E-Cr Report Eng 14 PDF

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ru
Together towards
responsible leadership
PwC Corporate
Responsibility Report, 2014
Part of it
Contents
Message from PwC 2014

Russias Managing Partner Corporate Responsibility Responsible
Igor Lotakov p. 4 Our business p. 6 Report p. 8 business p. 10
Our corporate responsibility: objectives Corporate responsibility Our CR approach PwC Russia business framework
in 2014 governance
Stakeholders Responsible taxpayer
Our services Dialogue with clients
Our team Our relationship with suppliers
Our clients Contributing to the success of

the 2014 Winter Olympic and
Our achievements Paralympic Games in Sochi
Olympic Reward
Thought leadership
Using the intellectual legacy
of Sochi 2014 in other national
projects
Working with regulators
Fostering cooperation with
regional authorities and
businesses
PwC Global CEO Survey
Corporate governance
framework in Russia: shaping
the public agenda
PwC serves as Knowledge
Partner of the St Petersburg
International Economic Forum
2 PwC
Community Diversity and Environmental
engagement p. 18 inclusion p. 24 stewardship p. 28 Appendixes p. 31
Leaders in Corporate Women's leadership programme Reducing impact on Appendix 1.

Philanthropy the environment Key performance indicators
People with reduced capabilities
Supporting educational PwC participation in eco-events in Appendix 2.
programmes and cooperating Listening to our people 2014 Business associations
with universities
Leadership development Appendix 3.
Helping people in need Non-profit organisations
of serious assistance Personnel learning
and development Appendix 4.
PwC engagements in corporate Possible risks with potential
charity in 2014 impact on PwCs activities
GRI Content Index
PwC Corporate Responsibility Report, 2014 3

Message from PwC Russias Managing
Partner Igor Lotakov
I would like to draw your attention to the most critical

areas of responsibility for any company that respects itself
and the country it operates in. Firstly, this is complete
compliance with legislation on taxes, levies, and other
mandatory payments to non-budgetary insurance funds.
Secondly, corporate responsibility calls for persistent efforts
to train talent.
Igor Lotakov
Managing Partner,
PwC Russia
I am pleased to present the sixth PwC Firstly, this is complete compliance with all cities where we have a presence
Russia Corporate Responsibility Report. legislation on taxes, levies, and other St Petersburg, Ekaterinburg, Kazan,
I hope that the sheer amount of facts mandatory payments to non-budgetary Novosibirsk, Rostov-on-Don, Krasnodar,
and figures will not confuse you, but insurance funds. In 2014 alone, our Voronezh, Yuzhno-Sakhalinsk and
rather stir up genuine interest. contributions to the Russian treasury Vladikavkaz. A total of 2,600 people work
came to almost RUB 3 billion (RUB 2.951 in PwC Russias offices across the country.
Our corporate responsibility objectives billion, to be exact). Yet, we believe Expanding our regional footprint is our
in 2014 remained unchanged. At the there is more than just formal delivery top priority. In July 2015, we will open
same time, last year was rather unique. on obligations. If you want to be a our 11th Russian office in Ufa.
Firstly, PwC celebrated 25 years in the responsible taxpayer, you should demand
Russian market. the same from your counterparties, In PwC Russia, 95% of employees are
shareholders and employees. The size Russian citizens. Furthermore, our
We are also proud to have been selected of these payments and relevant details Assurance practice is run entirely by
as partner of the Sochi 2014 Organizing should never be hidden from the public! Russian citizens. At the same time, it is
Committee. We delivered significant Business should explore and absorb new very important for us and, I'm sure, for
value at each phase of the planning, standards of openness and responsibility. Russia, that we are a member firm of the
organising and staging these amazing I urge my colleagues to follow our PwC global network. With our global
Games. As part of our cooperation example. reach, we can share global best practices
with the Organizing Committee, we with our clients and improve their
carried out over 200 projects. More Secondly, corporate responsibility calls competitive position, both in Russia and
than 150 PwC people joined the for persistent efforts to train talent. abroad.
Organizing Committee team to provide Last year, we spent RUB 140 million
assistance throughout the entire Games on staff training and upskilling, with Achieving success in this area is also a
preparation time. a particular focus on young people huge responsibility.
and recent students. Over the past
You can find more details on the decade, our expenses in this area have
Olympic Games in the report below. approached RUB 1.5 billion. Many
I would like to draw your attention to professionals receive training at PwC and
some other matters. Primarily, these become leading experts at other Russian
are two of the most critical areas of companies.
responsibility for any company that Igor Lotakov
respects itself and the country it Furthermore, our training sessions Managing Partner,
operates in. are not only held in Moscow, but in PwC Russia
4 PwC
Our business
Corporate responsibility governance
In this document PricewaterhouseCoopers and PwC refer to the network of member firms of PricewaterhouseCoopers
International Limited (PwCIL). PwC in Russia is represented by several entities, including: ZAO PricewaterhouseCoopers
Audit, OOO PricewaterhouseCoopers Advisory, OOO PricewaterhouseCoopers Legal Services, NOU Corporate Training Centre
PricewaterhouseCoopers Expert and PricewaterhouseCoopers Russia B.V. (the Netherlands).
The head of each PwC Russia entity (CEO or Director) is responsible for the companys current operations and is accountable
to the Board of Directors and the general shareholders meeting.
The establishment and successful implementation of a corporate responsibility programme in alignment with PwC's overall
strategy is overseen and coordinated by a partner, who is vested with the proper authority.
As a member firm of the global network, PwC Russia follows common quality standards, business rules and PwC brand
building guidelines. In turn, this allows the firms to share their professional experience with maximum efficiency. In 2014,
International Data Corporation ranked PwC a World Leader in Business Consulting.
St Petersburg
Moscow
Voronezh
Rostov-on-Don
Kazan
Krasnodar
Vladikavkaz Ekaterinburg
Yuzhno-Sakhalinsk
Novosibirsk
2,600
Our team: people work at PwC Russia,
including approximately
100 partners running the firm.
Almost
Our services 36%

of the partners are women.
Audit and Assurance
Consulting Almost
Tax
Legal 1/4 of them work
in PwCs regional offices.
Deals
Forensic
Client training 30 years the average age of our staff.
6 PwC
Our clients Shareholders and top management of major companies
rely on us, including:
Our clients in Russia
include over 10 out of the 10 largest financial companies
2,000
and banks;
companies,
202 of which are in the 9 out of the 10 largest oil and gas companies;
Expert 400 rating.
8 out of the 10 largest power companies;

Our achievements 8 out of the 10 largest retail companies;
World Leader in Business Consulting,
IDC, 2014;
8 out of the 10 largest metallurgical companies;
Second largest audit and consulting group
in Russia (according to the Expert RA
ratings agency).
5
out of the 6 six largest telecommunication
companies.
I Beijing I Istanbul I Jakarta I Mexico City I Moscow I Mumbai I So Paulo I
Thought Leadership
Russian edition of the 18th PwC Annual Global CEO Survey While businesses in Russia are grappling with the crisis associated
with the turbulent global geopolitical situation, sanctions, ruble
2015
devaluation and lack of access to additional capital, directors need
to think big and to focus on not only surviving but thriving.
Seeing beyond
Survive, the crisis: the role
not thrive of Russian boards
PwC regularly publishes 1 322
Russian Boards Survey 2015
83%
research on issues relevant
CEOs from 77 countries
of companies reassess
101
their strategy
77%
to the Russian and
CEOs from Russia
of companies are focused
on operating performance
enhancement
55% From Moscow to So Paulo

international business
of companies focus more
Emerging 7 Cities Report 2014

on the local market
The ruble devaluation

and lack of access to
additional capital are A Cities of Opportunity special edition
communities, including:
key drivers of changes
to companies long-term
and medium-term plans
www.pwc.ru/boardsurvey
www.pwc.ru/ceosurvey/18
Annual global CEO Our Boards Survey The Cities of From Moscow to So Paulo.
surveys Opportunities series Emerging 7 Cities Report
Outlook insights
www.pwc.ru/totalretail2015 www.pwc.ru/crisis360
Gateway to growth: Banking

Outlook insights
Its how you play the game innovation in the oil An analysis of the Banana Skins
Matching a regions priorities with the
right megaor not so megaevent and gas industry Global entertainment and 2014 Inching towards
recovery
Russias current economic media outlook 2015 2019
April 2014
Total Retail 2015: downturn: a 360 view
Retailers How to adapt today to succeed
and the Age tomorrow
of Disruption
andmedia outlook 2015 2019
An analysis of the Global entertainment
June 2015
PwCs Annual
Global Total Retail
Consumer Survey
May 2015
CSFI
Centre for the Study of
Financial Innovation
In association with
The CSFI
survey of
bank risk
www.pwc.com/innovationsurvey
www.pwc.com/outlook
Its how you play the Gateway to growth: Total Retail 2015: Russias current Global entertainment Banking Banana Skins
game. Matching a regions innovation in the oil Retailers at the Age of economic downturn: and media outlook
priorities with the right and gas industry Disruption a 360 view 2015-2019
megaor not so mega
event
Pharmas future has never looked more promising or more ominous. www.pwc.ru/fbs2014/en
http://www.pwc.ru/ru/hr-consulting/index.jhtml PwCs 2014 Global Economic
Major scientific, technological and socioeconomic changes will revive
Crime Survey
PwC Saratoga 2014
www.pwc.ru/automotive the industrys fortunes in another decade, but capitalising on these
trends will entail making crucial decisions first
Private and family

Russias automotive market:

Economic crime: A threat business in Russia:
to business globally
2014 results and outlook From vision challenges and growth

HR-
to decision drivers for today and
tomorrow
Pharma 2020

?

