Environmental Responsibility

Environmental protection is a strategically important component of Unipro’s activities. The Company considers the environmental protection as a prerequisite for doing business as a going concern.

Unipro’s activities related to environmental protection and sustainable nature management are carried out in accordance with the approved Environmental Policy, which is based on the provisions of the federal and regional laws of the Russian Federation, as well as of the applicable international documents ratified in the country in accordance with the established procedure and the policies of Uniper Group.

The objective of Unipro PJSC environmental policy is to define the framework for the Company’s business and its commitments in various environmental areas subject to the requirements of ISO 14001:2015. These are decisions regarding use of environmental protection technologies, mitigation of adverse environmental impact, management of environmental risks, and liaison with stakeholders, whether government authorities, non-governmental organizations, or even Unipro employees.

To promote the objectives set out in the environmental policy, Unipro has adopted an environmental strategy that is updated on an annual basis and provides for the planning and scheduling of environmental protection activities for the next three years.

The environmental strategy provides for the activities required for upgrading the power plants to the best available technologies (BAT) (i.e. activities associated with incorporation of large-scale environmental protection projects into the Company financial program) wherever applicable. Besides, the strategy contains certain clauses providing for transition to zero waste by minimizing waste generation and maximizing waste recycling. At the same time, one of the most relevant objectives is to develop a system of corporate carbon regulation: 2021 — elaboration of BAT Reference Document No. 48 on energy efficiency, 2022-2023 — implementation of measures and recording the carbon footprint reduction. It is planned to implement ISO 14080:2018 (Greenhouse Gas Management and Adaptation to Climate Changes).

The Environmental Management System of Unipro uses the PDCA management cycle logic (Plan-Do-Check-Act).

For each environmental issue, the applicable requirements are identified, which include the mandatory legal requirements regarding environmental protection, as well as the policies of the main shareholder, the expectations and sometimes non-documented requirements of stakeholders.

Mandatory requirements include the requirements set by regulatory legal acts that are related to business and other economic activities and the assessment of compliance with which is carried out under state control (supervision), municipal control, bringing to administrative responsibility, granting licenses and other permits, accreditation, product conformity assessment, other forms of assessment and expertise.

Further, the applicable requirements form the basis for assessing the compliance of the Company’s branches through level 1 internal audits (at the level of branches), level 2 audits (conducted by Headquarters representatives) and certification audits for compliance of the environmental management system with the requirements of ISO 14 001:2015, as well as environmental SWOT analysis.

Based on the identified deviations and risks, the environmental efficiency improvement programs (action plans for environmental protection) and environmental risk management programs with specific measures, assigned deadlines and responsible persons are developed.

All the said actions are integrated into PDCA cycle.

The environmental expenditures depend on such factors as the need to comply with environmental regulations, to make repair and upgrade equipment, and on schedules for the implementation of issue-related events. These activities also include development of regulatory and permitting documents which depends on the legal term of the documents (in most cases it is 5 years).

In 2020 the total environmental investments were RUB 119,802.6 thous. More than half of the amount relates to financing of the construction of fish protection facilities at Yaivinskaya GRES and PP Surgutskaya-2; RUB 24,145,807 thous. — to reconstruction of the sewage treatment facilities in Sharypovo, RUB 4,855,624 thous. — to reclamation of two sludge dump basins at PP Surgutskaya-2, RUB 2,945,253 thous. — to activities under NOx emission reduction program at PP Surgutskaya-2. The current operating expenses were to RUB 14,835,549 thous. and are related to waste disposal services, instrumental industrial ecological control, development of supporting and permitting documentation.

In 2020, the power consumption made up 110.9 mln kWh, the heat power consumption - 93.3 thousand Gcal.

The Company prioritises minimisation of waste generation and maximum recycling as the key elements of waste management.

Most of the waste produced by the Company is non-hazardous wastes of classes IV and V. Ash and slag waste from burning of coal (hazard class IV) is disposed of in ash disposal areas at Company facilities based on a special license. The same procedure is used to dispose of ash and slag waste from burning of coal, which is referred to hazard class V (not subject to licensing).

The higher hazard category wastes were generated in significantly smaller volumes: I-III. Oil and petroleum product sludge in hazard class III is used as lubricants or transferred to specialised licensed providers for neutralisation (incineration).

Waste in hazard class II (sulphuric acid from batteries and sulphuric acid electrolyte sludge) is neutralised in special tanks based on a license.

Wastes in hazard class I (mainly waste containing mercury, including fluorescent lamps, mercury thermometers and other measuring equipment) is transferred to licensed providers for neutralisation (de-mercurisation).

More than 90 % of wastes is placed at its own waste disposal sites, about 7 % - in landfills, 2 % - extraction of valuable components (including energy), 1 % - combustion in bulk.

Being fully aware of its responsibility, Unipro strives not to produce any significant impact on biodiversity and protected natural areas. The Company’s production activities do not cause any reduction in the number of species, changes in habital areas, spread of invasive species, pests and pathogens. 304−2

The Company pays special attention to the conservation and restoration of the fish stocks of rivers. Unipro assesses the impact on aquatic biological resources of those water bodies that it plans to use in its activities. Following the assessment results, certain conservation and compensation measures are taken. In particular, fish protection devices (FPD) are designed, baby fish is released.

In 2020, lake stocking was carried out at Shaturskaya GRES. In October, the branch carried out another stocking operation on the Shatursky lakes: 929 species of silver carp were released into Lake Svyatoe. Shaturskaya GRES stocks the Shatura area lakes with baby fishes every year to restore the local ecosystem. According to the established rules, the fall is the best season to stock lakes with fish, because the survival rate is relatively high. The baby fishes have been delivered to their new habitat in a special vehicle equipped with containers with oxygen frames. The place was inspected before their release. There was a check whether the artificial environment matched the natural environment, the temperature conditions and noise wave level were recorded. Baby silver carps were released to the water body by means of a special release hose.

Within the reference period the fish protection facilities were completed at PP Surgutskaya-2; fullscale tests of the actual fish protection efficiency under the program agreed with Rosrybolovstvo were started. The technical solution involved the use of a combined FPD with bottom electrodes, pontoon sections and a baffle boom.

Also in 2020, the construction of fish protection facilities was completed at Yaivinskaya GRES. The technical solution was an air bubble curtain with a floating boom.