ALLIANCE FOR WATER STEWARDSHIP (AWS) AUDIT REPORT · 2019. 11. 2. · JSC Philip Morris Izhora AWS...

ALLIANCE FOR WATER STEWARDSHIP (AWS)

AUDIT REPORT Based on AWS Standard Version 1.0

JSC Philip Morris Izhora

Volkhonskoe shosse, 7, Kvartal 2, Industrial zone Gorelovo, Lomonosovsky

district, Leningrad area, RF, 198323

Report Date: 28-08-19

Report Version: 03.3

Prepared by: Mr. Aleksandr Kamzolov

Project No.: 867295AWS-2019-08

AWS Reference No.: AWS-010-INT-CAB-00-03-00017-0090

JSC Philip Morris Izhora AWS Audit Report

Project No.: 867295AWS-2019-08 AWS Reference No.: AWS-010-INT-CAB-00-03-00017-0090 of 26

Contents 1. General Information ............................................................................................................ 3

1.1. Client Details ................................................................................................................ 3

1.2. Certification Details ...................................................................................................... 3

2. Executive Summary ............................................................................................................ 4

3. Scope of Assessment ......................................................................................................... 5

4. Description of the Catchment .............................................................................................. 5

5. Summary on Stakeholder and shared Water Challenges .................................................... 7

6. Summary of the Assessment .............................................................................................. 7

6.1. Major Non-conformities ................................................................................................ 7

6.2. Minor Non-conformities ................................................................................................ 7

6.3. Observations ................................................................................................................ 7

7. Schedule for Surveillance Audit .......................................................................................... 8

8. Conclusion and Recommendation ...................................................................................... 8

9. Audit Checklist ...................................................................................................................10



1. General Information

1.1. Client Details

Company Name JSC Philip Morris Izhora

Business address: -

Auditing Site Address: Volkhonskoe shosse, 7, Kvartal 2, Industrial zone Gorelovo, Lomonosovsky district, Leningrad area, RF, 198323

Activities / Processes: Manufacturing of tobacco heatsticks and cigarettes

Principle contact person: Kovalchenko M.S.

Office telephone: +7 (812) 718 45 45

Fax: +7 (812) 718 45 45

E-mail: [email protected]

Web site: www.pmi.com

1.2. Certification Details

Audit Date(s): 26-06-19 and 27-06-19

Auditor Team: Mr. Aleksandr Kamzolov

Certification Date: 06-08-19

Proposed date for next audit: 26-06-19 (surveillance audit)

Audit Report completed by: Mr. Aleksandr Kamzolov

Project No.: 867295AWS-2019-08

AWS Reference No.: AWS-010-INT-CAB-00-03-00017-0090

mailto:[email protected]



2. Executive Summary

Philip Morris International Inc. (PMI) is an American multinational cigarette and tobacco manufacturing

company, with products sold in over 180 countries outside the United States. The most recognized and

bestselling product of the company is Marlboro. Group is committed towards its environmental and social

responsibilities and hence decided to go from AWS certification as one of their steps towards their

sustainable goals.

As part of their commitments, CU Russia was appointed to conduct AWS audit and certification for JSC

Philip Morris Izhora site in Saint Petersburg. JSC Philip Morris Izhora produces cigarette products and

tobacco sticks. This production facility is divided into several blocks namely tobacco production, cigarette

production, production of sticks, storage of finished products, water treatment, fire hydrant, treatment

facilities for surface water, parking area, chemical storage area and admin area. In overall facility water is

used for washing equipment and humidification of tobacco. Total water consumption by facility is around

170,633 m3 per year.

The certification audit announcement was published 30 days before the audit, as required by AWS

standard, in the following media; Control Union website, AWS website and local media. The audit was

conducted for 2 days i.e. on 26th and 27th Jun 2019.

The team was comprised of following personnel;

Name Role in Audit

Mr. Aleksandr Kamzolov Auditor

Mr. Bunny Azmi Certifier

The audit findings showed that the site meet up with all the core level criteria. All the Non-Conformities

identified were at the level of advance requirements of the standard. Since the advance requirements are

not mandatory requirements this time, therefore there was no any timeline for closing of the Non-

Conformities.

The site meets up with all the requirements and criteria for Core level certification. Therefore, it is

recommended to be awarded Core Level of AWS certificate.



