Index

9Social
responsibility and sustainable activities

Recent events in both global politics and the national regulatory environment have increased uncertainty, investment risks and energy security challenges. The Group’s strategy is designed to be resilient to different scenarios. 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.

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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.

With the Group’s development direction set and the necessary organisational changes in place, we are fully focused on delivering our strategy and its underlying objectives, including sustainability. We do this with the knowledge that nothing is more important than safety. We are constantly striving at all levels of management to make our industry and our working environment safer, because our unwavering goal is for everyone to get home safely to their loved ones every day. Nothing is more important.

Cooperation with stakeholders

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.

Principles of cooperation with stakeholders are respect for the interests of the parties, constructive cooperation, transparency of information concerning the Group’s activities, regularity of joint activities, fulfilment of obligations.

Main stakeholder groups:

  • shareholders;
  • employees;
  • clients;
  • suppliers and partners;
  • state and government institutions;
  • the local community;
  • NGOs and civic associations;
  • professional unions.

Viru Keemia Grupp is a good partner to local organisations that help to promote the region’s cultural, sports and educational life. In 2022, we supported 25 initiatives and projects with a total of 260,000 euros. Our main focus is on local youth. The Group has a number of initiatives of its own aimed at promoting life in the region: the Five Schools Competition, the Jõhvi Ballet Festival (in cooperation with the Jõhvi Concert Hall), supporting the Ida-Viru Central Hospital, educational projects, e.g. STEM, and the celebration of the Day of Miners and the Day of Chemists. 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.

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.

VKG’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.

Reporting

VKG’s social responsibility and sustainable development policy was launched in 2009. Since the same year, the Group has published a Responsible Business Report, which is prepared in accordance with the Global Reporting Initiative (GRI) Principles for Sustainable Development Reporting (GRI Reporting Guidelines).

In preparing the report, we also share and apply the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting. VKG’s Sustainable Development Report is a public document available electronically on the Group’s website in Estonian, English and Russian. We are currently preparing a report that covers the results and progress of 2022. The report will be published in the 3rd quarter of this year.