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How can you identify your future?EY Russia Sustainability Report, Financial years 2015-2016

02EY RUSSIA SUSTAINABILITY REPORT FY15, FY16

OPENING REMARKS BY ALEXANDER IVLEV, EY MANAGING PARTNER FOR RUSSIA 03

OUR COMPANY 05

Our services 05

EY Global and EY Russia: Facts and figures 06

Our business model 07

Key performance indicators for FY15 and FY16 08

Recognition 09

OUR CLIENTS AND MARKETPLACE 11

Exceptional client service 11

Client composition 12

Assessment of service quality 13

What services are we offering? 14

EY Global Code of Conduct 16

Compliance with legal requirements 17

OUR PEOPLE 21

Our values 22

Creating the highest-performing teams 23

Total number of employees 24

Developing and supporting our people through world-class learning 27

Mobility 29

Milestone events 30

Award for exemplifying our corporate culture and for outstanding achievements 31

Diversity and inclusiveness 32

Inclusive leadership 32

Competitive compensation and benefits 33

Creating a flexible workplace 34

Healthy lifestyles 35

Family values 36

Job safety 36

EY Alumni Club 37

OUR COMMUNITIES 39

We support communities 40

Enhancing the Russian business climate 41

Memberships in associations 44

Supporting entrepreneurship in Russia 45

Support for the young generation 48

Volunteering and charity 49

Environmental stewardship 54

HOW EY IS ORGANIZED 59

CIS Management Committee 59

ABOUT THIS REPORT 62

Stakeholders and engagement mechanisms 66

GRI summary table 67

Data overview 68

Contact information 75

Content


Opening remarks by Alexander Ivlev, EY Managing Partner for Russia

Good day!

We are pleased to present EY’s sustainability report for the 2015 and 2016 financial years.

If you’ve already peeked ahead, you may be wondering what the Higgs boson and the discovery of water on Mars have to do with EY, which isn’t, after all, a technology company.

It’s very simple. Today we are living in the future. Thanks to the rapid advance of science and technology, our reality is changing on a daily basis. As professional advisors, we have to do more than move with the times; we have to be constantly thinking ahead. Otherwise, how can we advise clients that are often on the cutting edge?

That’s why our report features key discoveries of the 21st century that have transformed science – and our lives along with it.

This is the first time the report’s opening remarks have been in video format, which only goes to show that EY never stands still: we take innovative approaches to everything we do – from the development of unique technology-based products that can benefit our clients’ business to the use of eco-friendly materials and energy-efficient technologies in the office.

You can read about all this in our report, which is made up of four units covering financial performance, the firm’s activities, our people, our key projects during the reporting period, and, most important, explaining how everything we do contributes to the development of our communities, whether professional, business or academic.

Our report contains a lot of figures, diagrams and also texts. As a professional services company, we put a premium on accuracy and consider it important to describe all our projects in detail.

It is up to you to select the information you need. We, on our part, have done our best to make the report user-friendly in terms of presentation and document navigation.

Our next report may be a lot smaller; in fact, in a few years’ time it may take the form of a single tiny chip. Who knows?

This material, by the way, has been prepared with the interests of all stakeholders in mind.

I hope that your reading experience will be enjoyable and profitable!

Alexander IvlevEY Managing Partner for Russia


OUR COMPANY

People have always wanted to know how the world is made up. One question that long went unanswered is why everything has mass. In 1964 François Englert and Robert Braut proposed that elementary particles acquire mass as a result of spontaneous symmetry breaking. Soon after, Peter Higgs noted that this implied the existence of an unknown elementary particle, a boson. The theory, as it was subsequently elaborated, came to be known as the Standard Model – a minimal theory describing all known elementary particles. Eager to know how well the Standard Model describes reality, scientists from the 1990s on searched for traces of the mysterious boson by colliding beams of elementary particles in accelerators. Successful experiments were finally carried out at the Large Hadron Collider, and it was announced in July 2012 that a candidate for the Higgs boson had been found. Further experiments confirmed the hypothesis, thus completing the Standard Model. This discovery’s importance for modern science cannot be overestimated. In 2013 Englert and Higgs were awarded the Nobel Prize in Physics for predicting the discovery of the Higgs boson.

OUR COMPANY


OUR COMPANYOur services

Our servicesEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in capital markets and economies the world over. We develop outstanding leaders who team to deliver on our promises to all our stakeholders. In so doing, we play a crucial role in building a better working world for our people, our clients and our communities.

Service lines

Assurance

Tax and law

Transaction advisory services

Advisory services

Industries

Finance

Asset management

Banking & capital markets

Insurance

Automotive

Cleantech

Consumer products

Government & public sector

Biomedicine

Media and entertainment

Mining & metals

Oil & gas

Power and utilities

Direct investment funds

Real estate, hospitality & construction

Technologies

Telecommunications

‘At EY, we're reshaping our working world to better prepare our people, clients and business for the Future Of Work.’

Mark Weinberger

Global Chairman & CEO, EY

Our company


OUR COMPANYEY Global and EY Russia: Facts and figures

EY Global and EY Russia: Facts and figures

EY Global EY Russia

Headquarters in London

150 countriesHeadquarters in Moscow

10 officesMoscow, St. Petersburg, Novosibirsk, Ekaterinburg, Kazan, Krasnodar, Rostov-on-Don, Vladivostok, Yuzhno-Sakhalinsk, Togliatti

Number of employees in the financial year

Percentage of Russian and foreign partners in the financial year

Women

1%

28%

1%

29%

1%

27%

Men

14%

57%

13%

57%

14%

58%

2016

2015

2014

Foreigners Russians

EY Global’s revenue in the financial year EY Russia’s revenue in the financial year

230,800

211,4502016

2015

USD 29.6 billion

USD 28.6 billion

2016

2015

RUB 16.7 billion

RUB 17.1 billion

2016

2015

3,296 people

3,241 people

2016

2015


OUR COMPANYOur business model

EY Global’s report

Megatrends Study

EY Transparency Report

UN Global Compact: our progress in

implementing the compact

Progress in realizing our strategy

Changing lives in our communities

Managing our environmental

footprint

Our business modelVALUE CREATION OVER TIME

CAPITAL INPUTS OUTCOMES

Our purpose

EY is committed to building a better working world.

Through this purpose, we create confidence for stakeholders and the capital markets, supporting our clients to drive sustainable growth the world over.

Strategic processes

Creating the highest-performing teams

Asking better questions

Delivering exceptional client service

01. IntellectualTechnical knowhow, methodologies and tools

02. HumanDiverse, purpose-driven people

03. FinancialPartner equity; third-party debt

04. Social and relationshipStakeholder relationships

05. Natural and manufactured resourcesTravel; office energy and supplies; IT

Building trust and confidence in the capital markets through our quality services

Advancing inclusive, sustainable growth

Creating the highest performing teams and leaders in business and society

Increasing transparency and knowledge sharing

Managing our environmental footprint

REPORTING OUR PERFORMANCE

08

100%

16%

15%

17%

19%

9%

9%

18%

19%

40%

38%

EY RUSSIA SUSTAINABILITY REPORT FY15, FY16

OUR COMPANYKey performance indicators for FY15 and FY16

Consumer products in the financial year

Assurance Tax and law

Advisory services

Transaction Advisory Services

Core Business Services

2016

2015

employees

employees

TOP-PERFORMING INDUSTRIES

Finance Consumer products

Oil & gas

Key performance indicators for FY15 and FY16

Revenue in the calendar year

Employees who took training in the financial year

16.7 RUB billion

17.1 RUB billion

15.6 RUB billion

> 241,070 training hours

> 197,618 training hours

2016

2015

our employees signed our Global Code of Conduct

2016

20152014

1,337

1,216

517

496

547

637

299

279

596

613


OUR COMPANYRecognition

Recognition

2016

First place for the second year in a row in the Expert Agency’s ranking of Russian audit and advisory firms

Seven EY top managers took first places in the Professional Services category in the annual rating of Top 1,000 Russian Managers by the Association of Managers and Kommersant Publishing House

EY Managing Partner for Russia Alexander Ivlev was named Best CEO 2016 at the annual Top 1,000 Russian Managers Awards, sponsored by the Association of Managers and Kommersant Publishers.

Two stars (second place) in the ranking “Green Offices in Russia 2016” by the Greens Environmental Agency in partnership with Skolkovo Moscow School of Management and the Association of Managers

European Tax Compliance and Reporting Firm of the Year for the fourth year in a row in the annual International Tax Review (ITR) European Tax Awards

In the Changellenge 2015 ranking, EY came in:

No. 1: Best Audit Firm

No. 5 in the overall ranking of the 80 best companies of the year (an improvement of three places since 2014)

No. 3 Most Popular Employer (based on the number of resumes received)

No. 1 Big Four Company in the category “Best Employer for Career Development (after Three Years)”

2015

First place in the Expert Agency’s rating of assurance and advisory firms

Eight EY top managers took first places in the Professional Services category in the annual rating of Top 1,000 Russian Managers by the Association of Managers and Kommersant Publishing House

EY is one of the Top Ten Most Attractive Employers in Russia according to Universum’s annual ranking based on surveys of students majoring in economics and business

Best PPP Financial Advisor in the ROSINFRA 2015 national infrastructure awards

The EY Academy of Business was a Trainings 2015 winner in the “Company of the Year” category.

Russian Transfer Pricing Firm of the Year in the International Tax Review’s European Tax Awards

The EY Running Club is a winner of the “Hey! Employee Motivation, Wellness and Performance 2015” award

In the Changellenge 2014 ranking, EY came in:

No. 1: Best Audit Firm

No. 1: Breakthrough of the Year

No. 2 Most Popular Company

No. 1 Big Four Company according to Universum

Alexander Ivlev, EY Managing Partner for Russia:

Best CEO of 2016


OUR CLIENTS AND MARKETPLACE

Proof of the Poincaré hypothesisThe concept of a deformed three-dimensional sphere was formulated by the great mathematician Henri Poincaré in 1904. Put simply, the idea is that any simply connected three-dimensional object can be transformed into a sphere with only one deformation, without cutting and pasting. In other words,

Poincaré conjectured that space is not three-dimensional, but has a much higher number of dimensions. A hundred years later the Russian mathematician Grigori Perelman proved this mathematically by applying a smooth evolution equation to three-dimensional surfaces. Poincaré’s conjecture is one of

the Millennium problems – seven “important classical problems that have gone unsolved for many years.” Poincaré’s conjecture gave a powerful impetus to the field of topology, ultimately opening the door to new areas of physics involving interesting and unexpected topological states of substances.

OUR CLIENTS AND MARKETPLACE


OUR CLIENTS AND MARKETPLACEExceptional client service

Our clients and marketplaceExceptional client serviceIn today’s complex and dynamic world, clients expect a consistently high quality of service from a team of professionals. That’s why at EY we’ve developed a concept of exceptional client service consisting of three elements.

CONNECTEDmeans having the right people in the right places in order to build trust and expand client relationships

RESPONSIVEmeans the desire and commitment of every person in EY to be proactive, visible and timely

INSIGHTFULmeans using EY experience and a point of view tailored to the client situation to advance their thinking

“In our business, only the high quality of services can guarantee client loyalty. For two years in a row, EY has held the leading position among Russia’s biggest audit and advisory firms in the Expert Agency’s ratings, and this is the best confirmation that we make quality a priority.”

Alexander Ivlev

EY Managing Partner for Russia

12

74%

63%

26%

37%


OUR CLIENTS AND MARKETPLACEClient composition

Market share of assurance services in Russia* in the financial year

Other assurance firms EY

2016

Client composition

GLOBAL AND RUSSIAN COMPANIESThese companies need advisors to help them expand their global reach and meet exacting international standards. EY assists them in evaluating new business opportunities, expanding into emerging markets or scaling down their presence, complying with regulatory rules internationally, coordinating a global workforce and establishing a dialog with governments.

MIDDLE-MARKET COMPANIESThe middle market comprises many mature, stable and profitable companies, often with private capital. These companies face many of the same issues as EY’s largest clients, but without the in-house resources needed to deal with them. They need EY’s help in completing transactions to drive growth and in expanding into new markets worldwide.

