Sustainability Development Management
In order to conduct business responsibly and give special attention to sustainable development issues, JSC FPC complies with environmental laws, makes sure that its employees have the best working conditions, enhances its corporate governance system, and considers stakeholder interests in decision-making.
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In December 2024, the Board of Directors of JSC FPC resolvedMinutes No. 15 dated 27 June 2024. to join the Sustainable Development Policy of OJSC Russian Railways. In accordance with the provisions of the Policy, JSC FPC recognises its responsibility to a wide range of stakeholders to build a competitive and sustainable business in the regions where it operates that meets the principles of corporate, social and environmental responsibility and creates value for them in the long term. The Company recognises that sustainable development is an integral element of its operations and one of its long-term priorities.
In terms of sustainable development, JSC FPC's primary goal is to support the Holding Company's strategy to establish a dominant position in the market, guarantee the Russian Federation's energy security and efficient use of resources by positively influencing socioeconomic development and adhering to strict environmental and technological safety standards, corporate governance and social responsibility, and protection requirements against both natural and man-made threats.
The policy sets out the following sustainable development objectives:
- Lessening the harm that human activity causes to the environment and to aid in the battle against climate change
- Making efficient and rational use of natural resources
- Respecting and honouring human rights in all business processes
- Ensuring the health, safety, and well-being of internal and external stakeholders while conducting its operations, as well as the safety of production processes and working conditions
- Promoting professional, career and personal growth of employees
- Improving the quality of life and well-being of communities living in the territories of the regions of operations and having a positive impact on their social and economic development
- Creating an effective and transparent system of stakeholder engagement
- Ensuring innovative development in all business dimensions
- Developing and improving internal processes to upgrade the organisation of sustainable development activities
- Combating fraud and corruption, as well as adhering to the principles of fair and ethical business conduct
One key way to put the Policy into practice is by incorporating sustainable development principles into JSC FPC's day-to-day operations.
The sustainable development management system of JSC FPC is an essential component of the Company’s general corporate management system, and the decision-making process and operational activities successfully incorporate sustainable development concepts.
JSC FPC's sustainable development management structure
Determination of priority business areas, strategies and key policies by the Board of Directors, approval of the budget and investment programme, KPIs, risk monitoring with preliminary review by the relevant committees
Development of key policies/documents in the field of sustainable development to embed sustainable development principles into the Company's operational activities
Identification of responsible business units
Implementation of sustainable development solutions, preparation of reports
Role of the Board of Directors in sustainable development management
The Board of Directors of JSC FPC is responsible for overseeing the Company's sustainable growth within the parameters of its Articles of Association.
The Board of Directors approves the Company's core and functional strategies, monitors their implementation, and approves adjustments if necessary. For example, in the reporting year, the Board of Directors updated JSC FPC's Digital Transformation Strategy until 2024.
The Board of Directors is responsible for approving high‑level regulations in such areas as ethics, risks, anti‑corruption efforts, and KPI achievement. On an annual basis, the Board of Directors approves the acceptable amount of risks (risk appetite), the register of key risks for the year, and reviews risk monitoring reports.
The Board of Directors annually reviews a set of KPIs for management and sets their target values for the year, with interim monitoring and approval of an annual report on their achievement.
The Board of Directors regularly reviewed the approval of the budget, investment programme, operational efficiency and cost optimisation programme, as well as their progress reports are regularly. If necessary, the Board of Directors decides to amend these documents.
In order to develop a systematic approach to managing the ESG agenda and taking into account JSC FPC's positioning as a socially orientated and socially responsible Company, the Board of Directors decided to expand the scope of functions of the Human Resources, Remuneration and Corporate Governance Committee of the Board of Directors and to give it functions in the area of sustainable development in the following areas:
- Preparation of recommendations to the Board of Directors on defining the Company's sustainable development activities and reviewing reports on the achievement of such goals
- Preparation of recommendations to the Board of Directors on the development of functional KPIs in terms of sustainable development and their integration into the motivation system for the Company's managers
- Preliminary approval of internal documents of JSC FPC related to sustainable development
- Definition of the format of the sustainable development report and the annual report in terms of sustainable development, preparation of recommendations on the approval of the sustainable development report
- Participation in the process of selecting an independent auditor to certify the sustainable development report and preparation of recommendations of the Company on engaging such an auditor
Decision taken | Impact on the Company's sustainable development | UN SDGs | National goals |
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JSC FPC Investment Programme for 2024–2026 was approved |
| Goal No. 3 Сcomfortable and safe environment for living: j) To increase the share of public transport fleets in agglomerations and cities with a service life not exceeding the standard one to at least 85% by 2030 Goal No. 7 Digital transformation of state and municipal administration, the economy and the social sphere: a) To achieve digital maturity by 2030 of state and municipal administration, key sectors of the economy and the social sphere, including healthcare and education, involving the automation of most transactions within unified sectoral digital platforms and a data‑driven management model, taking into account the accelerated introduction of big data processing technologies, machine learning and artificial intelligence | |
