Human resources management
Material TOPICS
- Employment
- Occupational health and safety
- Training and education
- Human rights
- Diversity and equality
- Digital transformation
GRI metrics
2021 highlights
CONTRIBUTION TO THE UN SDGs
Management approach
GRI 102-7 GRI 102-8 GRI 405-1Unique human capital is Rusagro's greatest asset, and its development is one of the Company's four strategic goals. Highly skilled and dedicated teams led by experienced management is a mainstay of the business
The Company provides decent working conditions, competitive and fair remuneration, and guarantees social benefits, while establishing an environment of motivation and innovation and focusing on staff professional growth. The Company is also committed to offering equal opportunities to bolster personal and professional accomplishment of its employees.
The Company's HR operations are aligned with its annual business plan, policies and local regulations, including:
- Compensation & Benefits Policy;
- Bonus Plan;
- Regulations on Performance and Single Benefits Matrix;
- Rusagro's Corporate Communications Policy.
- Managing job efficiency and performance
- Improving the employer branding
- Faster and better hiring
- Promoting in-house training systems and talent development
- HR process automation
STAFF COMPOSITION
Headcount
Rusagro's headcount decreased by 1.7% and totalled 19,030 people in 2021. These staffing cuts mainly fell to the Agriculture, Sugar and Oil and Fats Segments due to their better automation, increased job complexity and outsourcing of low-skilled jobs, while higher performance of the Meat Business drove its headcount up by 6% (430 people) in 2021. As the Dairy
Rusagro's headcount at the end of 2021 was 20,269 people (+1%, or up 103 people), 84% (17,093 people) of which being permanent employees and over 97% (19,818 people) – full-time employees. The Company also engages contractors and individuals to carry out specific pieces of work and provide services associated with equipment repair, information technology services, cleaning, etc.
Regional staff composition
Rusagro's footprint covers mainly eight Russian regions, where 95% of jobs are concentrated. Most of the jobs are in the Tambov and Voronezh Regions (32% or 6,573 people) as well as the Belgorod (25% or 5,107 people) and Saratov (15% or 2,961 people) Regions. Higher headcount in the Saratov and Samara Regions (12% and 42%, or 362 people and 361 people respectively) is explained by the staffing needs of the Oil and Fats Business, particularly after the addition of the Dairy Products Segment. Business development in the Primorye Territory also continued apace in 2021, resulting in new job offers (+26%, up to 1,822 people). However, due to reallocation of production capacity and optimisation of business processes, other regions of Rusagro's presence recorded a 29% reduction in headcount (down 271 people).
Gender staff composition
Rusagro is committed to promoting the socio-cultural diversity of its employees. The proportion of women in the staff composition for the last year increased by 0.6 p.p. to 35% (totalling 7,179 people), while the share of women on the Board of Directors remained unchanged, standing at 20%. The proportion of women varies across Rusagro's segments: the Oil and Fats Business has the highest share of women – 43% (2,216 people), while the Agriculture and Sugar Businesses show the lowest figures – 22% and 28% respectively (849 and 869 people). In the Corporate Centre and Integrated Service Centres, with mainly indoor jobs, women account for 76% (555 people).
Employees with disabilities
The largest and most valuable category of Rusagro staff is blue-collar workers (68% of the Company's workforce), including 27% (3,674) of women in 2021. White-collar specialists are mainly represented by women, accounting for 60% (2,845) of the total number. The proportion of women among functional managers rose by 2 p.p. to 38% (645), while among top managers it dropped by 12 p.p. to 23%.
Personnel breakdown by age
people
GRI 405-1| 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | |
|---|---|---|---|---|---|---|---|---|
| Under 25 | Under 25 | 36 to 55 | 36 to 55 | |||||
| Senior | 0 | 0 | 21 | 22 | 57 | 40 | 6 | 3 |
| Managers and heads | 40 | 41 | 528 | 559 | 981 | 999 | 111 | 108 |
| Specialists | 447 | 423 | 1,739 | 1,773 | 2,119 | 2,286 | 231 | 262 |
| Workers | 1,210 | 1,037 | 3,384 | 3,206 | 7,376 | 7,462 | 1,917 | 2 048 |
| Total | 1,697 | 1,501 (7%) | 5,672 (28%) | 5,560 (27%) | 10,533 (52%) | 10,787 (53%) | 2,265 (11%) | 2,421 (12%) |
| 2020 | 2020 | 2021 | 2021 | |
|---|---|---|---|---|
| Women | Men | Women | Men | |
| Senior | 29 (35%) | 55 (65%) | 15 (23%) | 50 (77%) |
| Managers and heads | 600 (36%) | 1,060 (64%) | 645 (38%) | 1,062 (62%) |
| Specialists | 2,733 (61%) | 1,758 (39%) | 2,845 (60%) | 1,899 (40%) |
| Workers | 3,661 (26%) | 10,270 (74%) | 3,674 (27%) | 10,079 (73%) |
| Total | 7,023 (35%) | 13,143 (65%) | 7,179 (35%) | 13,090 (65%) |
Digital transformation
The previous reporting period saw Rusagro finally implementing the SAP SuccessFactors unified cloud-based HR management platform, which became a master system for HR data, helping to centralise and streamline all HR cycle processes.
The Company is determined to develop smart services for employees and improve its data culture. There are several ongoing projects to promote this.
Designing a Single Personal Account (SPA) for employees, which will offer employees such options as a digital personnel file, HR services and a mobile version of the corporate portal. 2022 goals include the accomplishment of the entire target volume of SPA services and digitalisation of 90% of document flow.
Transfering data from SAP SuccessFactors to the BI system, which will simplify and speed up the process of analysing and visualising HR data.
Adding predictive analytics tools in the Training module to optimise the procedure and improve the quality of content recommendations.
