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PDF Version Sustainable Development The illustration is an artistic visualization of work processes. 226 The photographs used in the illustration were taken during the pre-pandemic period. Annual Report 2020 227 Seismic station Wireless data logging systems «Green Seismic 2.0» Green Seismic 2.0 has adopted Seismic station a curved cutting prole, with survey lines routing around large trees to help minimise damage to the forest. Its curved prole reduces cutting Seismic station Seismic receivers Source lines Lightweight Signal sources Receiver lines Heavy all-terrain vehicles vehicle MILLION “Green Seismic” The project won the Vernadsky REDUCED TREE FELLING National Environmental Award 4.5 TREES An innovative method of seismic in the Science for the Environ- PRESERVED IN SEISMIC SURVEYS exploration using wireless ment category equipment that only requires lightweight all-terrain vehicles. The project’s key objectives: This eliminates the need to cut • Reduce clearcutting wide clearings for heavy MAJOR • Mitigate environmental impact machinery. 0 INCIDENTS • Reduce injuries IN SEISMIC SURVEY details, see page 54 more For OPERATIONS IN 5 YEARS Seismic station Wireless data logging systems «Green Seismic 2.0» Green Seismic 2.0 has adopted Seismic station a curved cutting prole, with survey lines routing around large trees to help minimise damage to the forest. Its curved prole reduces cutting Seismic station Seismic receivers Source lines Lightweight Signal sources Receiver lines Heavy all-terrain vehicles vehicle MILLION “Green Seismic” The project won the Vernadsky REDUCED TREE FELLING National Environmental Award 4.5 TREES An innovative method of seismic in the Science for the Environ- PRESERVED IN SEISMIC SURVEYS exploration using wireless ment category equipment that only requires lightweight all-terrain vehicles. The project’s key objectives: This eliminates the need to cut • Reduce clearcutting wide clearings for heavy GREEN SEISMIC MAJOR • Mitigate environmental impact machinery. IN ACTION (VIDEO) 0 INCIDENTS • Reduce injuries IN SEISMIC SURVEY details, see page 54 more For OPERATIONS IN 5 YEARS Openness, for us, Sustainable is one of the most important elements development of our responsibility to investors, partners, clients, local residents management of our areas of operation and to society Gazprom Neft recognises the special role of business in as a whole. We are sustainable development. The company contributes to committed to being a sustainable future by joining efforts with the public, a fully transparent government, partners and other stakeholders. company, and one that discloses both its financial and operational results Sustainable development goals and principles are integrated into while also detailing its SUSTAINABLE DEVELOPMENT DEVELOPMENT SUSTAINABLE Gazprom Neft’s business strategy, decision-making processes and operations. The company’s approaches to sustainable development corporate, social and and associated commitments are aligned with the UN Sustainable environmental policy. Development Goals, adopted in 2015. Gazprom Neft is implementing advanced HSE standards, providing its employees with opportunities to realise their potential and making social investments in its operating regions. The company is updating its ALEXANDER DYUKOV key internal documents, improving the disclosure of its environmental, Chairman of the Management social, and corporate governance information, and assessing Board, CEO, Gazprom Neft PJSC sustainability risks and opportunities, in particular those related to climate change. Joining the UN Global Compact Joining the UN Global Compact In October 2020, Gazprom Neft joined the United Nations’ Global Compact – the largest international corporate social responsibility (CSR) and sustainable development initiative. By signing up to the compact, the company formalised its commitment to the UN Sustainable Development Goals and agreed to comply with the Global Compact’s principles. 230 Annual Report 2020 HSE HR MANAGEMENT • 0 fatalities among company employees • Total headcount over 82,000 people Company • 0 industrial accidents • Staff turnover down by 3.1 percentage points profile • A 35% decrease in the number of incidents with to 8.0% equipment year-on-year • Employees took over 173,000 training courses Strategic report Performance review Technological 2020 HIGHLIGHTS IN SUSTAINABLE development DEVELOPMENT Governance system ENVIRONMENTAL SOCIAL POLICY Sustainable SAFETY • Comprehensive company investments into the development systemic development of operating regions • 9.7% reduction in greenhouse gas emissions and social infrastructure within them stood at (Scope 1 + Scope 2) ₽6.4 billion • 4.5 million GJ saved through energy-saving and • The Antivirus programme combatting COVID-19 