SUSTAINABLE DEVELOPMENT 12 UN SUSTAINABLE DEVELOPMENT GOALS MAIN EVENTS IN THE FIELD OF ESG 2020 ENVIRONMENT PROTECTION SOCIETY EMPLOYEES Corporative management

UA EN

ESG-REPORT
2020

DOWNLOAD PDF

Sustainable
Development

Our experience proves that large projects can be successfully completed, while maintaining the trust of relevant stakeholders during the process. This continues to serve as an incentive for the further development of cities and regions where DTEK Group

In 2020, DTEK Group launched a new long- term development strategy which is based on the UN Sustainable Development Goals and meets the ESG principles. DTEK Group’s efforts in the field of environmental, sustainable development are aimed at reducing the company’s carbon footprint; promoting the rational use of resources; improving industrial safety and preserving the health of our employees;

ensuring ethical business conduct and compliance with anti-corruption standards; and maintaining an open dialogue with our personnel and wider society. This approach is applied throughout the value chain and at all levels of internal management. DTEK Group companies and production facilities are guided by the ESG strategy and the SCM Sustainable Development Policy.

DTEK Group's ESG Strategy Priorities

Fulfil its obligations to protect the ambient air and climate by investing in the development of renewable energy and reducing the carbon footprint of thermal generation.

Follow the circular economy approaches, including the use of production waste.

Protect biodiversity and promote ecosystem conservation.

Meet high social standards and act as a responsible "corporate citizen".

Ensure safe working environment and an integral health care system for the employees.

Follow best practices in corporate governance, risk management and compliance.

12 UN Sustainable Development Goals that DTEK Group has incorporated into its ESG strategy and made commitments to achieve progress in:

DTEK Group’s ESG report

Sustainability management
structure

Supervisory Boards of operating holdings

Analysis and monitoring of implementation of DTEK Group ESG Strategy, which includes 12 UN Sustainable Development Goals and progress commitment

Executive management of operating companies

Implementation of DTEK Group's ESG Strategy initiatives

Organization and controlling of departments responsible for implementation of environmental management system, contribution of business operations to the sustainable development of areas of presence, personnel management, including labor protection and industrial safety questions

Preparation of comprehensive analysis data for decision making based on the collected information

DTEK personnel, social development and ecology director

Methodological support of DTEK Group companies on issues of sustainable development, work with environmental risks and industrial safety risks’

DTEK Group's operation during the
COVID-19 pandemic

In the context of the coronavirus pandemic, every responsible company has consolidated their resources and supported the country throughout the pandemic. DTEK Group has focused its efforts on the following areas:

The wellbeing and health of employees. Urgent measures have been taken to mitigate disease-related risks among employees. The office staff worked remotely, and the production facilities personnel worked in the special operation mode.

Humanitarian assistance to the regions where production facilities are located. Rinat Akhmetov united all his resources from his charitable foundation, DTEK and Metinvest, FC Shakhtar, in addition to SCM’s assets to help Ukraine fight against COVID-19. This enabled the identification of resource requirements in order to support medical professionals. Personal protective equipment, express tests, and consumables, ventilators and oxygen concentrators, mobile monitors for patients have been delivered to health care facilities.

Continuity of production. Our responsibility as an energy company is to ensure the uninterrupted generation, distribution and supply of electricity. The company has fully fulfilled this mission throughout quarantine.

Environmental Protection

The strategic objective of DTEK Group is to implement modern technologies and best practices to minimize the environmental footprint of production and optimize the use of hazardous substances and materials.

UN Sustainable Development Goals the DTEK Group has incorporated into its ESG strategy and made commitments to achieve progress

Clean Water and Sanitation

DTEK Group aims for sustainable and efficient water management across all of its operational facilities. The existing and future projects are aimed at improving management of water resources to ensure optimal water consumption on an ongoing basis.

Affordable and Clean Energy

To maintain an environmental balance, DTEK Group consistently upgrades its facilities to guarantee reliable production and compliance with European environmental standards.

DTEK Group is also developing new business streams to mitigate the carbon footprint and make a hefty contribution to the fight against climate change. DTEK is stepping up renewable energy output and implementing programs and efforts to boost energy efficiency.

Responsible Consumption and Production

DTEK Group is embedding the circular economy approaches in order to recycle the bulk of its production waste.

Climate Action

DTEK Group is devoting considerable resources to mitigating its carbon footprint across all stages of the production process.