The SAP SF gains so far include better job performance, improved digital literacy and increased staff engagement. Employees are now able to access more than 40 HR services on a single platform, which facilitated a seamless transition to a hybrid work format and increased the distance learning coverage up to 80%. Now we follow the more unified approach to recruitment, yielding over 15 ths recruitment requests processed in 2021, and introducing a career website made the employer's brand more appealing.
HR's digital transformation project won the People are the Most Valuable Asset category of the annual SAP Value Award 2021.
Staff safety in the COVID-19 pandemic
Amid challenging sanitary and epidemiological situation on the back of the COVID-19 pandemic, Rusagro was able to maintain production continuity while making sure to take all the required anti-virus measures. Looking to support employees’ health, the Company complies with all Rospotrebnadzor recommendations and implements the following measures:
- informing staff about the spread of COVID-19 coronavirus infection and prevention methods;
- setting up an operational headquarters for quick response and assistance to staff;
- offering employee feedback hotlines;
- providing all production facilities with personal protective equipment, disinfectants, etc;
- conducting employee tests and immunisations;
- telecommuting of office staff.
Recruitment process
gri 401-1Rusagro's success depends on the hard work of more than 20 ths employees. With further growth in mind, the Company focuses is on attracting skilled professionals and building a team of talents in an innovative and inclusive environment.
The Company does not tolerate any form of discrimination in employment and looks into professional skills, experience and qualifications of prospective hires in process of recruitment. The Company promotes transparent employment relations, decent wages and extended social benefits.
During the reporting period, the Company focused its efforts on developing the recruitment system, making it more convenient for potential candidates and HR team members through the introduction of digital recruitment tools, expansion of recruitment channels, and shorter selection and recruitment processes. Chatbot system integrated into SAP SuccessFactors allowed for quicker search of production staff.
Further improvement of recruitment efficiency by introducing an Applicant Tracking System (ATS) and implementation of mass digital recruitment options is the Company's 2022 targets.
Hiring
The Company recorded 8,430 new hires in 2021, this high proportion among the total workforce to be considered common due to the seasonal nature of jobs in Rusagro's segments. Among new hires in 2021, the share of women increased by 4 p.p. to 40% (3,349 people), confirming Rusagro's commitment to creating equal career opportunities regardless of gender.
The Company turns its focus on creating a comfortable environment for the successful
TURNOVER
Staff turnover at Rusagro’s entities in 2021 was 39% (+4 p.p.), which is not uncommon among agribusiness companies, given the seasonal nature of staff employment. Employer-driven turnover in the strategic
staff Turnover
%
GRI 401-1| 2020 | 2021 | |
|---|---|---|
| Turnover | 35 | 39 |
| Forced turnover in the strategic segment | 9 | 9 |
| Voluntary turnover in the strategic | 23 | 19 |
Staff turnover by gender
%
GRI 401-1| 2020 | 2020 | 2021 | 2021 | |
|---|---|---|---|---|
| Women | Men | Women | Men | |
| Turnover | 39 | 34 | 41 | 38 |
| Forced turnover in the strategic segment | 9 | 9 | 8 | 9 |
| Voluntary turnover in the strategic | 28 | 23 | 22 | 21 |
Staff turnover by age
%
GRI 401-1| 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | |
|---|---|---|---|---|---|---|---|---|
| Under 25 | 26 to 35 | 36 to 55 | Over 56 | |||||
| Turnover | 59 | 68 | 32 | 37 | 32 | 35 | 44 | 40 |
| Forced turnover in the strategic segment | 5 | 10 | 7 | 8 | 9 | 9 | 17 | 11 |
| Voluntary turnover in the strategic | 31 | 27 | 29 | 24 | 22 | 19 | 14 | 16 |
Employer brand
The current competition for talents necessitates better branding of Rusagro as an employer for further sustainable development. The
The net promoter score (NPS) among Rusagro employees rose by 4 p.p. compared to 2020, reaching 31%, which positively affects the Company's brand as an employer. Rusagro
Rusagro ranked among Russia's top 50 employers
In 2021, the Company retained 31st place among the largest companies in HeadHunter's annual Russian Employer Ranking 2021. Rusagro took 1st place in the agriculture and food production category, ahead of 18 competitors.
Rusagro's Winning in the Best Employer category of the Star of the Far East Award
In December 2021, during the Days of the Far East, the Company won the special public and business award – the Star of the Far East in the Best Employer category. The jury evaluated the participants against several criteria: the company's contribution to human capital development, the implementation of educational programmes in cooperation with regional educational institutions, the implementation of measures to attract employees from other regions, and the launch of social responsibility programmes.
Rusagro's employer brand was highly praised by professional job seekers
Together with HeadHunter, a study was conducted on the attractiveness and brand awareness of agribusiness employers among an audience of 'professionals', covering more than 600 people. Rusagro's recognition ratio among professionals in 2021 stood at 37% (third highest among competitors). The Company's attractiveness ratio among interviewees in 2021 reached 33% (second most attractive among competitors). The indicator reflecting the willingness of potential candidates to respond to vacancies also scored well, with Rusagro taking second place among peers.
Recruiting youth
The rapid pace of urbanisation and the preconceived biases of young people towards agriculture make
Apprenticeship
For several years, the Company has been successfully implementing Rusagro Without Borders apprenticeship project and dual training programmes with regional educational institutions, where young people can gain hands-on experience and knowledge from leading experts. The Company encourages students and
Career Days
The Career Day during the reporting period was presented as an online blockbuster for 500 students and graduates. Participants from all over Russia had the opportunity to meet business representatives and immerse themselves in the action atmosphere of the agro-holding, while the most active ones got access to a Fast Track to an Apprenticeship, career advice from HR representatives and corporate merchandise. The event revealed jobseekers' interest in the Company and resulted in 440 CVs received.
