DTEK Sustainabe Developmet Results 2013Source: RNS
DTEK invested UAH 3.6 billion in sustainable development in 2013
Kyiv, 16 April 2014
In 2013, DTEK invested the total of UAH 3,626.3 million in sustainable development, including projects on social partnership with the towns it operates in, health and safety, environmental protection, social assets' maintenance and personnel development. Social investments in the development of the regions where the company operates amounted to over UAH 130 million.
"In the situation of the political and economical crisis business must focus on ensuring stability for its employees and the society and maintaining reliable operation of the industry and the country's economy in general. This will be the main priority for DTEK in 2014. In difficult times like these business must support the country's economy, first of all through the timely payment of taxes. In 2013 we paid about 11 billion hryvnias in taxes. We guarantee reliable, full and timely payment of salaries to our employees and full social security. We are not planning to downscale our social programmes, but keep investing in the towns where our companies operate to solve their problems and create the environment for development," said Tatiana Overina, DTEK's Deputy Director for External Affairs.
In 2013, DTEK spent UAH 551.6 million on maintenance of social and other non-production facilities. The most significant investments were made in maintenance of boiler houses (27.4%), sanatoriums and health resorts (13.3%), housing facilities on the books of the companies (9.6%), catering (7.6%), recreation (7.2%), and sports facilities (5.5%). The company also allocated 2.9 million hryvnias for town events and 1.3 million hryvnias for charity projects. Investments in staff training amounted to UAH 50.5 million.
In 2013 DTEK was rated first in the Ukrainian Business Transparency and Accountability Index rating based on the websites assessment in accordance with the Beyond Business' methodology and recived a Readers' Choice Award for best non-financial report. The Company also topped the GVardia manazine's rating of socially responsible companies and was announced winner for the Best contribution in the country's development by chief editors of Ukrainian business publications. DTEK won the grand prix in the Regions Development category at the National Business Case competition held by the Center for Development of Corporate Social Responsibility in 2013. The prize was awarded for the project of setting up Local Development Agencies in the regions where the company operates.
In 2013 DTEK started the implementation of its three-year Social Development Strategies with the 22 towns where its assets are located. NGOs, municipal authorities and active representatives of the local communities actively participated in the development of the strategies, implementation of the projects and budget supervision.
The Social Development Strategies set out five development priorities for social investments in 2013-2015:
· energy efficiency for public utilities (energy efficiency of public utilities and quality of power and heat supply services);
· healthcare (access to quality medical services and promotion of healthy lifestyle);
· social infrastructure (development of schools and pre-school facilities, recreation and sport centers);
· development of the business environment (creating new jobs, increasing payments to the budget, expanding the range of services, development of social entrepreneurship);
· involvement of local communities (engaging population in tackling social problems by promoting initiative and self-governance, implementation of small projects by groups of activists).
Large social partnership projects:
Setting up Agencies for Local Economic Development
DTEK helped towns set up agencies for local economic development in order to promote the establishment of business environment and attract investments. First three agencies were opened in 2012 in Burshtyn, Ladyzhyn and Dobrotvir; another 14 were set up in 2013 in the town where the company operates.
As early as the first year of its work, the Agency of the Kamianka-Buzkyi district managed to raise funds for different projects in the amount of above UAH 146,000. Within the framework of the Support Fund for Small and Medium Enterprises financed by DTEK, the agency provided two financial aid facilities: UAH 60,000 to open a milk processing shop in the settlement of Dobrotvir (six jobs created) and UAH 30,000 for a business initiative in fish farming and sales (two more jobs to be created).
The local economic development agency of Burshtyn has launched the "Youth Business" project to help young people (from 18 to 35 years old) to start their own businesses. The project provides unsecured loans, to qualify for which applicants have to submit business plans. The programme is co-financed by DTEK (UAH 100,000) and the Association "Social-Economic Strategies and Partnerships" (UAH 100,000).
Development of social entrepreneurship
The project objective is to improve the competitiveness of DTEK's regions of operation by developing their economic potential and social entrepreneurship. The project established a special fund of interest-free repayable loans for entrepreneurs in the towns of Rovenky, Sverdlovsk, Dobropillia, Zugres in the amount of UAH 370,000. The above towns set up local expert committees to assess business plans. The Loan Fund is expected to create 37 jobs in Donetsk and Luhansk regions.