Production facilities are being systematically upgraded to maintain the ecological balance and to ensure the reliability of production as well as compliance with EU environmental standards.

Life On Land

DTEK Group's environmental protection efforts are focused on preventing and mitigating adverse impacts on biodiversity and environment. DTEK personnel plant trees and reclaim territories with a focus on biodiversity and ecosystem protection.

In accordance with the environmental legislation requirements, DTEK Group 's enterprises monitor the environmental footprint. A control system has been created that covers the entire production cycle:

• emissions and discharges from production facilities undergo laboratory tests;

• waste disposal sites are evaluated for their impact on soil, groundwater and air;

• ambient air and underground water samples at the sanitary protection zone border of the production facilities are selected for quality control;

• environmental protection facilities and purification equipment are checked for technical condition.

Monitoring data enables to determine the degree of production impact on the environment and make timely management decisions aimed at preventing and reducing the environmental footprint.

Coal mining plants are actively taking measures to reduce greenhouse gas emissions

DTEK Pavlohradcoal's Stepova Mine, jointly with REGEN, implemented a project for the utilization of mine methane by high-temperature oxidation using 1.6 MW Caterpillar cogeneration plant. The plant was commissioned in September 2020. This will reduce greenhouse gas emissions

Gross greenhouse gas emissions by DTEK Group production facilities, thous. Tons	Nitrous oxide emissions	Methane emissions	Carbon dioxide emissions	Total
2018	0.5	139,0	35 586,0	35 725,5
2019	0.5	145,1	31 194,9	31 340,5
2020	0.4	130,5	26 191,1	29 951,3

Gross greenhouse gas emissions by DTEK Group production facilities, thous. Tons
Nitrous oxide emissions	Methane emissions	Carbon dioxide emissions	Total
2018
0,5	139,0	35 586,0	35 586,0
2019
0,5	145,1	31 194,9	31 194,9
2020
0,4	130,5	26 191,1	26 191,1

DTEK Renewables is one of the largest investors in the ‘green’ energy sector of Ukraine.

Each of the company's projects contributes to the country's global goal of the economy decarbonization. In 2020, owing to the operation of wind power plants and solar power plants, the company succeeded in reducing CO2 emissions by 2.5 mln tons. The positive trend will continue – the company has started construction of DTEK Tylihulska WPP. The capacity of the first phase of the wind park is 126 MW, which will reduce CO₂ emissions by 504 thousand tons per year.

REDUCE CO2 EMISSIONS BY

2,5

mln tons

Biodiversity Conservation and Restoration

Biodiversity Conservation is one of DTEK Group's activities in accordance with ESG Strategy, which demonstrates our determination in achieving the UN Sustainable Development Goals.
DTEK Grids has been implementing a comprehensive bird conservation program since 2013. Measures for the ornithological safety of power lines are developed on a scientific basis in accordance with the recommendations of UNEP (United Nations Environment Programme) and BirdLife International. In addition, DTEK Grids specialists cooperate with Ukrainian scientists and ornithologists. This not only allows us to protect the birds, but also increase the power supply reliability.
Based on monitoring data and information provided by scientists, DTEK Grids distribution system operators survey power lines and high-voltage line supports to identify areas that may be dangerous for birds. In 2020, 98 km of power lines in Dnipropetrovsk and Odesa regions were surveyed and 2,112 bird-protection facilities were installed throughout 11 km of power lines. 1,222 protective umbrellas (caps) have been installed for insulators of high-voltage power lines in Dnipropetrovsk and Donetsk regions.

In 2020, the following items were installed for the protection of birds:

• DTEK Dnipro Grids: 760 markers and enclosures on the territory of the Bulakhivsky Estuary ornithological reserve and on the territory reserved for the Orelsky national park, near the Salty Estuary ecological network, in the Revun natural boundary and in the Kryvyi Rih district of Dnipropetrovsk region.
• DTEK Donetsk Grids: 12 protective enclosures on the territory of the Meotyda National Park in Donetsk region.
• DTEK Odesa Grids: the first 1,340 markers were installed in Limansky district of Odesa region.
Bird-protection facilities are polymer protective enclosures for insulators and wires that prevent birds from contacting places under voltage. Another type of bird-protection facilities is reflective markers, which are fixed on overhead high-voltage lines. Thanks to these installations, birds can safely pass power lines at dusk or in poor weather conditions. They protect birds from collisions, and consumers - from power supply outages.