Apprenticeship video clips
Rusagro makes original apprenticeship video clips highlighting the benefits and digital transformation of the agriholding in an attempt to attract young talents and break down the stereotypes they hold about agriculture business. This format meets the needs of millennials and Generation Z – career progress, a strong corporate culture and development of innovations and had a wide reach, encompassing over 10 ths viewers in cinemas in Belgorod, Tambov and Ussuriysk.
Interaction with education institutions
Top-11 Higher education institutions
- Belgorod State Agricultural University n.a. V. Gorin
- Tambov State Technical University
- Tambov G. Derzhavin State University
- Voronezh State University of Engineering Technologies
- Yu. Gagarin Saratov State University
- Michurin State Agrarian University
- Belgorod State Technological University n.a. V. Shukhov
- Kursk State Agricultural Academy n.a. I. Ivanov
- Saratov State Agrarian University n.a. N. Vavilov
- Russian New University, Tambov branch
- Orel State Agrarian University n.a. N. Parakhin
Top-5 Vocational secondary educational institutions
- Zherdevsky College of Sugar Industry
- Kotovsky Industrial Technical School
- Klykov Soviet Socio-Agricultural College
- Gubkinsky Mining and Polytechnic College
- Valuyskiy Industrial Technical School
Developing educational programmes in the regions
Under the sponsorship of Rusagro, a new demanded specialty – Introducing automation equipment into technical processes and production – was opened in September 2021 at Zherdevsky College of Sugar Industry. Grown professionals, including employees from Rusagro's Sugar Segment, are involved in the training of the first group of 25 students enrolled. Instructors from the college received an internship at the Zherdevsky sugar plant at yearly 2022.
2021 saw another significant project related to the introduction of a new discipline called lean production at Kursk State Agricultural Academy named after I. Ivanov, with support from the Sugar Business. Students of the academy participated in a tour around the Krivetsky sugar plant.
Retention and motivation
GRI 401-2 GRI 403-6 GRI 404-3Remuneration and incentive system
Rusagro works towards unlocking the personal and professional potential of each employee, while continuously reviewing and improving employee incentive system.
The Company maintains a transparent and comprehensible pay and compensation system: each employee's personal SAP SuccessFactors page shows the income structure and benefits package. Rusagro guarantees employees a competitive salary. The regulations on annual bonus payments designed for each of the Company's segments set out the main elements and procedures for bonuses.
The average monthly wage in 2021 was RUB 52 ths (+6%). Growth of the figure in each business segment is determined by annual increases based on employee contribution and personnel skill level. Differences in average
Job-related hotline
The Company has a hotline with the accounting department for payroll, sick pay, holiday pay, etc. A special compensation and social benefits hotline is planned to be launched to increase transparency in this area.
The Company has both tangible and intangible incentives in place, offering the employees an extensive social benefits package, including:
- voluntary medical insurance (VMI) for all past-probationary employees; possibility of VMI insurance for relatives on favourable terms;
- meal remuneration and provision of home-raised products;
- commuting services, quality overalls;
- health resort treatment and reimbursement of medicinal drugs.
The Company provides equal benefits to all employees, with the exception of VMI, which is not available to employees working under temporary employment terms (up to three months).
Young professionals may qualify for
Rusagro implements the With Care for Everyone programme to promote a culture of health and well-being for employees and their families.
Performance and competence assessment
The Company introduced a system of key performance indicators (KPIs) to assess staff productivity. The SAP SuccessFactors platform displays all the data needed to easily monitor the achievement of KPIs by employees.
The Company also developed an annual multirater for each staff members to analyse the fulfilment of KPIs and compliance with the job expectations, and to review the potential of the employee. Following the results, employees receive individual development plans, with identified growth areas and necessary training. The percentage of employees who underwent formal performance appraisal increased by 6 p.p. to 72% in 2021.
During the reporting period, a Workforce Management system was piloted to manage production personnel efficiency, with the roll-out scheduled for 2022.
Internal communications
Rusagro is continually improving its communication channels to make them as convenient and effective as possible. The 2021 level of awareness reached a record high in all business areas, with an overall Company-wide figure of 79%. Rusagro's Vestnik, email newsletters and a corporate portal with anonymous messaging capabilities, remained popular with the Company's employees. Other popular additions of 2021 were information days (a total of 233 days were held) and information boards.
In 2021, corporate TV coverage, in addition to the Meat Business, included the Sugar, Oil and Fats business segments. The Company plans to launch a mobile version of the corporate portal in 2022 for convenience and quick access.
The tradition also continued to have live call-ins with the CEO: two such events were held in 2021, featuring all general directors of business segments and attended by more than 5,000 employees. The issues raised included vaccination, review of salaries and allocation of employee benefits.
The following activities were carried out in 2021
Rusagro's Week of Values
This annual event gathered more than 5,000 employees in 2021. They sent each other cards with one of the values they display most in their work. There was also a prize competition in which you had to guess the values described in the videos of the employees' children.
According to the corporate culture support survey, 83% of employees share the Company's values and apply them in their work – up 0.1 p.p. year-on-year. The number of employees defining the Company's atmosphere as attractive increased by 12 p.p. to 80%. The number of those who consider Rusagro's mission a worthy goal to work for rose by 3 p.p. to 82%.
Fair Games sports festival
The annual Fair Games sports and family values festival was held in a semi-digital format for the first time and reached over 10 ths employees, marking a new record for the event. The festival included 65 live broadcasts, 40 master classes and 6 online competitions in three areas: "SuperSport", "SuperCreativity" and "SuperSmart". More than 1,200 employees took part in football and volleyball championships, tug-of-war competitions and races. In order to get as many of the Company's employees as possible to pass the GTO norms, a huge branded Fair Games track travelled to 20 production sites and attracted a total of 900 Rusagro's employees.