3. Scope of Assessment

Audit Standard Alliance for Water Stewardship V1.0

Initial Audit Yes / No

Surveillance Audit Yes / No

Type of Certification Single Site Multi-site Group

X

Location of Audit Industrial zone Gorelovo, Lomonosovsky district, Leningrad area, RF, 198323

Scope of Certification

The plant water catchment which is Neva River & Okhta River, the relevant stakeholders in the catchment area, all the production lines and other related areas utilizing water on the site

Assessment on-site activities includes Document review, management of interview, employee interview, onsite implementation review

4. Description of the Catchment

The water source for PMI Izhora and region around is from nearby two catchments i.e. Neva River and

Okhta River. 98% of the surface water comes from the Neva River. GUP Vodokanal extracts less than 1%

of the Neva River flow rate (@2,500 m³/s) and make it available for community and industries. There are

no limitations in additional water extraction if needed. Surface water management is organized by the state

river basin institutions under Federal Agency of Water Resources. The SPB one is called Neva and Ladoga

Basin Water Authority. Neva River local catchment No. 28 as per SKIOVO identification (Neva River without

Okhta River) having an area of 220 km2. PM Izhora is located at the border of two basins and belongs to

Luga basin. Neva and Ladoga Basin Water Authority developed so called Schemes of the Comprehensive

Use and Protection of Water Bodies in River Basins (SKIOVO). This scheme has united Dudergofka with

Ligovsky canal which has facilitate to enlarge catchment area at length of 21 km and catchment area at

120 km2. Unitary enterprise GUP Vodakanal is also owner of municipal waste water treatment system.

Water sources situation in the catchment(s):



The map shows location of the plant in relation to Neva basin (Neva with its tributaries).

Source: SKIOVO for the Neva River Basin, Vol. 1 (http://www.nord-west-

water.ru/upload/information_system_18/3/2/8/item_32845/information_items_property_7374.pdf)

http://www.nord-west-water.ru/upload/information_system_18/3/2/8/item_32845/information_items_property_7374.pdf





5. Summary on Stakeholder and shared Water Challenges

The list of water related stakeholders for PMI Izhora plant includes host communities; Rosprirodnadzor,

Rospotrebnadzor, natural resources Committee, Nevsko-Ladoga basin water management, Vodokanal,

JJJ "Jacobs Dau Egberts Rus", MM Packaging, Keramin, Tractor manufacturer - Kirovsky plant, Coca-Cola

Hellenic, water related NGOs. There are no water problems at the enterprise and the company provides

assistance to the state in terms of cleaning the shores of lakes and rivers, canals. At the time of the audit,

the reports of meetings with Stakeholders were checked, in the past the company had some problems with

water quality (excess iron), but the company successfully coped with this, conducts regular water quality

analyses at the site. A program has been developed to assess possible problems that may arise in the

territory with solutions. Consensus was reached with JJJ "Jacobs Dau Egberts Rus" on further cooperation

on AWS, discussion of emerging issues and what joint actions will be taken to remedy the situation. The

company participates in forums, Federal and local meetings, and promotes AWS philosophy and practices

6. Summary of the Assessment

6.1. Major Non-conformities

Sr. No.

AWS Criteria

Description of NC Response from Client

(explanation & documents) Closure

Nil

6.2. Minor Non-conformities

Sr. No.

AWS Criteria



Nil

6.3. Observations

Sr. No.

AWS Criteria



1 4.6 PMI has listed their suppliers and engaging with them over water use issues. All these relevant document pages are shared as snap and auditor has verified all this on site. Request PMI to share few snap as evidences of their engagement with supplier over indirect water use.

[23-07-2019] PMI Izhora has submitted relevant evidences for the point.

[23-07-2019] Response accepted

2 5.5 PMI is requested to share evidences that facility has conducted reviews over their water

[02-08-2019] PMI Izhora has submitted a link (https://ecology.expoforum.ru/ delovaya-programma?date=21.03.19&

[02-08-2019] Response not accepted, hence

https://ecology.expoforum.ru/delovaya-programma?date=21.03.19&%20eventId=5c0a37dd1c5da1e70a99e701




Sr. No.

AWS Criteria



stewardship efforts by their top management like executive team (CEO/CFO or equivalent) or board (or equivalent).

eventId=5c0a37dd1c5da1e70a99e701) against response to this observation. [14-08-2019] PMI shared two minutes of meetings held on 20-12-2018 and 22-04-2019 with Jacobs industries one of the identified stakeholders.

criteria not scored. [14-08-2019] Response not accepted, hence criteria not scored. (for explanation please refer to section 9 of this report)

7. Schedule for Surveillance Audit

As this initial audit is conducted on 26.06.2019, as per the requirement of standard surveillance audit must

be scheduled within 13 months. Hence, next surveillance audit must be conducted on or before 26.07.2020.

This date even includes any request for re-assessment for certification level upgradation.

8. Conclusion and Recommendation

JSC Philip Morris Izhora has implemented the AWS standard on its facility and is actively promoting the

requirements of this standard on the territory of its water use and working with water users & government

authorities, as evidenced by observations and documents. This summary is for the certification review done

on the audit findings under AWS standard.