Sergey Litvinenko

Director

? PwC Russia Automotive Practice
Survey findings for Russia, 2014 - 2015

?
*
PwC Saratoga , :
22.6%

February 2015
Emerging Trends

2012
;
13.7
, ,
in Real Estate
:
o
, ..

A balancing act
o 1
2012
,
6.9
37% 53% 48%
o
,
Europe 2015
o
.
.. More than one in three More than half of CEOs Nearly half of our

1 organisations report surveyed reported being respondents reported
2012 being victimized by concerned about bribery the risk of cybercrime
economic crime. and corruption. had increased, a 23%
increase from 2011.
1 2 3
*
PwC Saratoga 2013

67 ,

20%
.

: ,
, ,
, ,
, -, www.pwc.com/pharma2020
.
www.pwc.com/crimesurvey
HR benchmarking survey Global economic crime Emerging Trends in Real Russias automotive Pharma 2020 Private and Family
survey Estate Europe market: 2014 results Business Survey
and outlook

2014 Corporate Responsibility Report
This report covers the period from 1 January until

31 December 2014.
In drafting the report, we followed the Global Reporting
Initiative Sustainability Reporting Guidelines, version G3
(GRI G3). We rate our report at level B under the GRI
reporting system.
All data presented in the report has been provided by
PwCs internal functions and has not been verified
by external auditors.
Our CR approach Doing the right thing, i.e. acting as

responsible leaders in how we do
Both at the global and regional levels, business in Russia. This means taking
we believe that high quality corporate corporate responsibility issues that
responsibility standards must be a key impact our business seriously, such
component of business strategies. as the life quality of our people,
the level of PwC's services, our
We seek to provide high-quality engagement with communities
services, follow a business ethics code, and society, and our commitment
help develop talent, get engaged in to environmental protection.
communities in those regions where
we have a presence, and promote Being a catalyst for change, i.e.
environmental protection. encouraging outside processes
and actors to foster favourable
We are currently strengthening our and ongoing changes in corporate
global stand on issues related to responsibility along with active
corporate responsibility. Our business participation in this process. We
strategy is based on two key elements: are committed to cooperation with
other businesses to make the world
a better place.
8 PwC
Dialogue with clients. The programme Dialogue with governments
encourages ongoing relations with our and regulators. We would like
clients, taking corporate responsibility to demonstrate that PwC is an
seriously, and being ready to cooperate organisation that fosters conditions
with businesses that adhere to similar for public development by
views. encouraging a favourable and
civilised environment for doing
Dialogue with employees. Studies business in Russia.
show that potential employees carefully
consider their future employers corporate Dialogue with local communities.
responsibility and business sustainability We strive to be a leader and
strategies while current employees, articulate a vision of the future,
especially strong performers, are eager thus facilitating the continued
to take part in their companys efforts spread of socially responsible
Stakeholders for local community development and business practices. We do this by
environmental protection. supporting local communities in
Our CR programme foresees regions where we have a presence.
stakeholder engagement in such We are committed to minimising
critical areas as: the damage resulting from our
environmental footprint.
Stakeholders Areas of cooperation
People (current, former and People communicate with each other, work with the companys management, and deal
with our clients and communities. We involve them in our programmes in order to achieve
potential employees) our CR objectives.
Clients Our success is the result of our focus on clients, who can be directly affected by the outcome
of the CR programme.
Suppliers Over recent years, suppliers have scrutinised the implementation of CR programmes
by their clients and, in this regard, we engage in an active dialogue and share our views
on CR issues.
Government authorities Together with government authorities and regulators, we focus our efforts on putting
agendas together, enhancing legal and regulatory frameworks, and reviewing legislation.
and regulators
Universities By working with universities, we can help students obtain professional qualifications,
develop responsible future leaders, and provide new opportunities for graduates.
Local communities, NGOs We draw upon the knowledge and expertise of our people to meet the needs of local
communities and NGOs. Through working together, we can address the challenges
they face.
Business and professional Joint efforts with business and professional associations allow us to resolve issues
of mutual interest for business and the market, as well as help us shape a public agenda.
associations
Mass media We provide relevant and vital information to media outlets based on the understanding
that the public needs such information. Furthermore, we help the public better understand
PwCs business and position in the marketplace.

Responsible business
PwC Russia business framework

We provide services to over 2,000 clients, 85% of whom are Russian
companies. We also serve Russian divisions of major international
companies and help them attract investment to the country.
Audit services are an essential part of our business. Revenue from

these activities is mainly provided by Closed Joint-Stock Company
PricewaterhouseCoopers Audit (ZAO PwC Audit, the "Company").
ZAO PwC Audit operates in strict (2) For membership in a self-regulating

compliance with Russian law (Federal auditors organisation. The Company
Law On Audit Activity, Federal Law has been a member of self-regulating
"On Insider Information", Federal Law organisation "Audit Chamber of
"On Trade Secret", Federal Law "On Russia" since the moment when the
State Secrets"), Russian Audit Standards, Audit Chamber received status as a
the Auditors Code of Ethics, guidelines self-regulating organisation in 2008;
for independent auditors and other
professional auditing regulations, (3) For the size of auditor staff, holding
including the following requirements: Russian qualification certificates. As
of 29 April 2015, 189 employees of
(1) For ownership structure and sole the Company are certified Russian
executive body. The Company is auditors, including those who
an entirely Russian legal entity successfully completed their training
with two shareholders: OOO in 20141;
PricewaterhouseCoopers Audit
Services with participation of 12 (4) For information storage (in
Russian citizens, ZAO PwC Audit electronic and hard copy over
partners who own 99.99997% a period of five years) and the
of equity capital, and Elizaveta language for documenting audit
Filippova, General Director of ZAO services. The Company's servers for
PwC Audit (PhD in Economics, storing electronic data (including all
banking sector auditor) who holds servers for storing all working papers
an interest of 0.00003%; on audit activities) are situated in
Russia at the Company's location,
as well as that of its branches and
divisions. Audits are documented in
Russian;
1 The number of trained employees became known as this report went to press, i.e. in 2015,
while the report covers the period from 1 January 2014 until 31 December 2014.
10 PwC
(5) For professional liability insurance. employees complete mandatory The Company's compliance with Russian
Liability for violation of audit training on how to handle confidential law is also supported by multiple
service agreements and/or liability information. Furthermore, personal successful external quality reviews carried
for damage to property of others non-disclosure liabilities are included in out by auditing regulators (in 2014, the
as a result of the Company's audit the Company's employment contracts Company successfully passed an audit
activities is insured in OAO Allianz and internal regulations. Electronic quality review by the Audit Chamber of
Insurance Company. systems for storing, transferring and Russia).
protecting information are in line with
Being a PwC member firm does not international and Russian standards, and ZAO PricewaterhouseCoopers Audit,
have any impact on the professional are also subject to audits, certifications OOO PricewaterhouseCoopers Advisory
independence of ZAO PwC Audit as and internal reviews. These systems and PricewaterhouseCoopers Russia
an audit firm. The Company is solely are maintained by qualified experts B.V. have also undergone a voluntary
liable for discharging its contractual with relevant training and certification. certification for ISO 9001:2008.
commitments to its clients and IT security is managed on the basis of
compliance with Russian legislation. ZAO We generate value for business and
internal regulations and procedures
PwC Audit does not disclose confidential our communities on the basis of ethical
approved by the Company's leadership.
information of its clients (including behaviour, integrity, honesty and
information constituting an audit secret) Confidentiality and quality of services are trust. Our expertise helps us promote a
to other PwC firms or third parties key elements in the Company's strategy sustainable and responsible business.
without a written consent of respective for providing audit and assurance services
clients, except for cases specified by to its clients and performing current
Russian legislation. All of the Company's operations.

