Environmental Policy

Commentary-interview of the First Deputy Director General — Engineering Director for Environmental Aspects of Company Operation V. E. Ivanov

What are the main results delivered by the Department under your supervision over the reporting year?

In compliance with the approved environmental policy, the Company fulfills the assumed obligations even with consideration of annual tightening of environmental law. In particular, the Company performed the following activities in this regard:

  • check of RF environmental law compliance by the Company’s branches;
  • development and extension of validity period of environmental certification and permits;
  • environmental monitoring;
  • ensuring compliance with wildlife protection requirements.

How did the results of environmental activities impact the openness of Company operation in the reporting year?

PJSC MOESK participates in the environmental forums and conferences on the annual basis, thus increasing the openness of the Company activities:

  • April 2015, the IX National Conference “Environment and Production. Prospects for Development of Economic Mechanisms for Environment Protection” was held in Saint Petersburg with the support of the State Duma and the Federation Council of the Federal Assembly of the Russian Federation. In the framework of the conference, results of the contest “Top 100 Russian Companies. Ecology and Environmental Management” were announced. PJSC MOESK won a medal and award “For Preservation and Restoration of Natural Environment”. These awards signify recognition of the Company’s achievements in the field of environmental protection and preservation of biodiversity.
  • December 24, 2015, Moscow: the environmental fund named after V. I. Vernadsky announced the results of the contest “National Environmental Award named after V. I. Vernadsky”. According to the resolution of the judging panel, the award in the category “City Environment” in 2015 was given to PJSC MOESK. All awarded companies are environmentally conscious companies which made the environment protection one of the priority fields of their activities.

Could you speak of the partnership programs with other parties in the field of environment protection?

The Company has established efficient cooperation with the Russian national public organization Russian Birds Conservation Union in order to improve ornithological safety of PJSC MOESK facilities.

In furtherance of its cooperation with the ornithologists, PJSC MOESK organized installation of bird protection devices (BPD) on 6-10 kV overhead power lines in order to ensure protection of birds in the course of power line operation, maintain biodiversity and prevent technological violationof the overhead power lines.

What are the main plans for the next year?

1. Instrumental monitoring over the emissions of pollutants by fixed and mobile sources of atmospheric pollution, monitoring of noise level and electromagnetic fields;
2. Environmental control over compliance with the RF environmental laws in the course of operation;
3. Obtaining the regulatory documentation and permits;
4. Bird protection activities along the power lines;
5. Improvement of qualification in the field of environmental protection.

The environmental policy of PJSC MOESK1 established the following strategic goals in the field of environmental protection:

  • Bring the level of negative environmental effect of PJSC MOESK business and other activities below the acceptable environmental impact level defined by the current regulations;
  • Prioritize implementation of new technologies which contribute to reduced level of soil contamination with oil products, modern waste handling methods and procedures;
  • Ensure rational use of natural resources; protect the flora and fauna affected by business and other activities of PJSC MOESK.
  • Environmental Impact of Company Activities

    Water

    The Company’s operations result in formation of domestic waste water and surface effluents. The water is supplied to the Company facilities from the communal water supply system and by delivery of bottled water. Water resources are utilized to meet the daily living needs of the Company employees and for operation purposes, such as feeding the circulating water system used for vehicle washing, sprinkling and washing the Company’s premises. The surface effluents are formed by atmospheric precipitation accumulated on the hard surfaces.

    Water Consumption, thous. m3

    The total water consumption volume in 2015 was 265 thous. m3. The volume of circulating water utilized by vehicle wash units with closed circulating water system is 0.65 thous. m3. This indicator is identified by measuring the volume of water in the circulating waters systems of vehicle wash units. PJSC MOESK does not collect water directly from the water bodies. The volume of waste water discharged to the centralized water disposal system is assumed as equal to the water consumption. The change in the level of water consumption from the communal water supply systems is attributable to the changes in the share of bottled water.

    Air

    The main environmental impact in terms of atmospheric air is created by emissions of pollutants by motor vehicles — special-purpose vehicles (cranes, towers, mobile laboratories, etc.) used for operation and repair activities, external party vehicles (garbage trucks, etc.), personal cars used by the Company employees.