ENTREPRENEURSEY recognizes that it is entrepreneurs who drive sustainable economic growth. For over 30 years, EY has been dedicated to helping entrepreneurs achieve their business dreams, pursue successful strategies and become market leaders.

2015

* In 2016 we served 26% of CIS companies on the Forbes Global 2000 list (37% in 2015).

13

10

9

8

7

6

5

4

3

2

1

0

2016

2015

12

8

35

23

125

103


OUR CLIENTS AND MARKETPLACEAssessment of service quality

Comparison of ASQ Program activity in the financial year

Interviews conducted

Questionnaires sent out

Completed questionnaires returned

FY15Never

AlwaysI would recommend EY to a friend or colleague

FY16

Assessment of service qualityAs part of a global initiative, EY Russia conducts annual ESQ (Expectations of Service Quality) and ASQ (Assessment of Service Quality) programs involving key clients in all service lines.

The ESQ program gives us a better understanding of clients’ expectations of quality before the start of an engagement so that we can design a more comprehensive approach.

The ASQ program measures the degree of client satisfaction with our cooperation, enabling us to act on feedback and improve the quality of our services.

In the ASQ program, quantitative and qualitative statistics are collected and assessed by means of:

face-to-face interviews with a client’s key people, including audit committee chairs and board members, conducted by independent partners not involved in serving that client

electronic questionnaires used to gather objective feedback on specific engagements or the overall client relationship. Overall, clients rated our services highly and said they would

recommend us to colleagues and friends.

Clients’ willingness to recommend our services to colleagues and friends based on the Assessment of Service Quality for FY16 and FY15 on a scale of ten.

8.9 8.7


OUR CLIENTS AND MARKETPLACEWhat services are we offering

What services are we offering?

ASSURANCE Assurance professionals provide external audit services as well as fraud detection and forensic services and advise on sustainable development, including cleantech.

TAX AND LAWOur professionals help clients understand and responsibly manage their tax compliance and reporting obligations. They advise companies on business tax, international tax, transaction tax, human capital, personal taxes and a variety of legal issues.

ADVISORY We help clients operate more effectively and efficiently, advising them on business processes, risk management, information security and adding value to supply chains. We also provide internal audit services and offer sector-specific strategies for sustainable business growth in a fast-changing market.

TRANSACTIONS Experts enable our clients to make more informed decisions on how to strategically manage capital and transactions. They advise on raising, retaining, investing and optimizing capital in a rapidly changing world. Whether it is buying, selling or restructuring, EY professionals have a laser focus on clients’ strategic needs.

Over 82,555 professionals globally

Over 1,337 professionals in Russia

Over 46,216professionals globally

Over 517 professionals in Russia

Over 48,104professionals globally


Over 12,236 professionals globally


OUR CLIENTS AND MARKETPLACEWhat services are we offering?


OUR CLIENTS AND MARKETPLACEWhat services are we offeringOUR CLIENTS AND MARKETPLACEWhat services are we offering?

INDUSTRY CENTERS

EY Academy of Business

Since 1993 the EY Academy of Business in Russia has been a leader in professional training and career development, offering a wide range of educational services from training courses to programs to prepare candidates for such international qualifications as АССА, CIA®, CFA®, MBTI®, PMP®, CIMA (Rus), and DipIFR (Rus) and ACCA DipNRF.

In 2013 the EY Academy of Business was accredited by OPP Alliance Partner and became the first organization to offer the MBTI® Step I Qualifying Program in Russian. OPP Ltd., the official distributor of MBTI®, has chosen the EY Academy of Business as its MBTI® training partner.

www.academyey.com

Multi-Family Office

Decisions affecting family welfare require knowledge in many areas. A family office may be tailored to the needs of a single family (a classic family office) or may cater to the needs of several affluent families (a multi-family office).

International Contact Center

The center coordinates country support services at the local level, making maximum use of other relations between the center’s specialists and client support groups within EY Global in order to create new opportunities for the business development of foreign companies.

Cleantech and Sustainability Services

We offer a broad range of cleantech and sustainability services, from strategy development and goal setting to assistance in implementing programs and evaluating their results.

EY Moscow Oil & Gas Center

The center helps oil and gas companies respond rapidly to regulatory changes, manage risks, make more informed M&A decisions and improve performance.

EY Retail Center

The center offers retailers and wholesalers a wide range of services to enhance their financial performance, including cost optimization, enhancement of store efficiency, design of operating models and optimization of business processes and processes of information exchange and product distribution as well as assistance in ensuring that the business of corporate clients is effective and sustainable.


OUR CLIENTS AND MARKETPLACEEY Global Code of Conduct

EY Global Code of Conduct

Our reputation is one of our key assets. EY’s integrated approach, globally consistent policies and practices, independence processes and Code of Conduct allow us to set a high bar for service quality.

EY’s Global Code of Conduct provides a clear set of standards that guide our people’s actions and conduct across all areas of activity.

The Code is divided into five sections:

Working with one another

Working with clients and others

Acting with professional integrity

Maintaining objectivity and independence

Respecting intellectual capital

AREAS OF BUSINESS ETHICS

Working with one another

Interpersonal relations are built on trust, and we make every effort to create an atmosphere of trust and openness that leaves no place for discrimination. Cooperation is based on principles of mutual respect, tact and cooperative effort.

Relations with clients and third parties

We value EY’s ethical standards, integrity and reputation above all and adhere to them rigorously in relations with all clients and third parties. We reject unethical and illegal business practices in all circumstances.

Acting with professional integrity

We comply with all applicable laws, regulations and standards in our professional activities. We guard EY’s reputation and understand and observe EY rules and procedures.

Maintaining objectivity and independence

We ensure and promote objectivity and independence and reject inappropriate pressure by clients and others

Respecting intellectual capital

We observe confidentiality and protect information in strict compliance with the law and professional standards. We obtain, develop and protect intellectual property in accordance with the established procedure.

Personal data protection

We ensure compliance with the personal data standards prescribed by law and within the Firm.

We ask everyone at EY to make a personal commitment to abide by our Global Code of Conduct. In FY16 and FY15, 100% of our people at EY Russia signed the Global Code of Conduct.

EY Russia’s employees can report breaches of the Global Code of Conduct openly or anonymously via the EY/Ethics Hotline or a dedicated website hosted externally by an independent company.

When a report comes in to the EY/Ethics Hotline, either by phone or Internet, it receives immediate attention from the appropriate individuals in Risk Management, Human Resources or Law.

17

2016

2015


OUR CLIENTS AND MARKETPLACECompliance with legal requirements

Completed training or confirmed their adherenceto the Firm's anti-corruption policies and procedures in the financial year

Compliance with legal requirements

EY member firms strictly comply with the applicable laws and regulations. This important commitment is supported by a number of policies and procedures.

Anti-bribery and anti-corruption

The global anti-bribery policy lays out the procedure that employees should follow in the event of unethical and illegal activities. It provides a definition of bribery and emphasizes employees’ obligation to comply with anti-bribery laws, including their responsibility to report on any instances of bribery that come to their attention.

We work with organizations such as the World Economic Forum (WEF) and Transparency International and take part in the WEF’s

Partnering Against Corruption Initiative, which unites over 170 organizations committed to intensifying their efforts to eliminate bribery and corruption.

In FY16, EY’s anti-corruption policy was updated to clarify the terms used and practical issues involved in implementing the policy (for example, gift giving and representational expenses).

The Policy on Gifts and Hospitality was also updated in 2016 to place tighter restrictions on gifts from clients to employees.

All contracts with suppliers include an anti-corruption clause.

In FY16 and FY15, the employees of all

7 legal entities within EY Russiatook anti-corruption training.

* The smaller percentage of employees who confirmed their adherence to the Firm's anti-corruption policies and procedures in FY16 had to do with the fact that not all interns and contract workers had time to go through the formalities during their short period of employment.

of the Firm's employees*

of the Firm's employees

94.69%89.66%

18

2016

2015



Insider tradingEY’s global Insider Trading Policy reaffirms the obligation of EY employees not to trade in securities using insider information and provides details on what constitutes insider information.

In FY16 the Firm adopted a new Policy on Commercial Secrecy and Confidentiality to enhance the treatment of confidential information and prevent its disclosure and to ensure that EY’s commercial secrecy rules are observed.

Personal Data ProtectionEY’s global Personal Data Privacy Policy sets out the principles that apply to the use and protection of personal data, including data on current, past and prospective employees, clients, suppliers and business associates. This policy is consistent with applicable laws and regulations concerning the protection and confidential processing of personal data.

Document retentionMember firms are required to retain documents in compliance with professional, legal and regulatory obligations. We retain documents whenever an employee becomes aware of any actual or potential claim, litigation, investigation, subpoena or other government proceeding involving a member firm of EY Global.

Independence

Independence is fundamental to the audit profession and essential in all dealings with assurance clients.

For more information on our independence policy, please refer to EY Global’s Transparency Report for 2014.

All employees involved in professional services as well as a number of administrative employees whose work involves them in one way or another with clients and suppliers are given annual independence training.

All EY employees who serve clients or are involved in one way or another with clients and suppliers must acknowledge their obligation to abide by the Global Code of Conduct and policies on independence, insider information, management responsibilities and anti-corruption. Employees are familiarized with the policies and given training within 30 days after hiring, and the process is repeated annually.

Client acceptance, continuance and service delivery

This global policy covers:

the evaluation of risks and decisions to accept new clients and continue with existing clients

compliance with independence requirements

the identification and appropriate handling of conflicts of interest

decisions not to have dealings with clients that pose excessive risks

consultation with designated professionals to identify additional risk-management procedures for specific high-risk factors

compliance with legal, regulatory and professional requirements

In FY16 a fine of RUB 657,241 was paid because of an incorrect calculation of payments to funds.

In FY15 EY Russia did not pay any fines for noncompliance with legal and regulatory requirements.

4,257.5 hours4,132 hours

Hours of independence training in the financial year

* The smaller number of independence training hours in FY16 had to do with the fact that not all interns and contract workers had time to go through the formalities during their short period of employment.



In accepting new clients, we also take into account the global EY Conflicts of Interest Policy, which sets global standards for identifying potential conflicts of interest.

Mandatory client acceptance procedures are handled in the GTAC base (Global Tool for Acceptance and Continuance) in accordance with global and service-line policies as well as local restrictions.

For more information on EY client acceptance and continuance policies, please refer to EY Global’s Transparency Report for 2014.

Data privacy

We regard data privacy and information security as fundamental components of doing business, especially for professional service providers.

The EY Global Code of Conduct requires that all EY employees respect and protect personal and confidential information received from EY, clients and third parties.

Under the EY Global Data Privacy Policy:

We protect personal data using appropriate physical, technical and organizational security measures

We process, store and disclose personal data for legitimate business purposes only. When third-party processors are engaged, we make sure that data is managed in accordance with EY standards.

We give special attention and care to sensitive personal data, ensuring that we respect local laws and customs

We have introduced a range of measures to ensure that personal data remains accurate, complete, current, adequate and reliable.

Where applicable, we notify individuals with whom EY member firms engage, advising them of the reasons for processing their personal information.

In addition to the Global Data Privacy Policy, EY has adopted binding corporate rules (BCR) to legitimize international data transfers among our member firms in compliance with European data protection law and gives its employees the appropriate training.

Procurement policy

EY has a global procurement policy, including a Supplier Code of Conduct that is appended to all purchase contracts for goods and services and requires that suppliers:

manage environmental risks

uphold human rights

provide equal opportunities

ensure occupational health and safety

observe business ethics

monitor their own activities on a regular basis to ensure compliance with the Code of Conduct

EY chooses suppliers based on product quality and market experience, factoring in competitive price offers. The Firm also tries to give preference to local suppliers: 95% of suppliers are located in the Russian Federation and pay Russian taxes.


OUR PEOPLE

OUR PEOPLE

Decoding the human genomeThe decoding of the human genome was completed in 2003, although individual segments continue to be analyzed. The genome of any organism is unique, and determining the sequence of the human genome thus involves the sequencing of numerous variations of each gene. Scientists working on the project have determined the sequence of nucleotides that make up DNA and identified some 25,000 genes in the human genome.