1 / 5

Society

Social partnerships with local communities are a prerequisite for DTEK to undertake its activities across Ukraine.

The UN Sustainable Development Goals in the field of social partnership, which the DTEK Group has implemented in the ESG strategy and committed to making progress

Good Health and Well-being

DTEK Group pays significant attention to health issues, ensuring that all employees have access to timely and quality medical care.

Quality Education

DTEK Group supports a number of projects aimed at increasing access to education. Educational programs are implemented for external and internal stakeholders, including Academy DTEK.

Decent Work and Economic Growth

DTEK Group promotes full-time employment and decent work for all employees, as well as providing reliable and safe working conditions.

Industry, Innovation and Infrastructure

DTEK Group implements social partnership programs to ensure sustainable development. The programs include five main directions: energy efficiency in the utilities sector, healthy eating, development of socially significant infrastructure, support of the business environment and increasing the activity of local communities.

Sustainable Cities and Communities

DTEK Group establishes stable social partnerships with communities and local authorities in regions in order to increase the comfort of living in these cities.
Partnership in social and economic development is a tool for achieving goals in sustainable development.
DTEK Group raises awareness of energy efficiency and promotes a responsible attitude to consumption.

Partnerships for the Goals

DTEK Group develops partnerships with international donor agencies and state foundations for creating joint projects of sustainable development in its territories. DTEK is also a member of the UN Global Compact and submits an annual report.

Inter-regional project ‘Your Hometown Begins with You’

‘Your Hometown Begins with You’ is a grant competition in which residents submit ideas for the improvement of local facilities. After which, a jury made up of representatives from the communities, select the best projects to implement.

The main goal of the initiative is to develop community projects and involve local residents in solving issues in their region. DTEK Group seeks to help these communities recognize their important role in ensuring sustainable and improving their own quality of life

Inter-regional project ‘Energy efficient schools. Restart’

This project is aimed at popularizing the rational use of energy resources, developing environmental values, and involving students, parents, employees of educational institutions and volunteers in environmental activities. The program is available on the open online platform energyschool.org.ua, which provides equal access to modern teaching methods.

Inter-regional project ‘Come on, Let’s play!’

‘Come on, Let’s play!’ is a joint project with the football club ‘Shakhtar’, aimed at the development of children amateur football and the popularization of a healthy lifestyle. This is a project in which there is a place for both boys and girls, and children with disabilities.

Employees

People are our main value and the source of DTEK Group’s competitive advantage.

The UN Sustainable Development Goals in the field of personnel management that DTEK Group implemented into its ESG Strategy and is committed to making further progress

Good Health and Well-being

DTEK Group pays significant attention to the healthcare issues by providing all employees with access to timely and high-quality medical assistance.

We implement Health & Recreation programs for the employees and their family members.
We enforce our occupational safety measures.
We promote healthy lifestyle and responsible attitude to health.

Quality Education

DTEK Group supports a number of projects aimed at promotion of access to education. We implement educational programs for both internal and external stakeholders.

In the framework of development of their professional competencies, we provide our employees with opportunities for education at Academy DTEK.

Gender Equality

DTEK Group provides equal opportunities to all employees for fulfillment of their potential and promotes their career development regardless of gender.

Decent Work and Economic Growth

DTEK Group enables full employment and decent work for all employees, and ensures reliable and safe labor conditions.

Total number of personnel in 2020

Total

69918

Permanent employees

68119

Temporary employees

1799

Full employment

69413

Part-time employment

505

Men

49926

Women

19992

Total

69918

Occupational Safety, Industrial Safety and Healthcare

DTEK Group has adopted a zero-tolerance approach to industrial occupational injuries in order to preserve our employees’ lives, health and ability to work.

556.3 MLN UAH

2018

595.9 MLN UAH

2019

573.8 MLN UAH

2020

Corporate Governance

DTEK Group’s corporate governance system is based on the principles of disclosure and transparency.

This ensures respect for the interests of stakeholders, ethical decision-making processes and efficiency across all management levels. This approach allows us to constructively interact with investors, partners and employees, contributing to the implementation of our long-term development goals and increasing the investment attractiveness of DTEK Group in international capital markets.

DTEK Group supports the corporate governance system in its continuous development to ensure changes in business and social needs are always taken into account. This approach allows for the equal development of new and existing business areas, in line with both the long-term development strategy and DTEK Group’s ESG strategy.

ESG-REPORT2020

ESG-REPORT
2020