Compliance

We want to be a company that complies with all applicable Russian laws in our business activities.
Through our Legal, Compliance, and Internal Control departments, we regularly monitor Russian laws. As a result, any newly enacted or amended laws and regulations that come to our attention are promptly addressed by notifying both management and the relevant business units.
Since July 2016, we have operated an internal reporting system as a tool for anonymous whistleblowing, and we regularly encourage all employees, including new hires, to use the system.
Since August 2017 to date, YRPZ has been working to strengthen its compliance training. To this end, the legal department provides all employees with monthly compliance case studies.

There have been no instances of human rights violations in the Company's activities. In terms of recruitment and employment conditions, all employees are treated equally regardless of nationality, ethnicity, religion, gender, age, or physical appearance.

The company has been conducting its activity in line with the following priorities which are of great importance to us: safety (S), environment (E), quality (Q), delivery (D), and cost (C).

Labor safety

Safety (S) is the highest-priority item. We are constantly striving, through the measures outlined below, to maintain and improve the safety standards on an ongoing basis.

YRPZ continued to keep its near-miss reporting procedures in FY2023. During the year, 8,962 near-miss reports were submitted by employees. Corrective or preventive actions were initiated for 8,944 of these reports.
In 2023 YRPZ held first-aid courses for several groups of employees. The first group of employees took a teacher’s course in order to train other employees. And the second group of employees from different sections were trained first aid measures to be able to provide first aid to their colleagues.

Disaster response safety measures

In 2023, the company conducted appropriate activities to enhance safety in relation to disaster prevention.

YRPZ continues to provide fire safety training for all employees and conducts regular fire drills. In 2023 YRPZ held 2 fire drills: in June 2023 (326 employees took part) and in October 2023 (309 employees took part).

Promoting health

Employee wellness plays an important role in ensuring safety. We conduct preventive monitoring by regularly checking the health of our employees and conducting health checkups at the time of hire and periodically thereafter. Records of medical examinations are kept in a medical facility on the premises of YRPZ.
Voluntary Medical Insurance (VMI) is not mandatory under Russian law, but YRPZ continues to offer it to all employees.
YRPZ's VMI program continues to be the best among industrial companies in Lipetsk Oblast in terms of coverage and content.
VMI allows employees to receive prompt, quality medical care and a better chance of recovery.

In FY2023, YRPZ kept improving VMI, including continued support for YRPZ employees, expansion of coverage and clinic list, clinic audits, and employee satisfaction surveys and subsequent remediation measures.

1. Even before the pandemic began, we provided disinfectant solutions to our employees in our workplaces
2. We continued to provide safety face masks
3. Regular temperature control was conducted at the plant entrance before the start of the workday and several times during the workday
4. Increased the distance between employees and their desks for safety work
5. Outsider access to the plant premises was limited to only those visits that were highly necessary for temperature control at the plant entrance
6. Switched to online meetings whenever possible (e.g., recruiting, business, negotiations, etc.)
7. If an employee shows signs of illness or reports contact with a COVID-positive person, he/she is immediately isolated and tested for COVID-19 at company expense; COVID testing is also done when employees return from vacation (elsewhere in Russia or abroad) or from sick leave
8. Disinfection of common areas is carried out on a regular basis
9. Meeting rules: no longer than 15 minutes, distance between participants - 3 m
10. To prevent outbreaks of COVID-19, an aggressive vaccination campaign (vaccination promotion, vaccination arrangements at the factory) was implemented, and the vaccination rate among employees reached almost 100%.

Education and training

In order to improve the professional skills and knowledge of our employees, we offer a variety of internal and external training programs.
Training conducted within the company is mainly related to occupational safety and health.
Training conducted externally is aimed at professionalizing and upgrading the know-how and skills of employees, and in many cases, with the cooperation of consulting companies, external instructors are used.
In addition, special allowances are provided to those who demonstrate a certain level of English proficiency.

Employment of people with disabilities

As of the end of December 2023, there are 7 persons with disabilities working at YRPZ as full-time employees.
Each of them can receive medical care without discrimination and has the same opportunities for self-development, promotion, and advancement as other employees.

