System Capital Management or SCM is a major Ukrainian financial and industrial holding company with headquarters in Donetsk in the east of the country. The business is controlled by a Ukrainian businessman Rinat Akhmetov who owns 100% of the company shares. In 2011, the group has revenues of around $19.5 billion and has assets worth over $28.4 billion.
Overview
SCM was set up in 2000. It includes over 100 businesses in metals and mining, power generation, banking and insurance, telecommunications, media and real estates as well as in some other spheres. The total number of employees at SCM enterprises is about 200 thousand people. The Group is audited by PricewaterhouseCoopers.
Structure
The biggest company in the SCM Group is Metinvest involved in the mining and steel business. It is one of the Ukraine's largest private business and is one of the bigger steel businesses in Europe. It is also the largest Ukrainian producer of iron ore. In addition to Ukraine, Metinvest has assets in the USA, Italy, UK, Bulgaria, and Switzerland. The second major company of the group is a coal mining and power generation companyDTEK. DTEK was formed in 2002. The nucleus of the complex consisted of Vostokenergo Power Generation Company, ServiceInvest Energy Company, and the coal mineKomsomolets Donbassa. The other companies ranged from scientifically oriented energy-sector companies to those in various social fields. SCM also owns two large banks and an insurance company. In telecommunications, SCM has a fixed line business, Vega Telecom group. The Group's media interests include the newspaper Segodnya and Ukraina Media Group. The group is also in the real estate business and owns two five star hotels – one in Kiev and one in Donetsk. SCM group also includes assets in heavy engineering, clay production, transportation, agriculture, and retail businesses.
Awards and recognition
In September 2011, under USAID support, the Centre for Corporate Social Responsibility Development published the results of the first Ukraine's Companies' Transparency Index. The top ten list included three SCM Group companies: System Capital Management, Metinvest and DTEK, while DTEK as number one in the list. SCM Group prepared the first corporate social responsibility report in Ukraine in 2005. On 1 December 2011, SCM was honored at the Business Leadership Roundtable and Corporate Social Responsibility Awards Luncheon held during Ukraine's 20th Anniversary of Independence Gala events in Washington, D.C. On 15 December 2011, SCM took the first place at the National CSR Business Case 2011 Contest for its Contemporary Education social programme. At the beginning of 2012, Metinvest, DTEK and SCM took three first places at the ranking compiled by Gvardiya national ranking magazine as the most socially responsible businesses in Ukraine. Forty-one companies bid for the title in 2012. SCM Group has been taking the first place for five years consecutively in the GVardiya Magazine Rating of Socially Responsible Companies.
