9Social responsibility and sustainable activities
VKG has been implementing an integral policy of social responsibility and sustainable development for 13 years by now. In both short-term and long-term perspective, the Group’s strategy includes sustainable development tasks in a period of changes in the energy sources market and the interests of society.
In strategic planning, we take into account risks and opportunities related to climate change and the transition to low carbon emission energy production, including the European Union’s Green Deal and the Fit for 55 package.
The Group’s overall strategy is based on strict requirements for the environmental sustainability of production, social responsibility, and occupational safety. We have mapped the ESG (environmental, social and corporate governance) objectives and focus on seven topics which we handle as a part of a consistent process. One integral part of our sustainability strategy is the responsible use and rational enrichment of natural resources. We are aware that the extraction and production of any mineral resources has an impact on the surrounding environment and we therefore always strive to do more than prescribed by laws or regulations.
VKG’s sustainable development priorities
Increasing the efficiency of the main activities
- Production and occupational safety
- Minimising the environmental impact
- Energy efficiency and saving
- Development of employee potential
- Supporting regional development
Supporting initiatives and membership in associations
- We share the principles of the United Nations Global Compact.
- Our sustainable development objectives and areas of activity are related to the UN Sustainable Development Goals.
- We take into account the Partis Climate Agreement objectives, the EU’s Fit for 55, and the goal to achieve climate neutrality in the EU by 2050.
- Participation in associations: Vastutustundliku Ettevõtluse Foorum (Corporate Social Responsibility Forum), Hoolime ja Vastutame (Responsible Care), United Nations Global Compact, Global Reporting Initiative
Guiding principles
- Openness and transparency
- Honesty and correctness
- Principle of acting responsibly
- Compliance with international standards
Organisation culture
We integrate the principles of corporate responsibility into our organisation culture: the prevalence of the safety of people, the environment and the Group’s property, compliance with human rights, equality of opportunities, and compliance with occupational ethics standards.
The Group’s values - openness, commitment, development – as an integral part of our business activities and consolidate the interests of the Group and its employees. The values influence the adoption of decisions, shape our reputation, and determine our work principles.
Organisation culture values and principles that support sustainable development:
- Safety of people, the environment, and property
- Working conditions based on respect
- Attentiveness and respect towards colleagues
- Equal and understandable requirements for all business partners, compliance with business ethics standards
- Responsible attitude towards assets
- No corruption, conflicts of interest and misuse of inside information
Cooperating with stakeholders and supporting the region
Viru Keemia Grupp constantly cooperates with stakeholders, holding dialogues for the purpose of analysing the internal and external social environment and taking into account the Group’s strategic objectives and the priorities of the stakeholders.
Cooperation with stakeholders is aimed at achieving the sustainable development goals and mapping the expectations and joint interests of the parties. We have selected a number of target groups whose interests are notably related to our activities and may have a substantial effect on the fulfilment of our strategic objectives. We place particular importance on including the local community in the case of development projects. The bioproducts production complex development project initiated last year is a good example of inclusion, in the framework of presenting which we held meetings with local residents in various rural municipalities. Including the community gives the developer valuable input and creates an opportunity for a mutual dialogue.
Viru Keemia Grupp is a good partner for local organisations which help promote cultural, sports and education life in the region. In 2021, we supported almost 30 initiatives and projects with a total amount of 200,000 euros. Our focus is on the local youth. The Group has a number of its own initiatives aimed at promoting life in the region: the Five Schools Competition, the Jõhvi Ballet Festival (in cooperation with the Jõhvi Concert Hall), educational projects, e.g. STEM, and the celebration of the Miners’ Day and the Chemists’ Day. Every year, we support either the paediatric or the maternity department of the Ida-Viru Central Hospital. The support is usually aimed at acquiring medical equipment or improving the conditions of patients. We also have various projects at the local government level, particularly with the City of Kohtla-Järve and the rural municipality of Lüganuse. There are also initiatives where our contribution is non-financial – volunteer work day in the City of Kohtla-Järve, tree-planting, volunteer work day at the Kiikla Orphanage, cooperation with blood centres, etc.
Reporting
Since 2008, VKG prepares and discloses a report on corporate responsibility which is in accordance with the sustainable development reporting principles (GRI Guidelines) of the Global Reporting Initiative (GRI).
In preparing the report, we also share and apply the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (IPIECA/ API, 2016). The social responsibility and sustainable development reports are available on the Group’s homepage at https://www.vkg.ee/aruanded/ under Sustainable Development Report. We are currently preparing a report that covers the results and progress of 2020 and 2021. The report will be published in the 3rd quarter of this year.