our future – our responsibility

Our Future – Our Responsibility

www.pwc.ru

PwC Russia Corporate Responsibility Report

2 Corporate Responsibility Report

Corporate Responsibility Report 3

ContentIntroduction 4A letter from Peter Gerendasi, Managing Partner of PwC Russia 5PwC Russia: A few facts and figures 6Corporate responsibility 7Our CR agenda 8Four main CR focus areas 9Our stakeholders 10Management and governance of CR at PwC Russia 10Our report 11Community 12

Our objectives 12Local communities 13Universities 16Challenges and plans for the future 17

Environment 18 Our objectives 18Environmental standards in the new office 19Our savings 20The Green Team 20Suppliers 21Use of public transport 21Challenges and plans for the future 21

People 22Our objectives 22Learning and development 23Leadership programmes 24Global Mobility 25Well-being 25Communication 26Ethics 26Diversity 27Challenges and plans for the future 27

Marketplace 28Our objectives 28Shaping the public agenda 29Working with regulators 30Thought Leadership 30Dialogue with clients 31Professional and business associations 32Dialogue with alumni 32Dialogue with mass media 33Challenges and plans for the future 33

Attachment 1. PwC Russia’s ratings and awards received in 2010 34Attachment 2. Key stakeholders 35Attachment 3. Non-governmental organisations 36Attachment 4. Business associations 37GRI Content Index 38Glossary of terms 42Contact information 44


Introduction

As in previous years, the concept of corporate responsibility (CR) continues to be a vital element of the PwC 1 network’s strategy in Central and Eastern Europe. This strategy is aimed at laying a strong foundation for our sustained competitive advantage and covers the period up to 2016. It encompasses three key areas: expanding our strategic capabilities, building value through our client relationships, and bringing the One Firm concept to life across all the PwC firms in CEE. The concept of sustainable development is the basis for our corporate responsibility programme.

We continue to educate our employees, clients, suppliers, NGOs, government authorities, local communities and other stakeholders about our approach to sustainable development, which we see as the philosophy that drives successful long-term business development. This is our second CR report, and we don’t aim to give a detailed description of all the CR projects that we’ve initiated here. Rather, our objective is to provide transparent and accurate information on the most important aspects of PwC’s corporate responsibility programme, as well as our key accomplishments and the tasks that still lay ahead.

We have a good understanding of our programme’s strengths as well as of those areas where we still have work to do. But this understanding alone is not enough; we also need active, constructive feedback from all stakeholders for whom this report is intended. This helps us to obtain the fullest and most objective picture of our role in society. We would be most grateful for your opinions and comments about our report.

1 Terms in bold italics can be found in the Glossary on pg 42

Lioudmila Mamet

PwC CEE Corporate Responsibility Leader


A letterfrom Peter Gerendasi, Managing Partner of PwC Russia

Dear readers,

I am pleased to present PwC Russia’s second corporate responsibility report, covering the period 1 July 2009 through 31 December 2010. In our previous report, we focused on the results achieved in our first year of implementing a regional corporate responsibility strategy, with the aim of giving readers a picture of our place in the business community, our influence among our extensive circle of stakeholders, and our overall mission and objectives. It’s time now for a new report, and looking back at the past year and a half, I am proud of what we have succeeding in doing in the area of corporate responsibility.

I am especially proud of our local community outreach programme and all the diverse initiatives that it encompasses. Our focus has shifted away from simply providing assistance in response to our partners’ requests towards a more integrated strategic approach to selecting which programmes to support. We have developed a policy that encourages volunteerism and tried to focus on putting the extensive knowledge and expertise of our people to work where they are needed most.

We’re continuing our efforts to reduce our environmental footprint. The move to our new office, where we have made every effort to incorporate progressive international environmental standards, represents a qualitatively new stage in this critical endeavour. We’ve retained our leadership position in the market despite vigorous competition and continue to work toward building value for our clients through trust-based relationships. We contribute to the development of responsible leaders of the future who will have the experience, knowledge and ability to foster strong relationships and build value for our clients.

We’re pleased that our CR initiatives enjoy the solid support of our people. According to a global survey conducted in 2010, 84% of PwC Russia respondents expressed

satisfaction with our corporate responsibility efforts, confirming that we are on the right track.

Many notable events have occurred since the publication of our first CR report. These include:

• We celebrated PwC’s 20-year anniversary in Russia.

• We have continued to build up our strategic potential by creating new service offerings that reflect the needs of our clients, and by expanding our geographical footprint across Russia.

• In the aftermath of the crisis, we have succeeded in retaining a talented pool of employees and continued our investment in their professional and personal development.

• We have made a committed effort to participate in major innovation-driven initiatives and projects on a national scale, such as the Skolkovo Innovation Centre, the Sochi 2014 Winter Olympics and the project to transform Moscow into an international financial centre.

PwC Russia is already over 20 years old, and a significant factor in our successful growth in the Russian market has been our commitment to corporate responsibility. It’s our mission to fully integrate CR into our business model and decision-making processes, and to increase our influence within the broader society around us.

Our initial steps and successes have given us the confidence to believe that, working together, we can create a sustainable future for all of us.

Peter GerendasiManaging PartnerPwC Russia


PwC Russia: a few facts and figuresPwC is the leading professional services network in the world. PwC firms provide industry-focused assurance, tax and advisory services. More than 161,000 people in 154 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

Recently PwC celebrated 20 years in Russia. We keep growing, with offices now in six cities: Moscow, St Petersburg, Kazan, Ekaterinburg, Yuzhno-Sakhalinsk and Vladikavkaz.

Our client base comprises 2,000 companies, including 166 companies from the Expert 400 list, accounting for 73% of the list’s revenue. Among our clients are:

• 4 of the 10 largest ferrous metallurgy companies

• 7 of the 10 largest retail companies

• 9 of the 10 largest oil and gas companies

• 10 of the 10 largest banks

• 4 of the 5 largest telecommunications companies

• More than 2,000 employees (as of 31 December 2010) working in six offices

• 188 hours of learning and development per employee were delivered over the reporting period

• 119 professional qualifications were received by staff in 2010, including 77 ACCA qualifications

• 55 of 158 top managers in PwC are women

• 1,550 hours of pro bono lectures were given in universities by PwC staff

• Over 200 volunteers contributed 3,000 hours for community needs

• 27 projects were carried out under our corporate philanthropy programme

Ratings and awards received in 2010 are listed in Attachment 1.

PwC Russia highlights:


Corporate responsibility

Since 2008, when a corresponding programme was adopted by the Central and Eastern Europe (CEE) regional network, PwC Russia firms have regarded corporate responsibility as an integral part of their strategy. Prior to this, we had been implementing a charity programme under the name Connected to Russia for a number of years.

We detailed our first steps under the Connected to Russia programme in our 2009 CR report. We still take pride in the initiatives that grew beyond PwC to attract hundreds of collaborators (see 2009 PwC Corporate Responsibility Report, Charity Instead of Gifts, Charity Club meetings). However, time goes on, and while we give the past its due, we’re making ambitions plans for the future, expanding our business and shaping the public agenda, developing further our system of key performance indicators.

Our idea of corporate responsibility is closely tied to what we refer to as the core of our corporate culture – the PwC Experience. The PwC Experience underpins our business strategy and forms the basis for most of our internal learning and development programmes. Its core principles are:

• We invest in relationships

• We share and collaborate

• We put ourselves in each others’ shoes

• We enhance value through quality

In many ways, the PwC Experience philosophy complements our goals in the area of corporate responsibility: both focus on relations with stakeholders, be they internal or external, both focus on increasing the positive impact we have, and both derive their strength from our core values of leadership, excellence and teamwork.

