Sustainability Report 2017
Total Page:16
File Type:pdf, Size:1020Kb
SUSTAINABILITY REPORT 2017 Contents CONTENTS Message from the Chairman Health, Safety and Environment������������������������������ 62 of Rosneft’s Board of Directors�����������������������������������2 Occupational health and safety Message from Rosneft’s management system�����������������������������������������������62 Chief Executive Officer, Chairman Occupational Health and Safety��������������������������65 of the Management Board��������������������������������������������4 Key OHS initiatives in 2017���������������������������������65 Key sustainability performance indicators�������������������5 OHS achievements in 2017���������������������������������71 About the Report����������������������������������������������������� 10 Environment ������������������������������������������������������72 Company performance������������������������������������������������ 14 Environmental management system����������������������72 Environmental protection performance in 2017����81 The Company in 2017: general information������������� 16 Key achievements in 2017��������������������������������������17 Energy consumption and energy efficiency ������������88 Offshore activities����������������������������������������������������24 Emergency prevention and response readiness������� 90 Arctic expeditions����������������������������������������������������27 Prevention and minimization of potential damage Import substitution and localization��������������������������29 from man-made disasters���������������������������������������90 Corporate governance���������������������������������������������� 32 Prevention and minimization of damage Board of Directors��������������������������������������������������33 from natural disasters���������������������������������������������91 Shareholder relations����������������������������������������������33 Investor relations����������������������������������������������������35 Human resources����������������������������������������������������� 94 HR management system�����������������������������������������94 Sustainability management��������������������������������������� 36 HR performance in 2017����������������������������������������98 Ethics management framework�������������������������������37 Compliance framework��������������������������������������������38 Society������������������������������������������������������������������� 120 Prevention of fraud and corruption��������������������������40 Social impact management system����������������������� 120 Risk management and internal control�������������������� 42 Social performance in 2017��������������������������������� 120 Risk management���������������������������������������������������43 Independent Assurance Report Internal control��������������������������������������������������������46 on the Sustainability Report 2017������������������������ 128 Stakeholder engagement������������������������������������������ 48 Public consultations�������������������������������������������������48 Annex 1. Progress against the 2017 Roundtables������������������������������������������������������������49 objectives set in the 2016 Sustainability Report. Objectives for 2018‑20�������������������������������������������� 130 Innovation and technology advancements����������������� 52 Innovation Program ������������������������������������������������52 Annex 2. GRI content index������������������������������������� 134 Corporate Research and Design Complex����������������56 Annex 3. List of abbreviations�������������������������������� 150 Partnership with universities and innovation centers��������������������������������������������60 Contact information������������������������������������������������� 152 1 ROSNEFT SUSTAINABILITY REPORT 2017 MESSAGE FROM THE CHAIRMAN OF ROSNEFT’S BOARD OF DIRECTORS Gerhard Schroeder As the Chairman of the Board joining the cohort of technology of Directors I place a great leaders as the Company Chairman of the Board emphasis on the Company’s makes a major technological of Directors strategic priorities and their breakthrough. In pursuance achievement. In 2017 we of its strategy, Rosneft is adopted Rosneft-2022, one of set to make investments in the most ambitious strategies oil refining, petrochemicals in the industry and one that fully production, energy efficiency, meets the challenges now facing emissions reductions and oil and gas corporations. This other areas in order to achieve is a thoroughly elaborated plan improved margins on refining that serves as a strong platform and sales of its own products. to support the Company’s leap-forward development As Germany’s former Chancellor and takes into account the I am very keen on promoting operating potential of all its cooperation between Rosneft business segments. It envisages and European businesses. the organic growth in liquid I believe that over recent hydrocarbon production to years the Company has made 250 mmtoe and the rise of gas remarkable headway towards production to 100 bcm per year. building productive and Among other strategy goals are effective business relations increasing the share of products with its European partners. The with high added value, and integrated approach taken by 2 Message from the Chairman of the Board of Directors the Company is an important its refining, petrochemicals efficiency driver, as it helps to and retail businesses, and attract importing countries establishing itself as an interested in guaranteed experienced player on the global feedstock supplies, and in their commodity trading market. production, transportation, and delivery to end consumers. People in Germany, Russia and Rosneft continued on the path other countries often ask towards diversifying supplies me why I decided to take between eastern and western on this senior role in the routes, with eastbound supplies Company. In my opinion, in 2017 rising to 47.7 mmt, Rosneft strives to make the up 10.7% year on year. Sales best use of global industry through the high-margin retail resources and to expand its channel soared by 7% in 2017. geographic and technological footprint by building mutually In 2017 the Company found beneficial relations with foreign over 80 mmt of oil reserves partners. It has dozens of in the Laptev Sea after joint ventures across Europe spudding its first exploration and Asia and spends billions well, and brought on stream of dollars to support their a unique startup complex business, while over 40% of to support production from shares in the Company are the Erginsky cluster holding held by international investors. total reserves of 256 mmt. ROSNEFT STRIVES TO MAKE THE BEST USE OF GLOBAL INDUSTRY RESOURCES « AND TO EXPAND ITS GEOGRAPHIC AND TECHNOLOGICAL FOOTPRINT BY BUILDING MUTUALLY BENEFICIAL RELATIONS WITH FOREIGN PARTNERS I think very highly of the Rosneft Another important topic on management team whose work our agenda is energy security. I oversee as Chairman of the To address these challenges, Board of Directors. 2017 was we need to team up with other marked by a number of strategic players, acting openly and deals to acquire promising observing common interests. We assets that have now started can overcome the lack of trust to appreciate in value as oil by working more closely with prices embark on a journey to our partners. We must move in recovery. The expansion of the this direction — starting today. international refining business by exchanging holdings in German refineries and acquiring an interest in the India-based Vadinar refinery already provides substantial synergies. Rosneft is the world’s largest public oil and gas company both in terms of liquid hydrocarbon production and reserves. It continues on the set course by increasing production from 4 mmtoe 18 years ago to 281.7 mmtoe in 2017, growing 3 ROSNEFT SUSTAINABILITY REPORT 2017 MESSAGE FROM ROSNEFT’S CHIEF EXECUTIVE OFFICER, CHAIRMAN OF THE MANAGEMENT BOARD Igor Sechin 2017 was a landmark year for with total reserves of Rosneft. We completed a num- 233 mmtoe. Domestic refin- Chairman of the ber of strategic acquisitions and ing improved in terms of both Management Board, approved a new growth strategy quantity (100.6 mmt, up 15% Chief Executive Officer which is focused on gaining year on year) and quality. technology leadership, optimiz- ing the corporate structure Rosneft has tapped into new and forms of management, and strategic markets in India and achieving increased margins Egypt. It completed a deal to along the entire value chain. acquire a 49.13% interest in Essar Oil Limited, a high-per- Rosneft exhibited a strong forming asset that will become operating performance in a valuable link in the Company’s 2017: its hydrocarbon produc- integrated oil supply chain and tion reached a new high of provide substantial additional 281.7 mmtoe, up 6.2% from synergies. We have also joined a year earlier. With 68.4 bcm our long-standing partners Eni of gas produced in 2017, and BP in a project to develop the Company also confirmed the Zohr field, one of the world’s its status as Russia’s larg- largest natural gas fields est independent producer located off the coast of Egypt. of natural gas. Exploration activities in 2017 resulted Rosneft continues its strategy in the discovery of 162 new aimed at maximizing the deposits and 31 new fields efficient recovery of resources 4 Message from the Chief Executive Officer and boosting production. In of Bashneft-Ufaneftekhim, The average monthly salary in 2017 we started production at a biological treatment complex most