Employee engagement and satisfaction
During the reporting period, the employee engagement survey was conducted twice – the main survey was conducted in June, with 85% of employees (17,186 people) participating, and a pulse survey was launched in December.
In 2021, Rusagro's overall employee satisfaction grew by 6 p.p. year-on-year, reaching a total of 81%.
Staff anxiety about the
To address this issue, we drafted an appropriate engagement improvement plan, covering the following areas:
- balance: reducing stress levels in the workplace, achieving work/life balance, promoting a culture of physical and
psycho-emotional well-being; - career: expanding opportunities for growth and development;
- working conditions and remuneration: transparency of pay and benefits.
Training and career development
gri 404-1 gri 404-2The Company has a unique training and development system in place that organises information, accumulated knowledge and experience to meet production and management challenges.
The professional growth and development of employees is promoted through a comfortable learning environment. The Company aims to develop a micro-learning format: presenting information in a compact format, reducing the time required to assimilate the material and applying the knowledge in practice immediately to overcome challenges successfully.
Main blocks of training and development system
Transfer of best practices and affirmation from mentors
Training and sharing of best practices between employees
E-learning information environment
Academic training and short courses
Mentors and in-house coaches
The reporting period was a changeful year for the mentoring institution – the scope of mentee training was expanded and the motivation system for mentors was improved; the number of mentors reached 1,133 people in 2021 (vs. 918 in 2020). Mentors are given training and insignia, and invited to the annual conference. The Company also compiles a ranking of mentors, and the top-rated ones are rewarded with gifts.
A total of 69 employees joined the in-house coaching institute in 2021. The in-house team has 585 members. During the reporting period saw more than 10 ths employees trained and 387 new programmes developed.
Leaders of the annual ranking of internal instructors receive material awards and the right to undergo external training. The ranking is based on the feedback from the participants and the evaluation of the expert committee based on three criteria: preparation of the training material and its presentation, comprehensibility of the information, use of techniques and methods of group dynamics.
In 2021, employees who ranked among Rusagro's top 60 in-house coaches took part in the Coaches League conference, which was hosted at the Rosa Khutor ski resort. In addition to material awards, master-classes on the digital learning, public speaking and test development were offered for conference participants.
DISTANCE AND EXTERNAL TRAINING
Further development of the SAP SuccessFactors platform strengthened the distance learning system: in 2021, the number of Distance Learning System (DL) courses more than doubled and reached 966, staff coverage increased to 80%, and the number of man-courses completed rose to 87,344 (vs. 42,808 in 2020). The number of employees trained in 2021 reached 19,673, +8% year-on-year. There was an increase both in the number of people completing compulsory training (from 6,713 to 7,126) and elective training (from 13,696 to 14,848). The average annual training time per employee on the Company's payroll reached 18 hours – 2 hours more than in 2020.
The Company also arranges for external training: having employees passing in courses and attending professional conferences, inviting external speakers and coaches.
Rusagro's training and development system is centred around the competence level of its employees. Overall competence level rose by 10 p.p. in 2021 and stood at 67%.
INVESTMENTS
With the introduction of the new Coaching Institute project (for more details see the Succession Planning and Talent Pool section) and the evolution of a distance learning system, investments in employee training in 2021 recorded a significant rise and amounted to RUB 17.1 mn, almost twice as large as in 2020.
Staff training and development indicators
hours
GRI 404-1| 2019 | 2020 | 2021 | |
|---|---|---|---|
| Average annual training per employee | 15 | 16 | 18 |
| By positions: | |||
| 34 | 36 | 32 |
| 16 | 22 | 22 |
| 17 | 16 | 21 |
| 14 | 16 | 17 |
| By age groups: | |||
| 11 | 13 | 13 |
| 12 | 13 | 15 |
| 12 | 12 | 15 |
| 36 | 40 | 42 |
Succession planning
To maintain a culture of commitment and ensure sustainable management, the Company takes a proactive approach to succession planning and leadership development. A modular management skill building programme was developed for successors, covering three areas – management, human resources management and effective communication.
The reporting period saw launching a project to establish a coaching institute aimed at training internal coaches and engaging external coaches to work with top management. Training executives in coaching tools increases awareness and strengthens leadership competences.
Being a key succession tool, the talent pool is filled up on the basis of comprehensive staff appraisals and included 2,498 people in 2021. Unlocking employees' potential is helped through by an individual development plan drafted for the whole training time. The Company also provides financial support for talent pool members and covers 50% of their university tuition fees.
In 2021, the share of internal recruitment increased from 61% to 63% and the successor coverage rose by 7 p.p. to 94%.
Share of vacancies filled in by existing employees, BY RUSAGRO'S
%
| Business | 2020 | 2021 |
|---|---|---|
| Meat | 73 | 72 |
| Oil and Fats | 55 | 60 |
| Agriculture | 66 | 69 |
| Sugar | 70 | 85 |
| Corporate Centre and Integrated Service Centre | 26 | 24 |
| Company average | 61 | 63 |
Human rights
gri 202-2 gri 402-1 gri 406-1Rusagro is aware of its responsibilities as to human rights and is committed to respecting human rights throughout the supply chain. The Company does not use forced or child labour and strictly complies with the laws of the Russian Federation and other countries where it operates, as well as with international human rights and labour standards as set out in the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights, and the declarations and conventions of the International Labour Organisation.
The Company provides a safe working environment, training and development opportunities, and guarantees recognition and fair remuneration.
Rusagro obeys the requirements of the Russian Labour Code regarding the minimum notice period in relation to significant changes in the Company's activities, namely no later than two months prior to the commencement of the relevant activities.