Responsible taxpayer
We believe that strict compliance with all Russian regulations on taxes, levies and mandatory
payments to non-budgetary insurance funds are an important element of PwC's corporate
responsibility.
These days, the responsible behaviour of a business as a taxpayer involves a higher degree (compared
to legal requirements) of transparency with respect to its tax burden and voluntary integration
of best practices in routine operations in order to ensure voluntary tax law compliance on the part
of our shareholders, staff and counterparties.
Table 1. Taxes and mandatory payments2
Type of payments Paid in 2014, Revenue in accordance with tax accounting data
RUB million (excluding intra-group transactions), RUB million
Corporate income tax

75
VAT
1,296
PIT withheld
798
Contributions to non-
budgetary funds 782
Total:
2,951
11,363
With the average headcount being the due care policy), we have also set out
2,600 employees, the average monthly requirements for tax law compliance for
salary (remuneration) comes to RUB our shareholders and staff. In particular,
197,000. This, together with the high the company helps our partners and
added value rate, determines the structure highly qualified foreign employees to fill in
of tax and quasi-tax burden of our personal income tax returns and demands
business, where the key components are confirmation of PIT compliance (for filing
VAT and taxes/ contributions calculated tax returns and paying tax) from partners
in relation to the payroll fund. and employees in this category.
In addition to standard business procedures

followed for accepting clients, selecting
suppliers, hiring employees (including
2 Total for all PwC legal entities in Russia.
12 PwC
Dialogue with clients Our relationship with suppliers
In order to have an objective picture of We seek to cooperate only with those
our relations with clients, eight years ago suppliers who run responsible businesses,
we introduced our annual client feedback ensure transparency and openness,
programme. We received 162 feedbacks comply with legal and ethical regulations,
from key clients in 2014. For instance, respect the dignity of their staff, follow
the vast majority (89%) gave positive principles of social responsibility, and
feedback to PwC. PwC Russias customer take care of environmental protection in
satisfaction index was 8.5 out of 10, while all regions where they operate. To this
the index of our customers willingness to end, we have drafted a PwC Supplier
refer our firm to their business partners Code of Conduct to cover all critical
rated at 8.7 out of 10. aspects of corporate responsibility.
This code has already replaced previous
We invest much effort in bringing provisions set out in all contracts with
our clients' reporting to a new level our key suppliers.
by supporting companies in their
development of high-quality non- Furthermore, we've prepared a
financial reporting, as well as helping corporate responsibility and sustainable
them communicate to their stakeholders development questionnaire for our
how reporting ensures economic stability, suppliers. This questionnaire is an
social welfare, and environmental integral part of our approach for
sustainability objectives. PwC experts are evaluating commercial proposals and
trainers officially certified by the Global selecting key counterparties who meet
Reporting Initiative (GRI). our requirements to the fullest extent.
Drawing on our experience and

professionalism, we work with clients
and offer them business transparency and
sustainability services, as well as search
for new solutions to satisfy ever-growing
market demands.

Contributing to the success of the 2014 Winter Also, critical HR initiatives were carried out,
Olympic and Paralympic Games in Sochi including: a labour market analysis of the
Krasnodar Region; workforce planning for the
In its capacity as a Partner and the Official
Games time; drafting a leadership and management
Professional Services Provider to the Sochi 2014
skills development programme for Sochi 2014 venue
Organizing Committee, PwC did a lot of impressive
managers; and developing a hiring strategy for
work behind the scenes. In the run-up to the Games,
people with disabilities.
the PwC team implemented over 200 projects for
the Organizing Committee. Furthermore, 35 PwC PwC Russia's efforts aimed at supporting the
employees worked for the Organizing Committee Sochi 2014 Organizing Committee with respect to
during the Games. taxation and customs were also recognised at the
national level. At the first Gateway to the Future
The PwC project team was heavily involved in
award ceremony, the company won the award for
drafting strategic and tactical plans for the Games'
Economic Prosperity.
preparations. The Organizing Committee's
performance management system and Games
management system were also designed with the
help of PwC.
In these projects, we are set to cooperate

closely with PwC firms in other countries,
as our foreign colleagues' expertise can
also be beneficial.
Working with regulators

PwC is actively involved in developing
the financial market and sustaining a
favourable investment climate in Russia.
Massive corporate migration to International
Financial Reporting Standards (IFRS) in
Russia is an important task. Several PwC
Russia partners joined the Expert Committee
of the National Organisation for Financial
Accounting and Reporting Standards and
Olympic Reward Using the intellectual legacy the Interdepartment Working Group on
PwC brought in over 350 guests from
of Sochi 2014 in other national IFRS Adoption. PwC is deeply engaged
projects in promoting International Standards on
Russia, Central and Eastern Europe, North
Auditing (ISAs) in Russia. We also finance
America and the Middle East to Sochi as
PwC Russia is eager to draw upon the activities of the National Council for
part of its internal Games time activation
experience it gained during the Sochi 2014 Financial Reporting (www.nsfo.ru), which
programme. These included 13 winners of
Games and the 2013 Summer Universiade is in charge of IFRS and ISA expert review.
the PwC Olympic Reward Programme. The
in Kazan in many other projects. We are PwC is a member of the Russian Audit
Olympic Reward Programme was designed
in constant dialogue with the FIFA World Chamber (RAC). Our high quality work is
to recognise top PwC employees working
Cup 2018 organisers and are cooperating confirmed by the results of regular reviews
in Russia, as well as Central and Eastern
with the organisers of the upcoming 2019 conducted by the RAC.
Europe.
Winter Universiade in Krasnoyarsk.
14 PwC
Fostering cooperation with Ossetia-Alania, Krasnodar, Novgorod,
Sverdlovsk, Chelyabinsk, Sakhalin and
regional authorities and
Novosibirsk Regions. The main goal of
businesses these agreements is to support regional
authorities in their efforts to create
Expanding our regional presence
favourable conditions for potential
remains a key strategic goal for PwC.
investors.
We are eager to continue boosting our
cooperation with regional authorities Another form of cooperation between
and businesses so as to ensure PwC and Russia's regions is developing
successful growth and development of and publishing Investment Guides.
Russia's regions. These publications cover information
Evgeny Otnelchenko, PwC Russia on priority strategic development areas
In 2015, PwC will open its 11th Russian
Advisory Partner and head of the Sochi of certain regions and their investment
office in Ufa. By opening an office in the
2014 Programme: "Many of the projects potential. In 2014, PwC prepared and
Republic of Bashkortostan, PwC Russia
that we carried out during the Sochi 2014 published new issues of Investment
aims to make it more attractive for
programme together with the Organizing Guides for the Republic of Karelia,
investors, promote investment projects,
Committee involved innovative approaches Chelyabinsk, Leningrad and Krasnodar
improve local business performance,
to events of this scale. One of the key Regions.
and develop the market for audit and
solutions included introducing project- consulting services in the region.
oriented organisation as the basis of
the Organizing Committee's operations PwC is active in Russia's regions,
throughout all stages of the Games. providing services under various
bilateral arrangements. Currently,
Moreover, a new integrated approach
we have signed partnership
was applied for the Games preparation
agreements with a number of regional
to cover all planning areas and also focus
governments, including: Tatarstan,
on clients (i.e. all groups of people and Karelia, Bashkortostan, North
organisations directly or indirectly
involved in the Games). This, in turn,
helped to optimise the Organizing
Committee's resources and aslo meet the
requirements of different client groups."

PwC Global CEO Survey and share their short-term business
development plans. Both business people
The annual Global CEO Survey is a and policy-makers always look forward
flagship PwC survey, in which hundreds of to receiving such valuable inputs in a
heads of the largest global companies take summarised form so they can use it in their
part. Our respondents answer dozens of strategic decision-making.
questions on global economic trends and
their implications for various processes, Since 2013, we have prepared a Russian
the business environment in certain version of this survey to gain insights into
countries, and the overall sentiment in the Russian CEOs' views on global, national,
business community at large. We also ask and industrial developments.
CEOs to assess governments' effectiveness
Corporate governance We work closely with international For several years, we've been promoting
organisations in reviewing, assessing the IoD Chartered Director certification
framework in Russia: shaping
and enhancing corporate governance programme in Russia, including through
the public agenda practices and infrastructure, as well as providing dedicated training courses. In
multiple aspects of the performance of 2012, the Russian Federation Federal
PwC Russia and the Moscow Exchange
corporate boards of directors in Russia Agency for State Property Management
jointly serve as partners of a national
by participating in related events and (Rosimushchestvo) included IoD
awards programme established by the
carrying out joint projects and research, certification into the list of generally
Independent Directors Association (IDA)
for example with the World Bank, OECD accepted international certificates
and the Russian Union of Industrialists
and EBRD. Our experts were directly that serve as a criterion for selecting
and Entrepreneurs (RSPP). We are
involved in discussions and refinement of candidates to board of directors in major
pleased to join them in presenting these
the new Corporate Governance Code. state-controlled companies.
awards to the top leaders in corporate
governance those people whose work is
really transforming Russian business.
16 PwC
PwC serves as Knowledge We propose topics for the SPIEF agenda
and take part in arranging the sessions.
Partner of the St Petersburg As well, we operate three Knowledge
International Economic Cafes during the Forum. Here,
participants can get the most recent
Forum information on topics discussed during
the sessions, prepare for upcoming
For six consecutive years, PwC has
sessions and hold business meetings.
been the Knowledge Partner of the St
Petersburg International Economic
Forum (SPIEF). Similar to other high-
profile international events where we
play this role, our objective at SPIEF is to
ensure that the most useful and relevant
ideas and proposals presented at the
Forum are directed toward promoting
the further development of Russian and
international business.

