Our Approach

Stakeholder engagement is an indispensable component of responsible business conduct. Rostelecom’s approach to the process includes seeking to balance the interests of all stakeholders to reduce risks and identify new opportunities. Since 2018, the Company has had a strong focus on making stakeholder engagement a systemic priority for reporting, provided that non-financial reports are an effective channel for communication with the external community.

For business, high standards of openness and transparency foster partnership and mutually beneficial relations with stakeholders. The Company enhances stakeholder communication through proactive, regular, constructive, and ongoing dialogue. By disclosing material topics related to business, Rostelecom builds trust-based and sincere relationships with stakeholders.

Rostelecom’s stakeholder engagement channels include official websites, the Company’s profiles on social media, and corporate media.

140 thousand
Rostelecom’s mass media mentions in 2018

4.5 million
users visited the Company’s website in 2018

12.2 million
views of PJSC Rostelecom’s website in 2018

Leader of sustainable development indices compiled by the Russian Union of Industrialists and Entrepreneurs

Rostelecom’s performance in 2018 placed the Company among the leaders of sustainable development indices compiled by the Russian Union of Industrialists and Entrepreneurs (same as the previous year). Thus, Rostelecom’s success in evolving its public reporting was commended and recognised, encouraging the Company to continue adhering to high standards of informational openness and transparency.

Responsibility and Transparency

The Responsibility and Transparency index reflects corporate disclosure practices for information on sustainability and corporate responsibility.

Sustainable Development Vector

The Sustainable Development Vector index reflects a company’s progress in sustainable development by focusing on trends in key social and economic indicators across several years.

RSPP has been compiling the indices since 2014 based on the analysis of publicly available annual and non-financial reports of multiple companies. Being a good corporate citizen, Rostelecom seeks to combine cost efficiency with strong environmental and social performance while also maintaining high-quality corporate governance of risks and reputation. In adhering to high standards of openness and transparency, PJSC Rostelecom makes stakeholder engagement a systemic priority and seeks to establish a dialogue with stakeholders, to improve the quality of reporting on the Company’s business practices and social impacts.

PJSC Rostelecom has annually published a Sustainability Report in compliance with international standards on non-financial reporting, such as the GRI Guidelines and the AA1000 Stakeholder Engagement Standard (SES), since 2011. Since 2018 (starting from the preparation of Sustainability Report 2017), the Company has switched to reporting under the GRI Standards. The Company’s Sustainability Reports are included in the National Register of Corporate Non-Financial Reports compiled by RSPP. In 2018, the United Nations Sustainable Development Goals (UN SDGs), as well as particular objectives and metrics, were deeply integrated into Rostelecom’s non-financial reporting for the first time.

Identifying stakeholders

Rostelecom considers the level of mutual impact and common interests of stakeholders. The identification and selection of stakeholders is based on their impact on the Company’s current operations and strategy, as well as the existing practice for engaging with external stakeholders and their dependence on PJSC Rostelecom’s performance. The first stakeholders mapping was carried out in 2017 (the survey involved 50 respondents representing 11 stakeholder groups). While preparing the 2018 Report, 68 respondents representing 11 stakeholder groups took part in the survey. Due to the extended number of respondents, the results of the survey ended up more balanced (compared to the previous reporting period), which prompted the update of stakeholder map.

Rostelecom’s key stakeholders:

Shareholders
Investors
Customers
Business partners
Government authorities
Local communities
Public organisations
Environmental organisations
Mass media
Scientific and expert community
Employees