Inclusivity
Rusagro does not tolerate any form of discrimination, recognises the benefits of diversity and fosters a corporate culture of equal opportunity. The Company realises that equality leads to growth and perfects an environment where employees can their true self, freely express their opinions and innovate. The Company strengthens the leadership competencies of local community representatives. In 2021, the share of local residents among top managers increased from 44% to 48% (+4 p.p.).
There were no cases of discrimination recorded in the reporting year on the grounds of race, gender, religion, politics, social origin or others.
Plans for 2022 and a mid-term horizon
HR management areas scheduled for investments in 2022:
- Improving and automating HR processes;
- Developing an employer brand that is attractive to talented jobseekers;
- Working on the employee attraction and retention system and developing an incentive and remuneration scheme;
- Creating a flexible and inspiring environment for employees to fulfil their potential, grow and develop;
- Extending staff caring projects to support physical and emotional health and reduce anxiety in the team caused by uncertainty in times of crisis.
Occupational health
and safety
Material TOPICS
- Occupational health and safety
- Learning and education
- Digital transformation
GRI, SASB metrics
GRI 403-1 GRI 403-3 GRI 403-4 GRI 403-5 GRI 403-6 GRI 403-7 GRI 403-8 GRI 403-9 GRI 403-10SASB FB-AG-320A.1 SASB FB-MP-320A.1 SASB FB-MP-320A.2
2021 highlights
introduced in the Oil and Fats Business
programme rolled out to all key Company assets
of Working with
of occupational health training developed in the Meat Business
CONTRIBUTION TO THE UN SDGs
Management approach
GRI 403-1 GRI 403-8
Improving safety culture and creating a healthy and safe working environment is one of
With occupational health and safety management system in place, the Company is able to prevent fatalities, reduce injury rates and maintain the health and well-being of employees. The system complies with all legal requirements and covers employees at all Rusagro's production facilities.
Rusagro closely monitors compliance with adopted standards, conducts regular internal audits, organises continuous training for staff and implements many internal health and safety programmes. Each business segment has its own occupational health and safety (OHS) policy, as well as regulations and standards that are constantly monitored for compliance. Below is the list of key internal documents:
- Regulations on the Corporate Occupational Safety Management System;
- Regulations on Contractors;
- Regulations on In-process Control at Hazardous Production Facilities;
- Bonus Plan;
- Risk Assessment Standard;
- Standard for Investigation of Accidents.
ORGANIZATION STRUCTURE
Risk assessment and injury prevention
GRI 403-1 GRI 403-4Rusagro follows a risk-based approach in OHS management and conducts regular procedures for identifying and assessing the risks of accidents and injuries to employees as required by laws and internal documents. Risks review is carried out immediately after the incident occurred, if any.
Rusagro adheres to internationally recognised standards and guidelines and constantly improves its risk control and management system.
OHS risk internal control and management measures existing in the Company include:
- checking employees’ OHS knowledge and competence;
- further OHS training for employees;
- setting up OHS committees;
- introducing KPIs for managers that are linked to injury rates;
- enabling managers to cancel bonus for employees who fail to comply with health and safety requirements.
The Company understands that injury prevention is a mandatory process towards safer working conditions. The Oil and Fats segment and Agriculture segment routinely run identification and reassessment of new risks once a year, the Meat Segment — once every three years and the Sugar Segment — once every five years. Risks review is carried out immediately after the incident occurred, if any.
Establishing health and safety committees in the Oil and Fats Business
Last year, the Oil and Fats Business set up health and safety committees chaired by the segment’s top managers: the Production Site Committee and the Central Committee, the former consisting of the director, chief engineer, OHS specialists, shift supervisors, department heads and OHS authorised agents, and the latter – of segment’s operations director and site directors. Production site committees convene every month, while central committees – every quarter. All key members of the committees completed the curriculum of external training programmes.
| Key risks | Risk management activities | ||
| Risk of injury due to fire | | Placement control of combustible materials Condition monitoring and timely maintenance of electrical equipment | |
| Risk of injury due to exposure to moving machinery | Maintenance of safety guards and covers | ||
| Risk of electrical injuries | Condition monitoring and timely maintenance of electrical equipment, earthing | ||
| | Risk of injury from falls Risk of injury as a result of falling on a horizontal surface | | Installation of warning signs, fences Condition monitoring and timely maintenance of guardrails and stairwells, marking, upkeep of lighting |
| Risk of injury from contact with animals | Purchase of upgraded personal protective equipment | ||
| Risk of injury when handling tools/equipment | | Training of employees in safe working practices Purchase of upgraded personal protective equipment and intrinsically safe tools | |
| Risk of injury when moving around the area | Marking, sign-boarding and posting of area traffic patterns | ||
| Risk of injury as a result of spontaneous inflammation of dry pulp | Emergency response training of employees | ||
| Risk of injury as a result of ignition of flammable dusty industrial premises | Installation of emergency stop devices and alarms | ||
| Risk of injury as a result of exposure to moving traffic | Training of employees in safe working practices | ||
Occupational health and safety
INJURY RATE
Rusagro takes regular measures to manage risks of work-related injuries, strengthen in-process control, and introduce new tools to investigate accidents and assess related risks, as well as give safety training in management and involvement of line personnel.
In 2021, the Company reduced the number of accidents and, hence, slashed out injury rates.
Unfortunately, the Company had to record one fatality in the Agriculture Segment caused by a fall from a height and subsequent electric shock. The Company conducted relevant investigations as statutory required and took all measures to prevent new accidents, including briefings and explanatory talks with corporate employees.