Your Hometown in Your Hands
The "Your Hometown in Your Hands" is a contest of residents' projects aimed at improving the infrastructure and promoting social protection in local communities. In 2013, the contest committees assessed the submitted projects and provided mini-grants of up to UAH 20,000 each for citizen initiative groups and civil society organizations in 18 towns to finance 105 projects to improve the infrastructure in the areas around residential buildings, kindergartens, schools, to organise leisure-time activities for children and youth. The project helped construct and refurbish 59 children playgrounds and sports facilities; create special playgrounds for children to study traffic rules and meteorological conditions; equip a classroom for a kindergarten group studying under the Montessori system and a classroom for sewing; refurbish three gym halls; improve three parks, etc.
The Telemedicine Project is being jointly implemented by DTEK, the mobile operator MTS, the Foundation for Development of Ukraine, the National Academy of Medical Sciences of Ukraine, and the Ministry of Health. Six medical institutions were connected to the national telemedicine network and required equipment was purchased and installed in 2013 thanks to DTEK's initiative and financial support. As part of the project, doctors and technicians were trained how to operate the telemedicine system - both in theory and practice.
Energy Efficient Schools Project
The "Energy Efficient Schools" Project is aimed at educating pupils of the sixth, seventh and eighth forms in the basics of energy saving both in theory and practice. At the end of the course, the pupils were to prepare their projects on improving energy efficiency of their schools. The first stage of the "Energy Efficient Schools" project took place at 11 educational institutions in Kyiv from February to May 2013. As a result of the project, DTEK provided grants to implement energy efficiency projects designed by the pupils. The second stage of the project started in the second half of 2013, where 55 schools from 22 cities and towns are taking part. Now, all the schools have an optional energy efficiency course in their curricular.
Municipal heating reform in Dnipropetrovsk
Heat losses in the old buildings of two schools and kindergarten in the city of Dnipropetrovsk amounted to 37 to 55% (because of panel structures, poor quality joints of the building front, obsolete design of windows and heating system). The children and teachers had to have lessons in very cold premises. In July 2011, DTEK, the United States Agency for International Development and the Dnipropetrovsk City Council signed a Memorandum of Cooperation on the "Municipal Heating Reform" project. As a result of the joint efforts, the schools and kindergarten had their roofs and external walls heat-insulated, building fronts refurbished, windows replaced for more energy efficient options, and energy-saving bulbs installed. Thus, more comfortable conditions for studying were created for more than 1,000 schoolchildren. The above projects reduced energy consumptions at the schools by 35%. The average temperature at the school increased to 22⁰C and in some classrooms to 26⁰C.
Key events in the social partnership sphere
· February 2013. DTEK launched the Energy Efficient Schools pilot project in educational institutions in Kyiv. From February to May, an optional course Fundamentals of Heat Supplies and Saving Heat was taught in the capital's schools. As a result of the course, students created projects to improve the energy efficiency of their schools. DTEK allocated UAH 1 million for the implementation of these projects in all 11 schools that participated in the pilot initiative.
· March 2013. DTEK, the East Europe Foundation, Sokal Agency for Regional Development, and the British Council in Ukraine announced the launch of a new project to support social entrepreneurship. The project, in which DTEK invested UAH 1 million, is aimed at improving the competitive position of regions where DTEK operates by strengthening their economic potential. Agencies for Local Economic Development are being established as part of the project and funds had been allocated to support and promote social enterprises.
· April 2013. DTEK and the Ivano-Frankivsk Regional State Administration signed an agreement to cooperate on the social and economic development of Ivano-Frankivsk region as part of their social partnership. In 2013, DTEK plans to allocate UAH 7.2 million for the implementation of priority projects for the development of the region and the city of Burshtyn.
· April 2013. DTEK implemented its first corporate volunteering project. Over 8,600 of DTEK's employees participated in the Clean City campaign. Volunteers in 24 cities collected over 600 tons of nonorganic waste that was sent to sorting lines and duly disposed of.
· May 2013. DTEK, Luhansk Regional State Administration and Luhansk Regional Council signed an addendum to their Agreement to cooperate on the social and economic development of Luhansk region as of 2 March 2012. A separate decision was made to establish a Regional Development Fund for Luhansk region. The new fund should be an effective mechanism to attract financial resources from international and national grant programmes to address the social issues of the region. The key objective of the Fund will be the new industrial park near the towns of Sverdlovsk and Rovenky.
· May 2013. DTEK, the United States Agency for International Development, and the Kyiv City State Administration opened the first energy-efficient school in Kyiv. DTEK invested UAH 3 million to improve the energy efficiency of a school and a kindergarten in the capital city. These projects were the final stage of joint work between DTEK, USAID and the Kyiv City State Administration.
· June 2013. DTEK, the Dnipropetrovsk Regional State Administration, and Dnipropetrovsk Regional Council signed a Memorandum of Cooperation on social and economic development issues of Dnipropetrovsk Region. The Company will double social investments in Dnipropetrovsk region in 2013.