Community engagement
PwC Russia supports many social programmes, ranging from

working with orphanages to promoting such projects as the
Leaders in Corporate Philanthropy. Providing such support
involves three components: professional assistance, financial
aid and volunteering.
In recent years, we have focussed Tatiana Florina, former PwC employee:

on promoting a culture of "The month I spent volunteering in Sochi for
corporate responsibility and the Macedonian team is one of the most
involving PwC employees in outstanding and memorable highlights of my
volunteer work. This was of life. Every day was unique; I faced challenges
particular importance in the of all kinds. But, I was so amazingly excited.
run-up to the 2014 Olympic I was filled with emotions, like when our skiers
and Paralympic Games in Sochi. finished the 50 km distance."
We are very proud to have
contributed to the Games.
Sixty-five PwC employees served

as volunteers at the Sochi Games.
All of them either had extensive
volunteering experience, had
participated in previous PwC
charity initiatives, or had run
Elena Doricheva, Learning and Development:
their own charity projects. They
included 25 Gold Volunteers, for
"I assisted the IOC/IPC Services team at the
whom the firm paid for all travel Games and got a really unique insight into
expenses and workdays during the process of organising the biggest party in
the Games. the world, as one member of the Sochi 2014
Organizing Committee put it. I'm very grateful
to the Gold Volunteers programme for opening
the door for me to this wonderful, unique,
once-in-a-lifetime event the Olympic Games
here 'at home'!"
18 PwC

$2,500 Leaders in Corporate

90%
Philanthropy
ue of grants available
ough our Dollars for Doers
unteer their timeSince

with 2008, we have conducted the
Leaders in Corporate Philanthropy
on-profit organization
eaningful to them
survey among major Russian and
ad more
foreign companies. The survey is run
in cooperation with the Donors Forum
non-profit partnership of grant-awarding
organisations and Vedomosti, Russias
leading business daily. This initiative
aims at identifying top performers in
this area on a competitive basis.
and master classes on international Every year, PwC provides career guid-

financial reporting standards (IFRS), ance to support students and university
taxation, accounting, HR management graduates. Over the reporting period,
and a broad spectrum of issues related we invited about 3,000 students to our
to business consulting. Since 2012, we offices in Moscow and other Russian
have offered students of the Financial cities to take part in professional induc-
University the unique opportunity tion programmes, business games,
of enrolling in an ACCA programme master classes, Open Days and meet-
led by PwC Academy professionals so ings with PwC professionals.
that they can obtain an international
Supporting educational certificate, the Diploma in Accounting We cooperate with faculty members
programmes and cooperating and Business. A similar programme was at our partner universities by arrang-
launched in spring 2014 for students of ing Rectors Club meetings to discuss
with universities
the Higher School of Economics, and pressing issues in higher education and
In 2008, the PwC Corporate and Social in the fall of last year for students of current trends on the market for young
Responsibility Centre was established Lomonosov Moscow State University university graduates. Since 2014, PwCs
in the Higher School of Management and Plekhanov Russian Academy of business trainers have been conducting
at St Petersburg State University to Economics. professional development courses in
conduct research and development modern teaching methods for univer-
activities. During the reporting period, We are engaged in educational ac- sity instructors.
our employees provided over 1,500 tivities in other Russian cities too. The
hours of lectures and workshops. most talented and promising students
are awarded a special PwC scholarship
For several years already, PwC has in universities in Krasnodar, Rostov-
sponsored academic chairs at two of on-Don, Nizhny Novgorod, Kazan,
Russias leading universities of finance Novosibirsk, Tomsk, Ekaterinburg and
and economics, the Finance University Chelyabinsk. In the 20132014 aca-
under the Russian Government and demic year, 21 university students were
the Higher School of Economics. These awarded PwC scholarships.
positions allow our firms employees
to give lectures and hold seminars

e impacted by
e Sandy volunteer their time with
a non-profit organization
meaningful to them
Read more

Ukraine ready for the new school year
as part of a campaign run by the AiF
Dobroye Serdtse charitable foundation.
Earlier, in spring 2014, we learned

about the misfortune that had befallen
one of our colleagues from Kazan. This
young lady had received a terrible
diagnosis Ewings sarcoma, a rare
Helping people in need type of cancer that invades the soft
of serious assistance tissues and leads to metastases in the
lungs. After the young womans parents
PwC has always been active in raising asked for our help, our employees
money to help those affected by natural sprung into action and showed their

disasters and calamities. concern by raising a huge amount of
money to help defray part of the cost of
We have consistently followed PwCs our colleagues treatment. With
charitable donations policy by helping donations from our Moscow and
children in need through the Podari regional offices combined, we collected
Zhizn and Liniya Zhizni foundations. over RUB 6 million for this brave young
In August 2014, we helped to get womans treatment.
schoolkids who are refugees from
In 2014, we supported and carried

out over
20 projects in three areas:

protecting children, supporting
education and promoting culture.
Over the year, more than
200 employees
took part in 20 charitable projects,
clocking in a total
2,700 hours3.
3 But, these are just the official figures from our timesheet database. In principle, every employee must input all the hours he or she spends on a job (client project).
However, as not all employees do so consistently, the actual number of employee hours spent on charitable activities was no doubt considerably greater.
20 PwC
PwC engagements in corporate
charity in 2014
Throughout 2014. Moscow and St Petersburg.

Clothing drives for those in need. Three campaigns
were held during the year.
February March. Sixty-five PwC volunteers took

part in the 2014 Olympic and Paralympic Winter
Games in Sochi.
29 March. PwC Russia and the entire PwC global network

supported the Earth Hour initiative.
May 2014. St Petersburg. Support for background

music for the Museum Night campaign at
the Uppsala Circus.
16 May. Moscow. PwC Russia Managing Partner

David Gray awarded the winner of the 2014 Russia-
wide Social Entrepreneur of the Year competition.
30 May 1 June. St Petersburg. Support for

the ECOCUP festival of environmental movies.

July 2014. St Petersburg. Support for the Rehabilitation
through Creativity project at Orphanage No. 4
in Pavlovsk, which is under our sponsorship.
August 2014. St Petersburg. Aid for childrens national

chess championship competitions organised by the
Association of Chess Federations in the North-Western
Federal District and by the trainers council of the special
Olympic reserve school of the St Petersburg Municipal
Centre of Creative Activities.
22 August. Kazan. Back to School initiative.

Helping to get children and teenagers in the
Laska Social Shelter ready for the new school year.
Thirty-three schoolbags and 12 boxes with
stationery were purchased for the schoolkids.
22-24 August. Moscow. PwC team took part in

the Charity Sports bike ride in support of children
with Down syndrome organised by the Downside Up
Charitable Fund.
3 September. Blood Drive campaign. Fifty-six PwC
employees donated 45 litres of blood.
47 September. St Petersburg. PwC sponsored the

participation of the Ne-Kabuki childrens theatre in
the XII Pro-contra International Festival of Independent
Theatres.
13 September. Kazan. Annual charity mini-football

tournament among corporate teams to support the
Alpari Charitable Foundation. The main goal of the
tournament is to help pay for medical treatment to save
the life of our young employee Aysylu Sharipova, who
has been stricken by cancer.
22 PwC
12-14 September. St Petersburg. PwC supported
the annual Flying Children festival of Upsala Circus
the only circus for troubled children in the world.
22 September. PwC supported the International Car-Free

Day initiative.
24 October. Moscow. PwC supported a concert

arranged by the Vladimir Spivakov International
Charitable Foundation and awarded grants to its 18 November. Moscow. An awards ceremony for
talented young students. the winners of the Leaders in Corporate Philanthropy
2013 rating.
6 December. Moscow. Charity Instead of Gifts. Over December. Moscow, St Petersburg and Kazan. Operation
100 volunteers participated with the involvement of five Ded Moroz in three Moscow Region orphanages, 33 gifts
sponsored orphanages. for disadvantaged children and kids from the Shatlyk
Orphanage in Kazan. The gifts were bought using the
money allocated from the companys budget (RUB 56,680)
and raised by its employees (RUB 32,500). PwC St
Petersburg employees prepared individual gifts for 20
children from Orphanage No.4 in Pavlovsk. A target
contribution of RUB 43,275 was collected and presented
for childrens development. A total of 20 volunteers took
part in the campaign.
December. Kazan. A New Years party in the Solnechny

Rehabilitation Centre. Annual celebrations for children
with disabilities.