For scientists and society at large, this research holds out the hope of finding a way to treat genetically transmitted diseases. Today a number of genes that are responsible for diseases have been identified.

Ultimately, the most effective way of treating such diseases may be to replace the defective genes with healthy ones. Gene therapy is still in its infancy, and numerous problems remain

to be overcome, such as the fact that some diseases involve multiple genes. Research continues, and successes may come sooner than expected.


OUR PEOPLE

EY works hard to recruit people who are talented and curious, who thrive in international teams and have a global mindset.

When people choose to leave EY, we don’t see this as an end to the relationship, just the next stage. As members of the EY Alumni Club, former employees have opportunities to interact with colleagues and strengthen business ties as a catalyst for further career growth.

Our peopleWe want the time people spend at EY to be more valuable than time spent with any other employer.

Total number of employees in the financial year

3,296 employees

3,241 employees

2016

2015

Formal learning hours in the financial year

241,070 hours per year

197,618 hours per year

2016

2015

68 hours per employee

57 hours per employee

2016

2015

2016

2015

women

63%

62%

men

37%

38%

Percentage of men and women employees in the financial year


OUR PEOPLEOur values

Our values

THE PEOPLE BOARDThe People Board, made up of EY executives and department heads, meets regularly to discuss people policy – its priorities and strategic and cultural aspects – in order to develop an integrated approach to people issues at the levels of EMEIA, CIS and Russia. The board discusses recruitment, brand development, compensation and benefits, training, mobility, social initiatives, office life and much more.

All employees are entitled to submit questions and proposals to the board and so contribute to the Firm's people strategy.

Our values define who we are and remain the bedrock of our corporate culture, guiding our behavior and our approach to work. Living up to professional values in everything we do – whether it’s serving clients, working with our colleagues or engaging with our communities – is an important source of our strength as a professional service provider.

People Board members

Sophia AzizianAssurance Partner, CIS People Leader and People Board Head

Olga BulatovaAdvisory Partner, Director of the CIS Academy of Business

Zhanna DobritskayaPartner, Tax & Law, CIS People Advisory Services Leader

Alexey AfanasyevCIS Chief Operating Officer

Anna GusevaPartner, Transaction Advisory Services

Tatiana SavenkovaCIS Human Resources Director


OUR PEOPLECreating the highest-performing teams

“A highest-performing team as a true orchestra: members have their individual parts to play, and they complement one another, performing a successful business symphony. They bring their own unique experiences and visions, enabling us to go to the heart of a problem and find an effective solution.”

Creating the highest-performing teams

Sophia AzizianAssurance Partner, CIS People Leader:

“A highest-performing team as a true orchestra: members have their individual parts to play, and they complement one another, performing a successful business symphony. They bring their own unique experiences and visions, enabling us to go to the heart of a problem and find an effective solution.”

Hiring procedure

Our hiring policy is rooted in the principle of equal opportunity for all candidates:

interviews are conducted only by qualified employees;

information provided by job candidates is never used without their consent;

confidential information is never disclosed to job candidates;

we do not discuss job candidates with other candidates

we observe the agreed timing when inviting candidates for interviews, making job offers and turning people down for vacancies;

we provide complete and timely information during the competitive selection process;

we do not tolerate disparaging or negative comments about other employers, including our competitors;

we do not ask candidates questions that are discriminatory or irrelevant to the job;

we determine the timing of our decisions in cooperation with candidates;

it is important for us to maintain mutual transparency of information (on the status of a vacancy and a candidate’s application);

we do not pressure candidates to accept our job offers;

each job candidate signs a consent for personal data processing in accordance with Russian law.


OUR PEOPLETotal number of employees

Total number of employeesTOTAL NUMBER OF EMPLOYEES BY POSITION, GENDER, AGE AND CITIZENSHIP

Position Women Men To 30 years 31 to 50 years Over 50 Foreign nationals

Number Percentage Number Percentage Number Percentage Number Percentage Number Percentage Number Percentage

FY16

Partners 41 1.24% 96 2.91% 1 0.03% 123 3.73% 13 0.39% 20 0.61%

Service line employees from staff to director 1,466 44.48% 878 26.64% 1,773 53.79% 559 16.96% 12 0.36% 60 1.82%

CBS employees from staff to director 311 9.44% 98 2.97% 139 4.22% 243 7.37% 27 0.82% 10 0.30%

Administrative staff 124 3.76% 1 0.03% 81 2.46% 34 1.03% 10 0.31% 1 0.03%

University graduates/master’s degree holders 38 1.15% 16 0.49% 54 1.64% 0 0% 0 0% 1 0.03%

Other employees 108 3.28% 119 3.61% 146 4.43% 57 1.73% 24 0.73% 7 0.21%

TOTAL 2,088 63.35% 1208 36.65% 2,194 66.57% 1,016 30.82% 86 2.61% 99 3.00%

FY15

Partners 43 1.33% 106 3.27% 0 0% 133 4.10% 16 0.49% 23 0.71%

Service line employees from staff to director 1,420 43.80% 921 28.42% 1,816 56.03% 512 15.80% 13 0.41% 62 1.91%

CBS employees from staff to director 312 9.63% 102 3.15% 153 4.72% 237 7.31% 24 0.74% 13 0.40%

Administrative staff 128 3.95% 1 0.03% 88 2.72% 32 0.99% 9 0.28% 2 0.06%

University graduates/master’s degree holders 21 0.65% 12 0.37% 33 1.02% 0 0% 0 0% 1 0.03%

Other employees 92 2.84% 83 2.56% 99 3.05% 50 1.54% 26 0.80% 9 0.28%

TOTAL 2016 62.20% 1,225 37.80% 2,189 67.54% 964 29.74% 88 2.72% 110 3.39%

EY Russia does not enter into collective agreements.

25

2016

2015

27%

26%

15%

17%

19%

20%



TOTAL NUMBER OF NEW HIRES BY POSITION AND GENDER

Position Women Men

Number Percentage Number Percentage

FY16

Partners 0 0% 1 0.12%

Service line employees from staff to director

144 16.61% 115 13.26%

CBS employees from staff to director 14 1.61% 9 1.04%

Administrative staff 15 1.73% 0 0%

University graduates/master’s degree holders

150 17.30% 79 9.11%

Other employees 148 17.07% 192 22.15%

TOTAL 471 54.32% 396 45.68%

Position Women Men


FY15

Partners 0 0% 2 0.20%


166 16.39% 183 18.07%

CBS employees from staff to director 9 0.89% 10 0.99%


University graduates/master’s degree holders

171 16.88% 99 9.76%

Other employees 188 18.55% 175 17.28%

TOTAL 544 53.70% 469 46.30%

Staff turnover rate (average headcount, excluding interns and contract workers) in the financial year

all employees women men



TERMINATIONS BY POSITION AND AGE

Position To 30 years 31 to 50 years Over 50

Number Percentage Number Percentage Number Percentage

FY16

Partners 0% 18 1.84% 4 0.41%


426 43.47% 92 9.39% 4 0.41%

CBS employees from staff to director

21 2.14% 22 2.24% 1 0.10%

Administrative staff 9 0.92% 3 0.31% 0%

University graduates/ master’s degree holders

181 18.47% 1 0.10% 1 0.10%

Other employees 156 15.92% 31 3.16% 10 1.02%

TOTAL 793 80.92% 167 17.04% 20 2.04%

Position To 30 years 31 to 50 years Over 50


FY15

Partners 0% 13 1.11% 2 0.17%


435 37.08% 96 8.18% 2 0.17%

CBS employees from staff to director

22 1.88% 21 1.79% 3 0.26%

Administrative staff 31 2.64% 5 0.43% 0%


281 23.96% 0% 0%

Other employees 220 18.76% 34 2.90% 8 0.68%

TOTAL 989 84.31% 169 14.41% 15 1.28%

27

2016

2015

88%*

92%

93%

94%


OUR PEOPLEDeveloping and supporting our people through world-class learning

Developing and supporting our people through world-class learningHelping our people learn, develop and lead is fundamental to creating value for our people and our clients. At a global level, EY has a unique program called EYU (EY and You) which creates a framework for career development, taking into account each individual’s unique abilities and needs. Each employee has a counselor to provide advice on building their career and enhancing their professional skills.

EYU is closely linked to EY’s Global Performance Management and Development Process (PMDP), which helps our people monitor their performance and make appropriate corrections.

Conversations with counselors are a key element of PMDP, and the evaluation process also involves obtaining feedback from colleagues on collaborative efforts and projects. This system not only encourages continual improvement, but also informs midyear and annual performance reviews.

Tailored training

EY Russia gives its people the opportunity to participate in world-class career development programs in a variety of formats:

face-to-face learning through case studies, lectures and simulations

on-the-job training

virtual learning via web-based videos and webcasts

Percentage of employees receiving regular performance and career reviews in the financial year

women men

* The smaller number of men who had performance and career reviews was because not all interns and contract workers had time to go through the formalities during their short period of employment.


OUR PEOPLEDeveloping and supporting our people through world-class learning

NUMBER OF LEARNING HOURS BY POSITION

Employee category FY16 FY15

Formal learning

hours, total

Women Men Formal learning

hours, total

Women Men

Partners 7,909 2,438 5,471 5,010 1,541 3,469

Directors 980 742 238 747 574 173

Senior Managers

10,232 5,295 4,937 10,631 5,429 5,202

Managers 22,824 15,761 7,063 23,945 16,255 7,690

Core Business Services (CBS)

9,576 8,588 988 3,582 2,961 621

Staff and seniors

189,549 116,616 72,933 153,704 94,980 58,724

TOTAL 241,070 149,440 91,630 197,618 121,739 75,879

AVERAGE LEARNING HOURS BY POSITION

Employee category

FY16 FY15

Formal learning

hours, total

Formal learning

hours, total

Formal learning

hours, total

Formal learning hours per employee,

average

Women Men Women Men

Partners 56 33 27 33 35 32

Directors 30 21 22 21 27 12

Senior Managers 44 42 40 42 45 38

Managers 64 57 53 57 64 47

Core Business Services (CBS)

19 9 9 9 11 5

Staff and seniors 83 68 79 68 73 62

Formal learning hours, average

68 57 66 57 61 51

EY’s global learning management system enables our people to flexibly organize their learning.

The Firm has set training minimums for employees of each grade, depending on their group’s specialization. For the convenience of our people, learning matrices for employees of EY Russia are included in the global EY Leads application.

Through formal learning programs, training and conversations with counselors, we expose our people to a broad range of sustainability

issues, from the EY Global Code of Conduct and anti-bribery, anti-corruption and insider-trading policies to the concepts of diversity and inclusiveness.

Our people can also study foreign languages in the office at special corporate rates.

Development of leaders of the future

EY offers Global NextGen, a special two-year program designed to prepare the next generation of partners. Participants respond to a series of challenges that develop their leadership and entrepreneurial skills. This prepares them for

their role as partners in a motivating and structured way and ensures transparency of the partner promotion process..

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12

127

46


OUR PEOPLEMobility

Mobility

EY Russia offers its employees mobility within the global organization in the form of career development programs. These programs enrich our people’s professional experience and expose them to multicultural work environments. This means:

A pool of high-performing employees with the appropriate qualifications and expertise who can be seconded to EY offices abroad for a given period.

Mobility programs: annual programs for high-performing employees in a variety of positions and service lines. Candidates are considered on a competitive basis.

Mobility program statistics for FY in the financial year

Number of employees seconded from Russia to other countries under the mobility program

Number of employees seconded from Russia to other countries under the mobility program


OUR PEOPLEMilestone events

Milestone eventsThose newly promoted to the level of senior and above are invited to milestone events with the involvement of management. These face-to-face events follow a global format.

There are quarterly ceremonies to recognize employees who have been with the Firm ten years or more.


OUR PEOPLEAward for exemplifying our corporate culture and for outstanding achievements

Award for exemplifying our corporate culture and for outstanding achievementsBetter Begins With You is EY’s only global corporate award for exemplifying our values and standing out as role models.