Observations / Feedbacks:

1. PMI has involved many stakeholders in their conduct for water stewardship - employees,

consultant, government agencies, suppliers, educational institute

2. PMI has done a great work on formalizing its' policy, if company could also formalize its

commitment with time-bound and social benefits then this would further reflect it's stewardship

efforts. Towards criteria 1.1, PMI could develop a separate commitment either site specific or at

group level as per AWS Standard Version 1.0 (page 49)

3. PMI need to describe their sphere of influence more clearly

4. PMI needs to work more towards indirect water consumptions and relevant planning to reduce

their impact. Engaging more with stakeholders like suppliers, external processing agents, etc. will

contribute positively into this part

5. Towards criteria 2.12, PMI has demonstrated that company is cleaning storm water channels but

do not suffice the purpose of understanding groundwater status or environmental flows and the

site’s potential contributions

6. PMI needs to engage with more stakeholders who are sharing the same water-related

challenges, share their plan, take their consensus and work on water governance

7. Though the document referred in criteria 3.3 has water-related incident / emergency response

plan but it is suggested that more water specific aspects & impacts should be considered so that

this plan could be upgraded for better resilience




8. For public disclosures PMI must also include platforms like annual reports, integrated reports,

sustainability reporting, social reporting, etc. These disclosures should not only have list of

compliances and achievement over action plans but also any violation and measures taken to

rectify issue

9. Towards criteria 5.3, PMI need to show utilization of the commentary / feedback that is received

during stakeholder consultation for future planning

10. PMI needs to formalize plan to increase site level awareness on water stewardship as well as for

stakeholders with same water-related challenges



9. Audit Checklist

Step 1: COMMIT – Commit to being a responsible water steward

AWS Criteria Indicators Level Auditor’s Findings Certifier’s Response

1.1 Establish a leadership commitment on water stewardship

1.1.1 Signed and publicly disclosed statement that explicitly covers all requirements

Core Management commitments are spelled out in the AWS policy, the policy is signed by the company's CEO (senior management), posted on the company's website, at the entrance and on the information stands inside the plant.

[19 Jul 2019] PMI has AWS commitment signed by company's General Director on 27th Mar 2019. Photo of the commitment is shared. https://www.pmi.com/resources/docs/default-source/russia-market/news/aws-commitment_29-03r.pdf?sfvrsn=5ac692b5_2

1.2 Develop a water stewardship policy

1.2.1 Publicly available policy that meets all requirements

Core Management commitments are spelled out in the AWS policy, the policy is signed by the company's CEO (senior management), posted on the company's website, at the entrance and on the information stands inside the plant.

[19 Jul 2019] PMI has AWS commitment signed by company's General Director on 27th Mar 2019. Also, it is publicly available on PMI's website. Please refer link below https://www.pmi.com/ resources/docs/default-source/russia-market /news/aws-commitment_ 29-03r.pdf?sfvrsn=5ac692b5_2 This commitment is also displayed on company's entry area for stakeholders to refer it. Photos shared.

1.3 Further the Alliance for Water Stewardship

1.3.1 Official registration with AWS

Advance AWS-010-INT-CAB-00-03-00017-0090 [19 Jul 2019] Findings accepted

1.4 Commit to other initiatives that advance effective water stewardship

1.4.1 Formal commitment to qualifying initiative(s), including a timeline for completion

Advance The company has implemented the environmental standard ISO 14001-2015, OHSAS 18001-2007, and there are several internal environmental programs for environmental protection including water resources ("green game" - shoreline cleanup)

[19 Jul 2019] Auditor has referred to the commitments on PM website (https://www.pmi.com/markets/russia/ru/sustainability) and this is being found relevant. However, time-bound target and additional social & environmental benefits (apart from AWS requirement) could not be demonstrated. Findings accepted

1.5 Secure a water stewardship commitment from the

1.5.1 Appropriately signed and publicly available

Advance the policy is signed by the company's CEO (senior management)

[19 Jul 2019] Findings accepted

https://www.pmi.com/%20resources/docs/default-source/russia-market%20/news/aws-commitment_%2029-03r.pdf?sfvrsn=5ac692b5_2






organization’s senior-most executive or the organization’s governance body

statement that explicitly covers all requirements

1.6 Commit to directly assisting with community water needs in times of stress

1.6.1 Signed and publicly disclosed statement that explicitly covers all requirements

Advance Statement available to the public is at the checkpoint No.1

[19 Jul 2019] As part of global policy PMI has a policy to help community on their water need specified in "Responsible Water Use". And it is available on entrance of the company. It also specifies use of 20 liters water per person on emergency.