Motivation and engagement

In order to improve the motivation and engagement level of employees, YRPZ implemented a number of tangible and intangible incentive measures and activities in FY2023, namely:

• YRPZ continued its tradition of birthday parties: in FY2023 every employee received a branded umbrella and a birthday card signed by the general director.
• All employees who have school-aged children received a set of school stationery at the beginning of the school year (September 2023).
• We held the Best Manager Contest again this year to motivate managers and improve their work efficiency.
• Employees who joined the company in 2013 (49 persons) celebrated their 10th anniversary and were presented with valuable gifts from the company.
• All employees and their children under 14 years old received seasonal NY gifts.
• Special allowance for coaching and mentoring was provided. Additional payments were made for mentoring and coaching subordinates and developing practical skills.
• Communication via internal Telegram channel contributed a lot to improving the internal climate of YRPZ.

Environmental management

In addition to safety (S), the environment (E) is also an important issue, and YRPZ complies with all Russian laws and regulations related to the environment. Furthermore, we spare no effort to be an environmentally friendly company.
In our daily operations, we keep abreast of the country's environmental laws and regulations and strive to comply with any revisions.
Our ISO 14001:2015 certification is still valid until December 26, 2025.

Environmental data

• FY: January to December
• Greenhouse gas emissions from overseas business sites are calculated using the Greenhouse Gas Protocol Initiative and electricity emission factors of local businesses. It should be noted that 41% of the company’s gas emissions were used for the purposes of heating.

Measures for dealing with industrial waste

Disposal of industrial waste is strictly regulated by the Russian authorities. All waste generated by the YRPZ plant, of whatever type, is disposed of appropriately by certified waste disposal contractors. We are continuing our efforts to reduce the amount of industrial waste generated.
Total waste generated in FY2023 was 889,64 tons.
The amount of waste generated per tire produced was 0.19 kg/tire.
In FY2023 25 654 kg of paper and cardboard were sent to recycling.

Disposal of used tires

Under the provisions of Regulation dd. 09.04.2016 No. 284 issued by the Government of the Russian Federation, which establishes the responsibility of manufacturers and importers for certain products, including automotive tires, as these are considered assets that leave the hands of the consumer (become used products) YPRZ is responsible for taking action to ensure that these are disposed of in accordance with the regulations.
Specifically, we offer two options to manufacturers and importers of such products. They can either pay environmental fees according to a tariff set by the government, or they can make guaranteed arrangements for the disposal of their products, either on their own or by joining a union of waste disposal companies.
In 2023 YRPZ had contracts with recyclers for the joint recycling of used tires, as a member of the Eco-Tyres Union (a union of tire manufacturers and importers who voluntarily act in accordance with the recycling standards set for tires and rubber products).

Tire marking

In compliance with the Russian law (Order of the Russian Government dd. 31.12.2019 No. 1958), which is intended to combat illegal tire production and distribution, YRPZ maintains obligatory tire marking by means of placing a sticker label bearing an individual DM-code (Data Matrix code) to every tire produced. The code contains true information about place, date and time of tire production, which proves the tire had been produced legally.

Reducing water usage

YRPZ is constantly striving to reduce water usage through the implementation of a number of measures.
In 2023, total water consumption was 42,927 m3.
In 2023 in order to reduce water consumption we focused on prevention of water, steam and air leakage by timely replacement of equipment spacer plates, arms and hoses.

Managing wastewater discharge

Wastewater discharged from YRPZ's plant facilities is properly treated in a reliable manner prior to discharge into the sewage system.
In 2023 the following measures were implemented to prevent wastewater contamination.

• Grease discharge and cleaning of grease collector was done in March and December.
• Sewer cleansing: done monthly.
• Sampling to control chemical composition of wastewater: conducted monthly and quarterly.

Energy savings

We recognize the importance of energy efficiency, and we are continuing our concerted efforts to make our energy usage more efficient. In particular, in fiscal 2023 we implemented the following energy-saving measures:
Mercury lighting in MP-1 process was changed to LED lamps.
To reduce energy consumption we also switch off lighting devices during breaks at work, at areas out of use, and when work is finished; air-conditioners are also switched-off at nighttime.

Biodiversity measures

Green Wave 2023 activities were held with participation of junior students of Gryazy college. Besides tree-planting (23 white cedar trees were planted) the students had a biodiversity panel discussion and a plant tour of YRPZ.

Internal controls

To prevent fraud, operations are carried out based on an internal approval system by management for contracts, purchases, and settlements. Furthermore, internal rules have been established, and the final decision is made by the final decision maker after checking by the management, legal, and accounting staff.