The PwC Experience is a reflection of our efforts to ensure PwC’s sustainable competitive edge and contribute to our clients’ and employees’ success. Across the whole of PwC’s international network, bringing the PwC Experience to life is one of our top priorities.

The PwC Experience


Our CR agenda

Globally, PwC is a signatory to the UN Global Compact. In addition, in 2009 PwC signed up to the RSPP (Russian Union of Industrialists and Entrepreneurs) Social Charter of Russian Business, which is a set principles for responsible business practices. In doing so, the firm assumed a voluntary obligation to follow these principles in our interaction with local communities, investors, business partners, the authorities, workers and civil society.

Our choice is to do good business, act responsibly vis-à-vis all our stakeholders, have a long-lasting positive impact on the community, lead the way, and articulate with confidence our vision of a sustainable future. We see our goal in making sure that our corporate responsibility activities are aligned with our overall business strategy.

In 2010 the PwC Global Corporate Responsibility Board outlined a strategy for CR’s further development, centred on three key themes: climate change, education and social inclusion/diversity. These themes serve as the guiding principles that focus our actions in each of the above four CR areas. PwC’s global sustainability programme emphasises the importance of coordinating our CR efforts and the PwC Experience behaviours, maintaining dialogue with stakeholders, and embedding these values and behaviours in our core activity.

In all of Russia’s regions where we operate, we implement programmes under a common plan, with consideration for regional specifics and stakeholder needs. In the reporting period we’ve achieved better coordination of CR activities in our regional offices; they’ve become better aligned with our strategy and organisational structure.

We have identified four key areas where we measure our impact on stakeholders:

• Community • Environment• People• Marketplace


Four main CR focus areas

Our main goal in the Community area is to be a good corporate citizen and act responsibly. We take our share of responsibility for the well-being of the local communities in which we operate. We continue to implement our corporate philanthropy programme and engage with Russian universities. PwC actively encourages volunteering and supports disadvantaged social groups and NGOs. We describe our volunteering policy in detail in the Community section of this report. In volunteering we try to maximise the impact of our main intellectual asset – the knowledge and expertise of our staff – and we’re working to extend the educational component of our corporate philanthropy programme.

Our efforts in the Environment area are aimed at managing our environmental impact. The nature of our business activity has not changed: we continue to consume electricity and paper, and our employees frequently travel on business. We have carried on with our Small Steps programme (please see the 2009 PwC Corporate Responsibility Report for more details). But most importantly, we have achieved a much higher level of control over our environmental footprint through concerted efforts to make our new office at the White Square Office Centre progressive and state-of-the-art in terms of technical facilities and amenities.

Our focus in the People area is promoting a culture that will help our employees realise their full potential by using progressive training methodologies and rewarding high performance. The economic downturn could not but affect PwC’s business, but the company continued investing in professional development and talent management programmes. In particular, we have continued to improve our coaching system, have created new forums for active dialogue with employees and have improved our communications with staff. The firm’s move to the new office provided new opportunities for taking better care of employees’ health.

In the area of Marketplace we focus on innovation. We never lose sight of our priority goal: the high quality of our services, professional expertise and business conduct. We understand that the world is changing and the knowledge, business practices and solutions that have ensured our leading market position in the past are no longer enough in the current environment. Market leaders today need to take innovative approaches to traditional services, and have an in-depth understanding of the client’s business and insight into areas that traditionally were outside the focus of the business community. Our clients expect us to act in a fair and ethical way, be transparent, provide high-quality services in good faith, and play a leading role in shaping the public agenda. The downturn has made us leave our comfort zone and start working on challenging new projects, some of which we have already started implementing.


Our stakeholders

Management and governance of CR at PwC Russia

Our stakeholders are groups or individuals who are affected by PwC’s activities, or who can affect ours. Many diverse stakeholders and stakeholder groups are important for us, and our interaction with them forms the basis of our corporate responsibility programme.

We’ve identified key stakeholders in each of the four CR focus areas, and in the reporting period we engaged in a more active dialogue with some of them (e.g., with PwC employees and NGOs). We should be further improving our stakeholder dialogue both in terms of its regularity and depth.

Stakeholder engagement is an ongoing process requiring time and effort. Our aim is to systematise this process and create communication channels that will ensure this dialogue is ongoing. Attachment 2 summarises our main groups of stakeholders

and various communication channels with them.

CR at PwC Russia is led by the CR steering group. The group, led by a partner, includes four leaders responsible for developing a corporate responsibility strategy in alignment with the firm’s overall business strategy as well as for overseeing its implementation. Each office in Russia has a CR champion to help oversee project implementation locally. On a quarterly basis, the CR leader reports to the Operations Committee, made up of senior partners.

The CR leader is on the regional CEE and Central Cluster leadership teams.

In 2004 we formed our Charity Committee, which currently has 13 members. Our charity focus remains on child welfare, education and culture. In 2010 we completed 27 projects, managed by three subcommittees. Our community work is carried out along the following three lines: funding, professional assistance and volunteering.

Please see the Community section for more details.

In 2004 we formed our Charity Committee, which currently has 13 members. Our charity focus remains on child welfare, education and culture.

In 2010 we completed 27 projects, managed by three subcommittees. Our community work is carried out along the following three lines: funding, professional assistance and volunteering.


Our report

This is our second report and we have tried to make it more concise and interesting to read.

In 2010 we initiated a rebranding campaign (see the Marketplace section), and we’re hoping that the reader will feel the difference our new style makes in this report. We wanted the report to make for easy reading, to not be overloaded with information and to feature real-live stories.

The report covers the period from 1 July 2009 to 31 December 2010. We’ve chosen this reporting period in order to facilitate our transition to calendar-year reporting in the future. The terms ‘reporting period’, ‘period covered by the report’ and the like used in the text mean the 18 months from 1 July 2009 to 31 December 2010.

We’ve chosen to use the Global Reporting Initiative G3 Guidelines (GRI G3) in order to present a balanced picture of our activities. We believe that our report is at C level under the GRI reporting system.


Community

Our objectivesThis section outlines our engagement programme with two main stakeholder groups: local communities in Moscow, St Petersburg, Ekaterinburg and Kazan; and universities. Because human capital is PwC’s most valuable asset, we gear our programme towards developing intellectual potential, enhancing professional expertise, active participation in growing tomorrow’s responsible leaders and engaging our employees in our community programme.

NGOs that PwC supports are provided in Attachment 3.


Local communities Last year we set ourselves the following major goals:

• effectively collaborating with the community at large, with a focus on the educational element (using PwC’s intellectual potential);

• actively involving PwC employees in volunteer work;

• identifying key projects and making concerted efforts to ensure their successful implementation.

We’ve identified projects that are in line with our strategy and help change life for the better through our volunteers’ direct involvement. We focus on the educational element in virtually all projects, as this is where we feel we can make the biggest impact. During the reporting period we carried out 27 charity projects. We’ll continue to work at selecting those projects have a real positive impact on our stakeholders.

To increase volunteer involvement, in early 2010 we adopted a policy based on CR best practices that provides staff with one working day per year to do charity work, be it organised by our Charity Committee or chosen individually. In our estimate, in the reporting period over 200 volunteers gave approximately 2,900 hours to various charity activities.

A number of volunteers have taken the initiative to take charge of certain projects. For example, all our orphanages have volunteers-in-charge who visit the children together with their colleagues. Our volunteers themselves organise visits for kids from children’s homes to the Moscow International House of Music, the theatre or the bowling alley.

Anna Sotskova, PwC volunteer: “Natalya Sats Theatre is one of my favourite childhood memories, a place where we were once taken as children and where we’d like to take our own kids. The children really liked the theatre itself, especially the room with birds, the music box and the clowns. The kids were of different minds about the play. Some really liked it, some were tired, and some of the older ones were a bit too old for it – but everyone enjoyed getting out and getting to know each

other. There was ice cream waiting for the children back on the bus, making the ride home that much sweeter. It won’t be the last time we meet up. We’re looking forward to seeing the kids again!”