Step 2: GATHER & UNDERSTAND – Gather data to understand shared water challenges and water-related risks, impacts and

opportunities


2.1 Define the physical scope

2.1.1 Documentation or map of the site’s boundaries 2.1.2 Names and location of water sources, including both water service provider (if applicable) and ultimate source water 2.1.3 Names and location of effluent discharge points, including both water service provider (if applicable) and ultimate receiving water body 2.1.4 Geographical description or map of the catchment(s)

Core "Scope: production of cigarettes, tobacco, sticks". Map of the site available with cold water supply, storm water, sanatorium water, produce water; Maps of the river basin, and more details on the website. The plot will produce 100% with municipal water. (contract with water supplier available); Maps and report on the status of the water basin

[19 Jul 2019] All required documents are available and relevant snaps are shared and auditor has verified all this on site. Findings accepted.




2.2 Identify stakeholders, their water-related challenges and the site’s sphere of influence

2.2.1 List of stakeholders, descriptions of prior engagements and summaries of their water-related challenges 2.2.2 Description of the site’s sphere of influence

Core List of stakeholders, meeting minutes, Description of the site’s sphere of influence and the rationale for including issues on the site

[19 Jul 2019] PMI has identified the stakeholders and doing engagement with them and had also identified water related challenges. All these relevant documents are shared as snap and auditor has verified all this on site.

2.3 Gather water-related data for the catchment: Gather credible and temporally relevant data on the site’s catchment: x Water governance x Water balance x Water quality x Important Water-Related Areas x Infrastructure’s current status

2.3.1 List of relevant aspects of catchment plan(s), significant publicly led initiatives and/or relevant water related public policy goals for the site 2.3.2 List, and description of relevance, of all applicable water-related legal and regulatory requirements, including legally defined and customary water rights and water-use rights 2.3.3 Catchment water balance by temporally relevant time unit and commentary on future supply and demand trends 2.3.4 Appropriate and credibly measured data to represent the physical, chemical and biological status of the site’s water source(s) by temporally relevant time unit, and commentary on

Core List of stakeholders, meeting minutes, Description of the site’s sphere of influence and the rationale for including issues on the site; SanPiN 2.1.4.1074-01 (state standard for drinking water maintained on Register of regulatory requirements at site) Presentation of the water utility on the situation in the water basin Protocols of laboratory control of incoming water and effluents (made monthly) Report on the General infrastructure, water basin, the study was conducted by the state authorities in terms of the installation of new water treatment systems, but not to predict the situation

[19 Jul 2019] A report prepared by Vodokanal (govt. agency) and global team of PMI covers all these gathered data for Izhora site. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted. [14 Aug 2019] PMI has shared additional refer for "Register of regulatory requirements" maintained by them which is also a part of gathering water-related data.




any anticipated future changes in water quality 2.3.5 Documentation identifying Important Water Related Areas, including a description of their current status and commentary on future trends 2.3.6 Existing, publicly available reports or plans that assess water-related infrastructure, preferably with content exploring current and projected sufficiency to meet the needs of water uses in the catchment, and exposure to extreme events

2.4 Gather water-related data for the site: Gather credible and temporally relevant data on the site’s: x Governance x Water balance x Water quality x Important Water-Related Areas x Water-related costs

2.4.1 Copies of existing water stewardship and incident response plans 2.4.2 Site water balance (in Mm3 or m3) by temporally relevant time unit and water-use intensity metric (Mm3 or m3 per unit of production or service) 2.4.3 Appropriate and credibly measured data to represent the physical, chemical and biological status of the site’s direct and outsourced water effluent by temporally relevant time unit, and

Core Emergency action plan, SanPiN 2.1.4.1074-01 (state standard for drinking water). Presentation of the water utility on the situation in the water basin Protocols of laboratory control of incoming water and effluents (made monthly) Report on the General infrastructure, water basin, the study was conducted by the state authorities in terms of the installation of new water treatment systems, but not to predict the situation

[19 Jul 2019] PMI has gathered all the site relevant water data and maintaining the records. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.




possible pollution sources (if noted) 2.4.4 Inventory of all material water-related chemicals used or stored on-site that are possible causes of water pollution 2.4.5 Documentation identifying existing, or historic, onsite Important Water-Related Areas, including a description of their status 2.4.6 List of annual water-related costs, revenues and description/quantification of social, environmental or economic value generated by the site to the catchment

2.5 Improve the site’s understanding of its indirect water use

2.5.1 List of primary inputs with their associated embedded annual (or better) water use and (where known) their country/region/or catchment of origin with its level of water stress 2.5.2 List of outsourced services that consume water or affect water quality and both (A) estimated annual (or better) water withdrawals listed by outsourced services (Mm3 or m3) and (B)

Core Report on the catchment area from a third party, taking into account the amount of water on the site and possible problems. The list of water consumers, including consumers of water, projected water consumption for outsourcing.

