Key areas and parameters in the field of sustainability
In 2024, MTS focused on further integration of sustainability principles into their business processes. Taking into account the key national trends, the Company emphasized social responsibility, which is reflected in the structuring of two areas of the ESG-strategy. “Digital Society Development” area unites all socially significant projects, while “Responsibility to Employees” highlights the importance of a caring approach to the support and professional development of human resources.
For more complete integration of the ESG-approach into operations, thorough mechanics of the strategy realization are identified, which are equally important for all ESG areas:
- Compliance and Business Ethics as the basic principle of the company provide for the transparency of the processes and a high level of corporate responsibility.
- Education and Awareness improve the level of stakeholders’ inclusion and understanding of the importance of complying with the sustainability principles.
- Accounting for ESG-aspects regardless of the field of projects, products and services implementation improves the company’s ability to influence the solution to environmental and social problems of the company.
In 2024, the Company worked on identifying certain focus topics from the total list of the strategy, with the purpose of metrics development for their assessment.
ESG-strategy of MTS is built on the principle of a common group approach, which enables the subsidiaries to adapt harmoniously to the general strategy of the Group, detailing ESG-areas with account for the unique features of its business and level of ESG-maturity. This creates a dynamic and flexible system capable of meeting the challenges of time. The Company systemically manages all types of risks associated with the diversified business, including ESG-risks, in the process of making decisions at various management levels. In 2024, the interaction with the subsidiaries increase significantly, horizontal connections and collaboration strengthened. So, at the end of 2024, the ESG Center held the ESG-Day, when the employees of the MTS Group companies exchanged their valuable experience and discussed the plans for further cooperation.
The basic principles of MTS are openness, transparency, significance and high quality of significant ESG information disclosure for a wide audience of stakeholders in the Annual Report and the Sustainability Report.
In 2024, the company developed education and awareness areas actively, introducing elements of inclusive culture both into daily practice and at the digital level. The aspiration to integrate charitable programs into the company products helps to harmoniously combine social responsibility and innovations. The objectives of the ESG Center in 2024 included developing the concept of a complex internal environmental awareness program aimed at improving the employees’ awareness of the importance of sustainability and caring attitude towards the environment1.
The Company provides continuous access to state-of-the-art digital services and high quality communication services for all categories of the public, regardless of geographical location, national origin, age and health, and improves the level of information and cybersecurity.
1 See more details on all environmental initiatives in the Ecology section.
Detailed information is set out in the “ESG and Sustainability” section, as well as in the 2024 MTS Sustainability Report Report for 2024
2024
Environmental concern
Printing of 133.6 million paper sheets was prevented, and the number of envelopes used was reduced by 66,558
The Strategy was approved for managing greenhouse gas emissions and achieving carbon footprint reduction goals
333.4 thousand electronic devices were recycled under the customer equipment refurbishment program
46,843 kg of plastic and 26,505 kg of electronic components were transferred for responsible recycling under the refurbishment program
> 2 million people were covered by MTS educational and awareness content on the environmental topic
7124 kg of small electronic equipment; 67.3 kg of telephones and more than 33.5 tons of broken computer equipment and communication equipment were sent for reprocessing and responsible recycling
Responsible business management
In 2024, MTS successfully confirmed its compliance with the following standards:
- ISO 37001:2016 “Anti-bribery management system”
- ISO 37301:2021 “Compliance management system”
MTS won two compliance awards:
- Russian Compliance Award 2024 in the category “Best Innovations in Compliance Sphere”
- “Compliance 2024” in the category “For use of state-of-the-art technology in developing methods and tools to control the compliance management system”
100% members of the Board of Directors, the Management Board and members of the Committees of the Board of Directors completed training on the anti-corruption compliance system
> 30,000 employees completed the updated course “Confidential information and personal data handling rules”
85.2 points was the total level of MTS compliance culture