energy-efficiency programmes covered 47 regions • Gross emissions down 14.5% • The company’s educational, grant and volunteer • 28% reduction in internal water consumption projects involved over 37,000 social activists and Appendices creative professionals • The company supported over 2,500 talented schoolchildren, students and academics to realise their potential, carry out research and draw up plans 231 Business ethics principles Gazprom Neft Corporate Code of Conduct The company’s personnel are united by a common set of values and mission, which are an inherent part of Gazprom Neft’s business and are reflected in its Corporate Code of Conduct. The values serve as guidelines for decision making, shape the company’s reputation and determine the principles governing its operations. Responsible business principles: • Safety of people, the environment and company property; responsible attitude to assets • An inclusive working environment where staff respect and value each other 47 reports • Clear and equal requirements for all business partners, compliance received by the with business ethics standards • Zero tolerance towards corruption, conflicts of interest and the use of Ethics Committee insider information • Compliance with antimonopoly legislation • Government and community relations based on long-term and wide- reaching partnerships • Gazprom Neft conducts its business ethically and responsibly. The company expects all of its employees to follow the business norms and principles set out in the Corporate Code of Conduct. Our ethics policy applies to both interactions between colleagues and to relations with the company’s business partners • Gazprom Neft engages not only its own people but also contractor employees in working towards its sustainable development goals Gazprom Neft has set up an Ethics Committee as a standing collegial body tasked with monitoring compliance with the provisions of the company’s Corporate Code of Conduct. The committee reports 36.6% to the CEO. The committee reviews employee reports involving the interpretation of the Corporate Code of Conduct. If necessary, this is SME share in followed by investigations, rewards or disciplinary measures. procurement Gazprom Neft’s priorities in procurement include transparency, preventing discrimination and the unfair restriction of competition among bidders, ensuring supplier compliance with HSE requirements and building long-term relationships with contractors. The Contractor Engagement Gazprom Neft prefers to select suppliers of work, services, materials and Code establishes principles for equipment on a competitive basis. In 2020, 6,734 potential suppliers the sustainable development of participated in our competitive bidding procedures. Contracts were contractor relations, including safe awarded to 2,308 companies from 65 Russian regions and 10 foreign work, standards of integrity and countries. Small and medium-sized enterprises (SMEs) accounted for other principles. 36.6% of the total volume of materials and equipment purchased by the company. 232 Annual Report 2020 Sustainability management structure Company BOARD OF DIRECTORS HUMAN RESOURCES profile • Oversees the implementation of the sustainable AND COMPENSATION development strategy • Approves sustainable development policies and COMMITTEE initiatives Strategic report AUDIT COMMITTEE Performance review MANAGEMENT BOARD • Formulates the sustainable development strategy CEO • Manages the sustainable development strategy and the implementation of initiatives • Evaluates results Technological development ETHICS COMMITTEE Governance system RELEVANT DEPARTMENTS AND OFFICES AT THE CORPORATE CENTRE AND BUSINESS DIVISIONS Sustainable development • Determine sustainable development priorities in relevant business areas • Monitor and provide operational control within relevant business areas • Oversee results at subsidiaries Appendices RELEVANT OFFICES AT Key performance indicators (KPI) in sustainable SUBSIDIARIES development are included in the KPI system for Gazprom Neft • Implement sustainable development programmes in relevant managers and employees. areas 233 HSE1 HSE Safe operations have always been a top priority for Gazprom Neft. The company always places the safety of its people, local communities and the environment above financial, technical or any other considerations. The company’s commitments contractors, as well as automation Policy on Industrial, Fire, in this regard are detailed in its of management processes Transport, Environmental corporate Policy on Industrial, through cutting-edge IT solutions. and Occupational Safety, Fire, Transport, Environmental and Civil Defence and Occupational Safety, and Civil Defence. The company is developing an integrated occupational safety Gazprom Neft’s strategic
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