We share our main capital, our knowledge and experience. Together with Junior Achievement Russia, PwC volunteers helped deliver classes on economics at Moscow schools and held an Open Day featuring master classes and consultations on various business projects at PwC’s Moscow office. They also acted as judges of projects from the Enterprise without Borders innovation camp and in the Be Entrepreneurial contest as part of Global Entrepreneurship Week. PwC employees teach English to children who have graduated from orphanages, helping them to prepare for further studies.


Elena Gorbylyova, senior specialist in business development at the Leo Tolstoy Estate Museum at Yasnaya Polyana, says:

“We were happy to take part in the time management training. I would like to note the event’s excellent organisation and the great job done by the trainers (this was my second training with them). I believe that this subject is extremely important, not only if you manage people, but more importantly, to help you achieve an internal balance in the age-old choice between life and work.

Thank you very much for organising the training! I hope your company will continue to deliver these trainings for our grateful audience.”

In August 2010 a PwC team participated in the Kaluga-Moscow Downside Up Charity Bike Ride for the first time and became one of its prize-winners. PwC’s football team participated in three Downside Up Charity Football tournaments in the reporting period. These are just some of the examples of our long-term cooperation with Downside Up, which began in 2008 with our Mt Elbrus climb that raised USD 100,000 for the foundation.

In response to a desire expressed by our employees to donate funds to help sick children, we developed a donation distribution policy. In the past year and a half, we raised over RUB 500 thousand for this cause.

Our cooperation with NGOs has taken on a new flavour. For the first time in our history, we celebrated February’s International Corporate Philanthropy Day by running job motivation training for NGOs. This opened up a series of training sessions on topics selected by NGO representatives.

One of the Downside Up bike ride participants was Partner Chris Barrett, who knows first-hand what it’s like having a child with Down’s. Today Chris’s daughter Sonya is a shop assistant in a local supermarket, but 30 years ago Chris didn’t even imagine that Sonya would ever walk on her own.

“Sonya has Down’s syndrome. When she was small, we received huge support from charity institutions in England, and Sonya could even study in a normal school with healthy children. People in my country have become more open, their attitude to such children has changed, and now the same is happening in Russia. And I just feel happy to be able to help somebody with it,” says Chris.


Lyudmila Khomutova, teacher at the Udelnya Boarding School, said: “A huge thank you to Marina Dreznina, who developed and runs the Every Child is an Artist programme. Apart from the underlying theory, at each lesson we studied plans for running individual and classroom lessons and projects. I greatly enjoyed getting to know other participants and working together. I am sure that the knowledge and skills that I got from the training will help me in my future work with orphaned children.

A special thank you to the training organisers for the comfortable working conditions, friendly atmosphere, attention, and understanding of the problems facing employees of specialised rehabilitation institutions.”

We organised drawing lessons called Every Child is an Artist for people who work in rehabilitation centres for children with special needs. The theory and practical tips they take away help the teachers foster their kids’ artistic talents.

We’ve also taken another step in providing professional assistance to help NGOs work more effectively by developing an NGO support policy. This policy states that we apply the same quality and risk management standards to NGOs as to all of our other clients.

Finally, we continued to hold meetings between NGOs and our volunteers, and together with our long-standing CR partner Charity Aid Foundation, arranged Charity Club meetings. The Charity Club meetings held in the reporting period addressed issues like assessing charity programme and project efficiency, corporate philanthropy, government relations, supporting state-funded institutions and CR management. For volunteers, we held three meetings with representatives from the not-for-profit organisations Podari Zhizn, Liniya Zhizni and Big Brothers Big Sisters.

We’ve significantly improved internal communications by creating a special section on PwC Russia’s intranet portal where employees can find our charity policies, donation distribution reports and information about foundations supported by PwC, and learn more about various projects and how to join them. PwC employees receive announcements of upcoming events by email, through which they can confirm their attendance immediately. Calendars with project information for the next three months hang on each floor of the PwC office. There is a new, regularly updated display case in the PwC Club with information on community activities and our environment programme. Our corporate TV features updates on PwC’s charity and environmental campaigns.

We’re looking for new ways to engage our clients, business partners and alumni (former employees) in charity projects. For several years now we’ve supported the Spivakov International Charity Foundation, and for three years we’ve sponsored concerts by the foundation’s scholarship holders, held in the Kremlin Armoury, at which we award scholarships to the young talents. This year the initiative was supported by ZHASO Insurance Company, and we awarded scholarships to nine young musicians.

We continue to monitor our people’s opinion about our programmes. The 2010 Global People Survey shows that 84% of Russian respondents are satisfied with PwC’s corporate responsibility activities. Over the last year and a half, PwC Russia’s offices donated over RUB 10.5 million in cash and in gifts-in-kind. Our people donated almost RUB 4.5 million of their own money to charitable projects in the areas of child welfare, culture and education.


Universities PwC continued to expand its cooperation with Russian universities through active involvement in educating tomorrow’s responsible leaders.

In addition to our traditional means of cooperation, we’ve developed new formats aimed at consolidating successes and attaining better results. In particular:

• Our leading specialists from different departments put together and delivered lectures for master’s and bachelor’s programmes at Moscow State Institute of International Relations, the Higher School of Economics (HSE), Moscow State University (MSU), and the Finance University. Our employees gave about 1,550 hours of lectures.

• We engaged with student organisations, such as HSE’s Business Club and the Students League of Plekhanov University. Together with the HSE Business Club we delivered two master classes. We also held Economics Department Day at MSU and organised workshops and round tables with students as part of PwC Week.

• We’ve opened a PwC classroom at MSU to be used for regular classes and extracurricular activities run by PwC professionals. At the Ministry of Education’s request, we carried out an expert assessment of the Finance University’s master’s degree programmes, a testimony to our good reputation in the educational community. Our stakeholders recognise PwC’s engagement in the educational process, awarding the firm with certificates of merit on behalf of Moscow State University, the Finance University and Moscow State Institute of International Relations.

We’ve continued our project to provide university students with the opportunity to study for an ACCA qualification upon graduating from Moscow, Ekaterinburg, St Petersburg and Kazan universities. Over the past year and a half we signed documents on cooperation in the area of qualification exam preparation, including an agreement with Gorky Ural State University and letters of intent signed with the Finance University and Kazan (Privolzhsky) Federal University.

The Rectors Club continues to be an effective platform for maintaining dialogue between universities and employers. The club’s five meetings in the period were attended by representatives of seven leading Moscow and St Petersburg universities.


Challenges and plans for the future

Recognising the importance of our active involvement in educating and developing tomorrow’s leaders, the firm will continue building mutually beneficial, long-term relationships with the country’s universities and aligning these relationships with our business strategy.

Our next objective is to increase PwC’s volunteer involvement, which should strengthen the culture of corporate responsibility not only at PwC, but in the communities in which our employees live and work. We want to focus our efforts on several major projects so that we can achieve greater results. We’re seeking to better use our intellectual resources, engage volunteers in the Charity Committee’s work and implement a single programme in all the regions where we operate, while still taking into consideration local specifics.

We’re also expanding the geography of our cooperation as part of our regional expansion programme. In the reporting period we formed strong relationships and outlined cooperation plans with a number of regional universities: Kuban University, Kuban Agrarian University, Novosibirsk University, Novosibirsk University of Economics and Management, North Ossetia State University and Kazan (Privolzhsky) Federal University.

