Severstal Annual Report 2015 Home > Sustainability > Social investment

Social investment

Our Approach

Severstal is investing in the future through funding for social infrastructure, education, culture and sports. The following are key areas on which our social programmes are focused in the regions where we operate:

  • Supporting the social and economic development of these regions, and exploring their potential
  • Improving the quality of life for our employees and local communities
  • Protecting the environment
  • Building strong relationships with government authorities and the general public
  • Preserving cultural heritage and supporting cultural development.

Highlights

We invested over US$35 million on various social and charitable programmes in 2015.

Severstal worked on time-proven social programmes and ventured into new areas such as corporate volunteering and development of efficient social partnerships. Severstal follows Russian and international best practices in these activities and uses strategic planning tools, stakeholder coordination systems and competitive selection processes for investment targets to ensure their efficiency and sustainability.

Our support programmes for children and youth, social initiatives in local communities, and culture projects received multiple prestigious awards.

Public Recognition:

  • 1st place, out of Russia’s 65 largest enterprises, in the Donors Forum: Leading Corporate Donors 2015.
  • Winner of the High-Quality Sustainable Development Reporting Award of the Russian Business Leaders: Agility and Responsibility 2014 Contest organised by RSPP.
  • Our Clean Metallurgy project won the national Development of Environmental Education and Promotion of Environmentally Responsible Behaviours of Youth award of ERAECO-2014.

Society

Severstal works with regional and local authorities and invests in improving the quality of life of local communities in its cities. We are active in areas such as education and culture, prevention of social orphanhood, support for mothers and children, healthcare, sports, development of local communities, and support for retirees.

Severstal supports charitable activities such as providing financial support to large-scale cultural, educational and social institutions. At the same time, we also support and develop innovative projects, which help to build out small and medium business infrastructure as well as support social development in the regions where we have operations.

The Agency for Urban Development, our non-profit partnership established by Severstal and local authorities, successfully operates in Cherepovets. The purpose of the Agency is to promote the development of small and medium businesses while offering comprehensive support to entrepreneurs at all stages of development.

Progress in 2015:

  • 83 new small and medium-sized businesses
  • 312 new and 323 preserved jobs
  • Over 5,000 consulting sessions, more than 800 events on small and medium business development reaching over 16,000 people.

In 2015 more than 5.8 million roubles raised to support social entrepreneurs. The Regional Center for Social Innovations opened in Cherepovets.

Today in Cherepovets approximately 50,000 people work for small and medium-sized businesses, which is 1.5 times more than Severstal, as the region’s principal employer, employs in the region.

Another area of our regional economic support is represented by the Cherepovets Investment Agency.

In 2015 the Agency raised 1.1 billion roubles for the development of municipal economy, including 0.9 billion roubles from the federal budget.

This money was used to:

  • Construct the engineering and transportation infrastructure of Cherepovets Industrial Park. Construction work is scheduled to start in 2016. The new 54-hectare site will host eight businesses. This project will help Cherepovets to achieve a new level of economic development and make a significant contribution to the diversification of the municipal economy. This project will use 5.2 billion roubles of private investment. The new businesses will create 1,030 new jobs.
  • Open the Steelmaking Museum. The first part of the Museum opened its doors to the public in 2015. It tells the story of iron making in the region and the development of the steelmaking industry in Vologda region. The new museum became a new tourist attraction and educational resource in the city. In 2016, the plan is to raise additional 20 million roubles for the development of this project.

Vorkutaugol has invested more than 20 million roubles in important social projects in the Komi Republic. Under the social partnership agreement with Vorkuta administration, this funding was used to support education, culture, sports and municipal infrastructure in the city.

Vorkutaugol finances the two largest social venues in the Extreme North:

  • The Miners’ Palace of Culture that hosts more than a hundred regional and municipal cultural events per year
  • The Universal Sports Center Olympus, which is the largest sports and concert hall in Vorkuta and the home arena of the Olympus Junior Hockey Club.

Olcon in Olenegorsk finances the health resort and wellness center, and the Culture Palace that welcomes around 21,000 visitors every year. We also support disability organisations, veteran associations, children’s educational institutions, sports clubs and schools, and host regional and municipal festivals and celebrations.

Karelsky Okatysh finances the upkeep of Druzhba Culture and Sports Centre in Kostomuksha with more than 90,000 people attending events every year. We support five larges music festivals in Karelia, and in 2015, we organised the Golden Mask Theater Festival for the first time. Apart from culture events, Karelsky Okatysh actively supports sports organisations in Kostomuksha, including boxing, biathlon, hockey and rhythmic gymnastics. In July 2015, Kostomuksha organised the fifth annual TRIM-2015 youth forum with the help of a grant from the Ministry of Youth of Karelia and financial support from Karelsky Okatysh.