Any EY employee may be nominated for this award, with winners selected first by a local panel of judges and then by a global panel of judges. This award recognizes the employees’ commitment to shared values, building highest-performing teams and enabling our company's sustainable development.

2016 winners in the CIS

Category

Driving exceptional client service

Insurance Group, HR Department

Category

Developing outstanding leaders and teams

Tatiana Savenkova, CIS Human Resources Director

Category

Driving exceptional client service

Alexander Chizhov, Senior Manager, Tax & Law, EY

Category

Pursuing innovation

EY Academy of Business team Olga Bulatova, Partner, Director of the CIS Academy of Business

Category

Pursuing innovation

EY SPIEF Team

2015 winners in the CIS


OUR PEOPLEDiversity and inclusivenessOUR PEOPLEDiversity and inclusiveness | Inclusive leadership

Diversity and inclusiveness

Inclusive leadership

EY has produced a toolkit to help member firm leaders communicate how important diversity and inclusiveness are for good management, how to be a fair and impartial leader and how to turn our values into a competitive advantage.

We are also committed to a more diverse leadership, and the percentage of female partners in our Firm is steadily growing.

To our knowledge, our Firm has had no incidents of discrimination, nor have we had to take any action in response to an incident of discrimination.

Diversity

Diversity means the right mix of people within our workforce, regardless of skin color, ethnicity, religious and cultural convictions, subculture affiliation and disability.

Inclusiveness

Put simply, it is about creating an environment where each person feels valued, is part of the community and is able to perform at their best.

EY CIS Partners meeting, May 2016


OUR PEOPLECompetitive compensation and benefits

Competitive compensation and benefitsEY Russia wants our people to receive competitive compensation that is consistent with market rates and trends.

Our compensation package includes:

Life insurance for all employees

Health insurance for all employees and for one close relative of employees in the rank of senior and above (full cost coverage on the voluntary health insurance plan is available for children and a 50% discount is offered to a spouse, while parents are eligible for corporate rates)

International travel insurance at corporate rates for employees making a private visit to a foreign country

Bonus program for employees based on annual performance assessment

Free-of-charge visits to a physician and a psychologist in the Moscow office, a physician at the St. Petersburg office, the issuance of medical certificates for participation in running events, and a hotline counselor

Corporate cell phone policy: all employees in the rank of manager and above are entitled to corporate SIM cards without prior approval and reimbursement for cell phone bills for business calls; employees in the rank below manager may also receive a corporate SIM card but only after approval of their partner

Extended paid annual leave (25 working days)

Paid sick leave against medical certificates presented from a doctor, plus five paid sick days a year with no medical certificate required; an employee may also be entitled to up to 100% of their salary subject to approval by the leader of their service line when hospitalized for more than 10 days in connection with a severe illness

Support for future parents: pregnancy care and obstetrics services under the voluntary medical insurance plan for employees working at the company for more than a year (employees with multifetal pregnancies are entitled to extra allowances)

Three days of additional paid leave for fathers of newborns

Maternity leave in accordance with local labor regulations, regardless of the length of service

Option to obtain insurance plans in the office: mandatory third-party liability insurance, motor hull insurance (CASCO), Green Cards, property insurance with corporate discounts and compulsory health insurance (free of charge)

Reimbursement for costs of professional certificates and licenses, external courses, EY Academy of Business courses and webinars

New hire orientation training

In-house courses in foreign languages

Comfortable office kitchens equipped with big refrigerators, microwave ovens and coffee machines (tee, coffee and milk are free of charge)

Office gym, showers and a relaxation room

24-hour access to the office

Modern laptops for employees

Employee discount program (discount air and rail tickets, fitness clubs, dry-cleaning services and much more).

Corporate New Year parties, company picnics and events for employees’ children

We understand that reward is not just about money; it is also about having a comfortable working environment and such intangible benefits as career opportunities and learning experiences.


OUR PEOPLECreating a flexible workplace

Creating a flexible workplaceHigh performance relies on creating the right environment for our people.

To this end, we are introducing new IT and communications technologies and redesigning our offices to support the health and well-being of our people.

We try to provide our people with a comfortable environment and maximal flexibility in managing their time:

We provide opportunities for distance work

We provide online IT support

We adapt the principles of our health and safety and environmental policies to improve working conditions


OUR PEOPLEHealthy lifestyles

Healthy lifestylesThe program supports the following initiatives:

EY Running Club. Each year, club members run in the Moscow International Peace Marathon and other sports events.

2016

Moscow MarathonColor RunEnergy Challenge

2015

Moscow MarathonColor Run

The Moscow office sponsors soccer, hockey and volleyball teams that participate in such volunteer initiatives as friendly matches with children from orphanages.

EY’s Moscow office has a fitness center with two treadmills, a stationary bicycle, an area for yoga and a table tennis table. The fitness center is free of charge for EY employees.

The Moscow office also has shower rooms and a quiet room.

The Moscow office ran eyesight tests for employees in FY16 and flu vaccine programs in FY15 and FY16, along with master classes in first aid.

Space has been set aside near the office where bicycles can be parked in season.

The Firm's internal portal has a special page where employees can keep up to date on our athletic programs.

The coffee shop and cafeteria are offering a wider range of healthful choices.

Our employees and their families can take advantage of corporate discounts and special offers at leading fitness clubs.

Since 2011 the Firm has sponsored a Wellness Program to encourage sports, physical fitness and healthful living.

36OUR PEOPLEFamily values | Job safety

2016

2015

38%**29%*


OUR PEOPLEFamily values

Family valuesIt is important for successful people – the kind of people we have at EY – to find a balance between work and private life. That is why we have a program to strengthen family ties: As part of this program:

We give baby gifts to our people.

Since 2012, we have held an annual “Kids in the Office” event, including a tour of the office and entertainment for children of employees.

In 2015 and 2016, we held a New Year party for our employees’ children aged under 12 and handed out New Year presents to them.

Each year, ahead of the New Year holidays, we hold a children’s drawing contest that always gets an enthusiastic response and concludes with gifts for everyone.

Every six months we have a get-together for employees on maternity and child-care leave.

Wherever our people are in Russia – in the office or at a client – their safety is our priority. The EY job safety team monitors compliance with policies designed to protect employees and property from any potential threats that could cause injuries, damage or malfunctions.

In FY15 and FY16, there were no job-related injuries or occupational illnesses among our Firm's employees, nor were there any fatalities on the job.

Job safety

* Number of employees who returned after parental leave in FY16 as a percentage of those who went on leave in FY13.

** Number of employees who returned after parental leave in FY15 as a percentage of those who went on leave in FY12.

Employees returning to work after parental leave in the financial year


OUR PEOPLEEY Alumni Club

EY Alumni ClubWhenever people join our friendly team, however long they stay, the EY experience lasts a lifetime. To stay in contact with our alumni, we set up our EY Alumni Club in 2003. The EY Alumni Club is an effective platform for maintaining and strengthening business ties and friendly relations, for sharing ideas and stimulating joint projects. In June 2016, our Alumni Club in Moscow came close to the mark of 1,500 members. This figure makes us proud, meaning that both our alumni and we want to stay in touch with each other! Our alumni network is not limited to Moscow but spans other Russian cities, including St. Petersburg, Novosibirsk and Ekaterinburg.

We hold an annual get-together where EY alumni can catch up, discuss opportunities for mutual cooperation and find out what has been happening at EY. Throughout the year, we keep members up to date on the latest developments at EY and let them know about the special corporate discounts we offer to our former colleagues.

We launched the first-ever Alumni Awareness Week in Moscow in 2016 as part of EY’s global initiative that has resonated with our current and former employees worldwide, giving them a good opportunity to get together.

Detailed information on the club can be found on our website: http://www.ey.com/ru/alumni

Here each former employee can fill out an application and join the club.


OUR COMMUNITIES

OUR COMMUNITIESDiscovery of water on MarsIn 2015 the world heard the sensational news that water had been discovered on Mars. Photographs taken by orbital cameras and spectral analysis of the soil confirmed that the Martian soil contains hydrated salts, meaning that saltwater flowed over the surface of the red planet before evaporating. Humanity previously lacked the resources to study the planet’s soil and outward appearance simultaneously.

Humanity previously lacked the resources to study the planet’s soil and outward appearance simultaneously, but science and technology have now developed to a point where this is possible. Today, long-term observations have shown that water appears on Mars on a seasonal basis. It is still unknown whether this water contains life, but on Earth, even in the most extreme conditions, life is found everywhere there is water. One of the problems involved in looking for

extraterrestrial life is the risk of contamination by terrestrial bacteria, thus violating the experiment’s integrity. An expedition that meets all the essential conditions is unlikely before 2030, but it is already clear that the discovery of water on our neighboring plant is a major advance in our understanding of the cosmos.

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OUR COMMUNITIES

Our communitiesWe are committed to fostering sustainable growth in areas where we can have the greatest impact.

RUB 27,881,231 RUB 29,247,512

Charity and volunteer programs in the financial year

More than

500 participants from 56 regions in the program's 13-year history

Entrepreneur Of The Year Program

Scope 1

Direct greenhouse gas emissions

Scope 2

Energy consumption in the office

Scope 3

Business travel

2%2016

2%2015

56%2016

52%2015

42%2016

46%2015

tonnes of CO2

tonnes of CO2

Greenhouse gas emissions in the financial year

13,133.3 12,718.49


OUR COMMUNITIESWe support communities

We support communitiesWhether we are talking about investments in communities on a global, regional or local level, we focus our efforts on areas where we can make the most difference. EY gives high priority to the following areas:

Entrepreneurship

We support entrepreneurs because they drive economic growth and innovation, develop new products and services, create jobs and raise society's overall level of prosperity. Over the past three decades, EY has worked with entrepreneurs, adapting and modifying their business models, industry capabilities and resources for fast-growth companies.

Education and the future workforce

Our focus is on both employees and young entrepreneurs, because we know that the next generation is critical to global progress. Each year we offer thousands of internships, providing an opportunity to get practical experience and improve professional skills. We also work with educational institutions and sponsor educational programs for young professionals.

Diversity and inclusiveness

EY focuses on diversity and inclusiveness because it is essential to a better, more resilient, working world. In particular, EY supports the role of women in business because of the economic and social contribution they can make. EY is a signatory to the UN Women’s Empowerment Principles, a set of principles for business that offer guidance on how to empower women in the workplace, marketplace and community.


OUR COMMUNITIESEnhancing the Russian business climate

Enhancing the Russian business climate

In Russia, EY participates in key business development initiatives as a strategic partner.

Foreign Investment Advisory Council in Russia (FIAC)

EY supports FIAC's efforts to improve the investment climate in Russia by promoting a constructive dialog between the Russian government and foreign investors. As coordinator of FIAC's foreign members, EY plays a key role in organizing FIAC's annual plenary sessions, chaired by the Prime Minister of the Russian Federation.

FIAC held its 29th plenary session in Russia on 19 October 2015. Mark Weinberger, EY Global Chairman and CEO, co-chaired the meeting. Thirty-three global executives of FIAC member companies took part. Items on the agenda of the plenary session included technical regulations, proposals for eliminating administrative barriers, tax legislation, health care and the investment climate.

The 28th plenary session, held on 20 October 2014 and attended by 29 global heads of FIAC member companies, focused on import substitution initiatives, technical regulations, efforts to eliminate administrative barriers, localization and measures to improve the investment climate in Russia.

www.fiac.ru

http://www.fiac.ru



Strategic partnership

St. Petersburg International Economic Forum (SPIEF)

EY has been a partner of the St. Petersburg International Economic Forum for over ten years, and Alexander Ivlev, Country Managing Partner for Russia, is a member of the forum's organizing committee.

Mark Otty, Global Director and Area Managing Partner for EMEIA, moderated the session “Russia and Africa: expanding the boundaries” in June 2016. Jim Costanzo, Partner, Global Health Care Service Line Leader for Advisory, was among the speakers at the session “Social inequality as a catalyst for instability. How to prevent the reaction.” Adi Karev, Partner, Global Oil & Gas Leader, was a speaker at two sessions: “New realities of the global hydrocarbon market” and “The world oil market is at a crossroad: choosing between investment in uncertainty and risk management.” Alexander Ivlev participated as a moderator in the following sessions: “Russia’s regions: a narrow focus or holistic development?” and “Unlocking the economic potential of eastern regions.” Alexander Ivlev also was a speaker at the session “Access to government procurement contracts: the business perspective.”

