Recognising the strategic value of integrity in business and sustainable development, JSC FPC endeavours to continuously enhance the effectiveness of its corporate governance framework, as well as the way in which decisions are made and the perspectives of every relevant stakeholder. The Company’s operations are guided by the principles of sustainable development, and all decisions — strategic, managerial, and operational — are made with these concepts in mind.
JSC FPC bases its development on the parent company’s acceptance of and adherence to the UN Global Compact principles, and it continuously enhances its internal corporate management institutions by embedding sustainable development principles into its current methods of operation. The sustainable development management system is an essential component of the Company’s general corporate management system, and the decision‑making process and operational activities successfully incorporate sustainable development concepts.
JSC FPC’s management structure for sustainable development has three tiers.
Strategic tier
Board of Directors' approval of key policies/documents in the area of sustainable development and control over their implementation: determination of approaches to organisation of the risk management system, reporting on risk monitoring, approval of core and functional strategies, determination of KPIs, approval of budget and investment programme
Management tier
Development of key policies/documents in the field of sustainable development to embed sustainable development principles into the Company's operational activities
Assigning the responsible subdivisions
Operational tier
Implementation of sustainable development solutions, preparation of reports
Key sustainable development decisions taken by the Board of Directors in 2023
Decision taken
Impact on sustainable development principles
UN SDGs
Updated draft Development Strategy of JSC FPC for the period until 2030 is preliminarily approved
Includes the implementation of the following ESG projects:
Procurement of carriages to ensure transport accessibility
Better energy efficiency and lower energy intensity of production activities
Digital emergency management system
Guaranteed traffic safety
Advance of the passenger service system on trains
Development of the motivation and social safety net system for the Company’s personnel
Creation of a favourable environment for labour and recreation of employees of wide‑spread professions
JSC FPC Investment Programme for 2023–2025 was approved
Projects on fleet renewal and upgrade of the existing rolling stock will improve safety indicators on railways by modernising obsolete and less reliable units of carriages in an effort to eliminate equipment failures while in transit, improving the technological process of repair and maintenance of passenger carriages, introducing more advanced and efficient technologies and technical means.
Digital HR, which aims to increase employee satisfaction with the Company’s HR services and improve HR management efficiency by implementing modern IT solutions.
Depot infrastructure development projects aimed at improving the work environment for employees
A number of corporate governance documents were approved
In 2023, the Company continued to improve its regulatory framework in order to maintain progress in adhering to the principles of the Corporate Governance Code and compliance with best practices.
Regulations on sponsorship and charitable activities of JSC FPC.
Code of Ethics of JSC FPC
Risk appetite for 2023 is approved and key risk register for 2023 is reviewed
The Company’s key risks include: Corruption Risk, Violation of Environmental Legislation, Acts of Unlawful Interference in long‑distance trains made up by JSC FPC and Risk of Violation of Industrial Safety Requirements. All of the above risks have zero tolerance.
Compliance‑related risk appetite statement is drafted, which covers nine areas, including environmental, occupational, industrial and fire safety risks
KPIs for the Company's operations and management are approved
Ensuring Good Corporate Governance Practices is a functional KPI of General Director
A new organisational and staffing structure was approved
A quality management vertical function was introduced into the organisational structure.
By improving the quality of its passenger services, JSC FPC will be able to satisfy the demands of the present‑day Russian passenger transport market. The vertical function will also focus on streamlining internal processes such as train preparation, repair and procurement, which will contribute to reducing process upsets and reject costs, optimising value chains and rolling out the lean production system
Structure of Sustainable Development Management at JSC FPC