APPENDIX 7. GRI content index / Appendices / TVEL JSC 2018 Annual Report

102-13 Membership of associations

102-14 Statement from senior decision-maker

102-15 Key impacts, risks, and opportunities

102-16 Values, principles, standards, and norms of behavior

102-17 Mechanisms for advice and concerns about ethics

102-18 Governance structure

102-19 Delegating authority

102-20 Executive-level responsibility for economic, environmental, and social topics

Decisions regarding main production and economic, ecological and social matters are taken by the Sole Shareholder of TVEL JSC – Atomenergoprom JSC. Prior to making relevant decisions the issues must be agreed between TVEL JSC and the profile subdivisions of Rosatom State Corporation. The decisions are obligatory for TVEL JSC management.

102-21 Consulting stakeholders on economic, environmental, and social topics

Special consultations between stakeholders and Board of Directors are not carried out.

102-22 Composition of the highest governance body and its committees

102-23 Chair of the highest governance body

102-24 Nominating and selecting the highest governance body

102-25 Conflicts of interest

If members of the Board of Directors participate in the management bodies of other companies at the same time (cross memberships), they do not vote at meetings on the issues related to the approval of transactions between companies, if they are considered by the Federal Law "On Joint Stock Companies" to be interested (or not recognized as independent) in their commission.

List of affiliated persons is disclosed on the website http://www.e-disclosure.ru/portal/company.aspx?id=400.

102-26 Role of highest governance body in setting purpose, values, and strategy

The Sole Shareholder and the Board of Directors take decisions on approval and update of the Company’s goals, values and mission, strategy and objectives regarding production-economic, environmental and social impact. The executive management approves the Company’s policies and activity programs.

102-27 Collective knowledge of highest governance body

102-28 Evaluating the highest governance body’s performance

Evaluation (including self-evaluation) of activity of the Board of Directors is not conducted.

102-29 Identifying and managing economic, environmental, and social impacts

Functional subdivisions of the Company within their competence control various aspects of financial economic activities including product output, issues of nuclear, radiation and environmental safety, personnel management and social policy implementation, development of the regions of business presence, and others.

102-30 Effectiveness of risk management processes

The Board of Directors does not participate in the risk management processes.

102-31 Review of economic, environmental, and social topics

102-32 Highest governance body’s role in sustainability reporting

Integrated annual report of TVEL JSC that contains the information on sustainable development is approved by the Board of Directors.

102-33 Communicating critical concerns

The Board of Directors meetings are convened by its Chairman as necessary. The agenda of the meeting is prepared by the Chairman of the Board of Directors.

102-34 Nature and total number of critical concerns

102-35 Remuneration policies

102-36 Process for determining remuneration

102-37 Stakeholders’ involvement in remuneration

Не вовлекаются

102-38 Annual total compensation ratio

Ratio of the annual total compensation for the Fuel Company’s highest-paid individual to the median annual total compensation for all employees of TVEL Fuel Company (excluding the highest-paid individual) in 2018 is 50.5.

102-39 Percentage increase in annual total compensation ratio

Ratio of the percentage increase in annual total compensation for the Fuel Company’s highest-paid individual to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) of TVEL Fuel Company is 96%.

102-40 List of stakeholder groups

102-41 Collective bargaining agreements

Collective bargaining agreements are provided in all enterprises of TVEL Fuel Company (except for TVEL JSC and Industrial Innovations JSC) and collective bargaining agreements cover 100% of total employees of these organizations (97% of average staffing number of TVEL Fuel Company).

102-42 Identifying and selecting stakeholders

102-43 Approach to stakeholder engagement

102-44 Key topics and concerns raised

102-45 Entities included in the consolidated financial statements

The financial indicators in this report are formed according to management accounting data for the following companies: TVEL JSC, Incorporated Company RSK JSC, AECC JSC, SGChE JSC, UEIP JSC, PA ECP JSC, EC RGC, KMZ PJSC, Centrotech SPA LLC, Tochmash VPA JSC, MSZ PJSC, ChMP JSC, MZP JSC, NCCP PJSC, VNIINM JSC, Ecoalliance LLC, Industrial Innovations JSC, Iskra LLC.

102-46 Defining report content and topic Boundaries

102-47 List of material topics

102-48 Restatements of information

Absentee rate and lost day rate are calculated by dividing on scheduled work time and not on actual work time.

The method of calculating indicators 404-1 and 201-1 has been clarified.