In June 2015, Mark Otty participated as a speaker at the session “Financing growth, infrastructure and investment, action against corruption and priorities of developing countries” held on the sidelines of the B20 Business Summit and the session “International trade: globalization or regionalization?” Jay Nibbe, a member of EY’s Executive Committee and Global Vice Chair for Tax, was among the speakers at the session “World economy deoffshorization. Who are the winners?” co-organized by EY. Jay Nibbe also delivered a report at the session “Clusters: market niches for different forms and scales of business.” Alexander Ivlev was a moderator at the session “Russian regions: creation and development of growth areas” and was on the list of speakers at two sessions: “Administrative barriers in BRICS – What obstructs trade and business growth?” and “Entrepreneurship culture: success stories.”

As coordinator of FIAC’s foreign members, EY co-organized a meeting between Russian First Deputy Prime Minister Igor Shuvalov and foreign investors participating in FIAC which was moderated by Mark Otty.

In 2015 and 2016, EY presented its innovative media service SPIEF Index, an analytical tool designed to gauge public interest in the forum’s agenda.



As part of the St. Petersburg International Economic Forum in 2015 and 2016, we organized the Business Networking Platform, a business communication area for meetings. This format enabled participants to meet in a comfortable and well-organized information space. The 2016 forum for the first featured a presentation zone, organized with support from EY and FIAC. The new platform was used for meetings, conferences and agreement signing ceremonies. Two selfie mirrors were installed for the first time to allow participants to take memorable pictures of their days spent at the forum. In addition, EY set up pavilions designed as workstations where participants were able to use their mobile devices.

World Economic Forum (WEF)

Taking part in this high-level event has become EY's tradition. Our senior leaders attended a number of business events held on the sidelines of the forum in 2015 and 2016.

Sochi International Investment Forum

Alexander Ivlev attended the forum in October 2015 to participate as a moderator in the roundtable entitled “Russia for cheap. Will lower prices spark a wave of investments in Russian assets?” Alexander Ivlev also was a speaker at the panel discussion “Russian and Euro-Atlantic Economic Partners. What are the odds of a new chapter in relations?” Peter Reinhardt, EY Partner, CIS Tax & Law Leader, moderated the panel discussion “Deoffshorization. Check-up reforms,” which also featured EY Partner Marina Belyakova as a speaker.

Joe Watt addressed the panel discussion “Opportunities for international business cooperation against the background of reciprocal sanctions” held in September 2014. Alexander Ivlev participated as a moderator in the session “Making government more efficient: instruments are available, but results are yet to come.” The FIAC Executive Committee held a meeting on the sidelines of the forum. Its members met with Russia's Economic Development Minister Alexey Ulyukaev to discuss customs regulations, tax legislation and technical standards.

Eastern Economic Forum

EY has been taking an active part in preparing and planning the Eastern Economic Forum and its agenda since the launch of the event pursuant to a Russian presidential decree in 2015. We are also an intellectual partner of many of its sessions.

Partnership and sponsorship

EY was a partner and sponsor of multiple events in FY15 and FY16, including the following:

InvestRos International Conference on Stimulating Investments in Russia

Open Innovations International Forum

Gaidar Forum

Krasnoyarsk Economic Forum

Annual Investment Conference of the American Chamber of Commerce

Annual Tax Conference of the American Chamber of Commerce

Annual Summit of the Global Real Estate Institute in Moscow

23th annual meeting of the US-Russia Business Council

MINEX forum

FINOPOLIS Forum of Innovative Financial Technologies

EY Russia organized or co-organized more than 400 events in FY15 and FY16.


OUR COMMUNITIESMemberships in associations

Memberships in associations

EY is a member of or supports the following associations and initiatives:

Audit Committee Leadership Network

International Corporate Governance Network

Financial Stability Board, International Forum of Independent Audit Regulators and Basel Committee on Banking Supervision

Global Auditor Investor Dialogue

International Integrated Reporting Council (IIRC)

Transparency International

United Nations Global Compact

UN Women's Empowerment Principles

Partnering Against Corruption (World Economic Forum initiative)

World Economic Forum

EY is prominent in Russian business circles, as evidenced by our active involvement in the following organizations:

Russian Union of Industrialists and Entrepreneurs

Association of Russian Banks

All-Russia Public Organization — Delovaya Rossiya

Moscow International Business Association

Association of European Businesses

Russian-American Chamber of Commerce

American-Russian Business Council

Russo-British Chamber of Commerce

Franco-Russian Chamber of Commerce and Industry

Canada Eurasia Russia Business Association

Russian Managers Association

German-Russian Forum

Russian-German Chamber of Commerce

Self-Regulatory Organization, Nonprofit Partnership – Russian Audit Chamber *

Institute of Internal Auditors

Russia Partnership for Responsible Business Practices under the auspices of the International Business Leaders Forum

Independent Directors Association

Japanese Association for Trade with Russia and Eastern Europe

Japan Business Club

Nonprofit Partnership – National Association of Alternative Investment Market Participants

TeleManagement Forum (TM Forum)

Global Business Consulting (DT-GBC)

* as of 30 June 2016

45

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

139

18

514

152

15

572


OUR COMMUNITIESSupporting entrepreneurship in Russia

EY has been supporting entrepreneurs in Russia for more than a decade, adapting and modifying their business models, industry capabilities and resources for fast-growth companies.

Entrepreneurship in Russia

The Entrepreneur Of The Year Awards have been held in Russia since 2003. This most prestigious global contest for entrepreneurs is unique in recognizing the entrepreneurial successes of people who inspire others with their ideas, enthusiasm and achievements.

The Entrepreneur Of The Year Awards now span over 145 cities in 60 countries worldwide.

National winners compete for the title of EY World Entrepreneur Of The Year at the international finals in Monaco.

More than 500 entrepreneurs from various regions in Russia have taken part in the contest since its launch 13 years ago.

www.eoy.ru

RUB 265 billionRUB 80 billion

Total revenues of participating companies in the financial year

Supporting entrepreneurship in Russia

Number of employees of participating companies in the financial year

Total number of award winners in Russia since 2003, including winners of special prizes in the financial year

ENTREPRENEUR OF THE YEAR

Total number of participants in Russia since 2003 in the financial year

Number of regions represented by participating companies in the financial year

52,000 84,227

http://www.eoy.ru

http://www.eoy.ru



“Participation in the contest is priceless experience. It gives an opportunity to meet the most successful business leaders who are at the forefront of economic growth and whose actions in effect determine the near-term outlook for the global market.”

“The Entrepreneur of the Year contest is extremely important and needed; it is a seal of excellence that marks the best of the best. The contest is becoming increasingly popular and today, brings together the most talented and successful entrepreneurs from across the country.”

Dmitry PurimChairman of the Management Board at PJSC Sovfracht

Alexey Repik Chairman of the Board of Directors at the R-Pharm Group

RUSSIA'S ENTREPRENEUR OF THE YEAR 2015

RUSSIA'S ENTREPRENEUR OF THE YEAR 2014

We contribute, as partners, to a number of programs supporting entrepreneurship, including:

The Global Student Entrepreneur Awards, an international competition sponsored by the Entrepreneurs' Organization that brings together contestants from 40 countries. Alexander Ivlev, EY's Country Managing Partner for Russia, is on the panel of judges.

The Center for Entrepreneurship, an organization that works to support entrepreneurship and raise its profile in Russia.

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2016

2015

2016

2015

2016

201543

115 8

61

179 11



2016

2015

Entrepreneurial Winning Women

Launched by EY in 2008, the Entrepreneurial Winning Women Program is designed to support entrepreneurial women and open up opportunities for career growth among women. The program, which includes an annual competition and a series of learning projects, has been held in Russia since 2013 as part of EY's global initiative to support entrepreneurship.

www.ewwrussia.ru

The competition is open to women who are established entrepreneurs and senior executives of major Russian and international companies. It is intended to encourage entrepreneurship among women and ensure equal opportunities for professional development and career growth, thus promoting the economic development and prosperity of society as a whole. The competition provides unique opportunities for women in business, including information support, enhanced brand recognition and a wider network of professional contacts as well as motivation and inspiration for business and career growth.

The program's learning projects allow participants to grow as professionals, obtain expert advice and learn more about the tools and resources available for developing leadership qualities and making their businesses more efficient. The events are held on a regular basis, participants may remain involved as long as they find it useful for their business.

257 RUB billion

227 RUB billion

Total revenues of participating companies in the financial year

Total number of award winners in Russia since 2013, including winners of special prizes in the financial year

Number of employees of participating companies in the financial year

Total number of participants in Russia since 2013 in the financial year

Number of regions represented by participating companies in the financial year

68,208 87,680

http://www.ewwrussia.ru

http://www.ewwrussia.ru


OUR COMMUNITIESSupport for the young generation

Support for the young generation

Cooperation with the young generation is a big priority for EY: our people act as mentors, teachers and friends, helping youths set the right goals and move in the right direction.

We are also active in supporting students and work with educational institutions in Moscow and regions. Our team's regular events not only help graduates choose a specialization and grow professionally but introduce us to potential EY employees.

Our initiatives for students include business schools in different cities, audit schools, tax schools, a tax competition, a case championship, as well as special events for different service lines. Our experts representing various service lines conduct master classes and give lectures on subjects that are critical for business success across leading universities in Moscow, St. Petersburg, Ekaterinburg, Kazan, Novosibirsk and Tomsk.

We have launched a program to select the most talented students in Russia and award them an EY lump-sum grant.

Our unique Ladies in TAS Program, aimed at empowering women, helps women students in the second year of study and beyond build a successful career in advisory.

EY experts conduct master classes and give presentations across Russia, enabling students from a wide range of local universities to learn more about EY, our vacancies and career growth opportunities.

EY participates in career fairs hosted by Russian universities to advertise vacancies and various events among large student audiences.

EY has opened EY-branded rooms at Tomsk State University and Kazan Federal University.

EY holds annual competitions to hand out invitations to business forums and other business events, such as the awards ceremonies of the Entrepreneur Of The Year and Entrepreneurial Winning Women programs, and the Atlanta forum. Such events present a unique opportunity for students to meet business leaders.

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OUR COMMUNITIESVolunteering and charity

Peter Reinhardt

Partner, CIS Tax & Law Leader, Committee Head

Anastasiya Khutko

Senior Manager, CIS Brand, Marketing & Communications Leader

Olga Bulatova

Partner, Advisory, CIS Academy of Business Director

Alexander Ivlev

Country Managing Partner for Russia

Elena Lezhankova

Partner, Assurance

Polina Nemirovchenko

Director, Business Development Department

Alina Fedorova

Associate, Brand, Marketing & Communications

Emmanuel Quidet

Partner, Assurance

Tatiana Savenkova

CIS Human Resources Director

Alexander Temkin

Senior Manager, Transaction Advisory

Natalia Starygina

Partner, Assurance

Tatiana Suslova

Senior Manager, Advisory, EY Academy of Business

Volunteering and charityEY Russia is committed to charity work as part of its social responsibility program. All employees may propose a project for support to the Charity Committee by email.

Charitable foundations and charities may apply directly to the committee for financial assistance.

The Charity Committee issues an annual report describing the main charity initiatives that we supported in the preceding financial year and including feedback from the beneficiaries.

