OREANDA-NEWS. On 27 March 2009 System Capital Management presented 2007 Sustainability Report of SCM Group prepared by SCM staff in-house with support from employees from companies and enterprises of the Group.

SCM is the first Ukrainian company managing a broadly diversified business to have developed a sustainability report, which features approaches of the Group to priorities areas in corporate social responsibility (CSR):

Ø  Corporate governance: SCM is committed to meeting the highest standards in all areas of operation. Company makes utmost efforts to retain the leading positions in the Ukrainian business and be a respected member of the international business community. Key objectives to achieve this goal include ensuring an effective system of corporate governance, as well as having a system of values in place that underpin business behaviour and commercial activity of the Group.

Ø  Employment: The people working at enterprises of the Group are the core of SCM's business. SCM takes all the efforts to ensure good and safe working conditions for its employees and to engage and retain highly-skilled staff. Development of efficient employment policy is one of the primary objectives for the Group. Today the salaries at enterprises of SCM Group are higher that average in each industry. SCM Group invested about UAH 300m during only 2007 year covered by the report. 

Ø  Environmental protection: Environment protection is a priority for the company. We believe that efficient use of resources helps us be more effective. In 2007, SCM Group invested over UAH 1 billion in environmental protection programs.

Ø  Local communities: We believe that a business success largely depends on how good the employees feel at work and how well are their families in the areas where the companies operate. Thus, the success of a business depends on its commitment to social responsibility. In 2007, SCM invested over UAH 100m in social programs.

"Social report for us is, firstly, a tool of a dialog with stakeholders, which should answer the main question: how is business, in the course of its development, taking into account the interests of the society? We are glad that SCM is one of the first businesses in Ukraine to have made a sustainability report according to the international standards. The report gives answers to many questions important for the society", said Jock Mendoza–Wilson, the leader of SCM Group sustainability report development process and Director of International and Investor Relations of SCM.

The sustainability report features those areas of SCM Group's activity, which make the major contribution to revenue, profits and employment as well as those, which contribute significantly to local community development. The information is given in regard to three key business areas: mining and metals, power and finance. The businesses covered by the report employ over 140,000 people (about 90% of all employees in SCM Group).

The report is structured according to SCM's priority areas of corporate responsibility and takes into account the Global Reporting Initiative (GRI) guidelines, UN Global Compact principles, as well as the Ukrainian legislation and requirements of the national statistical authorities. Ernst & Young LLC have provided the independent assurance of this report.

"CSR for us is not about keeping up with fashion; it is a part of our business strategy and a fundamental principle for SCM Group. Being the biggest national investor we realize that sustainable operation of our company has a significant impact on the sustainability in the regions where a part of and the country on the whole", Mr Mendoza-Wilson added.

The online version of 2007 Sustainability Report of SCM Group  and the presentation delivered by SCM to signatories of the Global Compact in Ukraine are available on corporate website of SCM Group.