Since 2003, ݮƵ corporate evaluation system based on key performance indicators (KPIs) is in place. KPIs demonstrate the level of achievement of the Company's strategic goals and success factors, taking into account industry specifics. These indicators are used to manage the performance of the ݮƵ Group, business segments, and individual assets.
The corporate performance assessment system is governed by the following local regulations:
Regulations on the corporate performance evaluation system within the ݮƵ Group, a document which sets out approaches and principles for forming KPIs;
List of Key Performance indicators, a document which sets a list of KPIs broken down by business segments, business sectors and budgeting units of the ݮƵ Group as well as describes the process of their calculation.
The List of KPIs contains about 70 unique indicators. It is approved by the chief executive officer of PJSC ݮƵ and revised once in two years. The set of KPIs is adjusted and updated as required to reflect changes in strategic goals and plans of the Company, its portfolio of assets and external environment, and other relevant events.
Performance assessment is carried out on a regular basis and includes the following stages:
monitoring current performance on a monthly basis;
quarterly and annual performance reviews.
Sustainability KPIs are included into the List of Key Performance Indicators that are used in planning, performance management and the personnel motivation system and apply to employees, top managers of PJSC ݮƵ and general directors of ݮƵ Group entities.
“Ensuring the Required HSE Levels at ݮƵ Group Entities”
To enhance the responsibility for the observance of the health, safety and environment requirements, the list of KPIs of the ݮƵ Group also includes a consolidated HSE indicator. This indicator encompasses the following metrics:
no fatal accidents resulting from the fault of the employer, including accidents involving contractor personnel;
lost time accident frequency rate (LTAFR);
polluting emissions per unit of production;
discharge of polluted waste water per unit of production;
ratio of waste recycled to waste generated during the year;
compliance of the HSE management system with the requirements of international standards, etc.
Points resulting from assessing the level of health, safety and environment are used in the motivation system for managers of all levels, workers and office employees.
General directors of ݮƵ Group entities receive their quarterly bonuses only if there were no fatal incidents involving their employees in the reporting quarter. Another important criterion is that there should be no accidents and incidents resulting in a material damage to property or facility downtime for more than 30 days. In case of the above situations, entities of the Group earn the maximum number of penalty points.
The unit weight of this KPI in the system of annual bonuses for managerial staff is 10% on average.
2. GHG emissions
3. The use of APG
4. Specific energy consumption / Energy intensity index
5. Free cash flow
6. Service level
7. Reliability of power supply
8. Implementation of the Energy Conservation Program
9. Thermal energy losses
