CONTRIBUTION TO UN SUSTAINABLE DEVELOPMENT GOALS LUKOIL’s contribution to the UN Sustainable Development Goals 1

CONTENTS

2 4 6 8

About Sustainable Sustainable Development Goal 4. Sustainable Development Goal 5. Sustainable Development Goal 6. Development Goals Quality education Gender equality Clean water and sanitation

10 12 14 16

Sustainable Development Goal 8. Sustainable Development Goal 9. Sustainable Development Goal 12. Sustainable Development Goal 7. Decent work and economic Industry, innovation Responsible consumption Affordable and clean energy growth and infrastructure and production

18 20 22 24

Sustainable Development Goal 13. Sustainable Development Goal 14. Sustainable Development Goal 15. Sustainable Development Goal 17. Climate action Life below water Life on land Partnership for the Goals 2 LUKOIL’s contribution to the UN Sustainable Development Goals 3

Dear friends, The 2030 Agenda for Sustainable Development, adopted by the UN in 2015, ABOUT SUSTAINABLE is a sort of navigator for modern business. The document identifies the most pressing challenges associated with changes in the technological and economic DEVELOPMENT GOALS landscape, as well as mechanisms aimed at countering negative trends and forming scenarios for the future. Our approach to sustainable development LUKOIL supports this strategic platform and aims at making its contribution to is based on the alignment of the Company’s the achievement of the UN goals by integrating them in corporate planning and interests and plans with the UN basic performance measurement practices. In 2018 alone, the Company invested more principles, universal values, global trends than RUB 200 billion in programs and projects aimed at solving issues in line with the UN Sustainable Development Goals. and national and regional development priorities. Taking into account the strategic LUKOIL has always been and remains a reliable and responsible supplier of benchmarks of LUKOIL Group, we identified energy resources needed by society. For this purpose, the Company actively 11 UN Sustainable Development Goals and develops modern technologies, disseminates the best corporate practices, 15 targets as priorities. These goals and conducts a dialog with the interested parties. We intend to continue to provide people with energy, taking into account the Sustainable Development Goals and targets are harmoniously combined with principles. the operational programs implemented by LUKOIL Group’s production facilities. For this This booklet provides a brief overview of our activities and the results that we reason, we believe that their implementation have achieved for each of the UN Global Goals owing to the coordinated work of is important to determine LUKOIL Group’s LUKOIL’s professional teams. contribution to the achievement of the UN President of PJSC LUKOIL global Sustainable Development Goals. Vagit Alekperov 4 LUKOIL’s contribution to the UN Sustainable Development Goals 5

PROGRAMS AND ACTIVITIES

Educational space, new skills Scholarships and grants and forms of education Since 2000 we have been supporting high- We support universities and potential students and teachers of specialized secondary education institutions universities by providing personalized scholarships of the oil and gas sector, and grants. Scholarships are also awarded to developing their scientific graduates of sponsored orphanages: for them potential and resource base: it is almost the only opportunity to get higher or research centers, laboratories secondary specialized education. and departments were opened, equipment was purchased, Employee training and development programs new textbooks were published. Corporate face-to-face and distance learning For example, LUKOIL assisted programs provide LUKOIL employees with in creating the Department of opportunities to continue their education, expand Renewable Energy Sources at the range of their competencies, and remain in the I.M. Gubkin Russian State demand in the labor market. We value employees University of Oil and Gas. with the potential for innovation, and we hold scientific and practical conferences and contests that help identify leaders.

THIS WAY, OUR ACTIVITIES RESULT CONTRIBUTE TO THE FOLLOWING TARGET UNDER GOAL 4: WHY IS THIS IMPORTANT? ✓✓LUKOIL cooperates on Quality education and lifelong learning Target 4.4. By 2030, substantially a long-term basis with increase the number of youth and opportunities are essential for the economic According to projections 14 universities in Russia. adults who have relevant skills, and social development of countries. Thanks to by experts, 34 industries education, people have opportunities for self- will undergo significant ✓✓More than 100 training including technical and vocational realization and achievement of a higher level of changes: new professions programs are available for skills, for employment, decent jobs, and well-being, better adapt to external changes. will arise and old ones will LUKOIL employees. entrepreneurship. disappear. The average Education helps overcome barriers to achieve ✓✓Environmental education the Sustainable Development Goals by expanding person will change jobs an average of 12 times during projects are supported every knowledge and competencies, changing social his or her career. year as part of the Social and attitudes and behaviors in people’s professional Cultural Projects Competition and personal lives. in the Environment category.