Diversity and inclusion
All member firms of the PwC global network are guided

by principles of diversity, and PwC Russia is no exception.
Ekaterina Malygina, PwC Partner,

CEE Diversity & Inclusion Leader,
says: We at PwC Russia appreciate
and respect diversity of people.
Under our diversity strategy, our
priority is to respect the diversity
of generations and cultures, as well
as women's leadership. We are interested in employing approaches to problems-solving,
personnel representing various which is especially appreciated
communities and raised in by our clients.
diverse cultural traditions. The
ability of our staff to be open- Be yourself. Be different is one
minded helps them propose of PwCs slogans.
various, often unconventional
24 PwC
PwC: diversity in figures
36%
are women;
of PwC's partners
Women's leadership
programme
In April 2014, all PwC network firms
kicked off a new global programme
Aspire to Lead. Business on High
For a number of years, PwC has hosted Heels! Under this programme, PwC
44
a club for female business leaders who Moscow held an online conference with
are involved in the management of our the involvement of a successful
years is the average clients companies. Club members hold businesswoman from the US, Sheryl
age of PwC partners; several meetings a year, covering such Sandberg.
topics as professional and personal
22% of our staff

work at PwC's regional offices;
development, public speaking, and
etiquette.
30 is the average age

of our staff; the eldest is 76
years old, while the youngest is 19;
37% of our people

are from Generation Y (i.e. born People with reduced had attended a six-month preparatory
after 1987).
capabilities training course, demonstrated to
guests their command of the English
Since 2013, PwC has been member of language and their self-presentation
the Business Advisory Board on skills.
Disability Issues. In 2014, we held the
first presentation involving acoustically Starting from mid-2014, when
challenged students who attended publishing job vacancy
specialised English language courses. announcements, PwC recruitment
The event was organised by PwC and staff have included a special note
the Regional Public Organisation for stating that vacancies are available for
Disabled Persons Perspektiva. Seven candidates with reduced capabilities.
acoustically challenged students, who

Listening to our people In 2014, PwC introduced a new Its popularity confirms the value
approach to developing its directors. of on-the-job training. The essence
Every year, PwC conducts the In November 2014, we held Director of this approach is simple:
Global People Survey to gauge Development Day, the format and
materials for which were developed 70% of time is for dealing with tasks
our employee engagement and work at ones job place, through acquisition
satisfaction. The results of this by PwC CEE firms and used by a team
of Russian professionals as adopted of experience;
survey are thoroughly examined,
problem areas are identified, and to needs of Russian business. As an
20% of time is for dealing with tasks
concrete actions are implemented additional aid to director development,
at ones job place with a more experienced
so as to resolve any apparent issues. we set up the Development Portal,
person (mentoring, coaching, etc);
The results of the survey and an a platform in the internal website
action plan for the next year are where directors can: 10% of the time is for formal class
communicated to all employees. training ( workshops, training sessions,
exchange ideas and experience;
e-learnings, etc.)
In 2014, the response rate in Russia choose an individual coach or
was 69% (2013: 66%). Our mentor;
employees had an opportunity to obtain information about all available
raise any issue and express their resources (training, online courses,
opinion: 68% appreciate that the books, etc.).
firm gives equal opportunities to To develop key talents, in 2014, we also
all of its people for growth and applied the approach 70-20-10 used for
development (based on results of the development of all PwC staff.
the annual Global People Survey 70-20-10 is an approach to structuring
for 2014). training, which has become more and
In general, the results mostly confirm more widely spread not only globally,
with last years outcome. On the one but also in Russia.
hand, it is a positive sign, as it shows
that we maintain a high level of
interaction with our staff. On the
other hand, it means that we have
more opportunities for improvement
and continuing our interaction at all
levels within the firm.
Leadership development
In 2014, PwC implemented a new

competency model that clearly
reflects the challenges of a modern
business environment. This model is
called PwC Professional and is based
on five competencies:
Balanced leadership;
We have also implemented remote Our Leadership Club, a platform
Expertise; training of key talents and this designed for talent development
Understanding global trends; has made the training process and launched in Russia in 2012,
Investing in relations; more comfortable. continued to function. All topics
for the development of future
Awareness of key business trends. During 2014, 50 talented leaders are selected by the
employees from various CEE participants themselves.
To implement this model, in July
countries attended training under
2014 PwC held a Career Week
the iLead programme launched We actively engage employees
designed to clarify what key skills
at the end of 2013. Under this in the development of leadership
and knowledge employees need in
programme, our colleagues training programmes using
order to comply with this model at
worked on strategic projects in e-voting, interviews and focus
each level.
mini-teams, discussed various groups.
leadership aspects, and had
access to an individual coach.
26 PwC
Read more
Personnel learning For instance,

2,490 employees

and development participated in training programmes

with total duration of 133,858 hours,
PwC Russia makes a considerable from which 106,082 hours accounted
contribution to the development of its for class training while the remaining
professional staff. For instance, in 2014 time went to online programmes.
only, PwC Russia spent RUB 140 million
on professional training and development Every year, about 70 internal business
for new joiners. coaches take part in learning events
for all staff, covering multiple issues
Key areas: affecting all of the firms offices.
Also, every year, 10 qualified coaches
Professional qualifications;
facilitate the development of more
Technical skills courses; than 30 key employees by helping

Business skills courses. them formulate their development
goals over a six to 12 month period,
Technical skills courses as well as accomplish them.
Annual Assurance Academy
mandatory for all employees
providing assurance (audit) services.
Tax Academy mandatory for tax
consultants. The Tax Academy Since 2010, 550 staff members
also includes a skills development have joined the programme,
programme on certain tax issues. 43 of whom received their ACCA
qualifications in 2014. A total of
Advisory University is a skills
20 graduates successfully passed
development programme for
their exams and became new
advisory consultants.
Professional qualifications affiliates and licence holders.
Business skills and professional in figures in 2014 More than 80,000 hours were
development courses invested in the professional
development of our people.
Every year, three fourths of our
employees complete technical skills
courses.
Every year, one third of our employees
take part in one or two learning events
as part of their business skills Remote working and blended learning Ethics and corporate culture
development. programmes
We are proud to employ representatives
Responding to the imperatives of our of various nations and cultures, and
time and applying innovations, as well believe that this is our competitive
as considering our business needs, we advantage, which can be further
have developed and implemented two developed and strengthened.
programmes for remote working.
Our goal is to make PwC the employer
The first programme deals with of choice. Our core values are
understanding the key tools of Excellence, Teamwork and Leadership.
remote work (Avaya, EC500, WebEx, These values underpin the way we
Sametime). Obtaining this know-how conduct our business and perform
helps reduce the total number of actions aimed at creating value and
business trips, ensures cost savings ensuring success for our clients, people
and facilitates communications and the organisation on the whole.
within engagement teams when their
members are in different cities or We abide by our corporate code of
countries. conduct, which is based on our core
values. The code requires employees
The second programme is more
to demonstrate these values in their
aimed at managers and designed for
everyday conduct.
employing methodologies for
management of teams engaged in
remote work.

Environmental stewardship
2014 was another year when PwC worked to reduce its

negative environmental footprint and save resources.
Reducing impact on Our priority areas also include seamless

the environment cooperation among all interrelated
departments in terms of data collection
This year, as in the past, we were still and analysis, as well as active
actively involved in optimising our use cooperation with owners of the
of and protecting natural resources. buildings where PwC leases its office
Every month, we review key indices space, in order to seek out new,
of resource consumption in order to environmental-friendly solutions.
identify main growth trends and, as
a consequence, we are able to search
for new, more efficient methods of
monitoring and reducing our impact
on the environment.
In 2014, our efforts to reduce energy
consumption resulted in savings of
944,051 kWh.
This calculation includes only office
lighting and does not cover energy
conservation measures for engineering
systems and office equipment.
28 PwC
In 2014, there were no significant was expanded, a new office was opened
changes in PwCs offices in terms of in Rostov-on-Don, and the headcount in
resource saving. Nonetheless, looking at Kazan went up by 15%.
the bigger picture, we can see a trend
toward lower resource consumption, On the other hand, overall electricity
which is demonstrated in the graph consumption across PwC fell by 13.8%
below. To a certain extent, the figures year-on-year. Water consumption
Throughout the 2014 calendar may change as a result of adjustments in increased insignificantly (by 9%),
year, we were able to preserve our occupied office space, as well as an coming to 14,296 m3/year, which was
934
increase in our headcount. In January driven by growth in our total
2014, the office space in Ekaterinburg headcount.
trees.
180%
160%
140%
70% 70% 70% 70%
120%
180%
100%
In 2014, the volume of paper
160%
60% 60% 60% 60% 80%
sent by
140% for recycling fell by
PwC
70% 60%
17%
120% 2012
40%
40%
100% 40% 40% 40% 2013
. This is, among 20%
60% 80%
other things, generally due 2014
0%
to reduced
20%paper
60% 20%purchases
20% 20% Paper
Paper
Energy
Water

