We want to do everything we can to make a positive difference to the communities where we operate. We work closely with local communities and look to find ways to best contribute to the regions where we are present both economically and socially. This can be achieved in a variety of ways from targeted contributions of time, skills or financial aid to charitable organisations, support for volunteer work, internship, workplace development programmes which increase the capabilities and potential earnings power of employees as well as contributions through local and national taxes, licenses or other fees which help provide the resources needed to support the broader economy.

Wherever possible we try to employ people from the communities where we operate
and work with them to develop their skills and potential. We provide a workplace environment that is fair, respectful, fulfilling and safe in order to contribute to their sense of well-being and that of the broader community. Health insurance, childcare support and part-time employment are just some of the elements of employment at Globaltrans that can benefit our employees and their families. And beyond this, we encourage and support participation by our businesses and our employees in community initiatives and charitable organisations that are aligned with our values.

We believe ensuring we have an employee base that is happy, healthy and valued enables them to better support and add value to their own families and communities. In addition
to this, we create economic well-being for them and our other stakeholders. How we as a company create wealth for our stakeholders is reflected in the following table.

Direct economic value generated, distributed and retained in 2019 (RUB mln) [1]

Direct economic value generated[2]

94,994

Economic value distributed

89,458

Total cost of sales (excluding Employee benefit expense)

57,332

Total selling, marketing and administrative expenses
(Community investments and excluding Employee benefit expense
and Taxes (other than income tax and value added tax)

1,112

Employee benefit expense

4,483

Payments to the providers of capital[3]

20,531

Payments to the government[4]

6,009

Economic value retained

5,536

We want to be a company that makes a positive difference to society as a whole, and improves the lives of those in the communities where we operate.

While remaining a successful company ensures that we can continue to create opportunities, wealth and a sense of value for people in our communities, we also contribute directly to charitable efforts in these areas. We consider this to be a core part of how we conduct business as a sustainable company, and in 2019, the majority of our operating companies were involved in supporting community schemes and charitable activities.

Our charitable activities are focused on:

  • Supporting vulnerable groups;
  • Supporting health and well-being initiatives;
  • Supporting sports activities;
  • Supporting cultural activities;
  • Supporting education.

Alongside providing support for vulnerable groups in society such as the disabled, military veterans, and pensioners, the area of child health is one where we particularly seek to make a positive difference.

GTI Management, New Forwarding Company and BaltTransServis are long-time supporters of the Life Line Fund which assists children with life-threatening illnesses. Additionally, New Forwarding Company has been supporting a regional charitable foundation which provides ‘illustrated’ books that cater for blind children.

The preservation and promotion of Russia’s rich cultural heritage is another focus for our companies’ charitable activities. For examples, BaltTransServis supports the International Charitable Fund “Constantine” which works to restore monuments and safeguard and promote Russia’s cultural heritage.

Additionally, we play an active role in improving the quality of education and the development of sports. New Forwarding Company, for instance, made charitable donations to the Fencing Federation of Russia in 2019 to support access to and appreciation of this unique sport.

[1] Information in the table is derived from the Consolidated Management Report and Consolidated Financial Statements for the year ended 31 December 2019.
[2] Direct economic value generated includes “Revenue”.
[3] Payments to providers of capital include “Interest paid”, “Dividends paid to owners of the Company” and “Dividends paid to non-controlling interests in subsidiaries”.
[4] Payments to government include “Tax paid” and “Taxes (other than income tax and value added taxes)”. The Company also pays Russian Value Added Tax (“VAT”). VAT related to sales and purchases is recognised in the balance sheet on a gross basis and disclosed separately as an asset and liability. Purchases of property, plant and equipment are shown net of VAT. Related input VAT is included in movement in changes of working capital, within trade and other receivables.

Last updated: 08.05.2020