30th of decemmber, 2017

To our stakeholders:

I am pleased to confirm that The Svirin Family Company reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Andrei Svirin
Director General

The company supports the convention on human rights, shares the principles of the UN-Women, labor legislation of the Russian Federation. For 2017 the company set the goal to avoid any violations of human rights, I'm glad to confirm that the goal has been successfully achieved.

Any case of human rights violation is considered separatly by the special comitee with the presence of General Director, who acts as a comitee chairman. Every six months meetings with clarification of rights and duties of employees are held. Every employee has the right to contact the General Director if his or her rights are violated.

Any case of human rights violation is consideres as a subject for investigation within the company, all cases of human rights violation including violation of the law of the Russian Federation are transferred to the police or to the court for detailed investigation. Any case of human rights violation is considered separatly by the special comitee with the presence of General Director, who acts as a comitee chairman. I'm glad to confirm that during 2017 year the company hasn't any claims of human rights violation.

The company supports the ILO, as well as the salaries in the company exceed the settled minimum wage. The company has never contacted with child labour. Our employees work remotely, which does not allow the leadership to get people to stay at work after the end of the working day or work extra hours without payment. Our goal is to save a steady rise in wages and a reduction in the employee's working time.

Any case of labour policies or rights violation is considered separatly by the special comitee with the presence of General Director, who acts as a comitee chairman. Every six months meetings with clarification of rights and duties of employees are held. Every employee has the right to contact the General Director if his or her rights are violated. Due to the fact that the all employees work remotely, health and safety are at the maximum convenient level for them, employees could decide where it is convenient to work for them.

Any case of labour rights violation is consideres as a subject for investigation within the company, all cases of labour rights violation including violation of the law of the Russian Federation are transferred to the police or to the court for detailed investigation. Any case of labour policies or rights violation is considered separatly by the special comitee with the presence of General Director, who acts as a comitee chairman. I'm glad to confirm that during 2017th year the company hasn't any case of labour rights violation. The company's gender diversity is 35% female and 65% male employees, as for the ethnicity - 100% of Russians.

The company supports Caring for Climate and CEO Water Mandate. Despite the fact that the company does not relate to the industry sector and has the minimal possible level of the impact on the environment, the company and all its employees is trying to minimize environmental risks and the impact on the environment. As a General Director I have set the following goals for the upcoming year:
- switch to the usage of energy-saving lamps with its proper utilization;
- decrease the current amount of printed documents and use electronic document flow;
- continue with proper recycling of batteries;
- take part in the annual Earth Hour event

Every six months the company held the meeting aimed at improving the energy efficiency of products, services and processes. I'm also happy to confirm that due to the switch to remote type of work we were able to decrease water consumption for 100 litres during 2017th year and will set the same goal for the upcoming year.

Any case of the Global Compact environmental principles violation is consideres as a subject for investigation within the company, if such case violates the law of the Russian Federation, it is transferred to the authorities for the futher detailed investigation. Any case of the Global Compact environmental principles violation is considered by the special comitee with the presence of General Director, who acts as a comitee chairman. I'm glad to confirm that during 2017th year the company hasn't any case of the Global Compact environmental principles violation.

Сompany is strictly follow policy of zero-tolerance for corruption, bribery and extortion.
Company supports UN Convention Against Corruption.
Each employee is obliged to inform the General Director in case of any corruption or bribery risks.
The company provides Anti-Corruption trainings for all employees.
I'm glad to confirm that during 2017th year the company has not faced corruption or bribery incidents.

Every six months the company helds meeting for employees about zero-tolerance policy for corruption and bribery.
The company also provides special web-form for anonymous raise of coruption or bribery incidents for employes.

Any incidents related to the coruption or bribery risks are transferred to the police or court for detailed investigation, especially if incident violates laws of the Russian Federation. All incidents related to the coruption or bribery are considered separatly by the special comitee with the presence of General Director, who acts as a comitee chairman.