Alrosa PJSC

Lobbying Governance

AI Extracted Evidence Snippet Source

##### Governance structure

The effectiveness of the Programme implementation depends on a clear sustainability management structure establishing the relevant competencies of corporate governance bodies, defining and delimiting the responsibilities of subject matter departments and ensuring active involvement of all stakeholders in the decision-making process.

To ensure the implementation of ALROSA Group Sustainability Programme the following management structure will be established starting from 2021:

##### General Meeting of Shareholders

###### SUPERVISORY BOARD

|Key objective — preliminary study of sus competence and preparetions of draft res|tainability issues within the Committee olutions of the Committee on such issues|
|---|---|

###### CHIEF EXECUTIVE OFFICER — CHAIRMAN OF EXECUTIVE COMMITTEE

###### EXECUTIVE COMMITTEE

https://www.alrosa.ru/upload/medialibrary/en/2021_AR_Sustainability_Programme_eng_v3.pdf

Within each strategic area, a plan of measures to implement the tasks set for each year was formed. The implementation status of the planned activities is assessed based on the results of each quarter and reported to the Company's top management. The final report on the implementation of activities for the year is reviewed by the Strategy and Sustainability Committee under the Supervisory Board of ALROSA. The strategic objectives set out in the Program, as well as its Action Plan, are integrated into the system of key performance indicators (KPIs) of the Company's top management. A separate and one of the KPIs is the Lost Time Injury Frequency Rate (LTIFR). The established KPIs are reviewed regularly — once a year — and updated if necessary. KPIs are then cascaded down to the Company's subdivisions level and transformed into plans and specific measures at the level of the Company's subdivisions and subsidiaries. [...] ALROSA consistently builds an organizational management model that ensures the principles of sustainable development are considered at all decision-making levels and in all business processes. An effective system of corporate governance, including distribution of authority and responsibility, a full set of policies, procedures and standards, as well as a constructive dialogue with stakeholders are important tools for managing risks, ensuring responsible business behavior and determining strategic areas of the Company's activities. That is why defining strategic areas and evaluating the results of the Company's activities in the field of sustainable development are under the control of the Supervisory Board, while responsibilities for implementing tasks and measures across the strategic areas are assigned to the Chief Executive Officer — Chairman of the Executive Committee. [...] The ALROSA Group's sustainability activities, including the development of the strategic vision, priority areas, strategic goals and relevant performance indicators, are administered by the Supervisory Board of PJSC ALROSA. The Supervisory Board is responsible for the approval of the Company's core regulatory documents on sustainable development, review of annual reports on the key results and achievement of the set goals in each sustainability strategic area, as well as review of the non-financial reporting of the ALROSA Group. The Strategy and Sustainability Committee of the Supervisory Board supports the Board in approving the internal regulations, managing the sustainability risks, reviewing the issues related to preparing and carrying out an independent assurance of the non-financial reporting, disclosing information, participating in international initiatives, organizations and associations on sustainability issues and responsible conduct of business. [...] At the operational level, sustainability is managed by the Executive Committee and the CEO — Chairman of the Executive Committee. They arrange for the implementation of the Supervisory Board's decisions and are responsible for the achievement of the Company's sustainability goals. The CEO — Chairman of the Executive Committee manages the Company's day-to-day activities and is in charge of allocating the responsibilities between the structural and functional divisions in terms of sustainable development. To coordinate sustainability efforts at the operational level, the Company formed a dedicated Sustainability Working Group comprising the ALROSA divisions involved in managing the environmental, social, financial and economic aspects as along with the corporate governance issues. The ALROSA Group exercises the ongoing day-to-day management of the sustainability issues.

https://www.alrosa.ru/upload/iblock/aff/zon8v2ntwesbnlr8tfi4g4r7v0f6kmi0/Sustainability%20Report_2022_eng.pdf

The overall management of ALROSA Group's sustainability activities, including the definition of strategic pillars, vision, ambitions and targets, is performed by the Supervisory Board of PJSC ALROSA. Among other things, it is responsible for the approval of key sustainability documents, review of annual reports on the key results and achievement of the set goals as part of each strategic sustainable development pillar, as well as review and approval of the annual sustainability report. [...] The Strategy and Sustainability Committee considered in detail matters related to the ESG activities of ALROSA Group, including a report on the implementation of Sustainability Programme initiatives, progress in developing the Company's climate and environmental strategies, and implementation of key strategy measures.

https://www.alrosa.ru/upload/iblock/229/7nt0bjo7vkh39ovw2l7qc4hbxbhfgsgc/ALROSA%20Sustainability%20Report%202023_ENG.pdf