Our charitable spending in the financial year

Our investments in communities in the financial year

USD 1,645,711

27,9 RUB billion

USD 1,633,176

29,2 RUB billion

Members of the Charity Committee* * As of 1 April 2017



In FY16 and FY15 we supported over 20 charities, including:

Big Brothers Big Sisters

Big Change Charitable Foundation for the Education of Orphaned Children

Samu Social Moscow

Nikolai Petrov Nonprofit Charitable Foundation

Perspektiva Regional NGO for Disabled Persons

Podari Zhizn Charitable Foundation for Children with Onco-Haematological and Other Life-Threatening Illnesses

Nastenka Charitable Foundation for Children with Cancer

Operatsiya Ulybka — Regional Nonprofit Charitable Organization

Moscow Green House Project under the auspices of the World through the Eyes of Children Center

Medical Teaching Center – Regional Charitable NGO

Maria Charitable Society – Regional NGO

Illustrated Books for Little Blind Children Foundation

Videopassport Charitable Foundation for the Family Placement of Children without Parental Support

Dogs Are Friends of the Disabled Guide Dog Training Center – Autonomous Nonprofit Organization

Victoria Children Foundation

Zhivye Serdtsa Charitable Foundation (Movies for the Sight- and Hearing-Impaired Project)

Children's Hospital Charitable Foundation of Speransky Children's Clinical Hospital No. 9

Vverkh Equal Opportunity Center for Orphaned Children – Autonomous Nonprofit Organization

Downside Up Charitable Foundation

My Vmeste — Nonprofit Charitable Foundation for Social Programs

Moshenskoye Village Secondary School – Municipal Autonomous General Education School

Volunteers’ Club - Interregional Nonprofit Volunteer Organization

Vykhod Fund for Autism Action in Russia

Mayak Charitable Foundation for Social Projects

Galchonok Charitable Foundation for children with organic damage within the central nervous system

Family-Traditions-Mercy Charitable Foundation (Zhizn kak Chudo)

Raduga Drug Rehabilitation Center (Ekaterinburg)

Social Rehabilitation Center for Underage Children in Revda District, Sverdlovsk Region

Angela Vavilova Regional Nonprofit Charitable Foundation for Children with Leukemia (Tatarstan)

Infant Orphanage in Togliatti



We provide charities with more than financial support. In 2015 and 2016, our people were active in various volunteer initiatives.

Moscow

As part of the Moscow office's New Life for Old Clothes Campaign run twice a year, our people collect clothing and toys for economically disadvantaged families.

As the holiday season approaches, we sponsor the Cards to Father Christmas Campaign, which involves sending presents to children in orphanages: household items, small appliances and of course toys.

In our Moscow office, Big Brothers Big Sisters gave presentations at which their representatives and volunteers told our people how they could get involved in mentoring orphaned children.

Our people took part in the annual Down Under Moscow Charity Ball, which raised funds for Big Brothers Big Sisters.

EY hosted a photo exhibition, "Friendship Makes Us Better!" in cooperation with Big Brothers Big Sisters.

EY volunteers, in collaboration with the Volunteers Club, took children from orphanages on a tour of the Cargill plant.

EY’s team played a mini soccer game with orphaned and abandoned children.

Our people annually take part in an initiative to collect school supplies for orphanages ahead of the start of the school year on 1 September.

EY volunteers assisted the Galchonok Charity Foundation in putting on its Galafest inclusive family festival.

EY volunteers participated in Volunteer Saturday – Big Four for Big Change, held under the auspices of Bolshaya Peremena, a charitable foundation set up to improve access to education for orphaned children.

EY supported Global Dignity Day, an independent social initiative aimed at teaching schoolchildren, youths and students human dignity in everyday life. EY volunteers also visited educational institutions in Moscow to give speeches.



EY's Moscow office annually hosts a New Year fair to raise funds for charitable foundations that support the project, including:

• Big Brothers Big Sisters

• Nastenka

• V Tvoikh Rukakh

• Doroga V Mir (Journey to the World)

• Maria's Children

• Big Change

• Zhizn kak Chudo

• Medical Teaching Center

• Vremya Dobra

• Downside Up

EY started cooperation with Charity Shop, an initiative supporting the Vverkh Equal Opportunity Center for Orphaned Children as our people collected 624 kilograms of clothes, or a total of 2,400 items, including accessories.

EY also hosted an exhibition of Svetlana Kuznetsova, a former student of a special boarding school now turned artist, who is a protégé of the Bolshaya Peremena charitable foundation.

Our people took part in the 13th Sports for a Good Cause Annual Charitable Ski Race, organized with support from the Downside Up charitable foundation.

Members of the EY Running Club ran in the Moscow Marathon in support of Downside Up.



2016

2016

2015

2015

Our contribution to communities in the financial year

Novosibirsk

EY volunteers visited the infant orphanage in the city of Cherepanovo to participate in performances and games and buy presents for the kids.

In partnership with the Social Development Department of the Novosibirsk City Council, our people participated in the annual project entitled “Revival of Creative Initiatives.”

Our employee acts as chairman of the local branch of the Business Council responsible for support of the disabled.

EY volunteers provided support for the charitable music project “Fun on Your Palm” for children without parental support in the city of Novosibirsk and Novosibirsk Region and an artists’ association of the Chamber Assembly – Novosibirsk State Philharmonic Hall.

Ekaterinburg

EY volunteers supported the social rehabilitation center for underage children in Revda District, Sverdlovsk Region, buying presents, organizing various activities and conducting master classes for kids from problem families and without parental care.

Togliatti

EY volunteers provided assistance under a project to renovate three bathrooms and a kitchen, participated in the preparation and conduct of festivities and bought presents for children.

Pro-bono professional services

Traditional volunteering

Professional volunteering

Number of hours

Number of people involved

Monetary value – investments in

communities, US dollars

2016

2015

2,476 298 17,490180 33 69,277

2,383

330

37

106

364,568

17,490

1,609

67

41

16

466,705

1,139

54

2016

2015

2016

2015

2016

2015

2016

2015


OUR COMMUNITIESEnvironmental stewardship

Environmental stewardship

At EY, we are constantly challenging ourselves to work in a more environmentally sustainable manner and to find new ways to reduce our energy consumption, carbon footprint and waste stream.

CONSUMPTION OF NONRENEWABLE FUELS

INDIRECT ENERGY CONSUMPTION

36,910 liters 24,558 GJ

93,225 liters 29,500 GJ

29,245 liters 24,939 GJ

94,117 liters 33,688 GJ

Diesel fuel for company vehicles in the financial year Electricity in the financial year

Gasoline for company vehicles in the financial year Heat in the financial year

Calculation is based on the data on a specific object.

The consumption calculation excluded electricity used on subleased sites. When no data on actual consumption was available, consumption was calculated based on figures for Moscow, adjusted in proportion to the area of the premises.

55

2016

2015

2016

20152016

2015

2016

2015



Scope 1

Direct fuel usage (vehicles or power generators)

One of our long-term goals is to achieve zero greenhouse gas emissions.

CARBON FOOTPRINT IN FY15 AND FY16*

Direct greenhouse gas emissions in the financial year

299.94 tonnes of CO2

283.15 tonnes of CO2

6,754.6 tonnes of CO2

7,155.2 tonnes of CO2

Scope 2


Lighting

Heating and/or cooling

Office equipment

Scope 3

Business travel

Air

Rail

TOTAL GREENHOUSE GAS EMISSIONS

13,133.3 tonnes of CO2 6,078.76

tonnes of CO2

12,718.49 tonnes of CO2 5,280.14

tonnes of CO2

Indirect greenhouse gas emissions in the financial year

Emissions were calculated according to the GHG Protocol Corporate Accounting and Reporting Standard issued by the World Resources Institute and World Business Council for Sustainable Development.

56

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015



Paper Waste Other materials (plastics)

Year-on-year paper savings following the introduction of new printing rules totaled:

Environmental concerns are a priority for us

In recognition of our strong commitment to environmental sustainability, we were awarded two stars (second spot) in Russia’s Greenest Offices Rankings 2016 released by the GREENS environmental agency in partnership with SKOLKOVO Moscow School of Management and the Association of Managers.

EY Russia has adopted the "green office" concept and is working to improve its energy efficiency and reduce energy consumption in our offices. To minimize our negative impact on the environment, we are doing the following:

Use audio and video conferences as an alternative to face-to-face meetings

Use energy efficient equipment: energy efficient lighting with reflection, motion sensors in restrooms and cloakrooms and smart air-conditioning techniques

Use Green Label (CRI)-certified carpeting

Collect separately plastic and paper waste for recycling

Use recyclable biodegradable paper certified in accordance with the international environmental standards of Nordic Swan Ecolabel, EU Eco-Management and Audit Scheme, Elemental Chlorine Free, the European Ecolabel and the Programme for the Endorsement of Forest Certification

Use containers for the collection of waste paper for recycling

53 tonnes

23,949 m3

210 tonnes

4.15 tonnes

15 tonnes

45 tonnes

29,313 m3

205 tonnes

8.03 tonnes

13 tonnes

Total water consumption

Materials used in the financial year

57

2016

2015

2016

2015

2016

2015

2016

2015



As part of commitment to environmental sustainability, the EY Academy of Business:

Uses reusable cups instead of plastic cups and bottles

Uses electronic media to reduce paper waste

Distributes eco-bags to ACCA and CFA® students to reduce the use of plastic and paper bags

Provides assistance to clients by advising on “How to be eco-friendly” to over 1,500 subscribers across social networks

WE SAVED

Through energy efficiency technologies

Through office space optimization

Electricity in the financial year Electricity Heat in the financial year

1,252 GJ 2,902 GJ 3,630 GJ

2,001 GJ 173 GJ 279 GJ

TOTAL SAVINGS

7,784 GJ

2,454 GJ


HOW EY IS ORGANIZED

Graphene discoveryThe discovery of the unique two-dimensional material graphene consisting of one or two atom layers arranged in a lattice earned two scientists a 2010 Nobel Prize. Interestingly, leading scientists in the 20th century flatly denied the possibility of extracting such material, arguing that flat crystallites were unstable. It was not until 2004 that

scientists proved that it was possible to produce graphene, unfixing all established notations and coming up with hundreds of applications. Even their short list is impressive: chips, quantum computers, sensors as small as a few nanometers, high capacity batteries and water filtering systems capable of removing any impurities.

Graphene has extraordinary heat conductivity properties and is able to convert heat back into power. Today applications of this unique material include transistors and circuits, frequency multipliers and modulators operating at over 10 GHz. Graphene can be truly called the material of the future that will be an integral part of our life in the digital age.

HOW EY IS ORGANIZED


HOW EY IS ORGANIZED

How EY is organized

Significant organizational changesThe company did not open any new branches in Russia in FY15 or FY16.

Ernst & Young Vneshaudit CJSC was reorganized into Ernst & Young Vneshaudit LLC in FY16.

A new legal entity, Ernst & Young Academy of Business LLC, was registered in FY15.

EY Russia is represented by the following legal entities:

Ernst & Young (CIS) B.V. (the Netherlands, branches in Moscow and St. Petersburg)

Ernst & Young LLC (Moscow and branches in St. Petersburg, Yuzhno-Sakhalinsk, Kazan, Krasnodar, Ekaterinburg, Novosibirsk, Vladivostok, Rostov-on-Don and an autonomous subdivision in Togliatti)

Ernst & Young Valuation and Advisory Services LLC (Moscow and branches in St. Petersburg and Togliatti)

Ernst & Young Academy of Business LLC

Ernst & Young IT LLC

Ernst & Young Vneshaudit LLC

Ernst & Young Business Advisory Services LLC

The CIS Management Committee is EY's highest governing body in the CIS.