· August 2013. DTEK launched a programme to create new jobs in the regions where the Company's enterprises operate. Existing and potential contractors of DTEK were invited to participate in the programme. All other conditions - price and quality - being equal, the Company, when awarding contracts, is ready to give preference to suppliers who create new jobs in the regions where DTEK operates.
· October 2013. The Conference on Development of the Business Environment in Small and Medium Size Cities of Ukraine took place in Kyiv. The conference was attended by the mayors of cities, representatives of government bodies, NGOs, international donors, representatives of DTEK and SCM Group, and the employees of 14 local development agencies of the areas where DTEK operates.
· October 2013. DTEK launched the second stage of the Energy Efficient Schools Project. 55 schools in 22 Ukrainian towns participated in the second phase of the project.
· November 2013. In Lviv, the first Telemedicine and Information Technologies scientific workshop with the participation of international partners was held on the initiative and with financial support from DTEK. At the workshop, the results of the first phase of the Telemedicine project were presented and the prospects for its further implementation and expansion were discussed. Over 2012-2013, DTEK helped nine medical institutions to become connected to the national telemedicine network.
· December 2013. DTEK, the Dobropillia Town Council and Dobropillia District State Administration started the development of the Big Dobropillia Development Strategy for the next three years. The company proposed a number of steps that would make it possible to create 150 new jobs in the town and in the district in 2014 and to improve its infrastructure.
· December 2013. The DTEK Generation Project promoting corporate cooperation with Ukrainian higher education establishments has received the prestigious Human Capital Award 2013. Our project was recognised as the best project on fostering graduates and young professionals in Ukraine and Russia.
· December 2013. With the support of DTEK 23 cities and towns in eight Ukrainian regions were decorated with a fantastic illumination on the New Year's Eve. Decorative lights of the French company Blachere Illumination Sas were glowing on the trees and lamp-posts of the central streets and squares. Blachere Illumination Sas manufactures the lights that are used to decorate the Champs Elysees and the Eiffel Tower in Paris. These Seasonal Lights were DTEK's New Year gift to the residents of the cities and towns it operates in.
Occupational health and safety
In 2013, DTEK invested UAH 691.3 million in the occupational health and safety projects at its coal production, power generation and distribution enterprises. The investments were targeted to minimize the adverse influence of dangerous and hazardous industrial factors, bring the fixed assets in compliance with occupational safety regulations, provide employees with adequate personal protection equipment, ensure safe work environment, provide training and increase the employees' competence, arrange for the employees' health care.
Main occupational safety projects in 2013:
· DTEK Dniprooblenergo completed an audit for compliance of its safety management system with ОHSAS 18001:2007.
· Mines of DTEK Dobropilske and DTEK Bilozerske mine groups are finishing the establishment of the occupational safety management system. In Q4, the enterprises successfully completed a pre-certification audit. The compliance audit is planned to take place in the first quarter of 2014.
· Compliance audits were held at the mines of DTEK Pavlogradske, Geroiv Kosmosu, Ternivske, Pershotravenske, Dniprovske, Komsomolets Donbassa mine groups and at DTEK Zuivska, Kurakhovska, Luganska, Prydniprovska, Kryvorizka, Zaporizka thermal power plants (TPPs). All performed audits confirmed the compliance of the operating occupational safety management systems with OHSAS 18001:2007. The audit of the above enterprises included the audit of activities of all their employees.
· The occupational safety management system conforming to OHSAS 18001:2007 is being implemented at DTEK Krymenergo, DTEK Burshtynska TPP, DTEK Ladyzhynska TPP, DTEK Dobrotvirska TPP and at Rovenkivske, Yasenivske, Sverdlovske and Chervonyi Partyzan mine groups. The certification of the above enterprises is planned to be held in 2014 and 2015.
· The procedure for three-tier intra-departmental control over occupational and industrial safety conditions at the Coal Business companies was designed and introduced.
· A system of personnel motivation for workplace safety achievements was designed and introduced, including the regulations on incentives for the employees of the occupational safety units and the ventilation and safety units who perform route control at DTEK coal production and processing enterprises.
· The procedure for assessment of the activities of DTEK companies' executives with regard to the occupational safety was developed and introduced.
· Common regulations on provision of labour-saving tools to DTEK coal enterprises were drafted.
· A comprehensive clinical examination of DTEK Dniprooblenergo employees was performed after the last periodic medical screening. The Regulations On medical services provision to employees were approved.
· The pilot project on the Use of safety interlocking system LOTO (LockOut/TagOut) was implemented at DTEK Zuivska TPP.
· The programme on asbestos and asbestos-containing materials abatement was designed and is being implemented at DTEK power generation enterprises.
