We are committed to the principles of sustainable development and do our utmost to follow them. Our aim therefore is to develop our business and deliver a strong economic performance in a way that is environmentally friendly. We comply with all requirements of applicable legislation, including legally enforceable local enactments and internal regulations. We had no incidents of non-compliance with environmental laws and regulations in the reporting period.

We seek to be an eco-friendly company in other ways too, with a focus on improvement in our energy efficiency, the rational use of water and reducing paper and fuel consumption. Below are statistics for and descriptions of the activities that we are implementing to reduce our impact on the environment in each area[1].

Energy usage

We fully recognise that increasing energy efficiency and successfully adopting modern energy-saving technologies are central to achieving a more sustainable future. Given the particular nature of the industry, the Group’s operations consume energy from various sources, namely fuel (petrol, diesel, and gas) and electricity. In order to reduce energy consumption we are constantly developing our approach to effective energy management. As a Group, we successfully reduced our energy consumption in two key areas in 2018 and plan to optimise energy consumption in the future by implementing the best green practices.
 

Total consumption of energy resources by type, 2017-18

Energy carrier

2017

2018

Change

Electricity (KWh)

7,628,109

7,347,827

-4%

Diesel (litres)

50,453,999

54,752,185

9%

Petroleum (litres)

280,310

250,051

-11%


Consumption per employee, 2017-18

 

2017

2018

Change

Petrol consumption (litres)

183

162

-13%

Diesel consumption (litres)

32,890

35,553

+8%

Use of water

We have carried out extensive work aimed at improving our water management systems in recent years. While the system for capturing and processing statistical data regarding water usage across the Group is still under development, we have made considerable progress in this area. For example, both BaltTransServis and Ural Wagonrepair Company reported significant improvements in their use of water in 2018:

  • Total consumption of cold water by BaltTransServis decreased 19% year on year.
  • Total consumption of cold and hot water by Ural Wagonrepair Company decreased 16% year on year.

We plan to improve the monitoring system to control water quality and consumption in the future.

Paper consumption and recycling

Document production happens as a matter of course in our activities. We enter into a large number of contracts and must maintain many different documents and, as a result, we consume significant amounts of paper. In addition to this, our business volumes are growing and therefore document flow and production are increasing. However, we are doing our utmost to reduce paper consumption and are trying to gradually make the transition to electronic document flow (EDF).

Recycling is among the key initiatives at Globaltrans. The amount of paper sent for recycling by New Forwarding Company and Ural Wagonrepair Company increased 60% compared with the previous reporting period. This is an area we continue to focus on improving across our other business units.


Consumption per employee, 2017-18

 

2017

2018

Change

Paper consumption  (kg per employee)

16

15

-6%

Corporate culture and internal communications

We aim to create a culture that makes the Group a great place to work. We strive to attract and retain talented people to deliver outstanding performance and enhance the success of the Group. One way in which we support our people is through providing appropriate rewards and ensuring a rich corporate culture. This includes developing a comfortable and engaging working environment to increase the motivation of our employees and ensure their needs are being met as well as by creating a healthy environment for any of their concerns to be voiced and heard.

The fundamental principles of the Group’s corporate culture, including our core values and employee rules, are captured in our code of ethics and conduct. In order to ensure that these values and rules are implemented correctly, some of the Group’s subsidiaries have established an employee hotline to deal quickly and effectively with any questions or concerns employees may have. The Hotline operates on the basis that no communication may be left without appropriate attention.

We also regularly hold sports, cultural and leisure events for our employees and their families. These help to create a pleasant working environment, increase employee engagement and promote better cohesion.

Greenhouse gas management

Rail is one of the most environmentally friendly and fuel efficient methods of moving freight over land as large amounts of cargo can be moved by a single locomotive. However, locomotives do produce a carbon footprint which is why effective greenhouse gas management is key to reducing the industry’s environmental impact.

It is important to highlight that the vast majority of locomotive traction used by the Group is provided by JSC Russian Railways, the only railway carrier engaged in owning and building railway infrastructure in Russia. For context, while we have over 70 mainline locomotives, Russian Railways operates nearly 11,000. Nonetheless, ours is one of the largest privately owned mainline locomotive fleets in Russia’s freight rail industry and we have focused on operational efficiency from the outset, recognising the beneficial impact on the environment.

We continue to improve our logistics by reducing the number of empty rail cars that are moved across the country. This can be seen in our operational performance with our Empty Run Ratio for gondola cars maintained at the industry leading level of 38% in 2018, in line with the Company’s average for the last five years. In addition, the Group’s unique ability to transport oil products and oil in block trains using its own locomotives contributes to operational efficiency enabling high fleet utilisation.

Operating a modern, well-maintained fleet is also key to minimizing the impact on the environment. We acquire new and relatively new rolling stock and target the effective management of regular repairs using companies with resource-saving and environmentally friendly technologies which contributes both to our operational efficiency and enables us to provide a higher standard of service for our clients. In 2019, the Group plans to acquire up to 10 new modern diesel locomotives for modernisation purposes, which will help us to further improve our operational and environmental performance.

Our greenhouse gas emissions from operations with locomotives owned by the Group were 166,129 tonnes of CO2 equivalent in 2018[1]. While 2018 was the first year in which we were in a position to report this data, we will actively measure this on an annual basis going forward in order to help manage our carbon footprint.

It is important to emphasise that our environmental management system is currently under development and the we are committed to establishing an effective system for recording, collecting and processing information in all of our subsidiaries in 2019. This will allow us to build on what we reported here, and to more accurately demonstrate the processes occurring across our business in the area of ecological management.

[1] The Group’s greenhouse gas emissions were calculated in accordance with IPCC Guidelines for National Greenhouse Gas Inventories (2006).

[1] As Globaltrans has begun disclosing data on resource consumption only in 2018, the mechanism for collecting, processing and presenting information in the areas of rational use of water, energy and paper has not yet been fully developed. Therefore, the Company does not yet have enough data to fully demonstrate the trends occurring in all of its business units.

Last updated: 24.01.2020