TMK ranks among Russia’s leaders in the fight against corruption

02.11.2021

TMK ranks among Russia's leaders in the fight against corruption

TMK's anti-corruption system scored highly in the 2021 Anti-corruption Ranking of Russian Business compiled by the Russian Union of Industrialists and Entrepreneurs (RSPP), while Transparency International ranked TMK's Anti-corruption Hotline among the top 15 for Russian companies.

The RSPP ranking is aligned to the ISO 37001:2016 Anti-bribery management systems - Requirements with guidance for use, as well as the Anti-corruption Charter of the Russian Business. In 2021, the ranking covered 53 companies which are leaders of the Expert 400 list, with six more participants applying for a rating independently.

Following the evaluation, TMK was rated as Class A1, placing it among the companies "demonstrating the highest level of anti-corruption compliance and the lowest corruption risk". This rating indicates the lowest level of associated threat to investors, creditors, business partners, and other stakeholders.

TMK's anti-corruption efforts were also highly praised by respondents of the Hotlines for Corruption Whistleblowers in the Commercial Sector survey conducted by Transparency International - R Center for Anti-corruption Research and Initiatives looking at the 100 largest Russian companies by revenue. The rated companies were evaluated against seven criteria for the setup of whistleblowing channels: availability of a whistleblowing channel; guarantee of non-retaliation against whistleblowers; indication of the body responsible for handling reports; ease for counterparties, company employees and other persons to report corruption; hotline confidentiality or anonymity; and indication of the procedure and timeframe for handling incoming reports.

Based on publicly available information, TMK was scored 6.5 out of 7, placing its Anti-corruption Hotline among the top 15. The survey specifically noted that TMK has publicly disclosed the reporting structure of its dedicated anti-corruption bodies: all reports received via the Hotline are handled exclusively by the Committee on Regulating Compliance Risks, which reports directly to the Company's CEO.

Igor Korytko, CEO of TMK, said:

"Receiving high marks from competent institutions and organizations is further testament to TMK's commitment to the highest standards of doing business. We are developing a robust compliance risk management system, underpinned by current Russian and international best practices. The effectiveness of the system ensures strict compliance with the established business procedures by all business units of the Company, while providing our customers, investors and government authorities with assurance of TMK's transparency and full performance of obligations."

TMK has a multi-tier anti-corruption system in place. The managing company has established a Committee on Regulating Compliance Risks, while dedicated Subcommittees at TMK Group's facilities are involved in drawing up a company-wide compliance risk map. The key principles of TMK's anti-corruption efforts are set out in the Company's Code of Ethics adopted in 2019.

The Anti-corruption Hotline was set up in 2012. TMK receives reports via three channels: telephone, email and regular mail. Any person with relevant information can confidentially report actual and suspected violations of applicable laws and TMK's internal regulations.