Stakeholder Engagement
Principles and Mechanisms for Stakeholder Engagement
Balancing the interests of stakeholders is an integral part of business sustainability and responsibility, which in turn ensures its environmental stability. When selecting an area of strategic development, the Company strives to actively engage all stakeholders and take into account each of their opinions while adhering to common principles, but selecting an individual approach to each group.
The key mechanisms for engagement are enshrined in the corporate policy on stakeholder engagement and are based on the five basic principles described below:
- consistency: regularly informing the public about the impact of the Company as well as its decisions and activities on society, the economy, and the environment and taking the necessary steps to minimise the negative impact taking into account the expectations and positions of stakeholders;
- transparency: providing comprehensive and reliable information about its activities, using various methods to keep stakeholders informed and collecting feedback;
- materiality: integrating the interests of all stakeholders into the Company’s Strategy based on their priorities;
- completeness: constant interaction and comprehensive coverage of the views, needs, and concerns of stakeholders;
- response: the obligation to respond to significant issues and stakeholders’ expectations.
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Metalloinvest’s engagement with stakeholders involves a regular dialogue between the Company and stakeholders, which can be initiated by any of the parties. The Company regards the following as its stakeholders:
- shareholders;
- customers;
- suppliers, contractors, and other market participants;
- the government authorities, including:
- federal executive bodies;
- regional authorities;
- investment community;
- employees;
- local communities (local residents, non-profit organisations, and municipal institutions).
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The list of stakeholders is given in the Stakeholder Engagement Policy and is updated as changes occur.
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Stakeholder engagement is conducted across multiple interactive channels. Suggestions and criticisms are recorded and discussions are held on topics that are important to stakeholders.
Key engagement channels include:
Internal channels:
- corporate radio;
- information boards and booklets;
- ‘Your Voice’ feedback boxes;
- hotline;
- meetings with employees;
- corporate Internet portal.
Combination of internal and external channels:
- media;
- Annual Report;
- Sustainable Development Report;
- social media;
- web-based information portals in cities where the Company operates;
- corporate website.
External channels:
- dialogues and events with external stakeholders.
The communication channel is selected depending on the group of stakeholders and the type of interaction.
Methods and Results of Engagement with the Main Groups of Stakeholders
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One of the results of stakeholder engagement was the identification of key issues for each of the stakeholders and the prompt response to these issues.
| Group of stakeholders |
Engagement channels |
Key engagement measures |
Questions and interests of the stakeholder |
Company’s response to questions raised |
| Shareholders |
- General Meeting of Shareholders
- Publishing corporate reports
|
- Meetings of shareholders
- Collection of feedback from shareholders and the submission of key issues to meetings of the Board of Directors
- Regular informing of shareholders
|
- Stable dividend income and return on equity for shareholders
- Risk management
|
- Implementation of the Development Strategy
- Implementation of a multi-tiered corporate-wide risk management and internal control system (CRMICS)
- Implementation of the Industry 4.0 digital transformation programme
|
| Customers |
- Long-term contracts
- Regular meetings with clients
- Public events
|
- Face-to-face meetings with customers and the collection of feedback on product quality
- Customer surveys
- Informing customers about product quality standards
|
- Product quality
- Satisfaction with service
- Understanding customer needs and how they are influenced by new industry trends
|
- Implementation of a comprehensive programme to improve the customer focus in the sale of steel products
- Conducting an annual consumer survey
- Conducting on-site customer interviews
- Holding coordination councils and working meetings with customers
- Business trips to customers’ enterprises
- Visits to production sites by customers
- Introducing customers to the production process
|
| Employees |
- Training programmes
- Corporate website
- Monitoring of employee engagement
- Corporate media and radio
- ‘Your Voice’ feedback boxes
- Hotline
|
- Corporate assessment of the Company’s management regarding the personal, business, and professional potential and other skills necessary for managers of this level to solve the tasks facing the Company and market practices
- Launch in September of a four-modular nine-month Comprehensive Corporate Development Programme for key Company employees
- Launch of corporate training programmes for key employees based on the results of professional certification starting from December 2018
- Creation of a top 100 talent pool
- Launch in May 2018 of a five-module annual corporate training program called Institute of Production Leaders
- Launch of the Experience Sharing corporate programme starting from May 2018
For more details on the employee engagement events, see the section Responsibility to Employees. |
- Labour relations
- Salary and social support
- Training and development
- Safe working conditions
|
- Signing collective agreements to ensure social support for employees, their families, and retirees (former employees)
- Corporate events
- Corporate social programs for employees
- Employee training on occupational safety
- Assessment of occupational risks and hazards
- Taking measures to reduce the risk of accidents at hazardous production facilities
|
| Local communities |
- Coordination councils in the course of implementing external social programmes
- Dialogues with representatives of the local population
- Public consultations with representatives of the local population as part of the implementation of investment projects
- Charity programmes
|
- Dialogues with representatives of the cities of Gubkin and Stary Oskol in 2018
- Feedback on the implementation of social programmes
- Provision of Metalloinvest grants as part of the implementation of social programmes
- Review of appeals by local residents received through various channels
For more details on the community outreach activities, see the section Contribution to Social Development. |
- Socioeconomic development of the regions where the Company operates
|
- Implementation of charitable and social programmes in the regions where the Company operates with the following focuses:
- support for education;
- development of the social and cultural environment;
- improving the quality of healthcare services;
- support for amateur and children’s sports;
- support for vulnerable segments of the population.
|
| Federal and regional authorities |
- Face-to-face meetings and negotiations
- Working and expert groups, commissions, and committees
- Public events (conferences, forums, and roundtables)
- Corporate development programmes and social infrastructure support and development programmes
|
- Face-to-face negotiations and meetings with senior officials
- Industry-wide conferences and meetings
- Conferences
- Signing of an action plan as part of socioeconomic partnership agreements
|
- Compliance with the orders of the State Council of the Russian Federation
- Implementation of the initiatives of the federal executive authorities
- Implementation of best industry practices
|
- Analysis of the impact of initiatives on the Group’s day-to-day and financial activities
- Preparation of the Group’s proposals and positions on initiatives and draft amendments to regulatory acts
|
| Investment community |
- Conferences and forums
- Meetings in different formats
- Investor Day
- Site visits
- Non-deal roadshow
- Deal roadshow
|
- Participation in seven investment conferences and forums in Russia and abroad (USA, UK).
For more details on engagement with the investment community, see the section Investor Relations of the 2018 Annual Report. |
- Financial indicators
- Corporate social responsibility
|
- Publication of reporting
- Participation in industry-wide forums and conferences
|
| Suppliers and contractors |
- Tenders for the purchase of goods and services
- Specialised conferences and exhibitions
- Holding dialogues with suppliers
|
- Face-to-face meetings with suppliers
- Conducting an initial assessment of suppliers for compliance with tender criteria
- Obtaining feedback from suppliers
For more details on the interaction with suppliers see the section Supply Chain. |
- Transparent bidding procedures for the purchase of goods and services
|
- Automation of the procurement process
- Interaction with suppliers as part of commercial negotiations
|
In addition to regular interaction with stakeholders on the topics and issues listed above, a survey was also conducted to determine material topics for the current report and to form a materiality matrix. For more details on the materiality matrix, see the section Materiality Matrix.
