10Social responsibility and sustainable activities
The global challenges which the humankind faces and which have been presented in the UN Sustainable Development Goals inevitably force us to review and change the current business models. The sustainability of a company depends on its ability to respond to global social, environmental and economic problems – in other words, on its ability to adapt.
The Group’s strategy is aimed at solving the short-term and long-term tasks of sustainable development at a time of the changing interests of the energy market and the society both at the global and the regional level. Risks and possibilities related to climate change and the transition to low carbon emission energy production are taken into account in strategic planning and in designing and developing the documents of the industry. For VKG, socially responsible behaviour and business activities are not a marketing move, but an important investment with a long-term perspective to stimulate the development of the region and the society.
The expectations of stakeholders, including clients, partners, suppliers, regulators and financing institutions are increasingly integrated into the sustainable action plan, reducing the contradiction between sustainability and profitability.
In our area of business, these trends are reflected as follows:
- Legislators make environmental requirements stricter;
- Investors and financing institutions are more attentively watching the activities of companies in the area of sustainable development and take that into account upon making investment/credit decisions;
- The consumption model in the B2C (business-to-customer) segment is shifting from linear to circular;
- The B2B (business-to-business) segment has increasing requirements for the processing of materials and the use of reused materials;
- Climate changes worry not just eco-activists, but also the broader population.
Environmentally sustainable development
- Improvement of the environmental management system
- Prevention of environmental pollution
- Improvement of resource efficiency (reduction of energy and water consumption)
- Reduction of greenhouse gas emissions
1,55 tons of greenhouse gases per a ton of shale oil produced in 2019
9,3 million euros of direct and indirect investments into environmental projects in 2019
Economic sustainability and business management
- Attractiveness of investments
- Compliance with business ethics and prevention of corruption
- Diversification of the business model in the changing economic environment
- Innovations
- Implementation of investment projects
- Digital transformation
Social sustainability
- Creation of safe working conditions and development of safety culture
- Provision of social support, development and training to employees
- Developing and supporting the region
We believe that as the largest shale oil producer we are a socially responsible enterprise and create value for all the interested parties. Our priorities include the health and safety of our employees as well as environmental matters, and we are committed to creating impacts that support the development of the Ida-Viru County.
Over the past decade, we have knowingly and purposefully implemented the principles of sustainable development in all the aspects of the enterprise. In determining the priorities of sustainable development, we focus on the specifics of our industry as a whole and on the specifics of our production, the needs and expectations of stakeholders, the UN Sustainable Development Goals and international best practices in particular.
TRIR* – 4,8
The indicator of work accidents of employees
*Total recordable incident rate shows the number of work accidents per one million working hours
733
registered and implemented improvement proposals for increasing the safety of the working environment
200 000 €
for supporting various social projects in the region
We supported more than 40 projects in total.
600 000 €
for scientific research
Goals in the Context of Sustainable Development
In implementing and planning its activities, production and services, the enterprise consistently complies with the principle of reducing the impact thereof on the employees, the population and the surrounding environment.
Economic Domain
- Preservation and creation of workplaces
- Creating additional value
- Promoting local economy
- Innovations
- Ensuring financial and economic stability of the subsidiaries of the Group
Innovations
The strategy of the Group is based on innovative principles of development.
Target focus: the technologies required for the purpose of project implementation and dealing with the problems that might prevent the attainment of this objective. The Group is consistently working on and implementing the advanced solutions, many of which are unique in this particular branch of industry. The existence of a strong team of professionals and designers in the Group enables us to integrate production tasks and extensive experience with innovative solutions in all of the fields of activities of the Group.
Social Sphere
- Law abidance
- Observing human rights
- Positive feedback from the members of the community
- Consistent increase in the quality of our products
- Following the ever-changing market requirements
- Distributing reliable information about the products
- Promoting the inclusive dialogue with local community
- Supporting the development of education, culture, and sport
- Ensuring the payment of competitive salary and social packages to employees
- Staff development and training, setting up staff reserve
- Improving working conditions
- Developing efficient communication within the company with all of the parties concerned
Environmantal Protection
- Environmental protection
- Using recyclable materials
- Preserving energy resources
- Waste treatment
- Ensuring safe working environment, protecting the health of employees as well as of the people living in the neighbourhood area
- Reducing the anthropogenic effect on the environment as well as preventing the environmental damage done by commercial activities
- Rational use of natural reserves
- Boosting the level of production safety and environmental protection, reducing the number of injuries, accidents, and professional diseases
- Reducing the anthropogenic load on the environment and human habitat as well as promoting the creation of favourable living environment
- Fighting against climate changes
- Implementation of global best practices in the field of environmental safety
Cooperation with Concerned Parties
Viru Keemia Grupp is developing a sustainable development strategy and implementing it in active cooperation with the main interest groups. It enables the Group to boost the efficiency of the social and environmental activities of the company and achieve comprehensive and permanent positive changes. The main stakeholders include the shareholders, the local community, the employees, the state and the local governments as well as citizens’ associations.
The system of communication based on openness and mutual respect enables the Group to develop its fields of activity. The Group uses different means and methods of communication for interacting with the representatives of concerned parties, depending on the set goal and the most efficient forms of cooperation.
The Group does cooperation with the main interest groups on a number of the most relevant issues. In order to lay down those issues, the social environment inside and outside of the Group is constantly analysed, with due consideration of strategic trends and the preferences of interest groups.
Safety
Protection of the health of employees and consumers and their safety means the production and issue of such products that are safe and do not pose an unexpected risk or threat, doing any kind of harm while using them. The Group conducts strict check-ups of the compliance with all the requirements regulating the quality of the products. The Group carries out the assessment of the effect of the products being scheduled for production at all the stages of their life cycle in terms of their effect on people's health and safety, in order to find out the ways for improving their quality.
Obtaining information
The Group provides access for consumers to the complete, accurate, and comprehensive information that enables them to make informed decisions in accordance with their individual preferences. The contracts entered for the supply of the goods are always drawn up in a clear, accurate, and comprehensive language and do not contain any unfair contractual obligations. They always provide accurate and sufficient information about the price, features of the product, and the terms and conditions of the contract.
Data protection
The Group ensures the protection of personal data, using reliable and protected systems in the course of protection and collection of the data of clients and partners. Information is only collected by legal means. The collection of personal data is limited by the information that is required for offering products or services or has been provided on a voluntary basis at the consent of a client and/or a partner. The protection of personal data collected from consumers is ensured by means of efficient safety provision.
Generating Value for Interest Groups
The Group believes that sustainable economic growth and the well-being of a society, being the conditions, under which the Group is operating, are interrelated inseparably. While striving for its strategic goals, Viru Keemia Grupp is trying to create value for interest groups at each stage of its activities and make a contribution to the social and economic development of the state.
Society
Responsible production - preserving the environment
Shareholders
- Long-term growth of the value of the group
- High dividend yield
Partners
Good availability of oil shale products with very good production
Employees
- Sustainable workplaces
- Valuable bonus package
- Social support
- Various opportunities for professional development
State
- Provision of energy safety and independence
- Contribution into economic development
- Taxes
- Development of technologies in the field of oil shale
Local communities
- Contribution into social and economic stability of Ida-Viru county
- Development of local suppliers and manufacturers
- Taxes
- Creating workplaces, environmental protection programmes
- Improving the quality of life of the local community
- Facilitating the growth of social activity of local population, especially children and youth
