The subject of assurance is the Public Annual Report of JSC Techsnabexport (hereinafter referred to as “the Report”) for the period from 01 January until 31 December 2013.
This statement is intended for the management and stakeholders of JSC Techsnabexport (hereinafter referred to as “the Company”).
Responsibilities of the Parties
The management of JSC Techsnabexport shall bear full responsibility for the compilation and credibility of the said Report.
We shall be responsible for outcomes of the Report assurance activity only to JSC Techsnabexport in the scope of the task order agreed with the Company and do not assume any responsibility before any third party.
Assurance scope, criteria, and level
The Report was assessed against the following criteria:
- manner and level of observance by JSC Techsnabexport of the principles of the standard AA1000 Accountability Principle Standard 2008, i.e. inclusivity (engagement), materiality, and responsiveness.
- compliance of the Report with Level B+ (self-declared by the Company) as per the GRI G3.1 Guidelines.
Our check was planned and conducted in accordance with the AA1000 Assurance Standard 2008 and International Standard ISAE 3000 “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”.
The assurance corresponds to Type 2, as per the definition in АА1000AS 2008, given the limitations indicated in the “Assurance Boundaries” section of this statement.
In rendering the services, we observed the following assurance level requirements:
- moderate, as per AA1000 AS 2008, and
- limited, as per ISAE 3000 “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”.
A random verification of the Report information we carried out in terms of the above-mentioned assurance levels shall not pretend to ensure a high level of assurance guarantee. Our assurance effort was based on the supporting information provided by the Company management and employees, data from accessible sources, and analytical verification methods. In regard to the quantitative information contained in the Report, the work done cannot be considered sufficient for finding all possible errors and omissions. Moreover, the evidence we collected is sufficient to formulate our opinion in accordance with the above-mentioned assurance levels.
To formulate our opinion, we implemented the procedures as follows:
- studying and randomly testing systems and processes employed by JSC Techsnabexport to ensure compliance of its activity with principles of AA1000 APS 2008, as well as sustainability performance management;
- holding interviews with representatives of the senior management of JSC Techsnabexport, as well as management representatives engaged in the Report preparation process;
- collecting evidence supporting the practical implementation of systemic processes realising principles of AA1000 APS 2008;
- holding interviews with the Company employees and reviews of documents and statements made by the management to obtain evidence of the Company’s activity compliance with principles of AA1000 APS 2008;
- participating in the public consultations held by JSC Techsnabexport with its stakeholders;
- studying the Report Public Assurance Statement;
- studying information on activities in the sustainability context posted on JSC Techsnabexport’s website;
- studying published third parties’ statements on economic, environmental, and social aspects of the Company’s activities to verify the soundness of statements made in the Report;
- conducting a comparative analysis of the Company’s Report against reports of foreign companies within a similar market segment;
- analysing internal audit processes of non-financial reporting employed by the Company;
- randomly studying documents and data on the performance of management systems of the economic, environmental, and social aspects of sustainable development existing in the Company;
- studying existing processes of collection, processing, documenting, transfer, analysis, and selection of data to be included in the Report;
- checking the adequacy of assertions, statements, and data included in the Report; and
- analysing the Report information for its compliance with principles of the Standard АА1000 APS 2008 and GRI G3.1 Guidelines (Level B+).
The assurance is limited by the time frames of the reporting period (01.01.2013–31.12.2013).
The credibility check of the Report information on performance was carried out only for compliance with recommendations of GRI G3.1 Guidelines for Level В+.
The assurance in regard to the credibility of quantitative performance indicators disclosed in the Report is limited to a conformance assessment of data of the audited financial statements, as well as external and internal reports on other production and economic, environmental, and social aspects of activity, with which we were kindly provided.
The assurance was not carried out with respect to statements of a forward-looking nature, nor statements expressing the opinions and intentions of JSC Techsnabexport to take any future actions.
The assurance was not carried out with regards to statements which are indicated in the Report as expert judgments.
The in-field audit procedures were limited to visits to JSC Techsnabexport.
The assurance was carried out only based on the Report revision provided in the Russian language in MS Word format.
We were unable to verify the fact of the Report publication in its final revision on the corporate website of JSC Techsnabexport, because the date of signing this statement came earlier than the date of the planned publication of the Report on the Company’s website. Similarly, we cannot confirm the fact of publication of the Annual Report of JSC SPb IZOTOP for 2013 on its website.
The conclusions below are based on our assurance engagement done within the scope and boundaries described above.
1. On the whole, the Report adequately reflects the implemented management mechanisms and performance indicators of JSC Techsnabexport regarding activities on economic, social, and environmental aspects of the sustainable development.
2. As a result and within the boundaries of the work we performed, we did not find any material misstatements related to the Report information disclosing JSC Techsnabexport’s sustainable development activities and their results.
Manner and level of observance of principles of AA1000 APS 2008
As a result and within the boundaries of the work we performed, we did not find any material non-compliance with criteria of the Standard AA1000 APS 2008 relating to observance of its principles (inclusivity, materiality, and responsiveness).
Compliance of the Report with Level B+ as per GRI G3.1 Guidelines
To formulate our opinion on this issue, we analysed compliance with GRI G3.1 Guidelines, as related to principles and standard disclosures for the declared application level, in the Report preparation.