CIS Management Committee *

Joe WattChairman of the Management Committee and Managing Partner for CIS

Alexander Ivlev

Country Managing Partner for Russia, CIS Accounts and

Industries Leader

Peter Reinhardt

Partner, CIS Tax & Law Leader

Olga Arkhangelskaya

Partner, CIS Leader for Real Estate, Transportation,

Infrastructure and the Government & Public Sector

Alexei Kredisov

Managing Partner for Ukraine

Alexei Ivanov

Partner, CIS Transaction Advisory Services Leader

Anton Ustimenko

Partner, CIS Technology,

Communications & Entertainment Leader

Erlan DosymbekovManaging Partner

for Kazakhstan and Central Asia

Grigory Arutunyan

Partner, CIS Oil & Gas and Power & Utilities Leader

Mikhail Romanov

Partner, CIS Advisory Leader

Ilgar Veliyev

Managing Partner for Caucasian countries

Marchello Gelashvili

Partner, Global Financial Services Leader

Ksenia Baginian

Partner, CIS Metals and Industrial

Products Leader

Dmitry Lobachev

Partner, CIS Assurance Leader

Dmitry Khalilov

Partner, CIS Retail and Consumer Products

Leader

Vladimir AbramovPartner, Risk

Management Leader

Sophia Azizian

Partner, CIS People Leader

Alexey Afanasyev

CIS Chief Operating Officer

* As of 1 July 2017

Committee members


HOW EY IS ORGANIZED

Operating Committee Market Development Committee

Joe Watt

Alexander Ivlev

Alexey Afanasyev

Dmitry Lobachev

Alexei Ivanov

Peter Reinhardt

Mikhail Romanov

Alexei Kredisov

Erlan Dosymbekov

Ilgar Veliyev

Alexander Grebeniuk

Joe Watt

Alexander Ivlev

Marchello Gelashvili

Dmitry Khalilov

Olga Arkhangelskaya

Grigory Arutunyan

Anton Ustimenko

Ksenia Baginian

Alexey Loza

Mikhail Khachaturian

Marija Ignatjeva

Alexey Kondrashov

Petr Medvedev

Andrey Mokhov

Maria Bantysh

Natalia Shapotkovskaya


ABOUT THIS REPORT

Disruptive bionic technologiesAs a science, bionics emerged in the 20th century, but it has become a rapidly developing field only recently. Scientists copy from nature to understand basic principles and transform abstractions into new design and engineering solutions, including on the basis of new information technologies. The first biomechatronic devices and mind-controlled prostheses that feed physical sensations directly to

the brain of the wearer were created in 2013. They were preceded by brain-controlled computer games, simulators and manipulators created a bit earlier, in the 2010s.

Scientists continue to study nature to discover new formulas, structures and even behavior models to transfer their observations into innovations. Currently, they study the

possibility of improving fiber optic cables by understanding the structure of siliceous sponge spicules that function as optical fibers. An innovative feeder has also been created based on the behavior model of termite colonies. This is just the beginning of a long journey, but it is clear already today that a close unity with nature has a big future.

ABOUT THIS REPORT


ABOUT THIS REPORT

About this Report

The boundary of the Report

Geographical boundary

The report contains information on EY member firms located in Russia.

Environmental boundary

Our carbon footprint was calculated according to the GHG Protocol Corporate Accounting and Reporting Standard issued by the World Resources Institute and World Business Council for Sustainable Development. The scope of our carbon footprint covers direct and indirect emission sources, including:

Scope 1

Direct fuel usage

Scope 2


Scope 3

Business travel

Emissions from fuel combustion are included in Scope 1. Emissions from the generation and use of electricity and heat are included in Scope 2, regardless of the terms of the lease agreement. Emissions from business travel by air and rail are included in Scope 3.

Additional limitations

Our carbon footprint was calculated without taking into account EY employees working on Russian projects outside of Russia, as they were located in a different region.

There have been no significant changes from the previous reporting period in the scope, boundary or measurement methods applied in this report. Nor are we aware of any matters that could significantly affect comparability between periods or organizations.

Global Reporting Initiative

This report was prepared in accordance with widely accepted standards, including GRI guidelines and the GHG Protocol Corporate Accounting and Reporting Standard issued by the World Resources Institute and the World Business Council for Sustainable Development.

This sustainability report covers FY15 and FY16, i.e., the period from 1 July 2014 through 30 June 2016, and follows the report for FY13 and FY14 in accordance with the Sustainability Reporting Guidelines of Global Reporting Initiative (GRI) G4.


ABOUT THIS REPORT

Report content and materiality

To determine the materiality of sustainability issues raised by stakeholders, EY considered the following sources:

EY's Vision 2020 purpose – building a better working world – and the strategy to deliver on this vision

Research, analysis and observations by EY's global working group

Stakeholder surveys covering current and target clients, EY people, from senior leaders to new hires to alumni, and our communities, including entrepreneurs, trade associations, stock exchanges, regulators and nonprofit organizations with which EY collaborates (a total of more than 500 respondents)

Global sustainability reports of competitors in the public domain

Once the data was aggregated, we completed a materiality matrix to rank sustainability issues based on significance to stakeholders and significance to business in Russia.

Aspects were ranked on a scale, with 0.5 being the least significant and 2 being the most significant. We identified the most material aspects based on their priority ranking, mapped them against GRI Reporting Guidelines and determined topics that EY member firms should report.

GRI indicators highlighted as being of significance are covered in this Report to the extent that the relevant information was available to us as of the date of this Report.

Changes from the report for FY13 and FY14

The list of identified material aspects mostly includes the same aspects as in the previous reporting period. However, the following topics were recognized as more significant compared with the previous report:

8. Employee statistics (age, gender, turnover)

10. Employees retained after returning to work following parental leave

11. Minimum notice periods regarding operational changes

Topics highlighted as significant in the previous reporting period but identified as neutral in the most recent survey:

13. Gender and age balances of the governance bodies and gender pay equity (diversity and inclusiveness)

14. Anti-corruption training for EY employees

20. Commitment to supporting entrepreneurship

21. Sustainability in EY services (this includes all sustainability-related services, not restricted to EY's professional services such as Cleantech and Sustainability Services)

These changes should be attributed to regional markets in Russia. Stakeholders’ preferences also change over time. We also looked at issues that are significant in Russia today to cover them in this Report.

64

4

6

19

10

8

15 25

1

1118

12

9 16

5 14

2420 21

1323

22

732

17


ABOUT THIS REPORT

Assurance of the Report

This Report was verified by EY’s Sustainability Group. External assurance was not sought.

Description GRI G4 indicators

EY KPI

UN SDGs

1 Direct economic value generated and market share (revenues), including donations and community investments

EC1 EY1

2 Sustainability of resources (e.g., paper and office supplies) and responsible waste management

EN1, 2, 23 11, 12

3 Energy savings and climate change mitigation

EN3-19

4 Mitigation of environmental impact through professional services (e.g., Cleantech and Sustainability Services)

EN27 EY5

5 Sustainable business travel, including the avoidance of trips, to reduce the CO2 footprint

EN30

6 Management of human rights risks in supply chains

HR1, 4 EY5

7 Respect for the human rights of EY employees

HR3, 4 8, 16

8 Employee statistics (age, gender, turnover)

LA1 4, 5, 10, 16

9 Efficient remuneration system and social security programs (compensation and benefits)

LA2 4, 5, 10, 16

Significance to stakeholders

Sig

nific

ance

to

stak

ehol

ders

Less significant

Less

sig

nific

ant

Significant

Sign

ifica

nt

Very significant

Very

sig

nific

ant

Importance of sustainability to EY Russia


ABOUT THIS REPORT


EY KPI

UN SDGs

10 Employees retained after returning to work following parental leave

LA3 4, 5, 10, 16

11 Minimum notice periods regarding operational changes

LA4 4, 5, 10, 16

12 Opportunities for training and skill upgrade (training, education and career development)

LA9, 11 4, 5, 10, 16

13 Gender and age balances of the governance bodies and gender pay equity (diversity and inclusiveness)

LA12, 13 4, 5, 10, 16

14 Anti-corruption training for EY employees

S03-5 16

15 Assessment of risks related to corruption, investigations into incidents of corruption and action taken to address the negative impacts

S03-5 16

16 Customer satisfaction PR5 16

17 Customer privacy PR8 16:


EY KPI

UN SDGs

18 No claims (fines) for non-compliance with laws and regulations concerning the provision of EY services

PR9 16

19 Employee involvement in pro bono and volunteering

EY2

20 Commitment to supporting entrepreneurship

EY3

21 Sustainability in EY services (this includes all sustainability-related services, not restricted to EY's professional services such as Cleantech and Sustainability Services)

EY4

22 Screening of suppliers using environmental sustainability criteria

EN32-33, HR10, S09, LA14

EY5 8, 16, 4, 5, 10

23 Compliance of corporate big events with sustainable development standards

EY6

24 Sustainability training for EY employees

EY7

25 Rigorous corporate governance practices and principles

EY8

EY-SPECIFIC KPISEY1: EY market share

EY2: Pro-bono and volunteering, number of hours and persons involved

EY3: EY's commitment to supporting entrepreneurship in the local community

EY4: Inclusion of sustainability views in our services

EY5: Procurement policy

EY6: Implementation of EY's Global Green Office Guidelines

EY7: Sustainability training for EY employees

EY8: Governance practices


ABOUT THIS REPORTStakeholders and engagement mechanisms

1

2

3

Sust

aina

bilit

y su

rvey

cont

aining GRI indicators and EY-specific indicators to be rated

• Act

ivitie

s and acti

ons related to customer privacy

• Gov

erna

nce p

ractices and professional values

Current clients — Target clients

• Act

ivitie

s a

nd actions re

lated to corruption

regarding EY services

• Customer satisfaction

• Compliance with laws and regulations

Our

clients count on us to deliver exceptional

Our clients

Capital markets

Regulators

clien

t service so they can grow and thrive.

Entrepreneurs — Trade associations — Stock exchanges and regulators — Nonprofit organizations — Suppliers

growth in areas w

here we have the greatest impact.

Our com

munities and suppliers

We are com

mitted to fostering sustainable

• Generated economic value an

d mar

ket s

hare

,

regular performance and care

er re

views

, by

gend

er

• Percentage of employees

rece

iving

including donations and communit

y inv

estm

ents

• Energy saved due to conservatio

n and e

fficie

ncy

impr

ovem

ents

• Generated economic value and m

arket share,em

issions and indirect energy consumption

• Initiatives to reduce greenhouse gas

including donations and comm

unity investments

• Activities and actions related to customer privacy

gender, age and minority

diverse categories, including

• Percentage of individuals in

the

EY w

orkf

orce

• Hum

an r

ight

s in

satis

fact

ion

• Cus

tom

er

• Governance, practices and

professional values

Partners and senior leaders — Client and non-cl

ient s

ervin

g em

ploy

ees

— N

ew re

crui

ts, s

tude

nts

and

inte

rns

— A

lum

ni

experience is bette

r tha

n wo

rkin

g an

ywhe

re e

lse.

We want to ensu

re th

at th

e EY

wor

k

Our p

eopl

e

EY

1. Stakeholders and engagement

2. Why our stakeholders are important to us

3. Key issues our stakeholders say are the most important

This Report reflects EY's global ambition:

to strengthen globally, while empowering member firms locally

to embolden stakeholder relationships everywhere

to become the most favored employer in the professional services industry

To achieve these ambitious goals, it is absolutely vital to listen to stakeholders – our clients, people and communities – in order to learn what is important to them and how they would like to see us tomorrow.

The diagram shows who we view as stakeholders and how each of them influences our decision-making process.

Stakeholders and engagement mechanisms


ABOUT THIS REPORTGRI summary table

GRI summary tableThe GRI summary table indicates the page numbers in this Report on which information corresponding to the GRI’s G4 Guidelines is located.

Indicator Location

G4-1 03

G4-3 Cover

G4-4 05-07, 14, 15

G4-5 06

G4-6 06, 59

G4-7 59

G4-8 06, 08, 12

G4-9 06, 08, 14, 21, 24, 71, 72

G4-10 24, 71, 72

G4-11 24

G4-12 17-19

G4-13 59-60

G4-15 17, 23, 33, 35, 40, 44

G4-16 44

G4-17 59

G4-18 62-65

G4-19 64, 65

Indicator Location

G4-20 64, 65

G4-21 64,65

G4-22 63

G4-23 63-65

G4-24 66

G4-25 66

G4-26 63, 66

G4-27 63, 64

G4-28 62

G4-29 62

G4-30 62

G4-31 75

G4-32 62, 67

G4-33 64

G4-34 59, 60

G4-56 16-19

G4-57 16

Indicator Location

G4-EC1 06, 08, 49, 68

G4-EC2 03

G4-EC6 06

G4-EC8 03, 06, 08, 41

G4-EC9 19

G4-EN1 56, 74

G4-EN3 54, 74

G4-EN5 54, 74

G4-EN6 57, 74

G4-EN8 56, 74

G4-EN15 55, 74

G4-EN16 55, 74

G4-EN17 55, 74

G4-EN18 55, 74

G4-EN19 55, 74

G4-EN23 56, 74

G4-EN30 55, 74

Indicator Location

G4-LA1 21, 24-26, 69-72

G4-LA2 33

G4-LA3 36, 73

G4-LA4 24

G4-LA5 35-36

G4-LA9 28, 73

G4-LA11 28, 73

G4-LA12 24, 71

G4-HR3 32, 69

G4-SO3 17, 68

G4-SO4 17, 18, 68

G4-SO8 18, 69

G4-PR5 13, 69

G4-PR8 16, 18, 19

G4-PR9 18, 69


ABOUT THIS REPORTData overview

Data overview

This section presents an overview of quantitative indicators used in this Report.