WORK-RELATED INJURY FREQUENCY AMONG EMPLOYEES
GRI 403-9 SASB FB-AG-320A.1 SASB FB-MP-320A.1| 2019 | 2020 | 2021 | Δ 2020/2021,% | |
|---|---|---|---|---|
| LTIFR | 2.04 | 2.86 | 1.97 | –46 |
| LTIR | 0.41 | 0.57 | 0.39 | –46 |
| TRIR | 0.95 | 0.95 | 0.73 | –31 |
| Number of fatalities | 32 | 5 | 1 | –400 |
| Rate of fatalities (per 1 mn working hours) | 0.09 | 0.20 | 0.04 | –408 |
| Rate of fatalities (per 200 ths working hours) | 0.02 | 0.04 | 0.01 | –408 |
| Rate of high-consequence injuries (per 1 mn working hours) | 0.13 | 0.20 | 0.04 | –408 |
| Rate of high-consequence injuries (per 200 ths working hours) | 0.03 | 0.04 | 0.01 | –408 |
Safety culture
GRI 403-4 GRI 403-5With keeping the safety culture promotion as a priority, Rusagro carries out mandatory staff safety training and introduces various employee engagement and awareness mechanisms.
With corporate occupational health and safetytraining and online courses given by internal and external specialists, employees gain the knowledge and skills necessary for safe performance of their professional tasks.
The Company wants its managers to be immersed in all the processes of OHS training and knowledge assessment of employees, therefore there is a practice of "behavioral safety audit", meaning that the manager not only checks that the employee has protective clothing and personal protective equipment, but also evaluates his/her understanding of his/her safety-related responsibilities before and during the work.
To promote safety culture to production sites, Rusagro has its employees contributed to the occupational health and safety management by reporting hazardous production situations, undergoing surveys and participating in audits and safety commissions. Every employee can report health and safety hazards, if any, either personally to his or her supervisor or via available means of communication. Beyond that, employees have a chance to point out a potentially dangerous area of the workplace when a special assessment of working conditions takes place.
OHS online training courses
In 2021, the Meat Segment developed interactive online courses in the SAP system with knowledge testing to close the knowledge gaps in occupational safety foremployees and managers. The training programme is company-specific and covers the following topics: "Occupational Health and Safety", "Regulations on Organising and Conducting Work at Height", "Hazard Identification and Risk Assessment", "Hazard Communication" and many more. Managers who failed training and testing are suspended without pay
Emergency preparedness and response
Emergency response and management is a key ingredient of the occupational health and safety management system. Rusagro understands how important it is to be prepared for and able to respond to crisis situations, and therefor pursues an emergency risk management and prevention approach and has emergency response provisions prepared, including procedures for setting up command centres, an emergency prevention commission and a business resilience commission. All emergency action plans are coordinated with the regional EMERCOM authorities and are subject to regular reviews.
Regular practical drills are conducted to train staff in effective and quick response to emergencies. Moreover, the employees are trained in correct operation of a hazardous industrial facility, staff evacuation and response to off-normal situations
Employee health
GRI 403-3 GRI 403-6 GRI 403-7 GRI 403-10 SASB FB-MP-320A.2WITH CARE FOR EVERYONE
With an eye towards the
Key priorities of the With Care for Everyone programme
Creating an environment for early diagnosis
Maintaining and promoting the physical health of staff
Dispensary diagnosis
Developing of a unified employee health database
Equipping medical rooms with automated complexes
Developing conscious attitude of one's health and finances
Developing family and adolescent psychology
Improving working conditions
Career counselling
The Company monitors the well-being of its employees by introducing and developing initiatives to maintain not only physical, but also emotional, financial, intellectual and other types of human health. Rusagro applies the following classifications of employee health types.
As for the physical health of
Results of the With Care for Everyone programme for 2021
- 22 in-house first aid rooms were opened
- 4,751 employees are under the occupational therapist supervision
- 1,548 employees received electronic health records with typing and a preventive care plan
- 496 employees are in the outpatient supervision group
Rusagro strongly supports healthy lifestyles and encourages professionals to join in a variety of corporate activities aimed at maintaining their health and wellbeing, which include:
- Health days with medical consultations from specialists;
- Themed marathons (Stop Smoking, Maintain a Healthy Body Mass Index, etc.)
- Online webinars on emotional, spiritual and physical health;
- Vitamin days.
The Company provides compulsory training to employees and issue
Opening of medical first aid rooms in the Oil and Fats Segment
In 2021, several production sites in the Oil and Fats Segment – in Atkarsk, Balakovo and Koshki – opened first aid rooms and introduced a staff health management information platform under the With Care for Everyone programme, thus enabling the Company's specialists to seek medical advice from a general practitioner at any convenient time.
Another information and prevention activities included teleconsultations, daily ECG monitoring and screening for inflammatory diseases and cancer.
Plans for 2022 and a mid-term horizon
In 2022, the Company will continue working within its strategy to improve safety in all business segments and implement a number of OHS initiatives, such as adoption of international, engagement ofa contractor to conduct an external OHS audit, expansion of the occupational disease prevention programme and implementation of initiatives to improve health and safety performance.
Support of local communities
Material TOPICS
- Support of local communities
GRI metrics
GRI 102-43
GRI 203-1
GRI 203-2
GRI 413-1
2021 highlights
CONTRIBUTION TO THE UN SDGs
Management approach
GRI 413-1As a socially responsible Company, Rusagro makes a tangible contribution to the development of the regions where it operates and to supporting local communities.
In 2015, Rusagro's Board of Directors adopted a Charity Programme, covering many ongoing social projects and mainly focusing on better education and support for local educational institutions.
Local community development and support programmes are implemented in all of the Company's business segments.
Social investment and charitable projects
GRI 203-2Educational programmes
Rusagro follows the principles of strategic investment and heavily contributes to the advancement of education in the regions where it operates. The Company's investments in long-term charitable programmes in 2021 totalled RUB 38.8 mn and were absorbed to implement education quality improvement programmes in the following regions: Belgorod, Tambov, Saratov, Samara, Kursk, Orel Regions and the Primorye Territory.