purchases recycling 2012
consumption consumption
and an40%
increase in electronic
40%
document
20% flow. 2013
10% 10% 10% 10% 2012 2014
0%
Total paper purchases
2013 decreased by 9.5% print option on all printers, we also
20%
compared to2014
the previous
period and
extensively use e-versions of learning
amounted to 85,572.88 kg per year. This materials for our staff who attend
10% 2012 demonstrates our successful efforts to professional development courses.
2013 expand the total volume of electronic
document flow. In addition to already A reduction of our negative impact on the
2014
common forms of processing materials, environment is clearly represented by our
deciding against hard copies to a carbon footprint (2), resulting from
160%
maximum extent, reducing the amount air/rail/road business travel.
of handouts for workshops and
140%
This decreased in 2014 as compared to
conferences,
120% as well as using the smart the previous period by 5% and 4%,
100% respectively.
160%
80%
140% The reduction in travel, in turn, had
60%
120% an effect on the increase of use of
100%
40% telecommunication means4.2012 For instance,
20% 2013
use of telecommunications increased
80%
0% in 2014 by 5% (annual average).
2014
60%

40% 2012
(, ) ()
20% 2013
0% 2012 2014
Teleconferences
Carbon footprint
Carbon footprint

2013
(aircraft, railway (motor
(, )2014 vehicles)
()
transport)
2012
2013
2014
4 This would include Webex for training, teleconferencing for online meetings and resolving daily business tasks, etc.

PwC participation in eco-events in 2014
My Garden event, May 2014

Planting 26 fruit trees and nine shrubs
at the Zabota Orphanage.
Purchase of medical supplies for an animal shelter

in the village of Stolbische, December 2014
Purchase of Geptral drug for treatment of animals
(RUB 12,757.58).
Conference Public involvement in the development of solid domestic waste

management systems in Russia, April 2014
The objective of this conference was to ensure constructive interaction between grassroots
movements, executive authorities and business through development of a joint programme
for 2014-2015 with the aid of advanced business training technologies.
ECOCUP festival of environmental movies, May 2014

PwC supported the opening of this festival in St Petersburg. The audience watched films from
Finland, the USA, Denmark, Mexico, the UK and Russia. They also had the opportunity to
participate in environmental events concerning waste collection, a master class on producing
bags from environmentally-friendly materials, and efforts to exchange used batteries for
coffee. PwC supports the objectives of ECOCUP festival, the most important of which for us are:
demonstrating that environmental protection is a key topic for the future;

organising a start-up platform for new green initiatives;
uniting all parties operating in the green sector.
Green Cleaning - audit of PwC Moscow office, December 2014

This audit was non-regulatory and carried out on PwCs own initiative. Its principal objective
was to identify any inconsistencies with current environmental regulations and obtain
recommendations for their correction, as well as creating a favourable environment for
the operation of the firm and the staffs work.
30 PwC
Appendix 1
Key performance indicators
Activity Indicator Unit 2014 2013 2012 2011 20105
Financial Donations from employees RUB About 1,858,755 1,132,239 -- 4,500,000

and material 3 million
support
Employees Involvement of employees Number 200 160 90 200 200
involvement in volunteering of people
Time6 spent on volunteering hrs 2,765.90 1,140 1,063 3,000 2,900
Time spent on pro bono services hrs 1,500 1,500 1,500 1,500 1,550
and lectures at universities
Resource saving Paper purchased kg 85,572.88 89,721.20 103,854.56 101,701.90 --
indicator Paper recycled kg 93,399.5 68,820.0 124,284.50 80,912.00 132,934.00
Number of trees saved Number 934 688 2,102 1,368 2,278
through paper recycling of trees
Energy consumption kWh 2,778,377.70 3,379,427.00 3,833,998.52 3,897,366.49 --
Water consumption Cubic 14,295.80 13,091.6 15,145.92 13,801.89 --

metres
Teleconferences Number 145.62 138.66 119.33 108.58 --
Carbon footprint 2 3,923.70 4,094.83 5,239.8 -- --
(aircraft, railway transport) (metric
tonnes)
Carbon footprint 2 444.82 460.33 569.98 816.04 --
(motor vehicles) (metric
tonnes)
Staff Partners/ share of females Number 104/36% 96/32% 96/30% 101/30% 158/30%
of people/%
Staff Number 2,600 2,400 2,400 2,000 2,000
of people
Advanced ACCA certification Number 43 53 73 77 119
training of people
Time spent on advanced hrs Over 80,000 84,000 132,000 59 188
training7
Global People I am satisfied with the actions % 81% 76% 82% 82% 84%
Survey PwC is taking to be socially
responsible (e.g., supporting
community events and NGOs)
I am satisfied that PwC is % 70% 70% 72% 70% 70%

responding appropriately
to address the impact of our
business activities on the
environment
I would recommend PwC as % 66% 68% 71% 71% 66%
a great place to work
I am proud to work in PwC % 78% 77% 77% 76% 71%
I have the opportunity to work % 80% 82% 81% 80% 77%

on challenging assignments
that contribute to my
development
The learning and development % 83% 82% -- 67% 60%
I receive at PwC has prepared
me for work I do
5
An 18-month report: from 30 June 2009 until 31 December 2010. We chose this reporting period in order to facilitate our transition to calendar-year reporting
from 2011 forward.
6
These are official figures from our timesheet database. Every employee inputs the hours he/she spends on a job (projects). However, not all employees do this and,
thus, the actual number of employee hours spent on charity work is greater.
7
The 2011and 2010 indicators are presented per employee.

Appendix 2
Business associations
Business associations U.S.-Russia Business Council (USRBC)
The American Chamber of Commerce (AmCham)
Independent Directors Association (IDA)
Russian Managers Association (RMA)
Canada Eurasia Russia Business Association (CERBA)
National Organisation for Financial Accounting and Reporting Standards
The Association of European Businesses (AEB), a non-profit partnership
Russo-British Chamber of Commerce (RBCC)
Russian-German Chamber of Commerce (AHK)
Russian Union of Industrialists and Entrepreneurs (RSPP)
Franco-Russian Chamber of Commerce and Industry
Japanese Business Club
Business associations Association of Businesses and Entrepreneurs of the Republic of Tatarstan

in the regions of Russia
Leningrad Region Chamber of Commerce (LRCC)
Regional American Chamber of Commerce (AmCham)
St Petersburg International Business Association (SPIBA)
Republic of Tatarstan Chamber of Commerce and Industry
Finnish-Russian Chamber of Commerce
Professional associations Association of Corporate Treasurers
Association of Russian Banks (ARB)
Russian Audit Chamber (RAC)
Mining Club Minex
4CIO Top Manager Club
International Business Leaders Forum (IBLF)
Promotion of Competition Development Non-for-Profit Partnership
Russian Venture Capital Association (RVCA)
32 PwC
Appendix 3
Non-profit organisations
Organisation Description
Marias Children Art Centre Helping orphans and children with special needs, supporting their social,
psychological and intellectual rehabilitation through various creative activities
Yuny Spartakovets A childrens sports club engaged in supporting the physical development of children
and teenagers
The Vladimir Spivakov International Supporting young musicians, artists and dancers
Charitable Foundation
Big Change Charity Foundation Supporting Russian NGOs that work with vulnerable children and young people,
and their families
Downside Up, Russian non-profit Supporting families, as well as government and non-profit organisations,
organisation in teaching, raising and integrating children with Down syndrome into society
CAF Russia Working to create favourable conditions for developing philanthropy and providing
assistance to charitable organisations
Podari Zhizn Foundation Helping children with cancer, blood diseases and other serious illnesses
Liniya Zhizni Foundation Saving children with serious illnesses and promoting a charitable culture in society
Solnechny Rehabilitation Centre Volunteer and material support for children and teenagers with physical or mental
health issues
Alpari Charitable Foundation Supporting social institutions based in Tatarstan: providing equipment; helping
identify individual families with children in need; participating in various
rehabilitation programmes for orphaned children; supporting the treatment
of disabled children
The Faith Hospice Foundation Supporting hospices and their patients
Foundation for regional social Implementing long-term socially important programmes and projects that involve
programmes Our Future principles of social entrepreneurship
Teply Dom Charitable Foundation Supporting disadvantaged families in St Petersburg: single mothers, girls
who have graduated from orphanages, families with many children and legal
guardian families
St Petersburg Charity Organisation Helping children with disabilities from Orphanage No. 4 in Pavlovsk
Step Towards
Giraffe film production studio Educational and social film production studio for children. Professional
for children screenwriters and film directors help children bring their ideas to life by providing
high-quality artistic and technical support
Upsala Circus autonomous Assisting children and teenagers at risk with social adaptation with the help
non-commercial organisation of circus training methodology