Children and the future

One of our key successes in this field has been the Way Home programme supported by a successful trilateral partnership between the government authorities, businesses and local communities. Partners include the Russian Ministry of Economic Development, the Vologda region Government, the Foundation for Support of Children in Hardship, the National Charity Fund, the Lukoil Charity Fund, as well as social institutions, businesses and non-profit organisations from regions where the programme is available.

Way Home is a comprehensive child neglect, juvenile delinquency and social orphanhood prevention programme launched in 2006. It unites representatives from social groups interested in helping to address these issues. Alexey Mordashov, Severstal’s Chairman, launched the programme and still personally oversees its progress.

Programme development:

  • 2009 – Programme active in Vologda region
  • 2011 – Programme expanded to Vorkuta, Kostomuksha, Balakovo and Veliky Ustyug
  • 2013 – Programme launch in Olenegorsk
  • 2014 – Programme launch in Volgograd
  • 2015 – Programme launch in Yaroslavl

Since programme launch, five out of nine orphanages have been shut down in Cherepovets.

In Vologda region all orphanages have been converted into support centres for children without parental support. They temporarily house 179 children as we are working on their placement in families.

More than 600 vulnerable families receive annual professional help and support to reduce the risk of termination of parental rights and to ensure that children stay with their families in a safe environment.

Over the last three years, we helped 1,755 children to reduce the risk of loss of parental support, and these children stayed with their families.

More than 8,000 parents received parent training.

Approximately 8,000 people received emergency psychological support over children’s hotline.

More than 13,000 residents of Cherepovets and approximately 2,000 residents in other cities received professional psychological, social, legal and financial support through this programme.

Culture and the arts

Severstal has been a partner of Russia’s leading museums and theatres for many years and the Severstal brand has become aligned with a large number of cultural organisations.

In 2015 we continued our partnership with the Bolshoi Theatre (Moscow), the Russian Museum (St. Petersburg), the Mariinsky Theatre (St. Petersburg), the Tretyakov Gallery (Moscow), the Pushkin Museum of Fine Arts (Moscow), the Historical Museum (Moscow), the Cherepovets Museum Association (Cherepovets), the Kirillo-Belozersky Museum-Preserve (Kirillov), the Museum of Dionisy Frescoes (Ferapontovo, Kirillovsky District), the Vologda Museum and Reserve (Vologda, Semenkovo), the Radishchev Arts Museum (Saratov), the Balakovo Art Gallery (Balakovo), the Valaam Monastery, Sergey Andriyaka’s Watercolor School (Moscow) and others.

We keep supporting the Golden Mask, Russia’s largest theatre festival hosted in Moscow, Latvia and Cherepovets. In 2015 Severstal supported the inaugural visits of the Golden Mask to Petrozavodsk and Kostomuksha.

The Museums of the Russian North is a major culture grant programme of Severstal, focused on supporting the development of arts museums in the north of Russia. As a part of this programme, we organised the 2015 Museums in Tourism forum with 120 participants from six regions.

We received 137 applications for travel grants from the museum communities, and of those 50 were winners, while, as a result, 120 more people decided to participate in professional museum events.

We also keep working on the tourism management development programme as a part of our Museums of the Russian North contest.

Sports

Severstal promotes a healthy lifestyle among all our employees and their families by supporting the development of sport. We support sports events popular among our employees and local communities. Severstal also invests in top level sports and the Severstal Sports Club trains athletes and organises their participation in nationwide and international events.

In 2015 our Steel Energy employee sports programme won the national Sports and Russia award.

We are also proud sponsors of the Dynamo Moscow women’s volleyball club.

In Cherepovets, Severstal supports the Cherepovets professional hockey club, the Almaz junior team, and the youth hockey school that trains over 1,000 children.

In 2015 we continued the Hockey Without Borders project for people with disabilities. Through this project we organise transport and support for disabled sports fans so they can attend hockey matches.

Corporate volunteering

Severstal encourages its employees to engage in corporate charitable programmes, including prevention of child neglect and social orphanhood, mentoring, preservation of regional cultural heritage, environmental protection, and support for retirees, veterans and people with disabilities. These programmes offer various options for participation (charitable events, raffles, New Year markets, auctions, marathons, opportunities for personal projects, fundraisers, and providing professional help free of charge). Severstal also supports employee volunteering initiatives.

We offer training workshops on corporate volunteering led by internal and external experts in our regions; develop and run charitable events to support orphans, people with disabilities and the elderly, and environmental protection initiatives. This program runs in Cherepovets, Moscow, Balakovo, Vorkuta, Velikiy Ustyug, Kolpino (St. Petersburg), Olenegorsk and Kostomuksha.

We organised 73 corporate volunteering events in 2015.

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