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External Social Programmes and Philanthropic Activities

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In 2018, Metalloinvest was once again recognised in the rating of the annual Corporate Philanthropy Leaders project and joined the top five companies with the most mature approach to the implementation of charitable projects that made a significant contribution to the implementation of social programmes. Forty-seven companies took part in the study that resulted in the compilation of the rating.

Experts evaluated the management system of charitable programmes, the maturity of the approaches used to assess the results of charitable activities, the correlation of the goals of charity and the goals of business strategy, and the complexity of communication on these issues. In addition, Metalloinvest’s Let's Do It Together! project won a prize in the category Best Grant Competition, while the School of Entrepreneurship corporate programme won the category Best Programme Contributing to the Development of Social Entrepreneurship in Russia.

The Company managed to achieve such impressive results thanks to the comprehensive and systematic development of its social programmes. No significant changes were made to external social assistance in the reporting period. Metalloinvest continued to invest in the development of the socio-cultural environment, education, healthcare, sports, projects to support vulnerable groups of the population as well as initiatives to develop entrepreneurship.

Key trends of 2018 by segment:
Projects
Development of the socio-cultural environment Key projects implemented in the reporting period:
  • improvements to the embankment in Stary Oskol;
  • road construction and reconstruction (Stary Oskol, Gubkin);
  • purchase of equipment for the Stary Oskol Youth Initiatives Centre;
  • improvement to residential areas;
  • improvements to municipal parks in the cities of Novotroitsk and Zheleznogorsk;
  • improvements to the Root Hermitage complex.
Support for education Support for educational institutions to develop the potential of talented young people and educate skilled personnel. Targeted support for gifted children and students.

Key projects implemented in the reporting period:
  • participation in the project to build the Kvantorium technopark in Zheleznogorsk;
  • reconstruction and repair of schools and daycares (Stary Oskol, Gubkin, Zheleznogorsk, and Novotroitsk);
  • support for MISiS National University of Science and Technology and core secondary educational institutions.
Improvements to the quality of healthcare services Reconstruction, repair, and equipping of medical institutions and assistance in attracting qualified medical personnel. Targeted assistance to seriously ill children and facilitating the development of healthcare facilities.

Key projects implemented in the reporting period:
  • development of a concept of healthcare development in Zheleznogorsk;
  • reconstruction and equipping of medical institutions in the cities where the Company operates.
Support for grassroots and children’s sports Key projects implemented in the reporting period:
  • support for Belogorye Volleyball Club in Belgorod;
  • support for the Belgorod SAMBO Federation;
  • support of Dynamo Basketball Club in Kursk;
  • construction of sports venues in Gubkin;
  • reconstruction, repair, and equipping of sports facilities in the cities where the Company operates.
Support for vulnerable segments of the population Implementation of programmes to support socially vulnerable segments of the population in the regions where the Company operates as well as initiatives and projects to protect mothers and children.

Key projects implemented in the reporting period:
  • support for the Special (Correctional) Boarding School in Novotroitsk;
  • support for Childhood World regional charity marathon (Kursk Region);
  • targeted assistance for the treatment of people in difficult life situations.

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Total investment in external social programmes in 2018 – RUB 5,269 million.

Total invested in external social programmes in 2015–2018
[RUB million]
Investments in external social programmes in 2018

Part of Metalloinvest’s responsible approach to charity is to monitor the targeted use of charitable donations. The Company has developed a risk-control matrix, which serves as an effective monitoring tool to confirm that funds were transferred in accordance with the intended purpose.

Corporate development programmes

During the reporting period, Metalloinvest continued to implement the following multi-year programmes:

  • Let’s Do It Together! – Belgorod Region (Stary Oskol and Gubkin), Kursk Region (Zheleznogorsk), and Orenburg Region (Novotroitsk);
  • Our City Initiatives – Orenburg Region (Novotroitsk);
  • School of Entrepreneurship – Orenburg Region (Novotroitsk);
  • Healthy Child – Belgorod Region (Stary Oskol and Gubkin) and Kursk Region (Zheleznogorsk);
  • Women’s Health – Belgorod Region (Stary Oskol and Gubkin) and Kursk Region (Zheleznogorsk);
  • Supporting Critically Ill Children – Belgorod Region (Stary Oskol and Gubkin), Kursk Region (Zheleznogorsk), and Orenburg Region (Novotroitsk);
  • Our Future – Belgorod Region (Stary Oskol and Gubkin), Kursk Region (Zheleznogorsk), and Orenburg Region (Novotroitsk);
  • Our Champions – Belgorod Region (Stary Oskol and Gubkin), Kursk Region (Zheleznogorsk), and Orenburg Region (Novotroitsk);
  • Zhelezno! – Belgorod Region (Stary Oskol);
  • Otkliknis! – Belgorod Region (Stary Oskol and Gubkin).