Our cooperation with business schools has also continued. In 2010 PwC global network President Dennis M. Nally spoke at a meeting of the Skolkovo International Advisory Board, and also participated in a meeting of the Advisory Board

of the Graduate School of Management at St Petersburg State University. In 2009 we helped support the creation of the Graduate School of Management’s Centre for Corporate Social Responsibility in order to conduct more extensive research into the topic and help prepare specialists in the field. PwC also actively supports the work of the New Economic School.

The Rectors Club continues to be an effective platform for maintaining dialogue between universities and employers. The club’s five meetings in the period were attended by representatives of seven leading Moscow and St Petersburg universities.


Environment

Our objectivesReducing our environmental impact continues to be one of our primary goals. PwC’s Moscow office has been running its Small Steps campaign for several years, and now our regional offices are taking part as well (please see the Small Steps section, as well as information about other initiatives in our 2009 Corporate Responsibility Report).


Environmental standards in the new office At the end of 2009, PwC’s Moscow office moved to a new building in the White Square Office Centre. This was the final stage of a major operation that began with the PwC project team taking part in the design and construction of the new building. One of our top priorities was making sure that the new office complied with the world’s most advanced environmental standards.

PwC took its cue from the world’s best examples of modern, environmentally friendly business centres:

• The office’s floors are made of recycled materials.

• Our office furniture is made of PVC-free (polyvinylchloride-free) materials.

• We do not use chemicals containing chlorine or chloroorganic compounds for office cleaning.

• We reduced plastic cup use by 90% by replacing them with paper ones made from recycled materials.

• The building’s WCs are stocked with 100% recycled paper products.

• A smart lighting system allows us to reduce our electricity use. In addition to having a positive environmental effect, it has also reduced our average monthly electricity bills (by sq m) by 47% thanks to the following:

– Traditional light bulbs account for only 10% of all light bulbs in the office. The luminescent bulbs in the office are of the latest generation of energy-saving bulbs.

– In some parts of the office, we use automated illumination control systems that include photo relays, motion sensors and presence detectors.

– The office is also equipped with seasonal lighting (the lights automatically go off at a pre-set time, but can be turned on manually).

In 2010, our office won an award for implementing innovative technologies, including those meant to protect the environment. About 80 offices in Moscow, St Petersburg, Kyiv and Samara participated in the competition.


The Green Team PwC employees play an active role in the firm’s environmental initiatives and are willing to go above and beyond for environmental protection.

The Green Team has outlined several directions to pursue, including delivering lectures on environmental issues for students and schoolchildren as part of PwC’s educational programmes, as well as providing informational support for green initiatives in the office.

The Green Team was established in 2010 and has had its first meeting to discuss areas of further activity.

Our savings We use large volumes of paper, but we have considerably reduced our consumption in recent years thanks to the Small Steps campaign. PwC has started sending documents electronically and introduced double-sided printing. The new office also has a controlled printing system. This means that when an employee sends a printing request to a network printer, they need to swipe their security pass card before the job will print. If the job has not been printed within a certain amount of time, the print request is automatically cancelled. This simple step has not only allowed the office to prevent large numbers of unclaimed documents from piling up near the printers and being sent straight to recycling, but has also provided for additional document security. We’ve set another ambitious goal for ourselves: 100% recycling of all paper purchased by PwC Russia offices. In the St Petersburg office, paper is collected for confidential shredding and then sent for recycling. In Kazan, the firm is in negotiations with companies who collect paper for recycling.

The Moscow office has special recycling bins for paper collection and further utilisation, with separate boxes provided for confidential and publicly-available documents.

Lastly, we continue to pursue a policy of on-line subscription instead of distributing printed publications, where possible.

Unfortunately, plastic recycling at PwC was discontinued due to the loss of the vendor. Currently, together with the landlord and other major tenants of the business centre, we’re looking for a reliable vendor to set up separate collection of packing materials and plastic. We’re actively exchanging ideas and contacts and are looking for environmentally friendly solutions in cooperation with more than 30 other companies.

The firm continues to measure the CO2 emissions of all its offices in Russia. A single methodology is being developed at the CEE regional level that would allow the entire region’s overall emissions to be measured, and PwC Russia is taking an active part in discussions.

• Implementing a pass-card printing system has reduced paper consumption by about 12%.

• The volume of our paper purchases went down by 12.72% as compared to the monthly average in the prior reporting period (FY09).

• We saved around 2,278 trees by recycling 132,934 tonnes of paper.

• Our average monthly electricity consumption was reduced by 7.87%.


Suppliers The procurement policy, meant to streamline all significant purchases through the firm’s procurement team, is being reviewed for compliance with Russian legislation and internal PwC procedures. Such a review was carried out twice in the last period, in August 2009 and in June 2010.

When we request quotes from suppliers and service providers, we also ask the biggest bidders about their corporate responsibility/environmental protection programmes.

PwC works with 21 suppliers with whom contracts have been signed for RUB 10 million or more per year. We have signed appendices regarding corporate responsibility with eight of them and are negotiating signing such appendices with others.

We’ve initiated the process of reviewing contracts with all existing suppliers with whom we’ve signed framework agreements. In the last 18 months, we received documents of incorporation from counterparties for 435 out of 553 contracts (79%), as compared to 23% during the previous period.

Challenges and plans for the future Some of our specific environmental goals have been described above (e.g., 100% recycling of all paper, selection of a reliable vendor for plastic collection and recycling, separate waste collection). Another goal is to have the amount of paper waste sent for recycling (directly or after shredding) match the amount of paper purchased as closely as possible. We’ll continue to develop a single methodology for measuring CO2 emission. We also aim to bolster the Green Team’s activities and get more people involved. As yet, we have been unable to make regular visits to orphanages to talk to the children about environment protection, but these trips are still very much on our agenda.

We also carried out more detailed reviews of contacts with 42 major suppliers (with contracts per supplier worth more than RUB 2.5 million per year). We have reviewed or are currently reviewing 18 contracts (42%), and this process will continue.

Use of public transport PwC recommends using express trains to travel to and from the airport. A reminder of this pops up each time a car booking is made, and train timetables are available on our internal website. During summer of 2010, PwC organised bicycle and scooter parking in the building’s garage.


People

Our objectivesThe main premise of this part of the report remains unchanged: at PwC Russia, our people are our most valuable asset. The corporate responsibility mindset as far as people are concerned is about considering the impact of management decisions on employee morale and motivation, treating all people with respect in a fair and transparent way, promoting diversity, creating a safe, cutting-edge working environment and, finally, developing the skills and competences required from responsible leaders.


Learning and developmentIt’s our responsibility to both our clients and our people to train and develop PwC employees so that they can realise their full potential and provide excellent service.

A survey of university graduates who joined PwC in August 2010 shows that learning and development options provided by an employer tend to be a deciding factor in choosing a future job.

PwC Russia implements innovative learning techniques and maintains its status as a learning management expert. We make extensive use of interactive distance learning (e-learning), which allows us to easily keep learning materials up to date and save time on training activities. The proportion of formal classroom training to e-learning is 5:1.

Apart from the internal training programmes across the three lines of service – Assurance Sunny Academy,

Tax Academy and Business Consulting University – PwC offers its employees training programmes aimed at developing their management and leadership potential.

All employees that received a promotion in 2010 were embraced by our milestone programmes. For these programmes, experienced PwC partners and external experts act as tutors, sharing their knowledge of best practices in international and Russian business, as well as their own personal experiences.

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Random choice

More opportunities to learn and develop

Reviwed the rating – PwC ranks higher than other firms I considered

I like the new office

More high-profile clients

Outbound secondments

I liked the people better

Why did you choose PwC? (August 2010)

• According to ACCA, our training pro-grammes for ACCA qualification are regarded as the most successful in Russia: we achieved a pass rate of 64% during the most recent examination period.

• In 2010, 25 people joined a new training programme developed by the Institute of Chartered Accountants in England and Wales for the Certificate in Finance, Accounting and Business. Some 80% of the students passed their first exams under this programme successfully.

