About the Report

The ALROSA Sustainability Report for 2012 is the сompany’s sixth non-financial report prepared in accordance with the Global Reporting Initiative (GRI) standard and the second report published for the general reader. The report is aimed at informing stakeholders about the principles, objectives, results and prospects of our activities in the field of sustainable development.

Non-financial reporting of the company is complex and comes in the form of a sustainability report. The format reflects our desire to present the results of our activities in a structured and consistent way, giving a full account of our social and environmental activities.

This year, we have taken a full-scale approach to report preparation, taking into consideration the Sustainability Reporting Guidelines, GRI, Version 3.1 and the Metals and Mining Sector Supplement (MMSS).

Our 2012 Sustainability Report reflects the operational results of the company from January 1 to December 31 of the reporting year. In those cases where a wider reporting timeframe is required in order to understand the company's sustainability results, additional data was used, mainly for 2010-2012. The report also contains references to events that occurred before or after that period, provided they may be helpful in providing a better understanding of the information submitted in the report.

The 2011 Sustainability Report was released in September 2012.

The structure of the report did not change significantly in order to preserve continuity and allow comparability with the previous edition. Measurement methods did not change either from the previous year. Information and company performance indicators were accumulated by a working group, in accordance with the corporate governance procedures and the GRI Guidelines.

Reporting Principles

In preparing the Sustainability Report the company is guided by the principles of global reporting in the context of sustainability as set forth in the GRI Guidelines.

Reporting Principles and GRI Standard Disclosures



GRI Standard Disclosures in the ALROSA 2012 Sustainability Report

GRI Principles for Defining Report Content


The report covers the most important operating results of OJSC ALROSA that have significant economic, environmental and social impacts, or that would substantively influence the assessments and decisions of stakeholders. 


The drafting of the report included a stakeholder analysis that helped identify key stakeholders and their groups and organizations, which are important for OJSC ALROSA. To identify the groups of stakeholders we reviewed the substantive influence that the performance of ALROSA has on such groups of stakeholders, its impact on the sustainability of the company and its operating results, and the existence of legally binding obligations. Stakeholder engagement is an on-going process, and, therefore, no specific engagement was undertaken as part of the report preparation process to identify core topics or obtain information.  


The reported information reflects the scope of the company’s contribution to sustainable development on the global, regional and local levels and its intention to strengthen positive and reduce negative impacts of its operational activities in the economic, environmental and social spheres. 


The report covers all significant economic, environmental, and social impacts of the company that that would seriously affect stakeholders’ perception of the performance of OJSC ALROSA.  

GRI Principles for Ensuring Report Quality


The company aims to give an unbiased picture of its performance and avoid selections, omissions, or presentation formats that are reasonably likely to unduly or inappropriately influence a reasoned assessment of the overall performance of the company. The report reflects the achievements of and challenges facing OJSC ALROSA.   


The reported information is oriented toward the GRI Guidelines, Technical Protocols, and the Mining and Metals Sector Supplement and enables stakeholders to analyse changes in the company’s performance over time and to support their analysis relative to other organizations. 


The reported information contains data that is officially recognized by the company and supported by its internal documentation, and available in the public domain.  


Reporting occurs on a regular schedule including drafting, independent audit, and publication.   


The report does not contain, as a rule, professional terms or data the understanding of which requires specialized knowledge. The company aims at making the report understandable and accessible to a broad range of stakeholders. 


The reliability of reported information is assured by the corporate accounting procedures (i.e., gathering, analysis, consolidation and quality control of accounting information) and in accordance with the Corporate Business Code of OJSC ALROSA. To add credibility, the report was subject to independent external assurance. 

Limits of the Report

The 2012 Sustainability Report covers, unless otherwise specified, all structural units of ALROSA. In general, the report presents consolidated data on financial and economic performance indicators, unless otherwise specified. 

The 2012 Report also contains information on key performance indicators of ALROSA’s main subsidiaries in which the company acts as a majority shareholder. Said enterprises are located in the Russian Federation, and their core business activities are diamond mining and geological exploration, i.e. ALROSA Nyurba, Almazy Anabara, and Severalmaz. Apart from the financial results of their operations, the report contains information pertaining to social and environmental responsibility practices in these companies.  

GRI Application Levels

The report covers economic, environmental and social aspects of ALROSA’s sustainable development. It reviews such areas of social responsibility as responsibility towards personnel and local communities, consumers and business partners, responsibility for environmental protection and use of natural resources as well as occupational safety and health. 

The company declares an A+ data-reporting level of GRI Reporting Guidelines, Version 3.1 and the report contains information for each core indicator category of the GRI Reporting Guidelines and the Mining and Metals Sector Supplement.

