Issues of environmental safety in Federal Grid Company are governed by federal laws of the Russian Federation - "On Environmental Protection", the Water Code of the Russian Federation, "On Air Protection", "On Production and Consumption Waste" as well as by internal organizational and administrative documents - "Environmental Policy of JSC Federal Grid Company", Program on the implementation of the Environmental Policy of JSC Federal Grid Company for 2011-2013, Regulations on industrial environmental monitoring, "Corporate standards of environmental safety of power facilities at all stages of life cycle," and others.

Environmental Policy

The objective of Environmental Policy of JSC Federal Grid Company* is to increase the level of environmental safety of the UNEG facilities and provide reliable and environmentally safe transmission and distribution of electric energy. As part of the Program on the implementation of the Environmental Policy, Federal Grid Company carries out technical and organizational measures to minimize the negative impact of its industrial activities on the environment.

Technical measures:

• — replacing equipment which contains hazardous and toxic substances;
• — repairing systems and devices of oil receivers;
• — organizing places of temporary waste storage;

Organizational measures:

• — introducing environmental management system that meets the requirements of the international standard ISO 14001:2004;
• — improving current system for self-monitoring and conducting environmental audits;
• — carrying out environmental training of personnel.

As part of the implementation of Environmental Policy in 2012 the following environmental measures were taken:

• — systems and devices of oil receivers were repaired at 56 substations;
• — places of temporary waste storage were organized at 188 substations;
• — sewerage systems, waste treatment facilities of domestic and storm discharges were reconstructed at 28 substations.

To improve environmental activity in July 2012 the Company established Department of Environmental Policy Implementation which main objectives are:

• — methodological support for environmental activity of the Company and its DSCs;
• — implementation of state policy and corporate requirements to ensure the environmental safety of the Company and its DSCs;
• — implementation and maintenance of the environmental management system in accordance with the international standard ISO 14001:2004 in the Company and DSCs.

Environmental Management

The procedure for environmental management in the branches of Federa Grid Company is divided into stages of planning**, implementation, monitoring and control action (if necessary, environmental policy may be adjusted). Environment Action Plans of the branches necessarily include the following items:

• — implementation and development of the environmental management system (EMS) that meets the requirements of the international standard ISO 14001;
• —conducting industrial environmental monitoring and environmental audits;
• —carrying out environmental training of personnel;
• —developing legal and technical documentation and improving documentation to support environmental activity.

In 2011, EMS was successfully implemented and certified for compliance with the international standard ISO 14001:2004 in the executive apparatus of Federal Grid Company and MES South. In 2012, EMS was implemented and certified in the branch of Federal Grid Company - MES North-West.

In 2012, there were no fines and non-financing sanctions imposed on the Company for noncompliance with environmental legislation and regulations.

Federal Grid Company carries out phased introduction of the environmental management system (EMS) in MES.