Highlights of the past 18 months:

• We built up a team of 98 tutors from among our most experienced and high-performing professionals.

• In 2010, our internal training programmes were accredited by the Russian Audit Chamber’s Insti-tute of Continuing Professional Education.

• In 2010, over 850 employees were studying for an ACCA qualification. After the 2010 summer examination session, 45 employees became new affiliates or licence holders, which is a record-high pass rate. In 2010, a total of 77 employees obtained an ACCA qualification.


PwC applies innovative leadership development methodologies. One of the most effective technologies is the programme of personal coaching and development aimed at improving performance and increasing people’s potential. Coaching is an integral part of team management. We organise special training programmes to improve the coaching culture and carry out annual assessments of coaches’ performance.

On the CEE regional level we have programmes targeted at developing the leadership potential of high-performing managers. In the reporting period, 20 employees from Russia joined the Apollo and Leadership Challenge programmes. Genesis Park also continues to bear fruit. We described these programmes at length in our previous report.

Leadership programmes

Nadezhda Merkusheva, auditor, Genesis Park participant in 2010: “Genesis Park is not just another PwC leadership programme; it’s a three-step process for developing PwC’s future leaders. The process includes 1) raising self-awareness and developing authentic leadership qualities and skills, 2) building a network of global contacts and developing a strategic mindset, and 3) understanding that PwC is full of opportunities and a place where you can truly realise your potential!”


You can find detailed information about the firm’s efforts in this area in the relevant section of our 2009 CR Report. In the reporting period, the firm continued to focus on encouraging the healthy, balanced lifestyle of its employees. The move to the new office brought new efforts to improve staff well-being. Significant office space is allocated to leisure, with a special Wellness Area equipped with massage chairs, an office for a GP and specialist doctors, as well as a shower room, a relaxation room and space for yoga classes.

Well-being

Creating opportunities for people to gain experience working in other offices, regions and territories is an important area of PwC Russia’s people development strategy. Staff mobility is one of the firm’s success factors. Over the last period, 15 people relocated to work in other PwC offices in Russia, while 49 went on outbound secondments.

Global Mobility


A robust feedback cycle is critical to being a responsible employer. We’re continually analysing and improving our communication channels.

The most important and comprehensive of these is the Global People Survey (GPS). The response rate for the 2010 GPS in PwC Russia was 83%, which is higher than in 2009, when we had a response rate of 62%. The People Engagement Index – a combination of perceptions including satisfaction, commitment, pride, loyalty, a sense of personal responsibility, and willingness to be an advocate for the organisation – was seven percent lower than the 2009 level, but higher than the PwC CEE regional result by five percent. Undoubtedly, this index was influenced both by the economic climate in general and by the fact that the employee response rate rose by a quarter against the prior year. However, the firm’s management is not inclined to simply write this off to the economic downturn and sees improving the People Engagement Index as one of its aims.

One of the main areas for improvement based on the 2009 GPS results was the development of clear, honest and transparent communications at all levels. We’ve created new communications forums, including open meetings between partners and staff to discuss topical issues like the firm’s strategy and its implementation, priority projects, career development and the reward system.

Our whole system of internal communications has become more dynamic. With the help of our internal TV screens we deliver information to employees ‘live’ via interviews with staff and prompt posting of the latest news.

Based on the 2010 GPS results, we’ve identified three priority areas for improvement. These are:

• developing a coaching culture;• promotion and reward of high performance;• developing leadership skills at all levels of our

organisation.

PwC Russia prides itself on its reputation for doing business with integrity. Our ethics policy and Code of Conduct help us strengthen our clients’ and our people’s trust in us.

In late 2010, we organised an Ethics Week that addressed, among other things, building effective and respectful relationships in teams. During Ethics Week, our in-house TV featured six interviews with the firm’s employees on issues related to team work and coaching. The week ended with an open meeting at which PwC Russia’s Ethics leader answered questions on ethics and business conduct.

We engage staff who were nominated as Ethics Champions in ethics and business conduct-related workshops, communications and consultations. Our Ethics Champions held 16 mandatory ethics and business conduct workshops targeting employees promoted to senior consultant and manager positions.

In the 2010 GPS, 79% of employees agreed with the statement “People in my group display and actively promote high standards of business conduct in accordance with the PwC Code of Conduct”. This is higher than last year.

We have a whistleblower system in place and employees can report potential ethics violations by contacting an Ethics Champion, calling the internal Ethics Helpline or using an anonymous email address. Complaints are reviewed and appropriate actions are taken in response. The Ethics Committee leader reports to the Operations Committee on a quarterly basis.

Communication

Ethics


PwC Russia’s commitment to achieving diversity is reflected in our recruitment policy and learning and development curriculum.

We continue to recruit from a wide range of faculties and universities. For example, in 2010 we recruited graduates for our Assurance line of service from 74 Russian universities and some overseas institutes. The share of graduates from regional universities is growing; in 2010 half of the young auditors beginning their career in PwC Russia’s Assurance practice were graduates from Moscow universities, while the other half came from regional ones.

We regard team work and cultural exchanges between people from different backgrounds as one of our priorities. Graduates’ training and professional integration is one of our priorities for the next 2-3 years.

We continue to focus on helping women progress to leadership positions. In 2010, two female partners were elected to the PwC Russia Operations Committee, and one female partner was elected to the regional CEE Operations Committee.

The firm’s strategic focus as far as its people are concerned is turning PwC into a distinctive firm where each and every one of its staff can say with confidence, “My relationship with PwC helps create the value I’m looking for.”

In 2010 we set ourselves a number of tasks: to improve our reward system, internal communications, coaching culture and professional development, and to achieve greater consistency in management actions.

We are changing for the better in a process of continuous improvement – this is the way of life at PwC.


Apart from Russian partners, PwC Russia has partners from 10 countries: Australia, Canada, France, Germany, Ireland, New Zealand, South Africa, Switzerland, the United Kingdom and the USA.

Diversity

As of 31 December 2010, we had 150 expatriate staff members from 36 different countries (6.79% of our workforce).


Marketplace

Our objectivesIn this area, our goals remained the same: to build and sustain long-term relationships in order to maintain our leading position in the marketplace. We deliver high-quality services, develop innovative solutions and support the development of sustainable business practices that help our clients to grow and strengthen their business. PwC contributes to shaping a competitive economy by facilitating the greater transparency and effectiveness of companies in Russia.

In 2009, PwC celebrated 20 years in Russia. We marked this anniversary with an official reception for clients and by occupying the top position in ratings of audit and consulting companies. In the spring of 2010, we received the results of the Big Four brand health survey, conducted by an independent agency, which confirmed that our brand was the most highly recognisable and differentiated in Russia.

.


We retained our leadership position, though the last 18 months were difficult for Russian business. The economic slowdown forced companies to adjust their demand for professional services. Where the total demand for our services did not change significantly, we experienced price pressure. However, the market pressure didn’t affect our approach to the quality of our services or make us less attentive to client needs. To a certain extent, it prompted us to look for new solutions and services. As such, why our work during the past 18 months was marked by innovations, which corresponds with general economic trends in the country.

The Russian government has set a new strategic direction in the country’s development: modernisation and putting the economy on the road to innovation. In July 2009, in response to this initiative Dennis M. Nally, President of PwC’s global network, announced the opening of a PwC Centre for Technology and Innovation (CTI) in Russia during a meeting between Russian President Dmitry Medvedev and US President Barack Obama about business issues. The PwC Centre for Technology and Innovation in Silicon Valley has been around for over 20 years and is known for providing expert knowledge on new technologies. We held a number of meetings with stakeholders to ensure that our Russian CTI becomes an integral part of Russia’s innovation programme. As a result of these meetings,

we identified several areas of work: publishing a Russian edition of our Technology Forecast, conducting research and issuing reports, taking part in forums on innovation and providing advice on innovative development.