[19 Jul 2019] PMI has gathered all the site relevant indirect water use data. Some relevant data in form of presentation shared and auditor has verified all this on site. Findings accepted.




appropriate and credibly measured data to represent the physical, chemical and biological status of the outsourced annual (or better) water effluent

2.6 Understand shared water-related challenges in the catchment

2.6.1 Prioritized and justified list of shared water challenges that also considers drivers and notes related to public-sector agency efforts

Core Compiled list of water problems from 22.01.19, with planned actions to address these problems

[19 Jul 2019] PMI has gathered water related challenges data at Catchment level (record name - Shared water challenges in the catchment of PM Izhora) and accordingly they have prepared their plan. Some relevant data in form of snap shared and auditor has verified all this on site. Findings accepted.

2.7 Understand and prioritize the site’s water risks and opportunities

2.7.1 Prioritized list of water risks facing the site, noting severity of impact and likelihood within a given time frame 2.7.2 Prioritized list of water-related opportunities for the site 2.7.3 Estimate of potential savings/value creation

Core Compiled list of water problems from 22.01.19, with planned actions to address these problems, calculation of water resources saving taking into account the implementation of production practices

[19 Jul 2019] PMI has gathered water related risk & opportunity (record name - PM Izhora water risks and opportunities) and accordingly they have prepared their plan. Some relevant data in form of snap shared and auditor has verified all this on site. Findings accepted.

2.8 Support and undertake joint water-related data collection

2.8.1 Evidence of water-related data that was jointly gathered

Advance The data were collected together with the contractor (report on the water area) and together with the state authorities (report of the water utility)

[19 Jul 2019] A report prepared jointly by Vodokanal (govt. agency) and global team of PMI covers all these gathered data for Izhora site. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.

2.9 Gather additional, detailed water-related data

2.9.1 Water-related data sets that go beyond core requirements – See Guidance for details

Advance PMI is working towards these requirements

[19 Jul 2019] Findings accepted.




2.10 Review a formal study on future water resources scenarios

2.10.1 Copy of a study that details projected future state conditions relative to current quantity and quality parameters and a comment on potential impacts upon the site’s growth strategy



2.11 Conduct a detailed, indirect water use evaluation

2.11.1 Detailed description of the site’s water-related supply chain with indirect water use amounts (for water quantity and quality) and the site’s engagement efforts to date for each

Advance There is list of suppliers, but no analysis for water use.


2.12 Understand groundwater status or environmental flows and the site’s potential contributions

2.12.1 Conclusions about the site’s potential contributions to groundwater recharge or environmental flows restoration

Advance Company at its own expense annually cleans the drainage channel outside its territory, which is responsible for the flow of rainwater into the riverbed

[19 Jul 2019] PMI is deploying their manpower for cleaning of storm water channels (both natural and man-made) at least once is a year. Enough evidences could not be shared by PMI. Findings accepted.

2.13 Complete a voluntary Social Impact Assessment

2.13.1 Social impact assessment report



Step 3: PLAN – Develop a water stewardship plan


3.1 Develop a system that promotes and evaluates water-related legal compliance

3.1.1 Documented description of system, including the processes to evaluate compliance and the names of those responsible and accountable for legal compliance

Core The system is described in the policy of the company, in the news (on the website) on the sustainable development of the enterprise, created orders with the appointment of responsible

[19 Jul 2019] PMI has taken all the steps to develop the system for legal compliance. Third party conducts annual ISO and OHSAS audits on legal compliance. At plant level, there is a legal register which is being regularly checked and updated by the environmental engineer. Auditor has verified all these on site. Findings accepted.




3.2 Create a site water stewardship strategy and plan: Develop an internally available water stewardship strategy and plan for the site that addresses its shared water challenges, risks and opportunities identified in Step 2

3.2.1 Available water stewardship strategy 3.2.2 Available plan that meets all component requirements and addresses site risks, opportunities and stakeholder shared water challenges

Core The company has created a long-term development plan for the company (partially completed, partially implemented in the future), takes into account the objectives, annual actions with deadlines, the budget for each category, designated responsible for implementation and control, note how this action will have a positive impact on the ecology of the region including water.

[19 Jul 2019] Based on gathered data for catchment and site PMI has developed relevant strategies and action plans. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.

3.3 Demonstrate responsiveness and resilience to water-related risks into the site’s incident response plan

3.3.1 A description of the site’s efforts to be responsive and resilient to water-related issues and/or risks in an appropriate plan

Core Emergency plan of interaction with internal services and external users, including government agencies, has been created

[19 Jul 2019] PMI has developed (along with key stakeholders) incidence response plan on the name of "Management of Water Resources PMZ-ENV-03" and "plan of measures for localization and elimination of consequences of accidents at a hazardous facility" and "plan to connect and consultation with stakeholder". All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.