    The running internal combustion engines of motor vehicles generate emissions in the form of solid particles (mainly carbon black), gaseous substances (mainly carbon oxides, nitrogen oxides, sulfur dioxide). Electric welding operations (metal cutting) result in emission of solid contaminating particles in the form of ferrous oxide and manganese. Preparation of solder alloy for metal soldering generates oxides of copper, zinc, tin, lead and stibium.

    The Company facilities also generate noise emissions due to operation of electrical equipment at stations (transformers, circuit breakers) which have corresponding acoustic characteristics depending on their power rating.

    SF-6 gas emission, t

    Emissions of Pollutants, t

    The Company widely uses SF-6 equipment (current transformers, voltage transformers, deadtank circuit breakers, live-tank circuit breakers, packaged SF-6 switchgears, etc.). Application of this equipment in the distribution grids improves the reliability of power supply, personnel safety and reduces the operation costs. In the course of SF-6 equipment operation, SF-6 gas leaks may occur. The volume of gas in CO2 equivalent is estimated by calculations.

    Gross emissions of contaminants into atmosphere, t

    Indicator 2015
    Gross emissions of contaminants into atmosphere, total including: 44.9
    solid 3.2
    gaseous and liquid, including: 41.7
    sulfur dioxide - SО2 0.2
    carbon oxide - СО 27.4
    nitrogen oxide (recalculated to NO2) 1.8
    hydrocarbon (without volatile organic components) 0.2
    volatile organic components (VOC) 11.2
    persistent organic pollutants (POP) -
    hazardous air pollutants -

    Land

    Operation
    and Consumption Waste, t

    The main environmental impact in terms of land is created by operation of oil-filled equipment (oil leaks are possible during operation of oil-filled transformers, circuit breakers, etc. due to insufficient tightness) and handling of operation and consumption waste generated during utilization of utility networks and operation activities on the Company premises.

    The biggest operation and consumption waste generators are the Company’s activities in the framework of repair and investment programs as well as operation of communal utilities at the Company’s premises




    Volumes of Operation and Consumption Waste Generated in 2015, with Breakdown to Hazard Classes

    Category 2013 2014 2015 2015/2014
    Operation and consumption waste, t (total), including: 19,761 20,290 18,727.9 -7.7%
    hazard classes 1-3 291 412 235.0 - 43.0%
    hazard class 4 4,674 5,333 4,906.2 -8.0%
    hazard class 5 14,796 14,545 13,586.7 -6.6%

    Waste Volumes with Breakdown to Handling Method

    Waste hazard class Waste transfer to other companies
    for utilizationfor neutralizationfor landfilling
    hazard class I -4.47
    hazard class II 14.8933.43
    hazard class III 47.28134.96
    hazard class IV 34.02968.223,903.20
    hazard class V 3,208.39-10,837.89

    Biodiversity

    PJSC MOESK branches operate within environmentally sensitive areas (ESA) of Moscow and Moscow region. The ESAs are used for installation of HV transmission lines rated 10 — 220 kV and transformer stations with various power ratings.

    The power grid facilities are operated within 7 ESAs of Moscow (natural historic parks Bitsevsky Forest, “Kosinsky”, “Izmailovsky”, “Tsaritsino”, “Kuzminki-Lyublino”, natural reserve Setun river valley, national park Elk Island).