At the request of the Russian Presidential Administration we published a report on tax, financial and legal incentives for innovation in 11 countries.

Together with the Russian Venture Corporation (RVC), ROSNANO and the Russian New Economic School we conducted a survey on the major barriers to innovation and modernisation in Russia. PwC works with Russia’s regions to develop innovation clusters. The firm has become the coordinator of the Expert Group for Reforming Russian Legislation to Promote Innovation for the State Duma’s Committee for Economy and Entrepreneurship. In November 2010, PwC signed a Memorandum of Cooperation with RVC on training programmes for start-ups (fast-growing new companies, primarily in high-tech sectors). We’re advisors on the Skolkovo project and have engaged top international experts for it.

In our estimates, our total investments in developing Russia’s innovation economy amounted to about 1 million US dollars in the reporting period.

Shaping the public agenda


In its dialogue with regulators, PwC uses different channels of communication, from participating in their briefings, surveys, delegations and projects to providing advice and sharing global best practices. We’re active members of the committees and commissions of the Council for Audit Activities at the Russian Finance Ministry and the Russian Audit Chamber.

One of the innovative plans of the past year was to create an International Financial Centre (IFC) in Moscow. PwC joined this activity by developing a road map and engaging our professionals in the Working Group at the Russian Federation Presidential Council on Developing Russia’s Financial Markets.

Dennis M. Nally has joined the International Advisory Council on Establishing and Developing an International Financial Centre in the Russian Federation.

In June 2010, in cooperation with the St Petersburg International Economic Forum, we implemented an innovative marketing project.

Especially for the forum, PwC developed the Deep Dive website (deepdive.forumspb.com), a unique intellectual product providing delegates with real-time access to analytical information. PwC also set up knowledge cafes for forum participants where they could find materials on the key forum topics.

PwC continues to issue Thought Leadership reports to sustain knowledge sharing with the business community and monitor industry trends. During the past period, we issued about 130 such publications.

PwC also supported an international conference celebrating the 20th anniversary of the Federal Tax Service in November 2010. In the last 18 months, PwC has organised and participated in more than 500 events.

Thought Leadership

Working with regulators


During interviews that we conducted in parallel with our brand research, our clients (CEOs and CFOs of major companies) told us how useful they find seminars and conferences organised by PwC. The same survey showed that we need to talk to our clients in simple and comprehensible language, and at the same time understand their expectations and explain how we can achieve their goals together with them.

PwC’s rebranding, launched in October 2010, was to a large extent brought about by client feedback. We changed not only the visual component of our brand; now our communication with clients is becoming simpler and clearer, we’re trying to listen more, and we’re more than ever focused on achieving the results our clients expect. We’re doing a lot within the firm in order to comply with the new brand standards.

In order to have an objective picture of our strengths and weaknesses with regard to our client service, five years ago we introduced an annual client feedback programme. In 2010, we sent 161 feedback requests to our key customers; of the 58 responses received, 86% gave PwC a positive appraisal. According to our Client Feedback Survey, in 2009 PwC Russia’s loyalty score was 8.3 out of 10, which, as in the previous period, falls in the ‘good’ range.

This information has helped us to proactively respond to the market, and we did not reduce the intensity of our communication with clients in this difficult economic period. We focused our efforts on areas of key importance for the country and business, coming forward with innovative ideas and solutions.

Dialogue with clients

O.M. Konovalova, Deputy Director of the Department, head of control division of NOMOS Bank: “I highly appreciate and respect the work done by you and your colleagues. I always go through your materials with interest (including the marketing materials you presented at the forum). Thanks to your efforts we have a chance not only to network, but to discuss the hot topics raised in research materials and publications issued by banking sector experts.”

Z.F. Garaev, First Deputy Board Chairman, AK BARS Bank: “Workshops devoted to IFRS theory and practice raised our staff’s qualification to a qualitatively new level and the new knowledge was implemented in our work.”


You can find detailed information about this in the Marketplace section of our 2009 Corporate Responsibility Report.

Following our five-year collaboration with the Independent Directors Association, in 2010 PwC has started to develop its own programme for independent directors. Economic recovery after the recession required businesses to become more transparent and comply with stricter corporate governance standards.

Regardless of the downturn, we were no less active in promoting corporate responsibility. In collaboration with the newspaper Vedomosti and the Donors

Forum we continued to support the corporate philanthropy rating. Last year the rating attracted more companies, we held a preliminary training for

participants, and the final conference brought together over 150 people.

We maintain an active dialogue with former PwC staff and the mass media. We launched the PwC Connect website, a social network developed to provide former and current staff with a simple and convenient way of communicating about work and other topics of interest.

Dialogue with alumni

Professional and business associations

Business associations of which PwC is a member can be found in Attachment 4.


In making plans for the next period, we will continue to focus on building the new innovation economy, developing the financial market and creating an International Financial Centre in Moscow. We’ll continue to engage international specialists to help solve important issues in Russia. Without lowering the quality of services for our major clients, we plan to develop an approach for working with medium-size private companies to provide them with access to top-quality services. We’ll continue to contribute to regional development and plan to open offices in two more Russian cities.


During the past 18 months, we held 15 press events, and our share of voice among the Big Four was more than one third. PwC attracted 329 positive publications, making us the highest rated of the Big Four.

Dialogue with mass media


Attachment 1

PwC Russia’s ratings and awards received in 2010• Leader in audit and consulting services in Russia by revenue, Expert RA rating agency,

March 2010

• PwC Russia’s legal practice, PricewaterhouseCoopers Legal CIS B.V., was recommended by the Legal 500 rating of leading Russian law firms

• Russian Transfer Pricing Firm of the Year 2010 and Transfer Pricing Firm of the Year in Europe 2010, International Tax Review magazine, May 2010

• Best tax practice in Russia, World Finance magazine, 2009

• Russian lead financial advisor of 2009, Acquisitions Monthly magazine, 2009

• No. 1 in the IPO Auditor rating in terms of number and volume of deals for 2009, the ReDeal analytical group within the offerings.ru project

• The Femida Award in the category Audit for high standards of legal practice in the Russian Federation, professional independence and its contribution to the development of the business community and rule of law

• Russian Lead Insurance Auditor and Advisor for the 2009 All-Russia Gold Salamander insurance award

• The largest employer of young professionals 2009 in the first Business and Higher Education Partnership rating by the Russian Rectors’ Union (RRU)

• No. 1 in the rating TOP 50 Dream Employers for young professionals among audit and consultancy firms based on 2010 results, published by the newspaper Aktsiya


Attachment 2

Key stakeholders Stakeholder Areas for cooperation Channels for cooperation

People (current, former and potential employees)

• Job and retention guarantees • Career growth and prospects• Ethics issues

• Global People Survey • Internal corporate intranet • Focus groups• Coaching• Ethics Committee• Alumni Club events

Clients • Business practices: challenges and opportunities

• Satisfaction with PwC service quality

• Client feedback survey• Brand health index• Senior partner review visits • Regular meetings

Suppliers • PwC’s CR strategy and requirements for suppliers

• Supplier challenges• CR knowledge exchange

• Workshops• Regular meetings

Government authorities and regulators

• Legal and regulatory framework• New or revised legislation

• Regular meetings• Work groups (led by PwC)• Participation in professional

organisations

Universities • Assistance to students in obtaining professional qualifications

• Education of tomorrow’s responsible leaders

• Opportunities for graduates

• Rectors Club• Lectures

Local communities, NGOs • Local communities’ needs• Use of PwC staff’s knowledge and

experience to meet community needs

• Charity events• Volunteering• Enhanced efficiency of NGOs

Business and professional associations

• Issues of mutual interest• Shaping the public agenda

• Active involvement• Lead role in working groups and

committees

Mass media • Need for relevant information • Importance of understanding business

issues and PwC’s position

• Training for journalists on business hot topics

• Press conferences on business trends


Attachment 3

NGOs that PwC supports Name Description

Big Brothers Big Sisters of Russia A one-to-one mentoring programme for at-risk children