3.4 Notify the relevant (catchment) authority of the site’s water stewardship plans

3.4.1 Documented evidence of communicating the site’s plan to the relevant catchment authority/agency

Core There are minutes of meetings with the main water users and government agencies (presented protocols, letters, presentations)

[19 Jul 2019] PMI has shared document named "Meeting of Stakeholders and Agenda" and also communicated to nearby company (stakeholder) named Jacobs Coffee which demonstrate that they have communicated their water stewardship plan to stakeholder. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.




3.5 Gain stakeholder consensus on the site’s water stewardship targets

3.5.1 A list that indicates which targets achieved consensus along with a list of stakeholders involved

Advance The Protocol of interaction with Jacobs on interaction on goals for the future is presented.

[19 Jul 2019] PMI has taken consensus from only one stakeholder. They need to improve their practices and involve more stakeholder. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.

3.6 Develop a formal plan for climate change adaptation

3.6.1 A set of plans that speak to the site’s risk mitigation with respect to projected climate change impacts including for shared water infrastructure



Step 4: IMPLEMENT – Implement the site’s stewardship plan and improve impacts


4.1 Comply with water-related legal and regulatory requirements and respect water rights

4.1.1 Documentation demonstrating compliance 4.1.2 (Catchments with stakeholders who have an unmet human right to safe drinking water and sanitation) Documentation of efforts to work with relevant public sector agencies to fulfil human right to safe drinking water and sanitation.

Core In the territory of the enterprise all employees have free access to drinking water and in addition tea and coffee, in the territory of the Russian Federation all water supplied by a water utility is drinking. Protocol on water quality available.

[19 Jul 2019] PMI has taken all the steps to develop the system for legal compliance. Auditor has verified all these on site. Findings accepted.

4.2 Maintain or improve site water balance

4.2.1 Measurement-based evidence showing that targets have been met 4.2.2 (Water scarce catchments only) Evidence of continual

Core The goals set for 2018 - 2019 have been achieved, as there is a mark in the plans (the site is not experiencing problems with water shortages)

[19 Jul 2019] Based on gathered data for site PMI has developed relevant action plans for water reduction and implemented it. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.




decrease or best practice 4.2.3 (Sites wishing to increase withdrawals in water scarce catchments only) Evidence of no net increase in water scarcity

4.3 Maintain or improve site water quality

4.3.1 Measurement-based evidence showing that targets have been met 4.3.2 (Water quality-stressed catchments only) Evidence of continual improvement or best practice 4.3.3 (Sites wishing to increase effluent levels of water quality parameters of concern in water quality-stressed catchments only) Evidence of no net degradation in water quality in the catchment

Core The site has no problems with the amount of water, but there were problems with the iron content in the water, after the installation of filters (according to the plan) the problem was solved - there are protocols of laboratory control

[19 Jul 2019] PMI had some issue on water quality for process water pertaining to Iron %. But they have improved the quality with introduction of new filters and regular monitoring through reputed laboratories. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.

4.4 Maintain or improve the status of the site’s Important Water-Related Areas

4.4.1 Documented evidence showing that targets have been met 4.4.2 (Degraded Important Water-Related Area catchments only) Evidence of continual improvement or best practice

Core According to research by third-party organizations and government bodies on the catchment area the company has no areas with degraded or lost areas, but nevertheless the company is engaged in the cleaning of shorelines channels along with Neva River.


4.5 Participate positively in

4.5.1 Documented evidence of the site’s

Core The Protocol of interaction with Jacobs on interaction on goals (dated 20-12-

[19 Jul 2019] PMI along with one of the stakeholders that is Jacobs is working




catchment governance

ongoing efforts to contribute to good catchment governance 4.5.2 (Weak water governance catchments only) Evidence of continual improvement or best practice

2018 and 22-04-2019) for the future is presented.

on improving catchment for their shared water challenges. But they need to engage with other stakeholders too and bring in further improvement. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted.

4.6 Maintain or improve indirect water use within the catchment

4.6.1 List of suppliers and service providers, along with the actions they have taken as a result of the site’s engagement relating to indirect water use

Core On the territory of the Russian Federation, the water supplier must comply with SanPiN 1074 (state standard for drinking water). In case of detection of problems of the enterprise shall inform the government (the supplier of water)

[19 Jul 2019] PMI has listed their suppliers and engaging with them over water use issue. All these relevant document pages are shared as snap and auditor has verified all this on site. Findings accepted. Request PMI to share few snap as evidences of their engagement with supplier over indirect water use. [23 Jul 2019] PMI has shared the required evidences, hence findings accepted.