Selection of business partners

Concerning raw material procurement from new Russian domestic suppliers, we work to handle matters fairly while cooperating with the procurement department of Yokohama Rubber.
When selecting suppliers, we make sure to verify the compliance and reliability of potential suppliers, in order to avoid doing business with firms that are untrustworthy or which are engaged in illegal behavior. To this end, we implement documentary review and enterprise evaluation surveys in advance. As a result, in the period since YRPZ plant began operation, there have been no instances of signing contracts with suppliers that turned out to be unreliable or engaged in illegal activity.

Quality management systems

In FY2023 we continued our efforts to improve our quality management.
In April 2023 YRPZ successfully passed the surveillance audits for ISO 9001:2015.

Strengthening communication with consumers

Based on cooperation with LLC Yokohama Russia, which has direct contact with consumers as a sales company, we are working hard to gain evaluative information of products from the marketplace as well as to establish relations of trust with consumers.
In 2023 YRPZ hosted major consumers of LLC Yokohama Russia. During the visit the guests had a plant tour, Q&A session with YRPZ technical, technology & QA staff and cocktail reception accompanied by a live-sound violin.

Internal activities

On an ongoing basis, the company shall continue to take care in fostering team spirit and a sense of loyalty among employees.

Team-building corporate events

As COVID-19 epidemic ceased, YRPZ resumed offline motivation activities for employees in addition to online activities through our internal Telegram channel. In 2023 YRPZ held a number of team-building and sports activities aimed at raising employees’ team spirit, satisfaction, engagement and loyalty.

Sports activities

FY 2023 was the year of sports at YRPZ, and most of corporate activities were focused on sports.
A new corporate sports tradition was born at YRPZ in 2023: the first YRPZ soccer tournament “Yokohama Cup 2023” was held in May. Soccer teams representing YRPZ sections met and played soccer at the tournament. The tradition will be maintained in the following years.
Besides soccer, which has been YRPZ main corporate sports since 2011, volleyball joined YRPZ sports schedule on a regular basis.
Free soccer and volleyball trainings were arranged for all employees throughout the year.
In 2023 YRPZ expanded the scope of sports activities in order to cover employees’ interests and needs at the most.
The employees went skating together with family members, played laser tag & paintball, played table tennis, joined Russia Running event and First Industrial Duathlon arranged by SEZ Lipetsk.
In 2023 YRPZ also took part in the online challenge held by SEZ Lipetsk. Three teams represented YRPZ in the challenge and did different sports exercises for 3 weeks.
All employees involved in sports activities showed impressive results in 2023.
Thus, soccer team won Bekaert Soccer Cup 2023 and became Soccer Champions 2023 of SEZ “Lipetsk”.
Volleyball team also won a number of friendly games with volleyball teams of SEZ “Lipetsk”.
YRPZ team won a gold medal in the Duathlon.
YRPZ teams were the leaders of the challenge and won the first, second and fourth place.
Based on the results of the year YRPZ was named the most sporty company of SEZ “Lipetsk”.

Communication with affiliated company (YRUS)

In 2023 we deepened and strengthened communication with the colleagues from the affiliated sales company LLC Yokohama Russia. To that end we arranged several visits of YRUS members to YRPZ. During the visit YRPZ and YRUZ members had a chance to communicate closer, which encouraged more efficient work communication further on. YRPZ presentation, plant tour and team-building at out-of-town recreation facility were also part of the programme of the visit.

External activities (Social contribution)

In 2022 YRPZ continued to participate in the Russian environmental and charity project "Dobrye Kryshechki" ("Kind caps").
In this project caps from plastic bottles are collected and recycled, and the money earned is donated to disabled children.
The project has two goals: to rid the world of plastic waste and to support children with disabilities.
In 2023 YRPZ joined tree-planting activities initiated by SEZ “Lipetsk”. Together with other SEZ companies we planted 200 trees and 40 bushes in SEZ territory.
YRPZ also joined volunteer campaign to support the local recovery centre for cancer-stricken children located outside the city. YRPZ employees visited the centre and helped with cleaning the territory.

In 2023 we focused on strengthening HR-brand of YRPZ and implemented a number of activities for potential employees: students and pupils. To that end YRPZ repeatedly held plant tours for students and pupils and arranged introductory presentations about tire-making and work at YRPZ. Totally, YRPZ hosted 194 persons (students & pupils) in 2023.
In November 2023 YRPZ CSR&HR team met a group of college students with a career-guidance visit. During the presentation, discussion and Q&A session the students got comprehensive information about the work at YRPZ, and some students showed willingness to join YRPZ after graduation.