Maria’s Children Art Center Helping orphaned children with special needs become full members of society by supporting their social, psychological and intellectual rehabilitation through various creative activities

Dobro Autistic Children's Aid Society Creating and developing a system for helping people with autism in Russia

Yuny Spartakovets Children's sport club

The Circle Developing tolerance and cooperation in children and adults

Diema's Dream Providing financial, medical and educational support for physically and mentally disabled children in Russia

Leo Tolstoy Museum-Estate Yasnaya Polyana (including the town of Krapivna)

Restoring the unique cultural milieu of Leo Tolstoy's life and times

The Vladimir Spivakov International Charity Foundation

Supporting talented young musicians, artists and dancers

Tchaikovsky Symphony Orchestra of Moscow

Supporting cultural education projects and talented children

Junior Achievement Russia Developing and promoting JA's business and economic educational programmes for youth through partnership between the business and educational communities

Partners in Hope - Big Change project Supporting Russian NGOs that work with vulnerable children and their families

Downside Up Supporting families and state and non-profit organisations in teaching, raising and integrating children with Down syndrome into society

Charities Aid Foundation Russia Working to raise donations, create favourable conditions for philanthropy's development, and provide assistance to charity organisations and their supporters

Russian Orphan Opportunity Fund Providing graduates of children's homes with high-quality education free of charge (both academic and life skills)

Sofia Foundation Helping our neighbours and promoting society's spiritual traditions

Podari Zhizn Helping children with cancer, blood diseases, and other serious illnesses

Liniya Zhizni Reducing the rate of child death from illnesses that could be treated with modern medicine

A Chance to Work project Providing 18 to 28 year-olds that graduated from children's homes with basic training in non-commercial organisations as well as practice in companies that participate in the project


Attachment 4

Business associations of which PwC is a member

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Association of European Businesses (AEB)

Canada Eurasia Russia Business Association (CERBA)

American Chamber of Commerce (AmCham)

Independent Directors Association (IDA)

Russian Managers Association (AMR)

U.S.-Russia Business Council (USRBC)

Russo-British Chamber of Commerce (RBCC)

Russian Union of Industrialists and Entrepreneurs (RSPP)

Russian-German Chamber of Commerce (AHK)

Japanese Business Club

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American Chamber of Commerce St Petersburg Chapter (AmCham)

St Petersburg International Business Association (SPIBA)

Association of Businesses and Entrepreneurs of the Republic of Tatarstan

Chamber of Commerce and Industry of the Republic of Tatarstan

Leningrad Region Chamber of Commerce

St Petersburg Audit Chamber

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Russian Private Equity and Venture Capital Association (RVCA)

Russian Audit Chamber (RAC)

Institute of Internal Auditors (IIA)

Association of Certified Fraud Examiners (ACFE)

Association of International Pharmaceutical Manufacturers (AIPM)

Association of Russian Banks (ARB)

Cambridge Energy Research Associates, Inc. (CERA)

International Business Leaders Forum (IBLF)

Mining Advisory Council (MAC)

Russian Insurance Association (All)

Urban Land Institute (ULI)

Guild of Actuaries


GRI Content Index

GRIIndex

Description Commentary and/or cross references Reported1 Page in report

1. Strategy and analysis

1.1 Statement from the most senior decision-maker of the organisation about the relevance of sustainability to the organisation and its strategy.

Letter from the Managing Partner of PwC Russia

+ 5

1.2 Description of key impacts, risks, and opportunities. Our CR agenda, Four main CR focus areas ± 8

2. Organisational profile

2.1 Name of the organisation. Glossary of terms + 42

2.2 Primary brands, products, and/or services. PwC Russia: A few facts and figures + 6

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Glossary of terms + 42

2.4 Location of organisation's headquarters. Contact information + 44

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

The report covers only Russia and cities in Russia: Moscow, St Petersburg, Ekaterinburg and Kazan

+ 43

2.6 Nature of ownership and legal form. Private, Glossary of terms + 43

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

PwC Russia: A few facts and figures; cities in Russia: Moscow, St Petersburg, Ekaterinburg and Kazan

+ 6, 43

2.8 Scale of the reporting organization. PwC Russia: A few facts and figures ± 6

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

No significant changes in the reporting period

+

2.10 Awards received in the reporting period. Attachment 1 + 34

3. Report parameters

REPORT PROFILE

3.1 Reporting period (e.g., fiscal/calendar year) for information provided.

Our report + 11

3.2 Date of most recent previous report (if any). Our previous report, covering the 2009 financial year (from 1 July 2008 to 30 June 2009), was published 31 March 2010

+

3.3 Reporting cycle (annual, biennial, etc.) Our report + 11

3.4 Contact point for questions regarding the report or its contents.

Contact information + 44

REPORT SCOPE AND BOUNDARY

3.5 Process for defining report content. Our CR agenda, Four main CR focus areas ± 8

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).

Cities in Russia: Moscow, St Petersburg, Ekaterinburg and Kazan

+ 6

3.7 State any specific limitations on the scope or boundary of the report.

Cities in Russia: Moscow, St Petersburg, Ekaterinburg and Kazan

+ 6

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

The report reflects the activities of PwC Russia

+

+ Fully reported ± Partially reported– Omitted

Standard disclosures: Profile disclosures


GRIIndex


3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

We used PwC Russia’s internal methods for collecting information, for example, HR policy, financial reporting, etc.

±

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

No restatements of information +

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

No significant changes +

GRI CONTENT INDEx

3.12 Table identifying the location of the Standard Disclosures in the report.

GRI Content Index + 38

ASSURANCE

3.13 Policy and current practice with regard to seeking external assurance for the report.

External assurance not planned

4. Governance, Commitments, and Engagement

GOVERNANCE

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

Not applicable -

4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organisation’s management and the reasons for this arrangement).

Not applicable -

4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

Not applicable -

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Communication + 26

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance).

We have a set of KPIs for this +

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

PwC Russia has procedures for checking and identifying potential conflicts (relationship checks) along with procedures to prevent and avoid conflicts of interest in projects (strict confidentiality, division of teams working on different projects, etc.)

+

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Introduction, Corporate responsibility, Our CR agenda, Four main CR focus areas, Community, Environment, People, Marketplace

+ 5, 8, 9, 12, 18, 22, 28


GRIIndex


4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance.

People section - 22

COMMITMENTS TO ExTERNAL INITIATIVES

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.

PwC Russia’s risk management procedures cover all aspects of PwC’s activities and are aimed at mitigating various types of risk.

+

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

PwC participates in associations and other organisations whose goals is to promote investment and economic development

+

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations.

Attachment 4PwC participates in associations and other organisations whose goals is to promote investment and economic development

+ 37

STAKEhOLDER ENGAGEMENT

4.14 List of stakeholder groups engaged by the organization. Attachment 2 35

4.15 Basis for identification and selection of stakeholders with whom to engage.

Attachment 2 35

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Attachment 2 35

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Annual Client Feedback Programme, Global People Survey

+

5. Disclosures on Management Approach and Performance Indicators

ECONOMIC

Market presence

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Environment section ± 18

Indirect economic impacts

ЕС8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Community section ± 12

ENVIRONMENTAL

Energy

EN5 Energy saved due to conservation and efficiency improvements.


EN7 Initiatives to reduce indirect energy consumption and reductions achieved.