Rusagro gives the charitable grants to schools to set up laboratories and purchase equipment for tests and experiments related to the Company's profile. Part of the funding is used to train teachers how to work and teach using the new equipment.
Sprouts of the Future is a Rusagro's education initiative that has been ongoing since 2018 as part of the Charity Programme and aimed at early career guidance for students in rural schools and identification of young talents.
The Programme includes interactive activities that give students of 7 and 8 grades the opportunity to learn about agricultural careers using state-of-the-art techniques, by going on quests, solving logic problems and doing projects in biology, chemistry and technology together with instructors from Russian universities.
KEY EDUCATION-RELATED SOCIAL AND CHARITABLE PROJECTS IN 2021
Project mission Support for secondary specialised educational institutions (SSEI)
Scope 7 SSEIs
Social development in the regions where the Group operates
Employer brand promotion
Volume of investment 8.7 RUB mn
Project mission Support for schools
Scope 65 schools
Focus area Social development in the regions where the Group operates
Volume of investment 17.6 RUB mn
Project mission SPROUTS OF THE FUTURE PROGRAMME
118 rural schools
353 classes
6,530 students
Social development in the regions where the Group operates
Employer brand promotion
10.4 RUB mn
Cultural events
Another equally important block in the development of local
In the reporting period, the Group supported two major city events: All-Russian Olympic Day and Tambov City Day.
Among other things, the Company hosted family celebrations for Rusagro's employees and regional residents in 2021.
In 2021, one of the Oil and Fats Segment’s brands, EZhK, arranged free winter playgrounds for children in Nizhny Tagil and Ekaterinburg, each site having New Year programmes prepared with participation of Father Frost and presentation of branded gifts. Children went ice-skating, took part in a Christmas tree party and could demonstrate their snowball-throwing skills at an improvised fortress with targets. The youngest of kids were entertained with educational busy-boards and a fancy game of dice.
In 2021, Rusagro congratulated more than 300 veterans on the 76th anniversary of victory in the Great Patriotic War. The plants had themed posters hanged out and wreaths laid at places of military glory. The Company holds such congratulations every year.
Sports events
Rusagro also focuses on holding sports events in the regions where it
The Meat Business proved to be the most active of Rusagro's segments in organising sporting events for
- All-Russian half-marathon, ZaBeg, in Tambov;
- The Maevka family sports event for several thousand people, which included a beach football tournament in which the Tambovsky Bacon team took first place;
- All-Russian Olympic Day and Tambov City Day, involving various entertainment events for visitors, corporate gifts and a food court with the Company's own products;
- In-house family festival for
Rusagro-Primorye employees and the rest of the Mikhailovsky district
In October 2021, Rusagro's Meat Business hosted a big family party for Rusagro-Primorye employees and all residents of the Mikhailovsky district, involving more than 3,000 people in total.
For one day, Mikhailovka square was transformed into a big amusement park for both adults and the youngest guests of the holiday. There were themed photo zones, creative master classes, aqua make-up, sports stations and a GTO test zone, as well as performances by creative groups and a cover band from Vladivostok. The main event of the day was the staging of a world record-breaking barbecue made from the Slovo Myasnika branded meat and a large-scale evening concer.
The Meat Segment of Rusagro sponsored the All-Russian half-marathon ZaBeg in Tambov in May 2021, with a refreshment point for the athletes with meat products of the Slovo Myasnika brand.
A team of seven company employees (led by the General Director of the Meat Business, Evgeny Sluchevsky) took part in this half-marathon. The team showed excellent performance, covering a distance of between 5 and 21 km.
Cooperation with autonomous non-profit organisations
In addition to direct support to local communities, Rusagro also seeks to work with non-profit organisations in the regions where it operates and to work together on charitable activities and address various social issues affecting local communities.
In 2021, Rusagro, in cooperation with the Tambov Region Volunteerism Development Resource Centre, whose main aim is to increase socially useful employment, held its first social project competition for Company’s employees — Horizons of Kindness. The goal of the competition was to promote corporate volunteering and encourage employees in their community initiatives.
A total of 102 ideas in five categories were submitted by employees from all business segments:
- 24 ideas in healthy lifestyles and sports cate;
- 18 ideas in education and culture category;
- 27 ideas in environment category;
- 22 ideas in spatial infrastructure and urban environment category;
- 11 ideas in my small motherland category. Participants were assessed by a panel consisting of social engineering experts and representatives from Rusagro and ANO. Five ideas were picked up and granted RUB 87 ths to 334 ths to make them come true. The projects will be delivered in 2022 with the support of ANO.
WINNING PROJECTS
Local community relations GRI 102-43
Rusagro always looks toward close communication with local communities, while meeting their expectations. The feedback system in place in the Company includes a variety of communication channels to respond quickly and in a timely manner to any complaints, questions and suggestions from local residents and community representatives. All enquiries received via open telephone or email are distributed within business segments as to areas of responsibility and processed within three working days.
Rusagro conducts regular surveys among representatives of local communities on the necessary infrastructure development in the regions where it operates.
Plans for 2022 and a mid-term horizon
In 2022, Rusagro plans to proceed with the Charity Programme and support regional social development through sports and cultural events, competitions for volunteer projects and grants to educational institutions. All social projects launched in 2021 will continue in 2022.
Animal welfare
material TOPICS
- Animal health and welfare
SASB metrics
SASB FB-MP-410a.1 SASB FB-MP-440a.1 SASB FB-MP-440a.2CONTRIBUTION TO THE UN SDGs
Management approach
SASB FB-MP-410a.1 SASB FB-MP-440a.1 SASB FB-MP-440a.2Rusagro is continuously improving its approach to animal welfare aspects. Animal welfare is directly linked to product quality, human health and the sustainable development of the Meat Segment. Rusagro’s employees place a high priority on the humane treatment of animals, from breeding and feeding to transport and slaughtering. The Company is developing practices that promote each of the Five Freedoms of Animals.