OUR CLIENTS

Total revenue

RUB, '000 2015 calendar year 2014 calendar year 2013 calendar year

Total revenue 17,185,546 15,658,730 10,865,135

Number of employees by service line

FY16 Number Percentage of total workforce

Assurance 1,337 40.56%

Tax & Law 517 15.69%

Advisory 547 16.60%

Transaction Advisory 299 9.07%

Core Business Services 596 18.08%

Total 3,296 100%

FY15 Number Percentage of total workforce

Assurance 1,216 37.52%

Tax & Law 496 15.31%

Advisory 637 19.65%

Transaction Advisory 279 8.61%

Core Business Services 613 18.91%

Total 3,241 100.00%

Percentage and number of employees who signed the Code of Corporate Conduct

FY16 FY15

Total workforce 3,296 3,241

Percentage of employees who signed the Code of Corporate Conduct

100% 100%

Percentage and number of EY Russia’s business units whose employees have taken training on corruption risks

FY16 FY15

Percentage Number Percentage Number

EY Russia business units whose employees have taken training on corruption risks

100 7 100 7

Percentage of employees who have taken anti-corruption training or confirmed adherence to the Firm's anti-corruption policies and procedures

FY16 FY15

Employees who have taken anti-corruption training or confirmed adherence to the Firm's anti-corruption policies and procedures

89.66% 94.69%



HUMAN RIGHTS

Cases of discrimination, total

Number

FY16 FY15

Cases of discrimination, total 0 0

Assessment of Service Quality (ASQ)

FY16 FY15

Clients' readiness to recommend our services, on a scale of 1-10 8.7 8.9

Number of interviews conducted 124 106

Number of questionnaires sent 35 39

Number of questionnaires received 13 13

Percentage of questionnaires received 37% 33%

Fines for non-compliance with laws and regulations

FY16 FY15

Number of cases 1 0

Amount paid, RUB 657,241 0

OUR PEOPLE

EY Russia

FY16 FY15

Women 2,088 2,016

Men 1,208 1,225

Total workforce 3,296 3,241

New hires in FY16, by position and gender

Position Women Men


Partners 0 0% 1 0.12%

Service line employees from staff to director 144 16.61% 115 13.26%

Core Business Services employees from staff to director 14 1.61% 9 1.04%


University graduates/ master’s degree holders 150 17.30% 79 9.11%

Other employees 148 17.07% 192 22.15%

TOTAL 471 54.32% 396 45.68%

New hires in FY15, by position and gender

Position Women Men


Partners 0 0% 2 0.20%



Administrative staff 10 0.99% 0 0.00%


Other employees 188 18.55% 175 17.28%

TOTAL 544 53.70% 469 46.30%



EMPLOYEE TURNOVER

Terminations in FY16, by position and age

Position 30 and under 31-50 Over 50


Partners 0 0% 18 1.84% 4 0.41%

Service line employees from staff to director 426 43.47% 92 9.39% 4 0.41%

Core Business Services employees from staff to director

21 2.14% 22 2.24% 1 0.10%

Administrative staff 9 0.92% 3 0.31% 0 0%

University graduates/ master’s degree holders 181 18.47% 1 0.10% 1 0%

Other employees 156 15.92% 31 3.16% 10 1.02%

TOTAL 793 80.92% 167 17.04% 20 2.04%

Terminations in FY16, by position and gender

Position Women Men


Partners 4 0.41% 18 1.84%





Other employees 94 9.59% 103 10.51%

TOTAL 516 52.65% 464 47.35%

Terminations in FY15, by position and age



Partners 0 0% 13 1.11% 2 0.17%

Service line employees from staff to director 435 37.08% 96 8.18% 2 0.17%


22 1.88% 21 1.79% 3 0.26%

Administrative staff 31 2.64% 5 0.43% 0 0%

University graduates/ master’s degree holders 281 23.96% 0 0% 0 0%

Other employees 220 18.76% 34 2.90% 8 0.68%

TOTAL 989 84.31% 169 14.41% 15 1.28%

Terminations in FY15, by position and gender

Position Women Men


Partners 3 0.26% 12 1.02%





Other employees 124 10.57% 138 11.76%

TOTAL 631 53.79% 452 46.21%



Employee turnover rate*

All employees Women Men

FY16 19% 15% 27%

FY15 20% 17% 26%

* Excluding interns and contractors

Employee breakdown in FY16, by position and gender

Position Women Men Total


Partners 41 1.24% 96 2.91% 137 4.16%

Service line employees from staff to director 1,466 44.48% 878 26.64% 2,344 71.12%


311 9.44% 98 2.97% 409 12.40%

Administrative staff 124 3.76% 1 0.03% 125 3.79%


38 1.15% 16 0.49% 54 1.64%

Other employees 108 3.28% 119 3.61% 227 6.89%

TOTAL 2,088 63.35% 1,208 36.65% 3,296 100%

Employee breakdown in FY15, by position and gender

Position Women Men Total


Partners 43 1.33% 106 3.27% 149 4.60%

Service line employees from staff to director 1,420 43.80% 921 28.42% 2,341 72.23%

Core Business Services employees from staff to director 312 9.63% 102 3.15% 414 12.77%


University graduates/ master’s degree holders 21 0.65% 12 0.37% 33 1.02%

Other employees 92 2.84% 83 2.56% 175 5.40%

TOTAL 2,016 62.20% 1,225 37.80% 3,241 100%

Employee breakdown in FY16, by position and age



Partners 1 0,03% 123 3,73% 13 0,39%

Service line employees from staff to director 1773 53,79% 559 16,96% 12 0,36%

Core Business Services employees from staff to director 139 4,22% 243 7,37% 27 0,82%

Administrative staff 81 2,46% 34 1,03% 10 0,31%

University graduates/ master’s degree holders 54 1,64% 0 0% 0 0%

Other employees 146 4,43% 57 1,73% 24 0,73%

TOTAL 2194 66,57% 1016 30,82% 86 2,61%



Employee breakdown in FY15, by position and age



Partners 0 0% 133 4.10% 16 0.49%

Service line employees from staff to director 1,816 56.03% 512 15.80% 13 0.41%


153 4.72% 237 7.31% 24 0.74%


University graduates/ master’s degree holders 33 1.02% 0 0% 0 0%

Other employees 99 3.05% 50 1.54% 26 0.80%

TOTAL 2,189 67.54% 964 29.74% 88 2.72%

Employee breakdown by type of employment and contract, gender and region

FY16 FY15 Office Location

FY16 FY15

Women Men Women Men

Permanent Part-time Ekaterinburg 0 0 1 0

Kazan 0 0 1 0

Krasnodar 0 1 0 0

Moscow 63 5 52 6

Novosibirsk 3 0 6 0

St. Petersburg 3 0 4 0

Yuzhno-Sakhalinsk 1 0 0 0

TOTAL 70 6 64 6

Employee breakdown by type of employment and contract, gender and region

FY16 FY15 Office Location

FY16 FY15

Women Men Women Men

Permanent Full-time Vladivostok 2 1 2 1

Ekaterinburg 60 19 57 16

Kazan 20 10 18 10

Krasnodar 9 4 10 4

Moscow 1,551 933 1,532 986

Novosibirsk 57 25 41 25

Rostov-on-Don 7 3 7 1


Togliatti 19 9 15 9

Yuzhno-Sakhalinsk 1 0 2 0

TOTAL 1,839 1,055 1,792 1,104

Temporary Part-time Moscow 1 0 2 0


TOTAL 2 0 2 0

Full-time Kazan 1 0 0 0

Krasnodar 2 0 1 2

Moscow 29 11 40 24

Novosibirsk 35 14 14 3


Togliatti 0 1 2 1

Total 69 28 66 32

TOTAL 69 28 66 32



Formal learning hours in FY16

Employee category Formal learning hours, total

Women Men

Partners 7,909.05 2,438.43 5,470.62

Directors 980.04 741.64 238.4

Senior managers 10,231.73 5,294.43 4,937.3

Managers 22,823.98 15,761.06 7,062.92

Core Business Services 9,575.9 8,588.37 987.53

Staff and seniors 189,548.86 116,615.42 72,933.44

TOTAL 241,069.56 149,439.35 91,630.21

Formal learning hours in FY15

Employee category Formal learning hours, total

Women Men

Partners 5,009.5 1,540.75 3,468.75

Directors 746.5 573.75 172.75

Senior managers 10,631.35 5,429.1 5,202.25

Managers 23,944.98 16,254.5 7,690.48

Core Business Services 3,581.6 2,960.55 621.05

Staff and seniors 153,704 94,980.24 58,723.76

TOTAL 197,617.93 121,738.89 75,879.04

Mobility programs

FY16 FY15

Number of employees moving from Russia to other regions, including CIS countries, under mobility programs

127 46

Number of employees moving to Russia under mobility programs

3 12

Percentage of employees who undergo regular PMDP

Description FY16 FY15

Women Men Women Men

Percentage of employees who undergo regular PMDP

93% 88% 93% 92%

Employees returning to work after parental leave

Description FY16 FY15

Percentage of employees returning after child-care leave 29% 38%**

* The number of employees who returned after parental leave in FY16 as a percentage of those who went on leave in FY13.

** The number of employees who returned after parental leave in FY15 as a percentage of those who went on leave in FY12.



OUR COMMUNITIES

Charitable spending

RUB FY16 FY15

Spending on charitable projects 29,247,512 27,881,213

Number of Entrepreneur Of The Year award winners in Russia since 2003

Entrepreneur of the Year FY16 FY15

Total number of award winners in Russia since 2003, including winners of special prizes 152 139

Total revenues of participating companies RUB 80 billion RUB 265 billion

Number of regions represented by participating companies 15 18

Number of employees of participating companies 84,227 52,000

Number of categories, including special prizes 13 15

ENVIRONMENTAL IMPACT

Materials used by weight or volume

Materials used FY16 FY15

Paper, tonnes 44.9 52.9

Waste, tonnes 205 210

Other materials (plastics), tonnes 13 15

Total water consumption, cubic meters 29,313.3 23,949.2

Carbon footprint

Direct emissions СО2, tonnes

FY16 FY15

Scope 1: Direct fuel usage (company vehicles) 283.15 299.94

Indirect emissions

Scope 2: Energy consumption in the office 7,155.2 6,754.6

Scope 3: Business travel 5,280.14 6,078.76

Total emissions 12,718.49 13,133.3

Energy consumption

Office Type of energy Consumption in FY16, GJ

Consumption in FY15, GJ

Moscow Electricity 21,646.6 20,745.7

Heat 29,084.7 24,472.1

Regions Electricity 3,292.3 3,812.4

Heat 4,602.9 5,028.2

TOTAL 58,626.5 54,058.4

Energy savings

Energy-saving measure Type Energy savings, GJ

FY16 FY15

Reconfiguration or replacement of equipment (implementation of energy-saving technologies)

Electricity 2,000.8 1,251.5

Optimization of office space Electricity 173.4 2,901.8

Heat 279.27 3,630.4

TOTAL 2,453.47 7,783.7


ABOUT THIS REPORTContact information

Alexander IvlevCountry Managing Partner for Russia

Tel.: +7 (495) 705 97 15 [email protected]

Artem LarinPartner, Sustainability Services Leader


Anastasiya KhutkoSenior Manager, CIS Brand, Marketing & Communications Leader


Elena PhilippovaSupervising Associate, Brand, Marketing & Communications


Alina FedorovaAssociate, Brand, Marketing & Communications


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