Principles for defining the Report content
- The Report information covers topics and performance indicators that reflect material impacts of JSC Techsnabexport on the economy, environment, and society, or those that may significantly influence the assessments and decisions of stakeholders.
- The Report priority topic, “HEU-LEU Programme: A unique project of multilateral nuclear cooperation – Lessons and outcomes”, highlighted.
- The Report addresses main topics raised in reports from similar foreign companies.
- Information on the environmental and social impact of the most significant, in terms of the said activity, aspects of A&S (JSC SPb IZOTOP) are outlined in the annual report of JSC SPb IZOTOP for 2013, the electronic version of which was published on JSC SPb IZOTOP’s website and is referred to in the Report.
- Within the Report, JSC Techsnabexport provided information on stakeholders and mechanisms to take account of their interests when defining the content of the Report.
- Representatives of a broad circle of stakeholders, including the Company’s foreign partners, took part in the discussion of the Report Concept and public consultations on the draft Report.
- The Report presents JSC Techsnabexport activities in a broad sustainability context that considers various aspects of a production, economic, social, and environmental nature.
- Within the declared boundaries, the report covers the information of activities of JSC Techsnabexport with a sufficient degree of completeness, excluding its A&S.
- Some performance indicators (EN4, LA2, LA10, LA13, SO2) are not completely disclosed as compared to the recommendations in the GRI indicator protocols.
Principles for defining the Report
- The Report is well balanced and reflects both activity results and outstanding issues.
- The comparability of the Report with the non-financial reports of other organisations is ensured by the use of GRI G3.1 Guidelines as the basis for the disclosure of performance indicators in the sustainability context.
- The comparability of the financial information with regard to the reports of other companies is fully ensured due to the use of requirements from the Russian accountability legislation (rather than international accounting standards) for the disclosure of financial information.
- Most of the numerical indicators are given over a three-year period, which allows for the analysis of trends of the Company’s business development.
- The accuracy of factual information presented in the Report is sufficient to enable stakeholders to assess the results of JSC Techsnabexport’s activities in the sustainability context.
- The Performance Indicators were calculated based on methodologies approved in the GRI G3.1 recommendations and the Public Reporting Standard of JSC Techsnabexport, which is based on the methodology of ROSATOM.
- The Report was prepared to be submitted to the Annual Shareholders’ Meeting.
- On the whole, the information presented in the Report is clear and understandable for different groups of stakeholders.
- The Report includes a Glossary and List of Abbreviations, which makes it easier for users to understand the Report’s information.
- The performance information presented in the Report is based on internal reporting documents, as well as reports submitted to the controlling bodies.
- The issues of the inspection’s efficiency and of the procedure for writing non-financial accounting reports are in the jurisdiction of the Internal Control and Audit Service. In the course of the check, we were kindly provided with an audit plan, working documents, and a statement on the findings of the conducted inspection.
- We did not find any facts questioning the reliability of the Report information.
Strategy and analysis
- JSC Techsnabexport realises that sticking to the sustainable development concept is the indispensable condition for successful activity over the long-term.
- The Report mainly provides sustainability information that should be disclosed as per the recommendations of GRI G3.1 for defining the Report content.
- The Report reflects management approaches in the environmental, social, and economic areas; more specifically, the management policies and mechanisms existing in the Company and their implementation results are disclosed.
- The Report provides the performance indicators over all categories and in the number required by GRI G3.1 for the Report to comply with Level B+.
- Furthermore, the Report provides a number of performance indicators that are not fully disclosed against the requirements outlined in the Indicator Protocols of GRI G3.1 (partial disclosure): EN4, LA2, LA10, LA13, and SO2.
Overall assessment of the Report
- The work done allows us to conclude that the composition and number of disclosures required for the report to comply with Level B+ are provided in the Report and are reasonably reflected in the GRI Content Index.
1. The disclosure of GRI indicators is reasonable to link it to the target values.
2. To disclose information in the annual report of JSC SPb IZOTOP as per the structure and scope of disclosure chosen for the Report of JSC Techsnabexport.
3. To increase the disclosure degree of indicators, for which GRI protocols are not fully considered (partial disclosure).
4. To take account of comments contained in the above sections of this statement.
Competence and independence statement
NP Consult is an independent audit organisation, which professionally renders assurance services. NP Consult is a member of the self-regulatory organisation of auditors, the Institute of Professional Auditors, and acts in accordance with the Code of Ethics for Professional Accountants IFAC. The company employs the audit service quality control system that includes the control of observance of ethical norms.
NP Consult officially states that this Statement represents an assessment made by an independent auditor. Neither NP Consult nor its employees have relations with JSC Techsnabexport, or its affiliated and subsidiary organisations, which could lead to a conflict of interests when rendering the Report’s assurance services.
NP Consult is an organisational stakeholder of GRI, a licensed provider of assurance services as per the Standard AA1000 AS.
The team that renders sustainability reporting assurance services includes NP Consult specialists who have the necessary expertise in rendering audit services, writing reports in accordance with GRI G3.1, as well as GRI certificates. The project manager performed his training in the assurance of sustainability reporting in the Accountability Training Centre and has a CSAP Certificate.
Deputy General Director of NP Consult
|V. Yu. Skobarev|