In external verification of our non-financial reporting, we are governed by the recommendations of the GRI Standard Disclosures as well as the need to comply with a number of external audit principles, i.e.:

  • an audit shall be performed by groups or persons that are independent of the company’s operations;
  • auditors shall verify compliance with the requirements for the standards for the quality and content of the information reflected in the report;
  • the auditors’ opinion shall be included in the Report and published.


GRI Application Levels

Further Improvement of Non-Financial Reporting in ALROSA

We see how the non-financial reporting of ALROSA can be further improved and are determined to make consistent efforts aimed at improving the report quality, following the recommendations of experts in this area.

This year, ALROSA has launched a corporate programme aimed at developing a social responsibility and non-financial reporting management system including the development of an internal regulatory framework that will govern the sustainability report preparation and mapping. These documents are meant for defining all core and ancillary reporting procedures, including the timing and regulation of administrative processes.   

Stakeholder engagement is one of the most significant reporting processes.

The task we are facing today is to develop a document that would reflect core aspects of stakeholder engagement, i.e. stakeholder mapping, development of procedures governing various forms and vehicles of stakeholder engagement in the report preparation process, identification of key topics, accommodation of opposite views and interests, and a quest for balanced decisions.

In addition to a regulatory framework for the report preparation process, we are considering developing a system of non-financial reporting in accordance with the GRI Reporting Guidelines, Version 4.0.  

We cannot but take note of the recommendations of the ISO 26000 Core Subjects and Issues of Social Responsibility in our 2012 Sustainability Report, particularly those that refer to social responsibility, to correlate these key standards with the disclosures that we make in the report as a socially responsible company.  

Disclosure of ISO 26000 Core Subjects and Issues of Social Responsibility in the ALROSA 2012 Sustainability Report

Core subjects and issues of social responsibility addressed in ISO 26000

Core subjects and issues addressed in the report

Organizational governance

Corporate governance & social responsibility

Human rights

Issue 1: Due diligence
Issue 2: Human rights risk situations
Issue 3: Avoidance of complicity
Issue 4: Resolving grievances
Issue 5: Discrimination and vulnerable groups
Issue 6: Civil and political rights
Issue 7: Economic, social and cultural rights
Issue 8: Fundamental principles and rights at work

Employee rights under a collective bargaining agreement. Equal opportunities for professional development and career growth for socially vulnerable categories of employees. Resolution of grievances by a trade union.  

Labour practices

Issue 1: Employment and employment relationships
Issue 2: Conditions of work and social protection
Issue 3: Social dialogue
Issue 4: Health and safety at work
Issue 5: Human development and training in the workplace

Social partnership. Additional social benefits and guarantees for employees above and beyond those established by law. Corporate social programmes for heath protection and leisure and recreation, promotion of a healthy lifestyle, housing schemes, and provision of additional non-state staff retirement plans. Occupational health and safety. HR development and capacity building. 

The environment

Issue 1: Prevention of pollution
Issue 2: Sustainable resource use
Issue 3: Climate change mitigation and adaptation
Issue 4: Protection of the environment, biodiversity and restoration of natural habitats

Water use and protection of water objects. Atmospheric air protection. Industrial waste treatment. Rational energy use and energy conservation. Land use. Biodiversity preservation.

Fair operating practices

Issue 1: Anti-corruption
Issue 2: Responsible political involvement
Issue 3: Fair competition
Issue 4: Promoting social responsibility in the value chain
Issue 5: Respect for property rights

Role of ethical business behavior in preserving the stability of the world diamond industry. Participation in the Kimberley Process to fight illegal diamond mining and trade. Anti-corruption efforts.

Consumer issues

Issue 1: Fair marketing, factual and unbiased information and fair contractual practices
Issue 2: Protecting consumers' health and safety
Issue 3: Sustainable consumption
Issue 4: Consumer service, support, and complaint and dispute resolution
Issue 5: Consumer data protection and privacy
Issue 6: Access to essential services
Issue 7: Education and awareness

Engaging consumers as a key group of stakeholders. Certification as a product quality guarantee. Compliance with anti-monopoly laws. 

Community involvement and development

Issue 1: Community involvement
Issue 2: Education and culture
Issue 3: Employment creation and skills development
Issue 4: Technology development and access
Issue 5: Wealth and income creation
Issue 6: Health
Issue 7: Social investment

Charity work helping children, local NGOs, as well as in the spheres of education, culture, academic research, sports, and the arts. Support for agriculture and the traditional artisanal activity of indigenous peoples in the regions where we operate. Creation of employment for local communities and indigenous peoples.


The Report contains fragments of paintings made by Yakutian artists: Olga Scorikova and Tuyaara Shaposhnikov.