employees, retirees, disabled and distressed people.

million rubles

Spent by the company in 2022 to support children and industry veterans

including 109 million rubles

Allocated on a parity basis between the projects in Russia, Belarus and Kazakhstan

Our shareholders and employees are also consciously committed to benefiting the society by implementing programs to support culture, science, education and sports.

We support various social initiatives both directly and in cooperation with our long-standing partners, i.e. charity funds in Russia, Belarus and Kazakhstan.

Russia

109 million rubles

Aid to Children

We helped children with severe diseases.
We developed children’s and youth sports together.

109 million rubles

Support for Industry Veterans

We held the International Sports and Healthy Lifestyle Festival for JSCo "RZD" retirees and retired railway personnel from Belarus and Kazakhstan.
We implemented the “Book of Good Deeds” charity program. It envisages support to vulnerable and low income population groups, preventive care and health protection assistance.

Belarus

109 million rubles

Aid to Children

We allocated funds for the construction of a hangar to store the rolling stock on the Children’s Railway, and the repair of buildings and site improvement in the children’s health improvement camp.

109 million rubles

Support for Industry Veterans

We rendered financial aid and support for retirees of the Belarusian Railway Veteran Organization and purchased stationery for the organization.
We purchased medical products, office equipment and software.

Kazakhstan

109 million rubles

Aid to Children

We promoted development of children's and youth sports in Kazakhstan regions: we allocated funds for construction of a mini football field and a multi-purpose basketball and volleyball court; purchased gym machines and sports gear; established sport sections for personnel’s children and held regional sport tournaments.
We arranged and held “Get Children Ready for School” campaign for multi-child families of JSC “NC “KTZ” employees; purchased gifts for the participants of Balausa Bolashak art competition for the children of JSC “NC “KTZ” employees; arranged a sport event “Dad, Mom and Me: a Sporting Family” and a mini football tournament among the children of employees from both companies.

109 million rubles

Support for Industry Veterans

We purchased coal during the cold season for retirees and veterans of Kazakhstan railway transport; we purchased 150 food baskets for single industry veterans and assisted-living facilities to celebrate the Victory Day, the Transport Worker Day and the Day of Older Persons; we arranged an “Anniversary Competition” sports event and a marathon for veterans and employees with children from both organizations; we purchased 18 information stands for JSC “NC “KTZ” regional veteran councils and gifts for milestone birthdays of JSC “NC “KTZ” Veteran Council members.

Uniting People and Countries: UTLC CUP 2022

In cooperation with a football club, we brought to life UTLC CUP 2022 International Football Tournament, a social project to unite the countries of the Eurasian continent.

In 2022, the tournament was held for the fourth time, despite the challenging geopolitical situation.

Eight teams from Russia, Belarus, Kazakhstan, Turkey and Serbia arrived in Moscow to compete for UTLC CUP. 16 matches were played at Sapsan Arena during the five-day tournament with 55 goals scored.

million rubles

Sponsor aid allocated by UTLC ERA to UTLC CUP 2022

Eight teams from Russia, Belarus, Kazakhstan, Turkey and Serbia arrived in Moscow to compete for UTLC CUP. 16 matches were played at Sapsan Arena during the five-day tournament with 55 goals scored.

These guys are motivated to develop their career, you can read this in their eyes. For many of them, this was their first major international tournament and an incredible experience. Seeing their emotions is very gratifying.

Alexey Grom

General Director

Procurement

UTLC ERA is actively engaged in procurement with a focus on creating the best possible conditions to fully and timely satisfy the need for goods, works and services with the required quality, reliability and at reasonable prices.

In this regard, we rely on the following documents and acts:

Regulations on Procurement of Goods, Works and Services approved by the Resolution of the Company’s Board of Directors dated 27.01.2022 (Minutes No. 47)
Amendments approved by the Resolution of the Company’s Board of Directors dated 05.08.2022 (Minutes No. 54)
Instruction on Interaction Between UTLC ERA Business Units in Procurement of Goods, Works and Services approved by the General Director’s Order No. 63 dated 16.09.2022
Civil Code and other regulatory legal acts of the Russian Federation

To streamline the procurement processes, the company developed and approved an amended version of the Procurement Regulations in 2022. The amendments reflect the global situation, target a lower workload on the employees and improve responsiveness in the interfaces with the parties to the procurement process. At the same time, the focus remains on ensuring the best possible conditions for attracting suppliers/contractors/ providers, which do not contradict the main procurement principles.

The procurement process consists of planning, managing and holding the procurement procedures. The company’s structure envisages efficient interaction with the procurement initiators in order to align the company’s commercial and technical interests. To streamline these processes, we developed the Instruction on Interaction Between UTLC ERA Business Units in Procurement of Goods, Works and Services.

Key procurement principles:

Procurement visibility and transparency, information disclosure

Equal, fair and non-discriminatory approach to bidders without any unreasonable limitations of competition

Targeted and commercially effective spending of the funds allocated to procure goods, works and services and to implement customer cost reduction actions

The purpose of the procurement procedures is to select suppliers, contractors and service providers on a competitive basis.

This helps ensure the adequate commercial terms of the procurement: compliance with UTLC ERA’s requirements with regard to schedule, quality and cost efficiency.

To boost competition and ensure transparency, competitive procurement procedures in 2022 were held on the corporate website (in Tenders section) and on electronic trading platforms.

In 2022, UTLC ERA held 216 procurement procedures, including 53 competitive procurement procedures for the amount of 272 million rubles (excluding VAT).

Procurement volume in the reporting period

Savings in monetary terms related to competitive procedures in 2022 amounted to 22.8 million rubles excluding VAT.

Saving on competitive bidding (thousand rubles)

Thus, in 2022, the value of procurement in the reporting period increased by 28% as compared to 2021, reflecting implementation of the most capital intensive procurements and general development. Savings also increased by 44%.

Use of Energy Resources

Figure for 2022	Consumption	Amount (rubles)
Energy supply (kW)	218 122,14	1 415 662,45
Water supply (m3)	1540,44	112 002,63
Heat consumption (Gcal/m3)	369,16	766 022,07

Poroschai

Alina

Administrative Department Director

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Corporate Governance

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Human capital

How many are we?

Corporate Culture

Corporate Social Responsibility

Caring About People

Corporate Events

Health and Medical Support

Trainings and Conferences

IT Resources for Employees

Occupational and Fire Safety

The company’s occupational and fire safety system is based on the following regulatory documents:

Ensuring safe working conditions and adherence to labor protection standards are the key priorities of the company

Training

Workplace Assessment

Anti-COVID Measures

Fire and Electric Safety

Environmental Performance as a Competitive Edge

Climate Impact

The algorithm for correct comparison of emissions by modes of transport is as follows:

СО2 Emission Profile at UTLC ERA

In August 2021, the EAEU Intergovernmental Council approved a priority action plan for digitalization of rail freight transportation.

Environmental Protection

People Come First: Charity

Russia

Belarus

Kazakhstan

Uniting People and Countries: UTLC CUP 2022

Procurement

In this regard, we rely on the following documents and acts:

Key procurement principles:

Procurement volume in the reporting period

Saving on competitive bidding (thousand rubles)

Use of Energy Resources