102-49 Changes in reporting

No material changes

102-50 Reporting period

102-51 Date of most recent report

102-52 Reporting cycle

102-53 Contact point for questions regarding the report

102-54 Claims of reporting in accordance with the GRI Standards

102-55 GRI content index

102-56 External assurance

Independent non-financial auditor is selected within the frame of open procurement procedure on the basis of the Company’s president order on the annual report preparation.

Material topics

Economic Performance

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 201: Economic Performance 2016

201-1 Direct economic value generated and distributed

201-2 Financial implications and other risks and opportunities due to climate change

Financial implications and other risks and opportunities due to climate change are not evaluated and not planned before the enactment of the relevant regulating documents in Russia

201-3 Defined benefit plan obligations and other retirement plans

TVEL Fuel Company has defined benefit retirement plans. All retirement plans are unfunded.

Quantitative parameters of retirement plans are provided in the IFRS Consolidated Financial Statements.

201-4 Financial assistance received from government

Anti-corruption

GRI 103: Подходы в области менеджмента 2016

103-1 Объяснение существенных тем и их границ

103-2 Подходы в области менеджмента

103-3 Оценка подходов в области менеджмента

GRI 205: Противодействие коррупции 2016

205-1 Деятельность, прошедшая оценку рисков, связанных с коррупцией

205-2 Информирование о политиках и методах противодействия коррупции и обучение им

Все работники Топливной компании ТВЭЛ подлежат ознакомлению с антикоррупционными практиками, действующими в Компании.

В рамках обучения антикоррупционной политике в 2018 году в АО «ТВЭЛ» было организовано 2 тренинга, обучение прошли 32 человека.

205-3 Подтвержденные случаи коррупции и предпринятые действия

Энергия

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 302: Energy 2016

302-1 Energy consumption within the organization

In 2018, TVEL Fuel Company did not produce its own electricity or heat, and did not sell energy outside the group.

The total energy consumption within the TVEL Fuel Company in 2018 was 20.700.480.94 GJ.

302-2 Energy consumption outside of the organization

There is no record-keeping system on energy consumption in supply chain and consumption chain.

302-3 Energy intensity

Energy intensity in TVEL Fuel Company made RUB 126.7 GJ/mln of consolidated revenue.

302-4 Reduction of energy consumption

302-5 Reductions in energy requirements of products and services

Not applicable

Emissions

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

305-2 Energy indirect (Scope 2) GHG emissions

Not measured due to lack of record-keeping system.

305-3 Other indirect (Scope 3) GHG emissions

Not measured due to lack of record-keeping system.

305-4 GHG emissions intensity

305-5 Reduction of GHG emissions

Reduction of GHG emissions is not measured with regard to reduction activities.

305-6 Emissions of ozone-depleting substances (ODS)

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

Effluents and Waste

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 306: Effluents and Waste 2016

306-1 Water discharge by quality and destination

306-2 Waste by type and disposal method

Waste disposal in TVEL FC (including waste accumulated at the beginning of the reporting year), tons

INDICATOR	Transfer to outside organizations for use	Transfer to outside organizations for detoxification, storage and burial ground disposal	Burial ground disposal at own facilities	Disposal
Total, including:	17,532	11,665	857	1,887
Hazardous waste (Hazard Class I-IV)	260	8,231	854	0
Virtually non-hazardous waste (Class V)	17,272	3,434	3	1,887

306-3 Significant spills

No significant spills

306-4 Transport of hazardous waste

The Company is not engaged in waste transportation across international borders. TVEL Fuel Company and its subsidiaries do not transport, treat or deliver for treatment waste deemed hazardous under the terms of the Basel Convention.

306-5 Water bodies affected by water discharges and/or runoff

Discharge of waste water has no significant impact on biodiversity of water bodies and related habitats.

Environmental Compliance

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 307: Environmental Compliance 2016

307-1 Non-compliance with environmental laws and regulations

Employment

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 401: Employment 2016

401-1 New employee hires and employee turnover

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Part-time employees receive all benefits if this is their principal place of employment

401-3 Parental leave

Total number of employees that returned to work after parental leave ended and that were still employed twelve months after their return to work, as well as return-to-work and retention rates are not disclosed due to to lack of record-keeping system.

Labor/Management Relations

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 402: Labor/Management Relations 2016

402-1 Minimum notice periods regarding operational changes

In case of any considerable changes in the business, the Company shall notify their employees at least 2 months prior to the effective date of any such changes. This provision is stipulated by labor laws of the Russian Federation and by the Collective Bargaining Agreement of each subsidiary.