    Most Significant Environmental Activities in 2015

    Направления экологической политики Проведенные мероприятия в 2015 году Основные результаты
    Water protection The following activities were performed in 2015 to improve the quality of waste water and increase the efficiency of treatment plants:
    • The following activities were performed in 2015 to improve the quality of waste water and increase the efficiency of treatment plants:
    • periodic control over the content of suspended particles and oil products in surface rain water at 394 operation sites of Company branches in Moscow region. The recorded parameters are within regulatory limits;
    • inspection of treatment plants used at vehicle water wash stations and rain water sewers;
    • maintaining efficient operation of treatment facilities at vehicle wash stations (replacement of components, handover of waste generated during operation to specialized company, maintenance and repair of equipment and units);
    • preparation of well datasheet for the well in Troitsky PGR of Novaya Moskva branch;
    • removal of garbage and snow from the Company premises;
    • recording the volumes of pollutants in the disposed rain water effluents;
    The results of laboratory analysis of the surface rainwater samples collected from the operation sites of NEG, SEG, EEG, WEG, NM branches and samples of surface water returned to the municipal lines in Moscow are within the allowable values in accordance with the regulated waste limits developed for the corresponding branch sites.
    Air protection The following activities were performed in 2015 to reduce the volumes of polluting emissions into the atmosphere:
    • the Company performed instrumental monitoring over emissions of polluting substances into the atmosphere from fixed sources in compliance with the charts of operation control over compliance with regulations on the maximum allowable emissions (MAE): 83 measurements for 20 pollutant substances. The analysis confirmed that the emissions are within the allowable limits;
    • when an UWC (unfavorable weather conditions) warning is received, the Company takes actions to temporarily (for the duration of UWC) reduce emissions in accordance with the UWC action plan;
    • regular inspection of vehicles with carburetor engines for toxicity and inspection of diesel vehicles for smoking;
    • implementation of GLONASS system for motor vehicles to minimize the mileage and thus reduce emissions from the mobile sources;
    • procurement of new special vehicles and removal of outdated vehicles, which contributes to lower emissions of harmful substances, including heavy metals;
    • checking the operational efficiency, including inspection of technical condition of dust and gas removal units, cyclone cleaning;
    • preservation of dust and gas removal units (GDRU) due to low utilization rate;
    • developing the inventory of sources of pollutant generation and emissions, including development of documentation on maximum allowable emissions (MAE);
    The following activities were performed by the Company in 2015 to control the noise impact on the environment created by the Company facilities:
    • completion of work on operational control over compliance with sanitary rules and regulations in terms of environmental impact created by noise and electromagnetic radiation at 162 stations operated by PJSC MOESK branches in compliance with the developed program.
    • execution of a contract on performance of control and measurements of physical factors, which enabled the Company to quickly respond to the complaints from individuals.
    • instrumental monitoring of air parameters and noise at the boundary of buffer zones (BZ) around facilities operated by SEG, NEG, WEG branches of PJSC MOESK; no deviations from the allowable values were identified in the course of measurements.
    • implementation of technical measures to reduce the level of noise generated by operating equipment at stations:
    • replacement of transformers which do not comply with the requirements in terms of noise levels with less noisy or lownoise models;
    • installation of acoustic screen on the transformer at station No. 95 “Bazarovo” (height — m, screen length — 35.4 m, total area — 177 m2); PSh and PShO panels manufactured by LLC “OZMK” were used as an acoustic material for screen fabrication.
    • the calculations of acoustic impact on the residential houses from station No. 193 “Troiskaya” were performed. The architectural and civil design documentation for construction of acoustic screen for station No. 193 “Troiskaya” was prepared and will be used for further construction work.
    The results of acoustic impact measurement conform to the approved regulations as per SN 2.2.4/2.1.8.562-96 Noise at Workplaces, in Residential, Public Buildings and in Residential Construction Areas
    Land protection The Company performed the following activities in 2015 in order to ensure protection and rational use of land resources:
    • repair of oil headers, oil collectors, cable lines;
    • gradual decommissioning of oil-filled equipment (oil circuit breakers) and its replacement with vacuum equipment;
    • replacement of porcelain insulator stacks with polymeric insulator stacks which have a longer service life, smaller weight (approximately 10 times lighter), low content of transformer oil and which can be recycled rather than disposed of;
    • replacement of open-type batteries with lowmaintenance models;
    • organization of temporary operation and consumption waste storage at operation sites, including installation of sheds, replacement of worn containers for temporary accumulation of solid waste, procurement of special containers for temporary accumulation of fluorescent bulbs and covers for such containers;
    • execution of contracts with specialized licensed organizations for removal or dumping (depending on the hazard class) of operation and consumption waste with hazard class I — IV;
    • ensuring proper conditions of storage and transportation of materials, operation and consumption waste to prevent environment contamination;
    • development and update of orders and regulations on hazardous waste handling;
    • execution of certificates for 72 types of waste categorized as hazard classes I-IV and assignment of specific environmental hazard class to waste accumulated by PJSC MOESK branches;
    • calculation and approval of hazard (toxicity) class of waste based on the scope of waste impact on the living environment and human health in accordance with SP 2.1.7. 1386-03 Identification of Hazard Class for Toxic Operation and Consumption Waste for 27 waste types;
    • record-keeping in connection with operation and consumption waste handling at structural divisions of PJSC MOESK in compliance with Order of the Russian Ministry of Natural Resources and Environment No. 721 dated September 1, 2011 On Approval of Record-Keeping Procedure in Connection with Waste Handling.
    The performed activities will prevent land contamination with oil products, operation and consumption waste, which contributes to positive environmental situation at Company’s sites.
    Biodiversity protection The Company performed the following activities for protection of flora and fauna in 2015:

    Bird protection along power transmission lines:
    • PJSC MOESK cooperates with the Birds Conservation Union in the framework of its efforts for bird protection in power line areas;
    • Northern Electric Grids branch of PJSC MOESK installed 479 bird protection devices on 6-10 kV overhead line near the special protection natural area Grane Land. The Grane Land is the largest area of pre-migration gathering of grey cranes in Russia. The protected area is a natural habitat for 227 bird types, many of which are included into the endangeredspecies Red Book. The birds use the power line supports when flying from one spot to another and when detecting prey. The birds can cause malfunctioning of 10 kV power lines.
    • Replacement of old wire with modern insulated wire of SIP- 2,3 type on 0.4-10 kV lines in the framework of power supply quality improvement. In 2015, the Company replaced 1425 km of wires.
    Preservation of environmentally sensitive areas:
    • in compliance with Ordinance of Moscow Government No. №262-PP dated April 9, 2002 On Activities for Implementation of Moscow Law On Environmentally Sensitive Areas in Moscow, the Company executed conservation obligations agreements on preservation and utilization of ESAs of regional importance in Moscow: natural historic park Tsaritsino — 114 power transmission lines, 4 information boards were installed;
    Reforestation:
    • over 2,000 nursery and young trees of various species were planted by PJSC MOESK employees in various districts of Moscow region (Tchekhovsky, Domodedovsky, Noginsky, Kolomensky, Shatursky, Dmitrovsky) in the framework of environmental campaign “Our Forest. Plant your Tree”. The campaign was organized for the second time upon the initiative of Moscow Region Governor. The following tree species were planted: pine, maple, chestnut, oak, rowan, bird cherry, linden.
    • Participation in the Russian national project “Forest of Victory”, which resulted in thousands of nursery pines being planted in Moscow region (Khimkinsky, Mytischinsky districts).
    The performed activities contribute to preservation of biodiversity.

    Environment Protection Costs

    The following activities were performed in 2015 to improve the quality of waste water and increase the efficiency of treatment plants:

    The increase in the cost of protection and rational utilization of water is attributable to:

    Environment Protection Costs,
    RUB mln without VAT

    • increased water supply and disposal tariffs;
    • increased scopes of work on repair of utilities, cleaning of sewage lines and pumping out the liquid waste from the oil sumps.

    The increase in the cost of atmospheric air protection is attributable to limitation of validity period of documentation on maximum allowable emissions (MAE) and, consequently, the necessity to obtain new permits.

    The cost of land resources protection from operation and consumption waste depends on the volumes of repair and investment program implementation.

    Environmental Education

    Improvement of executives’ and specialists’ qualification in terms of environment protection is an important condition for efficient implementation of environmental activities. In 2015, the Company employees received training in accordance with the following programs:

    • List of Environmental Measures in Design Documentation — 1 person;
    • Expert Review of Design Documentation — 1 person;
    • Environmental Protection Measures to be Implemented by Managers and Specialists of Environmental Services and Environmental Control Systems — 5 people;
    • Environmental Protection Measures to be Implemented by Managers and Specialists of General Administrative Control Systems — 9 people;
    • Environmental Protection Measures to be Implemented in the Field of Hazardous Waste Handling — 62 people;
    • Environmental Audit — 2 people

    Environmental Audit

    In compliance with the requirements of the Regulations on Environmental Control (approved by PJSC MOESK Order No. 601 dated August 16, 2012) and the approved schedule and typical program, the Company performed 7 inspections to verify compliance with the environmental requirements by Company branches. In the framework of environmental control, compliance with environmental programs, environmental action plans, control schedules for emission source, waste accumulation site was verified. The verification resulted in 153 comments.

    Corresponding corrective and preventive actions were timely performed and planned for all the comments and non-compliances. Reports on rectification of identified non-compliances were received within the prescribed timeframe.

    In 2015, the audit of integrated environmental, occupational health and safety management system of PJSC MOESK was not performed.

    In 2015, no penalty sanctions were imposed by the supervisory authorities in connection with environmental law compliance by PJSC MOESK.

    1 - Approved by PJSC MOESK Order No.1039 dated September 12, 2014.

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