Products and services

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.


Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

PwC did not incur significant fines or non-money sanctions for non-compliance with environmental laws and regulations in the reporting period.

+

Overall

EN30 Total environmental protection expenditures and investments by type.

Not applicable, since PwC is not the owner of its office buildings

SOCIAL: LABOR PRACTICES AND DECENT WORK

Employment

LA1 Total workforce by employment type, employment contract, and region.

2031 permanent employees, 179 temporary employees, of which 7 work under service contracts

±

LA2 Total number and rate of employee turnover by age group, gender, and region.

People section ± 5, 22


GRIIndex


Training and education

LA10 Average hours of training per year per employee by employee category.

Average hours of training per year per employee by employee category: • Assistant managers and below -

100 hours• Managers and above - 84 hours• Average hours of e-learning per

employee - 17• Average hours of language study per

employee - 4• Average hours of professional

qualifications study per employee - 67

± 5, 24

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

+ 22

LA12 Percentage of employees receiving regular performance and career development reviews.

100% +

SOCIAL: hUMAN RIGhTS

Non-discrimination

hR4 Total number of incidents of discrimination and actions taken. People section +

SOCIAL: SOCIETY

Corruption

SO4 Actions taken in response to incidents of corruption. No incidents identified in the reporting period.

+

Compliance

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

PwC did not incur significant fines or non-money sanctions for non-compliance with laws and regulations in the reporting period.

+

SOCIAL: PRODUCT RESPONSIBILITY

Customer privacy

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

As of the time of printing, not one of the PwC firms had received any complaints regarding breaches of customer privacy or losses of customer data. We have a system for receiving, considering and processing these kinds of complaints. We also have an internal department that implements solutions for protecting personal data and other confidential information.

+

С С+ B B+ A A+

Man

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Self declared 4

Rep

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Rep

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Rep

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GRI checked

GRI Application Level

Glossary of terms ACCA Association of Chartered Certified Accountants

Apollo A modular programme for developing critical capabilities in areas such as leadership, client relationships, people management and market strategy

Assurance Sunny Academy Annual professional training for PwC auditors that have worked with the firm for over a year. This training is held abroad. Participants enrich their knowledge of accounting and audit, learn about amendments to IFRS, and receive a continuing education certificate

Business Consulting University A series of four or five international training events conducted in different countries. The university is the main training component for developing the specialised knowledge and skills required in advisory and consulting work. Each event includes more than 40 different courses run in parallel over the course of a week, as well as a number of meetings aimed at internal networking

Centre for Technology and Innovation (CTI)

The CTI was created in 2009 to facilitate new technologies and innovations in the Russian market. An international team of leading PwC specialists help work out strategies and a system for stimulating innovation within companies, sectors and regions

Central Cluster A division of the PwC global network that includes the UK, continental Europe, the Middle East, India, Pakistan, Sri Lanka, Africa, the Channel Islands, Gibraltar, Iceland and the Isle of Man

Charity Club A club established by PwC in 2008 to provide non-governmental organisations and members of the business community with a platform to discuss issues and share experiences in the area of corporate philanthropy

Charity Committee PwC Russia’s committee that decides the firm’s CR strategy and which projects to support. It comprises three subcommittees: children, culture and education

Charity Instead of Gifts An initiative started by PwC and supported by the Russian business community under which funds that were originally allocated for corporate gifts to clients are instead donated to charity

Client Feedback Programme (CFP)

A programme aimed at encouraging meaningful conversations with clients in order to strengthen our relationships and improve the quality of services. The CFP focuses on measuring a client's loyalty to PwC via an online survey and senior partner review visits. This loyalty score is one of our KPIs

Code of Conduct PwC global guidance on standards of integrity and business conduct

Connected to Russia PwC Russia’s corporate philanthropy programme

Deep Dive Deep Dive (deepdive.forumspb.com) is a website development by PwC as a knowledge resource for economic forums for which PwC is a knowledge partner. Through the Deep Dive website, forum participants can receive information about the sessions as well as learn about key trends and analysis in Fast Facts – a short, easy to digest format presenting up-to-date information on the global economy

Ethics Champions A network of senior staff members who serve as role models and first points of contact for our people when they have questions about ethics or the Code of Conduct

Ethics Committee PwC Russia’s committee responsible for reviewing ethics complaints and building a strong corporate culture based on PwC’s corporate values, integrity, respect and social responsibility

Ethics Helpline Our whistleblower system: an internal telephone line and an anonymous e-mail address for partners and staff to raise ethical issues, report alleged improprieties, or seek guidance on ethics and business conduct



Genesis Park An international project for developing leadership skills, enabling our best employees to develop their professional skills and become outstanding leaders more quickly. Thanks to the programme’s length, the multinational make-up of the participants and the attention to matters of business and personal development, Genesis Park provides participants with unique opportunities to grow

Global Compact The United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption

Global Mobility PwC’s programme that finds global placements for talented staff to support career progression, personal development, cultural awareness, global networking and relationship building, as well as to provide the opportunity to live, work and travel abroad

Global People Survey (GPS) PwC’s annual employee survey, which provides the firm with critical information about how our people feel about working at PwC and what their priorities are. It provides an opportunity for everyone to have their say and for the leaders to gain essential information upon which to act and base future decisions

Global Reporting Initiative G3 Guidelines (GRI G3)

A set of reporting principles that organisations can use to measure and report on their economic, environmental and social performance

Key performance indicator (KPI)

A quantifiable measure or statistic that measures progress towards goals and helps to identify areas for improvement

Leadership Challenge A specially designed long-term programme for developing future PwC leaders

Operations Committee (Ops Com)

Committee consisting of senior partners of PwC

Personal Coaching and Development (PC&D)

PwC’s approach to managing staff performance through regular coaching on an individual basis, as well as a process through which the top management can appraise its own performance in relation to the economic, environmental and social performance of the organisation

PwC PricewaterhouseCoopers and PwC refer to member firms of PricewaterhouseCoopers International Limited. There are several member firms operating in Russia – for example, ZAO PricewaterhouseCoopers Audit and its affiliates PricewaterhouseCoopers Russia B.V. (the Netherlands) and PricewaterhouseCoopers Legal CIS B.V. (the Netherlands)

PwC Connect A social networking website specially created for PwC employees and alumni where they can discuss professional and other matters

PwC Experience The PwC Experience is our commitment to making PwC distinctive by consistently exhibiting behaviours that facilitate the success of our clients and people. It is one of the PwC network’s most important priorities

Rectors Club An open platform for dialogue between PwC and leading universities

Social inclusion Ensuring the marginalised and those living in poverty have greater participation in the decision-making which affects their lives, allowing them to improve their living standards and their overall well-being

Stakeholders Groups or individuals who affect or can be affected by PwC’s activities: employees (past, present and future), clients, suppliers, the government and regulatory agencies, universities, local communities, NGOs, professional and business associations, the mass media

Tax Academy A four-year development programme aimed at developing recent graduates into tax professionals that combines technical and soft skills modules and includes regular tests and assessments

Thought Leadership (TL) Surveys, reports, analysis and business forecasts presenting PwC’s outlook on important market trends and business events

Your Connection (YC) PwC Russia’s internal intranet portal

© 2011 ZAO PricewaterhouseCoopers Audit and PricewaterhouseCoopers Russia B.V. All rights reserved.In this document “PwC” refers jointly to ZAO PricewaterhouseCoopers Audit and PricewaterhouseCoopers Russia B.V. or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate legal entity.

Contact information Please send your feedback and suggestions to Lioudmila Mamet, PwC CEE Corporate Responsibility Leader, by e-mail: [email protected]

Or to Anna Aristova, CR Program Manager, at [email protected]

Or to the address:10 Butyrsky Val, Moscow, Russia, 125047

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