OMK Presents Success Story in Social Development in Areas of Operation to Russian Business Week in Moscow

The United Metallurgical Company (AO OMK, Moscow) attended the Russian Business Week in Moscow held by the Russian Union of Industrialists and Entrepreneurs (RIUE) between February 5 and 9, 2018.

The Company presented a success story in building a mutually beneficial partnership involving businesses, the Government, and the general public to improve the social environment in monocities at the Social Forum on responsible collaboration between businesses and the Government to assure sustainable social development that was part of the Week's program.

The Forum was attended by Russian Deputy Prime-Minister Olga Golodets, Minister of Labor and Social Safeguards Maxim Topilin, First Deputy Minister of Education and Science Valentina Pereverzeva, Independent Trade Union Federation Chair Mikhail Shmakov, RIUE President Alexander Shokhin, and others.

OMK Governance Board Chair Natalya Eremina made a presentation on OMK's efforts to further sustainable development. Since 2015, OMK has been holding OMK-Partnership competitions for social and charity projects in cities and towns that host its manufacturing facilities. Between 2015 and 2017, the competition helped sponsor 216 projects with a total amount of funding granted equaling RUB 32 million. The competition also helped raise about RUB 30 million from other sources. Funding to address social problems was made available by private donors, through federal and regional grants, including 8 presidential ones, and the Planeta.ru platform.

Natalya Eremina also pointed out that the OMK-Partnership competition helped promote best practices in providing systemic support in monocities that can be replicated in other areas as well.
In 2017, the CAF Philanthropy Support and Development Foundation assessed the socio-economic effect of OMK-Partnership projects. The competition's social return on investment (SROI) was 3.4 to 1. This signifies that the value of the social benefits received for every ruble invested by OMK was over three rubles.

"We understand and appreciate the fact that a business' principal objective is expanding production since this assures economic progress and greater revenues for the general public. However, it should be noted that we have never had companies refuse to assist the communities, to develop infrastructure, or to implement cultural projects. Your success is the country's success", said Russian Federation Deputy Prime Minister Olga Golodets addressing members of the business community at the Social Forum.

"Where the Government collaborates efficiently with businesses taking into consideration each other's interests, you do not have to look too hard to see the benefits. Monocities gain new opportunities for development with the residents seeing new reasons to stay, the companies getting a conducive business environment, and the Government becoming able to address accumulated social problems", noted Governance Board Chair Natalya Eremina when addressing the RUIE Social Forum.

Background

In 2018, Vyksa Steel Works (AO VSW, Nizhniy Novgorod Region, an OMK Group Company) received the RUIE recognition award in employee health and safety.

In 2017, OMK won an award in the RIUE-sponsored Russian Business Leaders: Trends and Responsibility 2016 Competition. OMK was named third in the category for companies that support and develop social business initiatives.

RUIE also listed OMK as a Russian business leader in sustainable development, corporate responsibility, and reporting. Based on 2016 results, the Company was named among the best for Responsibility and Openness and for Course for Sustainability.

OMK's long-term systemic programs are designed to bring together businesses, the Government, and local communities and bring their efforts to bear in addressing the most pressing social issues in the provinces. This is the approach that helps resolve issues of real importance to monocities, spend money efficiently, and develop sustainable long-term projects. In the final analysis, OMK's developing charity and volunteer movement creates a conducive environment for the Company's business.

The Start Your Own Business program designed to promote social business initiatives serves as an additional example of OMK's collaboration with small businesses willing to tackle monocities’ problems. In 2016 and 2017, Blagoveshchensk and Chusovoy initiated 45 new social business projects creating over 100 new jobs.