4.7 Provide access to safe drinking water, adequate sanitation and hygiene awareness (WASH) for workers on-site

4.7.1 List of actions taken to provide workers access to safe water, effective sanitation and protective hygiene (WASH) on-site

Core In the territory of the enterprise all employees have free access to drinking water and in addition tea and coffee, in the territory of the Russian Federation all water supplied by a water utility is drinking. Protocol on water quality available

[19 Jul 2019] Audit has verified all the requirement for WASH and relevant snaps are shared as reference. Findings accepted.

4.8 Notify the owners of shared water-related infrastructure of any concerns

4.8.1 List of individuals contacted and key messages relayed

Core minutes of the meeting with state bodies, water users

[19 Jul 2019] Audit has verified at site through interviews that currently they have only storm water drain as shared water-related infrastructure and there are no concerns over this with any stakeholders. Findings accepted.

4.9 Achieve best practice results on site water balance

4.9.1 Quantified improvement in water balance from site-set baseline date






4.9.2 Evidence showing that actions meet best practice expectations

4.10 Achieve best practice results on site water quality

4.10.1 Quantified improvement in water balance from site-set baseline date 4.10.2 Evidence showing that actions meet best practice expectations

Advance Protocol of laboratory control of water effluents (improvement of water quality after the place of waste water discharge from the enterprise, in comparison with water to the place of discharge) (installation of treatment facilities)

[19 Jul 2019] As per PMI vision, they wanted the effluent water quality must be better than fresh water intake quality which is better than government norms. Hence, they are trying to achieve best practice. For this they have installed equipment and machinery which is verified during audit. But they need to improve further. Findings accepted.

4.11 Achieve best practice results on Important Water-Related Areas through restoration

4.11.1 Evidence of completed restoration of non-functioning or severely degraded Important Water-Related Areas 4.11.2 Evidence showing that actions meet best practice expectations



4.12 Achieve best practice results and strengthen capacity in water governance

4.12.1 List of efforts to positively engage and strengthen water governance capacity from a site-set baseline date 4.12.2 Evidence showing that actions meet best practice expectations



4.13 Advance regionally specific industrial water-related benchmarking

4.13.1 List of efforts to contribute to regionally specific benchmarking and spread best practices






4.14 Re-allocate saved water for social or environmental needs

4.14.1 Total volume of water officially re-allocated for social and environmental needs (in m3 or Mm3) 4.14.2 Documentation of legal contracts for the reallocation of water to social or environmental needs



4.15 Engage in collective action to address shared water challenges

4.15.1 List of collective action efforts, including a description of the role played by the site 4.15.2 Quantified improvement in outcome(s) or shared water challenge(s) from site-set baseline date 4.15.3 (For extra points only) Stakeholder-based evidence recognizing that the site played a material role in the improvement

Advance the law prohibits redistribution [19 Jul 2019] Findings accepted.

4.16 Drive reduced indirect water use throughout the site’s supply chain and outsourced water-related service providers

4.16.1 List of suppliers with details on engagement efforts 4.16.2 Quantified improvement by the supplier as a result of this engagement 4.16.3 (For extra points only) Supplier-based evidence recognizing that the site played a material role in prompting the change

Advance List of suppliers, response letters, but without quantitative improvement

[19 Jul 2019] PMI has started engaging with their supply chain partners and need to work hard to improve supplier's practices on water use. Hence this finding is not accepted.




4.17 Complete implementation of water-related initiatives

4.17.1 Appropriate documentation or evidence of completion of initiative

Advance Certificate of conformity [19 Jul 2019] As per section 1.4, PMI is working on their commitments and will be completed in future and hence will be audited in future. Hence this finding is not accepted.

4.18 Provide access to safe drinking water, adequate sanitation and hygiene awareness offsite

4.18.1 List of actions taken to provide catchment stakeholders with access to off-site access to safe drinking water, adequate sanitation and hygiene awareness.



Step 5: EVALUATE – Evaluate the site’s performance


5.1 Evaluate the site’s water stewardship performance, risks and benefits in the catchment context

5.1.1 Post-implementation data and narrative discussion of performance and context (including water risk) 5.1.2 Total amount of water-related costs, cost savings and value creation for the site based upon the actions outlined in 3.2 (drawn from data gathered in 2.4.6) 5.1.3 Updated data for indicator 2.4.7 on catchment shared value creation based upon the actions outlined in 3.2

Core data is maintained electronically, records shall be maintained daily accounting of expenses is conducted to have the budget by month and annual. (water meters are installed (controlled by state bodies))

[19 Jul 2019] Auditor has verified all the status of projects that are completed, on-going and expected on site. Few relevant e-document snaps are shared as reference too. Findings accepted.

5.2 Evaluate water-related emergency incidents and extreme events

5.2.1 Documented evidence (e.g., annual review and proposed measures)

Core Instructions for action in case of emergency, corrective actions and preventive actions are prescribed with an indication of the responsible.