For more details about the programmes, see our 2017 Corporate Social Responsibility Report on pp. 94–97.

The current Report presents the results of performance evaluations of the programs Let’s Do It Together! and Healthy Child that were conducted in 2018. Programme evaluation is an important stage in the development of the social agenda, which makes it possible to track the effectiveness and adjust the development vector of social programmes in such a way as to scale up the social effect each year.

Let’s Do It Together!

The Let’s Do It Together! programme has been carried out for several years and consists of an annual open citywide competition to provide grants for projects that aim to improve the quality of life in the cities where the Company operates.

Number of grant recipients in 2018: 59, including 40 receiving grants for the first time

Number of direct beneficiaries: 207,764 people

Amount of resources attracted: RUB 5.49 million

Number of successfully completed projects: 56 projects

Number of project executors that received a grant: 476 people

Number of volunteers: 1,115 people

Number of participants in mass events held as part of the programme: 26,863 people

In 2018, a system was developed to monitor the programme using 13 criteria, which included the following: the number of direct beneficiaries, the number of successfully completed projects, the amount of resources attracted, the number of participants who underwent training in social engineering, and the effectiveness of the use of information channels of potential bidders. In 2019, the Company plans to automate the monitoring system in order to conduct regular assessments in future reporting periods.

The goal of the assessment in 2018 was to determine the degree to which the targets set by the program were achieved during the year. Based on the results of 2018, the share of direct beneficiaries was 117% of the target, the share of attracted resources was 136% of the planned amount, and the share of people trained in social engineering was 122% of the figure approved at the start of the period. The share of completed projects among the total number of grant recipients was slightly below the target, as 96% of the projects had been completed as of the end of the reporting period. The assessment helped to identify areas for improvement. In particular, the share of information channels about the programme amounted to 75% of the total number of mandatory/planned information channels. Metalloinvest plans to further develop the practice of external communications to achieve the target in the new reporting period.

Healthy Child

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The Healthy Child programme, which has been implemented since 2011, aims to support the physical, mental, and social well-being of preschool children.

An independent comprehensive evaluation of the programme was carried out in 2018 to analyse the effectiveness of the mechanisms used for its implementation as well as whether the programme’s objectives are consistent with the initial mission. The evaluation included a desk study of the documents regulating the process of the programme’s implementation in addition to interviews with Metalloinvest employees involved in implementing the programme and with representatives of the programme’s target audience.

The study demonstrated the effectiveness of the approach taken to the project’s implementation, in particular with regard to its priority – the impact on children’s health through the impact on professionals working with preschool children (specialists at pre-school educational institutions, other educational institutions, and doctors). The transformation of the programme’s mission from a purely medical understanding of health (a decrease in the incidence rate) to its value-based understanding (health as a factor in increasing people’s general well-being) was recognised and given a positive assessment.

The following tangible results of the programme were identified during the period of its existence:

For specialists of pre-school educational institutions:

  • creation of an atmosphere to conduct a creative search;
  • development of a project-based approach;
  • development of effective teamwork skills;
  • development of skills for effective interaction with external specialists;
  • emergence of informal associations of specialists at the municipal level;
  • acquisition of new professional and personal skills.

For pre-school educational institutions:

  • an increase in the number of categories of children with which the Company engages (young children, preschool children living in rural areas, and children with speech disorders);
  • development and introduction of new methods of physical education for children;
  • use of new approaches to interaction with parents of pre-school children (individual counselling for parents, parental education programmes, involving parents in projects);
  • change in parents’ perception of pre-school educational: the image of resource centres.

For parents:

  • greater involvement in the lives of children;
  • improved interaction with children.

For children:

  • correction of speech defects;
  • improved interaction with parents;
  • improved communication skills and teamwork;
  • increased level of overall preparation for school.

In accordance with recommendations and current strategic priorities, Metalloinvest plans to continue implementing the programme in the medium term with further improvements to the monitoring system.