PJSC Rostelecom’s stakeholder map in 2018

Stakeholder engagement at PJSC Rostelecom

Stakeholder	Key expectations and interests of stakeholders	Engagement mechanisms	2018 highlights
Shareholders	1. Strategy implementation 2. Cost efficiency 3. High financial stability in a competitive market 4. Shareholder value growth 5. Dividend policy 6. Openness and transparency of business processes	Holding general shareholders’ meetings including the Annual General Shareholders’ Meeting (management presentation to shareholders) Disclosing information on an external website (publication of press releases and presentations) Regular reporting (financial statements and other materials for the reporting period) Engaging with rating agencies (Fitch Ratings, Standard & Poor’s, ACRA)	Investor Day in Moscow, 21 March 2018 AGM 18 June 2018 EGM 24 December 2018
Government authorities	1. Complying with Russian laws 2. Contributing to Russia’s socioeconomic development 3. Participating in the implementation of national projects 4. Contributing to Russia’s transition to innovative development 5. Conforming to the highest standards of business ethics 6. Sustainable development over the longer term	Signing cooperation agreements Participating in the implementation of national programmes Participating in public events Expert work in committees and commissions	Digital Economy of the Russian Federation programme Electronic Russia federal targeted programme Comprehensive upgrade of Moscow’s video surveillance system ABC of the Internet programme Watch the Exam
Business partners	1. Creating a transparent, competitive environment 2. Using market pricing 3. Conforming to the highest standards of business ethics 4. Sustainability over the longer term 5. Mutually beneficial cooperation 6. Anti-corruption policy	Signing agreements with manufacturers Handling complaints and enquiries Participating in exhibitions and conferences, joint workshops Monitoring of satisfaction levels Bilateral visits Holding public tenders Signing long-term agreements with transparent pricing terms Implementing social programmes	Integrated Digital Equality social programme Learn the Internet — Manage It! educational project
Investors	1. Financial performance 2. Stable position in a competitive market 3. Dividend policy 4. Strong corporate governance 5. Conforming to the highest standards of business ethics 6. Openness and transparency 7. Risk management	Participating in investment forums and conferences (one-on-one and small group meetings with management) Disclosing information on an external website (publication of press releases and presentations) Presentations for investors and professional communities (financial statements and other materials for the reporting period) Communications with investment bank analysts Meetings with potential investors in the Company securities	Renaissance Capital’s 22nd Annual Russia Investor Conference, Moscow, Russia VTB Capital’s RUSSIA CALLING! Investment Forum, Moscow, Russia Raiffeisen Institutional Investors Conference, Zürs, Austria
Employees	1. Decent salary 2. Safe and comfortable working environment 3. Fair remuneration and social benefits for employees 4. Protection of human rights 5. Opportunities for professional development and career advancement	Rostelecom’s University or Knowledge Management Department Technical Training Centre of Excellence B2B/B2G, B2C, and B2O Centres of Excellence In-house coaches Rostelecom’s Corporate Online University Rostelecom’s department at the Bonch-Bruevich Saint-Petersburg State University of Telecommunications Long-term incentive programmes (share matching plan) Monetary Incentives for Employees Based on Project Performance Corporate pension scheme Business process gamification Corporate media and portals Social partnership Public reporting Professional training	Basics of the Digital Economy educational series Conquest of Digital Space quiz Online Lectorium Weekly Development Environment newsletters E-libraries Intranet portal (LIVE, Grow with Rostelecom and other sections) Rostelecom Vestnik corporate newsletter Open Talk project, a discussion with the Company’s top management Unified HRM platform and unified SuccessFactors system Recognition award Corporate esports tournament Sports Competition 2018 Joint internship programme with Skoltech WorldSkills, WorldSkills Russia
Mass media	1. Business process transparency 2. Ensuring easy access to the information on the Company’s operations	Arranging for press events (briefings, media scrums, etc.) Timely update of the information on websites and in social media Handling mass media enquiries and requests Press conferences and media tours Public reporting	Technology for Life — More Opportunities international journalism contest Corporate TV
Customers	Providing reliable telecommunications service	Interaction under contracts, agreements, and cooperation agreements Regular customer surveying (including flash mob organisation) Safety of services Higher quality of services Improved customer experience Communications within the blogosphere Higher accessibility of services	Anti-phishing protection, protecting children from inappropriate information, content filtering, antivirus software and VAS for B2C, Parental Control Gaming tariff, MVNO, Smart Home E-billing, self-service terminals, NPS, call centre Services for the Great Patriotic War (WWII) veterans 38 profiles (federal and regional profiles on Facebook, Twitter, VKontakte, Odnoklassniki, Instagram, and YouTube) Unified Biometric System
Environmental organisations	Reducing the environmental footprint	Partner programmes and projects Social and charitable programmes Public reporting	Separate waste collection programme Green Office concept E-billing Energy efficiency Use of alternative energy sources Fostering environmental culture
Scientific and expert community	1. Contributing to the development of science and technology 2. Applying innovations and solutions mitigating the environmental footprint 3. Digital transformation of the economy	Partner programmes Research and education conferences Orders for R&D (research and development)	Bridging the Digital Divide project Technology projects KnowTeach socio-educational programme Growth distance learning project Midday educational programme Learn the Internet — Manage It! educational project
Local communities	1. Receiving information on the Company’s growth prospects 2. Contributing to social stability in the regions of operation 3. Implementing social programmes 4. Supporting Russian manufacturers	Working and expert groups, commissions Cooperation and partnership agreements Joint events — voluntary cleanups, trainings, exercises Sponsorship and charitable programmes Public reporting	ABC of the Internet educational programme Distance Learning for Disabled Children Internet for Social Infrastructure Facilities Classroom Internet, an all-Russian contest of school internet projects Want to Be! charity programme for children with impaired kidney function Illustrated Books for Little Blind Children House of Veronica volunteer project
Public organisations	1. The Company’s performance and growth prospects 2. Key events 3. Social responsibility	Forums, conferences, exhibitions, round tables Public reception offices Public opinion research Volunteer projects	Computerisation of Orphanages Social Impact Award programme promoting social enterprise among young people IT Growth international volunteer project for Russian schools involving young foreign specialists Safe Internet Let’s Help Together corporate programme for voluntary donations Stan Dedom Morozom (Become a Santa) volunteer programme