Appendix 4
Possible risks with potential impact on PwCs activities
Changes in regulation of audit administering the process of joining

activities and its enforcement. Due other SROs, passing external entrance
to intrinsic factors of economic, political quality control reviews, paying entry
and historic nature, Russian law is fees and contributions to compensation
subject to ongoing changes, including funds. The earlier introduction of
those with respect to the regulation of a special regulation of services on
audit activities and various types of technological and pricing audit,
consulting services. Specifically, in providing for additional criteria for
December 2014, several legal organisations rendering this kind of
requirements related to limitations on services, a ban on engaging agency work
the scope of services provided by audit effective 1 January 2015, as well as
firms were introduced (amendments to other legal amendments, created an
the Federal Law On Audit Activities, additional operational burden for the
restricting, among other things, firms providing audit and consulting
provision of economic and management services.
consulting services not related to
business activities), as well as new Dumping in the audit and consulting
requirements to audit of banks designed services market. Gaps in the law make
to increase the scope of work performed it possible for some unethical market
in the course of audit of banks and players to provide audit and/or
the form of audit reports on fair consulting services of poor quality while
presentation of bank, reporting offering considerably lower fees. This
respectively (amendments to the Federal would affect the competitiveness of
Law On Banks and Banking). The audit and consulting firms that provide
introduction of new requirements to high-quality services and the state of
self-regulating audit organisations may the audit and consulting services market
become an additional operational and in general.
financial burden for audit firms Other risks of geopolitical, economic,
throughout 2015-2016. For instance, social, market and competitive nature
an increase in the minimum number of (both individually and in aggregate)
SRO members may result in loss of SRO may also affect operations
status on the part of some existing SROs and the financial position of PwC
of auditors. This may also lead to Russias network of firms.
additional financial costs and time for
34 PwC
GRI Content Index
GRI Description Commentary and/or Reported Page in
Index cross references (indicator) report
STRATEGY AND PROFILE
1. Strategy and analysis
1.1 Statement from the most senior decision- Message from PwC Russias Managing + 4
maker of the organisation publishing this Partner
report regarding the relevance of sustainability
to the organisation and its strategy
1.2 Description of key impacts, risks, and Appendix 4 + 34

opportunities
2. Organisational profile
2.1 Name of the organisation Corporate Responsibility Governance + 6
2.2 Primary brands, products, and/or services A detailed description of the services +
we offer can be found at www.pwc.ru
2.3 Operational structure of the organisation, Corporate Responsibility Governance + 6
including main divisions, operating
companies, subsidiaries and joint ventures
2.4 Location of organisations headquarters Feedback + 41
2.5 Number of countries in which the organisation This report covers only Russia and +
operates, and the names of countries with the following Russian cities: Moscow,
either major operations or those that are St Petersburg, Kazan and Ekaterinburg
specifically relevant to the sustainable
development issues covered in this report
2.6 Nature of ownership and legal form Corporate Responsibility Governance + 6
2.7 Markets served (including geographic break- Corporate Responsibility Governance + 6
down, sectors served, and types of customers/
beneficiaries)
2.8 Scale of the organisation Our Business + 6

2.9 Significant changes during the reporting period Our Business + 6
regarding size, structure, or ownership
2.10 Awards received in the reporting period Our Business: Our Achievements + 7
3. Report parameters
REPORT PROFILE
3.1 Reporting period (e.g. fiscal/calendar year) Calendar year 2014 +
for information provided
3.2 Publication date for most recent previous Our previous report, covering the +
report (if any) period from 1 January 2013 to
31 December 2013, was published
in June 2014
3.3 Reporting cycle (annual, biennial, etc.) Annual +
3.4 Contact point for questions regarding Feedback + 41

the report or its contents

REPORT SCOPE AND BOUNDARY
3.5 Process for defining report content Message from PwC Russia + 4, 8
Managing Partner
2014 Corporate Responsibility
Report
3.6 Boundary of the report (e.g. countries, PwC Russia, specifically in the +
divisions, subsidiaries, leased facilities, joint following cities: Moscow, St Petersburg,
ventures, suppliers) Ekaterinburg and Kazan
3.7 State any specific limitations regarding the PwC Russia, specifically in the +
scope or extent of this report following cities: Moscow,
St Petersburg, Ekaterinburg and Kazan
3.8 Basis for reporting on joint ventures, The report reflects the activities of +
subsidiaries, leased production facilities, PwC Russia
outsourced operations, and other entities that
can significantly affect comparability from
period to period and/or between organisations
3.9 Data measurement techniques and the basis We used PwC Russias internal
for calculations, including assumptions and information gathering methods (e.g.,
techniques underlying estimations applied to the HR policy, financial reporting, etc.)
the compilation of the indicators and other
information in the report
3.10 Explanation of the effect of any re-statements No restatements of information +
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)
3.11 Significant changes from previous reporting No significant changes +
periods in the scope, extent, or measurement
methods applied in the report
GRI CONTENT INDEX

3.12 Table identifying the location of the Standard GRI Content Index + 35
Disclosures in the report
ASSURANCE
3.13 Policy and current practice with respect to No external assurance planned +
securing external assurance for this report
4. Governance, Commitments, and Engagement

GOVERNANCE
4.1 Governance structure of the organisation, Corporate Responsibility Governance + 6
including committees under the highest
governance body responsible for specific tasks,
such as setting strategy or organisational
oversight
4.2 Indicate whether the chair of the highest Not applicable + 6

governance body is also an executive
officer (and, if so, their function within the
organisations management and the reasons
for this arrangement)
36 PwC
4.3 For organisations that have a unitary board Unitary board structure not applicable +
structure, state the number of members of the
highest governance body that are independent
and/or non-executive members
4.4 Mechanisms for shareholders and employees Diversity and + 24, 41

to provide recommendations or direction to Inclusion and Feedback
the highest governance body
4.5 Linkage between compensation for members We have a set of key +

of the highest governance body, senior performance indicators for this
managers, and executives (including
departure arrangements), and the
organisations performance (including social
and environmental performance)
4.6 Processes in place for the highest governance PwC Russia has procedures in place +
body to ensure conflicts of interest are avoided 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.)
4.7 Processes to ascertain qualification and Corporate Responsibility activities at +

competence of members of the highest PwC Russia are managed by the CR
governance body in order to define the Group.
organisations strategy for economic,
environmental and social issues (sustainable All partners comprising the CR Group
development) have a deep understanding, extensive
experience, and high qualifications
that are vital in defining the companys
strategy on economic, environmental
and social issues.
4.8 Internally developed statements of mission Diversity and Inclusion and + 24, 28
or values, codes of conduct, and principles Environmental Stewardship
relevant to economic, environmental, and
social performance and the status of their
implementation
4.9 Processes used by the highest governance Responsible Business + 10

body in assessing and managing performance
in economic, environmental and social
terms, including risks and scenarios, and also
monitoring compliance with international
standards, corporate conduct code and ethical
principles indicate the frequency with which the
highest governance body evaluates performance
with respect to sustainable development

4.10 Processes for evaluating the highest Responsible Business + 10

governance bodys own performance, and, in
particular, with respect to the organisations
economic, environmental, and social
performance
COMMITMENTS TO EXTERNAL INITIATIVES
4.11 Explanation of whether and how a In order to ensure sustainability, +
precautionary approach or principle is control the level of possible losses and/
addressed by the organisation or negative changes in the financial
indicators resulting from external
changes and internal risk factors, PwC
has introduced a risk management
system founded based on the firms
internal regulatory documents.
4.12 Externally developed economic, UN Global Compact

environmental, and social charters, principles, Social Charter of Russian Business
or other initiatives to which the organisation
subscribes or endorses
4.13 Memberships in associations (such as industry Appendix 2 + 32
associations) and/or national/international
advocacy organisations
STAKEHOLDER ENGAGEMENT
4.14 List of stakeholder groups engaged by the Stakeholders + 9
organisation
4.15 Basis for identification and selection of Stakeholders + 9
stakeholders with whom to engage
4.16 Approaches to stakeholder engagement, Stakeholders + 9

including frequency of engagement by type
and by stakeholder group
4.17 Key topics or interests raised or identified in Client Satisfaction Index +

the course of interacting with stakeholders Global People Survey
and the how the organisation has responded
to such issues and interests, such as via the
organisations reporting
5. Disclosures on managerial approach and performance indicators
ECONOMIC
Aspect: Market presence
EC4 Significant financial assistance received from No financial assistance was received
state agencies from state agencies in the reporting
period
EC5 Difference between the standard base-level The minimum salary is more than five
salary and the established minimum wage times greater than the minimum wage
in key areas of company activity
EC6 Policy, practices, and proportion of spending Environmental Stewardship 28