Operational efficiency improvement programme for 2024–2026 was approved |
| Goal No. 5 Resilient and dynamic economy: i) To establish by 2030 an effective system for training, retraining and upgrading the skills of personnel for priority sectors of the economy, based on projected needs Goal No. 4 Environmental well‑being: b) To gradually halve by 2036 emissions of hazardous pollutants with the most significant negative impact on the environment and human health in cities with high and very high levels of air pollution | |
A number of corporate governance documents were approved |
| Goal No. 5 Resilient and dynamic economy | |
Risk appetite for 2024 is approved and key risk register for 2024 is reviewed |
| Goal No. 5 Resilient and dynamic economy: c) To increase investment in fixed capital by at least 60% by 2030 compared to 2020 levels through continuous improvement of the investment climate | |
KPIs for the Company's operations and management are approved |
| Goal No. 5 Resilient and dynamic economy: a) To ensure that the country's gross domestic product growth rate exceeds the world average and that it ranks fourth in the world in terms of gross domestic product calculated at purchasing power parity by 2030, including through labour productivity growth, while maintaining macroeconomic stability, low unemployment and a reduction in structural unemployment |
Structure of sustainable development management at JSC FPC
Strategic tier
Board of Directors
Approval of key policies/documents in the area of sustainable development and control over their implementation: determination of approaches to organisation of the risk management system, reporting on risk monitoring, approval of core and functional strategies, determination of KPIs, approval of budget and investment programme, and operational efficiency and cost optimisation programme
Committee on Strategic Planning, Digital Transformation and Information Technology handles the following issues:
- Definition of strategic goals
- Budget approval
- KPI definition
Human Resources, Remuneration and Corporate Governance Committee handles the following issues
- Identification of areas for sustainable development
- KPIs, reporting and internal documents in the field of sustainable development
- Ethics
- Human capital
- Occupational safety
Audit and Risk Committee handles the following issues:
- Anti‑corruption
- Risk management reporting
- Supply chain management
- Operational efficiency improvement and cost optimisation
Management tier
General Director
Deputy General Director, Head of the Security Block (en route passenger safety issues)
Deputy General Director, Head of the Human Resources and Social Affairs Block (issues related to ethics, human resources and social affairs)
Deputy General Director, Head of the Quality Block (issues of building a corporate quality management system)
First Deputy General Director, Head of the Production Block
Deputy General Director, Head of the Passenger Service and Quality of Service Block (service quality issues)
Deputy General Director – Chief Engineer, Head of the Production Development Block (environmental, sustainable development and labour protection issues)
First Deputy General Director, Head of the Economics and Finance Block
Deputy General Director, Head of the Marketing Block (customer satisfaction with the quality of services provided)
Operational tier
Functional areas and divisions
Ethics and anti‑corruption
Corporate Security Centre
Anti‑Corruption Committee hotline_bz@ fpc.ru
Commission for Management of Conflict of Interest
Office of Personnel and Social Development
Officer‑in‑Charge of Business Ethics in JSC FPC
ethics@fpc.ru
Human capital
Office of Personnel and Social Development
Personnel Development Centre
Youth Council
Coordination Council on Improving Working Conditions, Recreation and Social Support for Women
Occupational safety and industrial safety
Occupational Safety Department
Transport Safety Authority
Chief Supervisor for Rail Traffic Safety
Environmental responsibility
Industrial, Fire and Environmental Safety Department
Risk Management Department
Lean Production Department
Supply chain management
Procurement and Contractual Work Department
Internal Control Centre
Customer relations
Passenger Services Department
Process Monitoring and Quality Management Centre
Stakeholder engagement
Department of Communications and Engagement with Authorities
Carrier Relationship Development and Corporate Sales Organisation Department
Stakeholder engagement
JSC FPC is aware of its high responsibilities to all stakeholders and strives to maintain an ongoing constructive dialogue with them. The Company is focused on meeting the expectations of all stakeholders in its integrated sustained economic, social and environmental development.
Stakeholders | Engagement approaches and mechanisms | Key communication channels | Description of engagement activities in 2024 | Results of engagement in 2024 |
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Internal stakeholders | ||||
Staff |
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Governance and control bodies | Descriptions of governance and control bodies, as well as interaction principles and governance procedures, are set forth in JSC FPC’s Articles of Association and other internal documents of the Company. For more details, please see the Corporate Governance Model and Practice section |
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| Fulfilment of the Company's obligations to all stakeholders within the reporting framework |
External stakeholders | ||||
Shareholders |
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| The Company was awarded a National Corporate Governance Quality Rating of 6++, which confirms a high level of interaction with shareholders and observance of their rights under the Articles of Association of JSC FPC and the laws of the Russian Federation |
Government authorities and public organisations |
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Business partnerships |
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Customers and consumers |
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Media and public organisations |
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| Effective co‑operation with the media, processing journalists' requests within the deadlines established by the media law |
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Educational institutions |
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Social partnership actors | Engagement with trade unions in the social protection of employees and non‑working retirees |
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