3.06 million facts of fraud were identified
RUB 817.5 million — amount of prevented losses
2.7 billion calls were blocked in the MTS network by anti-fraud systems
Responsibility to employees
The average salary in the Company is 6.8%. higher than in general throughout the country
Platinum status in the rating of best employers in Russia according to Forbes
1st place among telecom companies in the Best Company Award rating
Around 72%. manager and 48%. other vacancies are filled from internal candidates
>7500 courses are available in the MTS Corporate University
11,430 people completed external and internal health and safety training
The special assessment of labor conditions was completed for 94%. workplaces in the Corporate Center of MTS Group and MTS PJSC branches
~1500 interns in the entire MTS ecosystem were accepted for internship
~50%. of those who completed the internship were employed full-time
1,900 active volunteers of MTS are ready to participate in social projects
1,050 managers of MTS completed educational programs on diversity, equality, inclusion, including in the field of respect for human rights
20 thousand employees are covered by the educational campaign on various aspects of inclusive culture and human rights on the Pulse portal
Digital society development
30 IT-events were held under the MTS True Tech Community initiative
18 socially useful digital products (VR-films, audio guides, educational materials, etc.) were created within the “Place of Power” project
84 tourist audio guides in the regions of the country were created by MTS, and used by more than a million people
10 million views of educational courses on the “Generation M” platform
>10 thousand people received training completion certificates
Relationship between the ESG-agenda and the Company strategy
In 2024, MTS continues to position itself as a digital ecosystem, which is based on developing innovative digital technology promoting creation of the maximum value for the customers and all stakeholders.
Inclusion of sustainability values into the MTS business strategy provides for a deeper understanding of the customers’ and all stakeholders’ needs. Accounting for social and environmental aspects enables the Company to build long-term relationships with the customers, improving their products and services in accordance with the consumers’ expectations, which, in turn, helps to strengthen MTS competitiveness in the market.
Additionally, the sustainability agenda helps MTS to minimize risks and manage them. Adoption of environmental norms and standards, active participation in the environmental protection initiatives and compliance with the high standards of corporate governance build trust by the investors, partners and customers. This is the foundation for stable growth and improves the long-term value of the Company, which meets the MTS strategic objectives.
Integration of ESG-initiatives helps to improve the level of employee involvement and corporate culture. Training and development of the personnel in the field of sustainability form a team oriented on environmental and social responsibility, which in turn improves the overall efficiency and image of the Company.
As a representative of the AFC Group, MTS continued to participate in meetings of the Alliance’s ESG profile committees in 2024, thereby contributing to the increased effectiveness of the national ESG agenda and further refinement of national rating methodologies and other initiatives.
Internal documents in the top level sustainability area
At the level of internal documents in the sustainability area, MTS developed and actively uses the code of regulations that promote introduction of sustainability principles into operations. In particular, respect for human rights is secured in the “Diversity, Equality and Inclusion” policy, and there is a set of documents in effect that ensure information security and personal data protection. The suppliers must review the Counterparty’s Business Conduct Code, which reflects the approaches of the company to environmental and social responsibility.
EGS governance structure
The ESG Committee of the Board of Directors defines the priorities for development and consults on the MTS ESG-agenda, assesses the results of work in the ESG areas. In 2024, the ESG Committee held 19 meetings, including 6 joint (3 jointly with the Remunerations and Appointments Committee, 2 jointly with the Audit Committee, 1 with the Audit Committee and Special Compliance Committee). Some subsidiaries presented materials on their ESG initiatives at the meetings of the Committee.
The MTS ESG Center is responsible for the development and effective implementation of the ESG-strategy, coordinates implementation of the key ESG-areas, promotes introduction of the ESG-aspects into the Company’s business processes and support for the sustainability agenda in the MTS Group.
The business areas and Subsidiaries involved in the ESG-agenda are responsible for implementing the events on the key ESG-areas, and also collecting ESG-data for further consolidation in the ESG Center.
Management of ESG-operations in MTS and subsidiaries