on locally based suppliers at significant
locations of operation
38 PwC
Aspect: Indirect economic impacts
8 Development and impact of infrastructure Environmental Stewardship 28
investments and services provided primarily
for public benefit through commercial, in-
kind, or pro bono engagements
ENVIRONMENTAL
Aspect: Energy
EN5 Energy saved due to conservation and Environmental Stewardship 28, 32
efficiency improvements Appendix 1
EN7 Initiatives to reduce indirect energy Environmental Stewardship 28, 32

consumption and reductions achieved Appendix 1
Aspect: Water
EN8 Total water withdrawal broken down by source Environmental Stewardship 28, 32
Appendix 1
Aspect: Products and services
EN26 Initiatives to mitigate the environmental Environmental Stewardship 28, 32
impact of products and services, and the extent Appendix 1
of this impact mitigation
Aspect: Compliance
EN28 Monetary value of significant fines and total PwC did not incur significant fines +
number of non-monetary sanctions for non- or non-monetary sanctions for non-
compliance with environmental laws and compliance with environmental laws
regulations and regulations in the reporting period
Aspect: Overall
EN30 Total environmental protection expenditures Not applicable. PwC does not own its +
and investments by type office buildings.
LABOUR PRACTICES, DECENT WORKING CONDITIONS

Aspect: Employment
LA1 Total workforce by employment type, Total size of workforce: 3,029 people, of +
employment contract, and region which 2,953 are employees (2,742 on
permanent contracts, 211 on temporary
fixed-term contracts) and 76 people
hired under service provision contracts.
LA2 Total number and rate of employee turnover Staff turnover up to 50 years of age is +
by age group, gender, and region 23%
Aspect: Training and education

LA10 Average hours of training per year per Partners and directors 25 hours +
employee by employee category
Senior managers and managers
31 hours
Assistant managers and senior
specialists 70 hours
Specialists 61 hours

LA11 Programmes for skills management and Diversity and Inclusion + 24

lifelong learning to support the continued
employability of employees and assist them
in managing career conclusion
LA12 Percentage of employees receiving regular 100% +

performance and career development reviews
Aspect: Diversity and equal opportunities

LA13 Composition of the governing bodies and staff 104 partners, of whom 74 are Russian +
of the organisation, broken down by gender, citizens and 30 are foreign nationals
age, minorities and other diversity indicators from nine countries
38 are women and 66 are men
84 partners are between 30 and

50 years old, while 20 partners are
over 50 years of age
HUMAN RIGHTS
Aspect: Non-discrimination
HR2 Proportion of significant suppliers and sub- When concluding contracts, most +
contractors, who have been evaluated from suppliers also sign the Suppliers
the human rights perspective; actions taken Code, which stipulates these parties
responsibilities regarding labour law,
the environment and ethics
HR4 Total number of incidents of discrimination No incidents of discrimination on the +

and actions taken grounds of gender, ethnicity, or race
were identified in PwCs activity
SOCIAL: SOCIETY
Aspect: Corruption
SO4 Actions taken in response to incidents of No incidents of corruption identified +
corruption
Aspect: Compliance
SO8 Monetary value of significant fines and total PwC did not incur significant fines +
number of non-monetary sanctions for non- or non-money sanctions for non-
compliance with laws and regulations. compliance with laws and regulations
during the reporting period
Aspect: Customer privacy

PR5 Practices related to customer satisfaction, Responsible Business + 10
including results of customer satisfaction
surveys
PR8 Total number of substantiated complaints As of the time of printing, not one of the +
regarding breaches of customer privacy and PwC firms had received any complaints
losses of customer data regarding breaches of customer privacy
or loss of customer data
+ Fully reported
Partially reported
Omitted
40 PwC
GRI Application Level
+ B B+ A A+
Report Externally Assured

Mandatory Self declared
Third party checked
Optional
GRI checked
Several years ago, the PwC global network became a signatory to the UN Global
Compact. The Global Compact is an initiative that represents a framework for business
people to conform their activities and strategies with 10 universally recognised
principles in the area of human rights, labour relations, environmental protection
and combating corruption. By becoming a signatory to the UN Global Compact, we
thereby express our conviction that a business practice based on universal principles
facilitates better sustainability, fairness and presentability of the global market while
also helping to create a thriving and prosperous society.
In 2009, PwC Russia also signed on to the Social Charter of Russian Business of
the RSPP (the Russian Union of Industrialists and Entrepreneurs).
Feedback
Active engagement with stakeholders is in this area. Please send your feedback
a critical success factor for a corporate and suggestions to Natalia Yakovleva,
responsibility programme. We look PwC Russia Corporate Responsibility
forward to getting a feedback from our Programme Leader, by mail:
stakeholders and doing our best to
meet their expectations in regards to White Square Office Centre
key issues of corporate responsibility, 10 Butyrsky Val
as well as to involving them in projects Moscow, Russia, 125047

Forward-looking information
Certain information is included in the PwC Corporate Responsibility Report, 2014
publication Together towards Responsible publication and in the related information
Leadership. PwC Corporate Responsibility on our website, such information is
Report, 2014 publication and related subject to a number of risks, uncertainties
information on our website contain and assumptions that may cause actual
forward-looking information. Forward- events, conditions or results to differ
looking information means disclosure materially from those contemplated by the
regarding our expectations concerning forward-looking information. Some of the
future events, conditions or results based factors that could cause such differences
on assumptions about future economic include social, legislative or regulatory
conditions and courses of action. In some developments, financial market conditions
cases, forward-looking information can be and general economic conditions. The
identified by terminology such as may, firm does not undertake any obligation
will, should, expect, anticipate, to update publicly or revise any of the
believe, estimate, predict, forward-looking information included
potential, continue, plan and similar in the Together towards Responsible
expressions or the negative of these terms Leadership, PwC Corporate Responsibility
or other comparable terminology. Report, 2014 publications, and in the
Although the firm believes that it has a related information on our website after
reasonable basis for the forward-looking the date thereof, whether as a result
information included in the Together of new information, future events or
towards Responsible Leadership, circumstances or otherwise.
42 PwC
PwC Corporate Responsibility Report, 2014
www.pwc.ru
2015 PricewaterhouseCoopers. All rights reserved.

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Message from PwC 2014

Our clients Contributing to the success of

Leaders in Corporate Women's leadership programme Reducing impact on Appendix 1.

GRI Content Index

PwC Corporate Responsibility Report, 2014 3

I would like to draw your attention to the most critical

100 partners running the firm.

Our services 36%

8 out of the 10 largest power companies;

I Beijing I Istanbul I Jakarta I Mexico City I Moscow I Mumbai I So Paulo I

55% From Moscow to So Paulo

Emerging 7 Cities Report 2014

The ruble devaluation

Gateway to growth: Banking

Private and family

PwC Corporate Responsibility Report, 2014 7

This report covers the period from 1 January until

Our CR approach Doing the right thing, i.e. acting as

Stakeholders Areas of cooperation

PwC Corporate Responsibility Report, 2014 9

PwC Russia business framework

Audit services are an essential part of our business. Revenue from

ZAO PwC Audit operates in strict (2) For membership in a self-regulating

PwC Corporate Responsibility Report, 2014 11

Table 1. Taxes and mandatory payments2

Corporate income tax

In addition to standard business procedures

2 Total for all PwC legal entities in Russia.

Drawing on our experience and

PwC Corporate Responsibility Report, 2014 13

In these projects, we are set to cooperate

Working with regulators

PwC Corporate Responsibility Report, 2014 15

PwC Corporate Responsibility Report, 2014 17

PwC Russia supports many social programmes, ranging from

In recent years, we have focussed Tatiana Florina, former PwC employee:

Sixty-five PwC employees served

$2,500 Leaders in Corporate

unteer their timeSince

PwC Corporate Responsibility Report, 2014 19

Earlier, in spring 2014, we learned

In 2014, we supported and carried

20 projects in three areas:

Over the year, more than

Throughout 2014. Moscow and St Petersburg.

February March. Sixty-five PwC volunteers took

29 March. PwC Russia and the entire PwC global network

May 2014. St Petersburg. Support for background

16 May. Moscow. PwC Russia Managing Partner

30 May 1 June. St Petersburg. Support for

PwC Corporate Responsibility Report, 2014 21

August 2014. St Petersburg. Aid for childrens national

22 August. Kazan. Back to School initiative.

22-24 August. Moscow. PwC team took part in

47 September. St Petersburg. PwC sponsored the

13 September. Kazan. Annual charity mini-football

22 September. PwC supported the International Car-Free

24 October. Moscow. PwC supported a concert

December. Kazan. A New Years party in the Solnechny

PwC Corporate Responsibility Report, 2014 23

All member firms of the PwC global network are guided

Ekaterina Malygina, PwC Partner,