· The Projects on Visual aids management and corporate style of overalls, safety footwear and other personnel protective equipment were implemented at DTEK power distribution enterprises.
· At the beginning of 2014, Wind Power successfully completed a certification audit for compliance with OHSAS 18001:2007.
In 2013, DTEK's environmental costs amounted to UAH 2,197.9 million (including the environmental tax totalling UAH 1,239.8 million). Investments were allocated to air protection measures, including the reduction of TPPs pollutant emissions, water resources protection, waste treatment, land restoration, proper handling of hazardous substances and materials, curtailment of natural resources consumption.
Key achievements in environmental protection in 2013:
· Retrofits of the dust-capturing equipment at eight power units of DTEK TPPs reduced dust concentration in flue gases to meet the requirements of European Directive 2001/80/ЕС (up to 50 mg/Nm3).
· In 2013, the Company participated in preparing Terms of Reference for drafting the National Plan for reduction of main pollutant emissions by large combustion plants.
· In December 2013, DTEK initiated the workshop 'Using Coal Combustion Products (CCP) from DTEK Coal-fired TPPs' to exchange knowledge and skills in utilisation of ashes and slag of coal-fired power plants.
· Methodological Recommendations for Utilisation of CCPs from the Zuivska TPP in Road Construction were prepared as part of the 'Construction of a Road Section between Zugres Town and SDW Landfill' project; preparation of design documents started.
· In April 2013, participating in the International Ecological Forum 'Environment for Ukraine' (Kyiv), DTEK also acted as the official partner of the first national social environmental advertising competition 'Different View at Environmental Challenges', which was supported by the Ministry of Ecology and Natural Resources of Ukraine.
· The project on cleaning the Ternivka river bed was completed.
· Mine water treatment facilities in the gully of Kosmina were constructed.
· The programme on ensuring ornithological safety at electricity distribution companies was designed and is being implemented.
· In 2013, DTEK Dniprooblenergo successfully passed the certification audit to confirm its compliance with ISO 14001:2004. German audit company TÜV SÜD confirmed that the environmental management system of the company complied with the international standards.
· Ten DTEK companies successfully passed re-certification audits. International auditors from Moody International, TÜV Nord Ukraine and RUSINTERTEK confirmed that the companies' environmental management systems met the ISO 14001:2004 requirements.
· In 2013, DTEK Prydniprovska, Kryvorizka, Zaporizka TPPs and DTEK Kyivenergo successfully passed compliance audits. Independent auditors of Moody International confirmed that the environmental management system of the companies was being improved and compliant with ISO 14001.
· We started implementing the environmental management systems at DTEK Burshtynska TPP, Ladyzhynska TPP, Dobrotvirska TPP and Myronivska TPP, and continue their implementation at DTEK Dobropilske and Bilozerske mine groups, DTEK Donetskoblenergo and DTEK Krymenergo. It is planned to complete the works by the end of 2014.
For more information, please contact:
Head of IR Department of DTEK
Tel: +38 (044) 581 45 22
DTEK is the largest energy company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The shareholder of the group is Rinat Akhmetov. Maxim Timchenko is the Chief Executive Officer of DTEK. Currently, DTEK employs 140 thousand people.
Electricity is the core product of DTEK. The assets portfolio is represented by 10 thermal power plants and 2 combined heat and power plants with 18 GW of total installed capacity; 1 wind farm with the designed installed capacity of 200 MW; 5 electricity distribution enterprises, which provide services to over 5.2 million customers - both individuals and industrials; 31 mines and 13 coal-processing plants; oil and gas extraction assets.
In 2012, DTEK's enterprises generated 53.0 TWh and transmitted 56.9 TWh of electricity by grids to consumers; coal output equalled 41.4 mln tonnes and coal processing amounted to 29.3 mln tonnes. DTEK exports electricity to six countries and coal to 36 countries worldwide.
DTEK's consolidated revenues in 2013 amounted to UAH 92.8 billion; the Company's net profit totalled UAH 3.3 billion.
For additional information, visit www.dtek.com
This press release may contain forward-looking statements related to the planned measures or future financial indicators of DTEK. Words such as 'anticipate', 'believe', 'estimate', 'expect', 'forecast', 'intend', 'may', 'plan', 'project', 'predict', 'should' and 'will' or the negatives of these terms or variations of them and similar expressions are intended to identify such forward-looking statements. Accordingly, actual results may differ materially from those expressed or implied by the forward-looking statements. We undertake no obligation and do not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties. Such risks include concerns over the general economic status, environment and risks associated with doing business in Ukraine, significant technological and environmental changes in our sector, as well as many other risks specifically applicable to DTEK and its business.
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