[19 Jul 2019] Auditor has verified through interview and documentation that there is no water related emergency incidence at site. Findings accepted.




5.3 Consult stakeholders on water-related performance

5.3.1 Commentary by the identified stakeholders

Core Available minutes of meetings with comments, letters from the interested parties

[19 Jul 2019] Auditor has verified through interview and documentation that PMI has consulted with identified stakeholder. Few relevant document snaps are shared as reference too. Findings accepted.

5.4 Update water stewardship and incident response plans

5.4.1 Modifications to water stewardship and incident response plans incorporating relevant information

Core Primary certification [19 Jul 2019] Findings accepted.

5.5 Conduct an executive or governance body-level review of water stewardship efforts

5.5.1 Agenda and minutes of executive team or governance body meeting noting water stewardship discussion

Advance There is an agenda for meetings, minutes of meetings with indication of participants, but there is no evidence that the actions met expectations

[19 Jul 2019] Please share link or evidentiary document [23 Jul 2019] PMI need to work over this indicator and also record relevant evidences. [02 Aug 2019] https://ecology.expoforum.ru /delovaya-programma?date=21.03.19&eventId= 5c0a37dd1c5da1e70a99e701 [02 Aug 2019] Linked shared by auditor against this criterion is not relevant. PMI need to work over this indicator and record relevant evidences. [14 Aug 2019] PMI has shared Minutes of Meetings held on 20-12-2018 and 22-04-2019 with Jacobs Industries, one of the identified stakeholders. [14 Aug 2019] MoMs shared by PMI against this criterion is not relevant as it does not refer about conducting reviews with PMI's top management i.e. executive team (like CEO/CFO or equivalent) or board or equivalent. PMI




need to work over this indicator and record relevant evidences.

5.6 Conduct a formal stakeholder evaluation

5.6.1 Documentation of formal stakeholder evaluation with recommendations for updated Criterion 3.5

Advance Protocols with comments from stakeholders, but without specifying the contribution of the enterprise to the solution of these problems


Step 6: COMMUNICATE & DISCLOSE – Communicate about water stewardship and disclose the site’s stewardship efforts


6.1 Disclose water-related internal governance

6.1.1 Disclosed and publicly available summary of governance at the site, including those accountable for compliance with water-related laws and regulations

Core On the territory of the enterprise there are numerous stands with information indicating the responsible, the commitment is available both on the territory of the enterprise and at the checkpoint (for the public) and on the company's website. responsible are registered.

[19 Jul 2019] Auditor has verified all evidences on site that are required. Findings accepted.

6.2 Disclose annual site water stewardship performance

6.2.1 Disclosed summary of site’s water stewardship results

Core In the 2017-2018 annual report, there is an indication of annual activities, including water, but there is no clear indication of AWS (there is an indication in the implementation plans for 2019 to add to the AWS annual report). the annual report will be prepared in early 2020.


6.3 Disclose efforts to address shared water challenges

6.3.1 Disclosed and publicly available description of shared challenges and summary of actions taken to engage stakeholders (including public-sector agencies)

Core The problems of the enterprise and the water use area are covered at meetings with other water users, as well as a list of common problems at the checkpoint No. 1 (the main entrance to the enterprise) - available to the public.





6.4 Drive transparency in water-related compliance

6.4.1 Available list of water-related compliance violations with corresponding corrective actions

Core There are rules of interaction, the state bodies are immediately notified in case of a problem. (there is a letter to the water utility because of poor quality water, received a response and the water quality has returned to normal)


6.5 Increase awareness of water issues within the site

6.5.1 Record of awareness efforts (dates and communication) and, if possible, level of awareness

Core On the territory of the enterprise there are information stands, the company holds meetings, participates in seminars. Training program.


6.6 Disclose water risks to owners (in alignment with recognized disclosure frameworks)

6.6.1 Written evidence of site-based material water risk information conveyed to owners 6.6.2 (For extra points only) Disclosure to owners in a format that is consistent with the requirements of a recognized disclosure framework

Advance Documentary evidence - a letter in GUP Vodokanal, the responses from the public authorities. issues discussed at the meetings, common problems written on the information boards, including publicly available


6.7 Implement a programme for water education

6.7.1 Description of water-related education program

Advance The company has internal training on sustainable practices, but no training for the public


6.8 Discuss site-level water stewardship in the organization’s annual report

6.8.1 Page number of annual report containing site based AWS reference

Advance The annual report for 2019 is not written, the plans are to specify AWS in the annual report


ALLIANCE FOR WATER STEWARDSHIP (AWS) AUDIT REPORT · 2019. 11. 2. · JSC Philip Morris Izhora AWS...

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