A new position was introduced in 2021, with the Director of Veterinary and Technology joining Rusagro’s team, who, together with the heads of production sites, managers, the veterinary service and the director of production, ensure the management of animal welfare aspects.
Management approach
SASB FB-MP-410a.1 SASB FB-MP-440a.1 SASB FB-MP-440a.2Ensuring the Five Freedoms of Animals
- 1 Freedom from hunger and thirst. All animals are housed in premises with automatic feed and water systems, tailored to physiological characteristics of the animals.The proportion of in-house produced feed at all production sites is 100%. Rusagro does not use animal feed sourced from regions with high or extremely high baseline water stress. All of Rusagro's production sites have main and reserve artesian wells that provide the necessary volumes of water. The water supply process is arranged so to completely avoid water supply interruptions to animals.
- 2 Freedom from pain, injury or deasease. Rusagro's employees observe animals on a daily basis to promptly identify signs of disease or injury and take the necessary response measures, while creating the necessary housing and transportation conditions to reduce injuries to pigs.
- 3 Freedom from fear and distress. The conditions in which animals are reared play a significant role in preventing the development of stress. Therefore, Rusagro creates a suitable microclimate in the animal housing, provides balanced nutrition and pays special attention to changes in housing regimes.
- 4 Freedom from discomfort. The Company's pig farms are set up as required by current Russian laws in terms of watering capacity, feeding, air exchange and the necessary housing space. Rusagro continually improves the conditions in which its pigs are kept,
ensuring their comfort and peace of mind. - 5 Freedom to express normal behaviour. Pigs are extremely social animals. They form bonds with other pigs and with those who care for them. Open housing systems provide social interaction between the animals and the necessary space for them to move around, and 20% of the sows are housed in groups to maintain and improve comfort conditions during pregnancy.
Automation
Rusagro has a special focus on innovations for animal welfare and aligns the technologies used with global best practice. In 2021, the Company delivered a wide range of automation projects. In 2022, the Company plans to roll out a project to automatically detect animals suspected of having a disease.
The Meat Business put in place a unique project for automatic ordering and delivery of feed to four production sites in the Tambov Region, resulting in less time spent on determining feed levels in feed bins, analysing feed intake by animals and forming an order for feed delivery.
A total of 18 Rusagro's pig breeding sites had the traditional weighing way replaced with an innovative computer vision one. This method uses a special camera and programmed algorithms to determine the average weight of a pig, without stressing it, and facilitates faster feeding decisions.
Audit
The Company has an internal system of regular audits, which are carried out by the security service and the biosafety manager and help to reduce disease risks and promote animal welfare.
The pre-slaughterhouse and slaughterhouse animal management is audited by internal specialists on an annual basis for compliance with sanitary and technical conditions and animal welfare regulations.
In 2021, Rusagro's facilities were successfully audited by external auditors for compliance with McDonald's requirements, including animal welfare practices.
Keeping animals healthy
Rusagro has a General Regulation on Biosafety in place, which regulates all processes related to risk mitigation as to preventing the introduction and spread of animal diseases, as well as standards for each process-related and veterinary procedure. A comprehensive assessment of operators' theoretical knowledge and practical skills is carried out twice a year in order to reduce the risks associated with animal disease and maintain the high qualifications of employees.
The chief veterinarian of the Meat Business, 83 field veterinarians, as well as senior and chief district and regional veterinarians, are responsible for the health and timely treatment of all livestock, biosafety, and proper sanitation and disinfection of production sites.
Specialists monitor the health status of the animals on a daily basis, followed by the necessary treatment according to approved schedules, using only drugs that are approved for use in the territory of the Russian Federation. Rusagro's veterinarians are responsible for prescribing and monitoring the timeliness and reasonability of the treatment administered to animals.
BIOSAFETY
To maintain a high level of biosafety, the Company adheres to five key principles. By complying with these principles, Rusagro was able to minimise the impacts of the African swine fever (ASF) epidemics in Russia. From 2017 to 2021, the Company was affected by ASF only twice, both times with just minor consequences. The Company reported no cases of ASF in 2021, despite a record high number of cases on a domestic level.
1. Physical separation and AIAO production
Full control of the land within a 10 km radius of its farms to ensure that there are no other pig-breeding farms. Farms are spaced 1 to 3 km apart. Animals of different generations and different production functions are kept separately to prevent the spread of diseases.
2. Restricted access
Strict entry and exit control with registration and restricted access to areas inside the pig farms for employees or other visitors and vehicles. Mandatory personal hygiene procedures for people and washing, disinfecting and heat treatment for vehicles.
3. Feed quality control
Continuous laboratory control of all feed ingredients in feed mills, including the assessment of the quality and purity of ingredients, check for pathogenic elements, infections and toxic substances. All feed is heat-treated to prevent the spread of disease.
4. Strict sanitary procedures
Regular cleaning and disinfection of production areas. Following the all in/all out principle: filling the production area exclusively with animals of the same generation. After the rearing period, the empty area is cleaned and disinfected.
5. Vaccination and disease monitoring
The animals are regularly vaccinated to prevent all known diseases. Continuous
Plans for 2022 and a mid-term horizon
A number of projects are scheduled for 2022 to maintain and develop pig farms in order to improve animal maintenance and welfare, including major renovations at the production sites of the Meat Business, increasing the number of stock trucks and other machinery, replacing some equipment, renovating manure storage and manure separation stations, and major repairs to machine tools, feed distribution systems, water supply for animal drinking and access roads at several sites.