Occupational Health and Safety

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 403: Occupational Health and Safety 2016

403-1 Workers representation in formal joint management–worker health and safety committees

403-1 Workers representation in formal joint management–worker health and safety committees

Work-related injury rate by region in the reporting year (IR)

Enterprise	Value
Moscow (VNIINM JSC, MZP JSC, CPTI JSC, TVEL JSC, TVEL-Stroi JSC, Commercial Center JSC, Industrial Innovations JSC)	0.10
Moscow region (MSZ PJSC)	0.00
Vladimir region (Tochmash VPA JSC, KMZ JSC)	0.04
Udmurt Republic (ChMP JSC)	0.03
Novosibirsk (NCCP PJSC)	0.00
Sverdlovsk region (UEIP JSC, Centrotech SPA LLC)	0.07
Tomsk region (SGChE JSC)	0.00
Krasnoyarsk territory (PA ECP JSC)	0.00
Irkutsk region (AECC JSC)	0.00
Saint Petersburg (Centrotech-SPb JSC)	0.00

Absentee rate by region (AR)

Enterprise	Value
Moscow (VNIINM JSC, MZP JSC, CPTI JSC, TVEL JSC, TVEL-Stroi JSC, Commercial Center JSC, Industrial Innovations JSC)	1.90
Moscow region (MSZ PJSC)	3.80
Vladimir region (Tochmash VPA JSC, KMZ JSC)	3.00
Udmurt Republic (ChMP JSC)	2.80
Novosibirsk (NCCP PJSC)	3.33
Sverdlovsk region (UEIP JSC, Centrotech SPA LLC)	2.50
Tomsk region (SGChE JSC)	2.80
Krasnoyarsk territory (PA ECP JSC)	1.80
Irkutsk region (AECC JSC)	1.39

Lost day rate by region (LDR)

Enterprise	Value
Moscow (VNIINM JSC, MZP JSC, CPTI JSC, TVEL JSC, TVEL-Stroi JSC, Commercial Center JSC, Industrial Innovations JSC)	1.00
Moscow region (MSZ PJSC)	0.00
Vladimir region (Tochmash VPA JSC, KMZ JSC)	1.55
Udmurt Republic (ChMP JSC)	1.60
Novosibirsk (NCCP PJSC)	0.00
Sverdlovsk region (UEIP JSC, Centrotech SPA LLC)	3.20
Tomsk region (SGChE JSC)	0.00
Krasnoyarsk territory (PA ECP JSC)	0.00
Irkutsk region (AECC JSC)	0.00

All rates were calculated taking into account subsidiary companies (SC) of the specified organizations.

Breakdown by gender is excluded. Injury rates for workers are excluded due to lack of report-keeping system.

403-3 Workers with high incidence or high risk of diseases related to their occupation

403-4 Health and safety topics covered in formal agreements with trade unions

Training and Education

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 404: Training and Education 2016

404-1 Average hours of training per year per employee

Hours of training by gender are not disclosed due to lack of records.

404-2 Programs for upgrading employee skills and transition assistance programs

404-3 Percentage of employees receiving regular performance and career development reviews

Local Communities

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 413: Local Communities 2016

413-1 Operations with local community engagement, impact assessments, and development programs

413-2 Operations with significant actual and potential negative impacts on local communities

No operations have significant negative impact on local communities.

GRI 103: Подходы в области менеджмента 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 419: Socioeconomic Compliance 2016

419-1 Non-compliance with laws and regulations in the social and economic area

In 2018, no material law violations were recorded in TVEL JSC and its subsidiaries, no fines or non-monetary sanctions were applied to the Company.

Product Quality

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Number of revealed nonconformities

Customers' satisfaction assessment

Business Continuity

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Position in the world market

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Company’s share in the global market of fuel fabrication

Export proceeds

Export orders portfolio for products and services of FE NFC for a 10 year period

New businesses

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Revenue from general industrial activities

Structure of revenue from general industrial activities

International Cooperation

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Environment protection

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Environmental expenses

Nuclear and Radiation Safety

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Radiation environmental impact

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Pollution of the environment with radionuclides

RW and SNF Treatment, Rehabilitation of Contaminated Areas

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Presence of RW on the sites of the TVEL Fuel Company subsidiaries

Decommissioning of Nuclear Facilities

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Federal Target Program activities

Innovation Activities

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Investments into R&D

Number of registered inventions, utility models, industrial designs and production secrets (know-how)

Number of applications for inventions, utility models, software and databases, production secrets (know-how)

Remuneration

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Average salary

Ratio of average pay in the subsidiaries of TVEL Fuel Company to average pay in regions of operations

Demand for Qualified Staff

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Succession pool

Investment Activities

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary

103-2 The management approach and its components

103-3 Evaluation of the management approach

Amount of financing for TVEL FC investment projects