OUR POSITION By supporting schools and universities, additional employment and strengthening education programs for children and young human potential in the regions people, including children with disabilities and where LUKOIL’s organizations orphans, we are laying the foundation for decent operate. 6 LUKOIL’s contribution to the UN Sustainable Development Goals 7

PROGRAMS AND ACTIVITIES

Social support Support for women entrepreneurs Support to working women in We have been supporting the More than Buying fulfilling family responsibilities, project (Russia) for more than 10 years. This is including in the areas of a unique joint initiative between LUKOIL and education and early childhood the Foundation for Regional Social Programmes care, is an effective factor in OUR FUTURE. Its purpose is to support social promoting gender equality. As entrepreneurs, who are given the opportunity to part of the social partnership, sell their products at LUKOIL filling stations. Most funds are allocated for participants are women from various regions of the provision of social benefits Russia. and guarantees, integrating the available public services. More than Buying project is the widest network LUKOIL grants parents additional for sale of social entrepreneurs’ goods in Russia. days of leave, pays an allowance to the mother or father who is on leave to care for a child up to 3 years, organizes recreational activities for children.

THIS WAY, OUR ACTIVITIES RESULT CONTRIBUTE TO THE FOLLOWING TARGET UNDER GOAL 5: WHY IS THIS IMPORTANT? ✓✓The share of women in Target 5.5. Ensure women’s full and In the era of digital technologies, the value the Company’s staff is about effective participation and equal of human capital is increasing, so it is important 143 countries have 40%; this personnel opportunities for leadership at all levels of to create conditions for the effective realization included in their structure has remained decision-making in political, economic and of opportunities for both women and men. This constitutions provisions on stable over the past 10 years public life. equal rights for women and contributes to economic growth and a fuller (2009–2018). realization of human rights, reduction men. ✓✓The share of women in of discrimination, and development of a culture of gender social relations in society. management positions is about 40%.

OUR POSITION We share ILO standards related to ensuring Working in countries with decent and productive work for women and men different cultural and social in conditions of equality of opportunity, social traditions, we adopt a unified guarantees, and respect for human dignity. We approach that excludes provide career development opportunities for discrimination in the area of both men and women, and we respect employees’ employment, training and social desire to achieve family and work balance. support. 8 LUKOIL’s contribution to the UN Sustainable Development Goals 9

PROGRAMS AND ACTIVITIES

Environmental Safety Social and Cultural Projects Competition Program, Clean Water Sub- program “Environment” is one of the categories of the Social and Cultural Projects Competition annually held LUKOIL invested heavily by LUKOIL production facilities in Russia. Funding in the construction and is granted to projects of local environmental and reconstruction of water municipal organizations aimed, among other treatment systems and things, at the rehabilitation of water bodies. purification facilities, which ensured optimal use of fresh Charity projects in low-water countries water and reliable wastewater LUKOIL operates in countries with hot climates treatment. A global program which experience a deficit of water: Iraq, Tajikistan, for reconstruction of treatment Egypt and . In order to help the local facilities at all production population, our organizations arrange for supply facilities of the Company was of drinking water to children’s and medical implemented. institutions.

THIS WAY, OUR ACTIVITIES WHY IS THIS IMPORTANT? RESULT CONTRIBUTE TO THE FOLLOWING TWO TARGETS UNDER GOAL 6: Water is the basis of life and is necessary for the survival of people and natural systems of According to the World the Earth. For centuries, people have used rivers Bank, the shortage of ✓✓More than 2 billion Target 6.3. By 2030, improve water and lakes. The quality of surface water and the state clean water slows down cubic meters of water are quality by reducing pollution, eliminating of aquifers, where the most important sources of economic growth by nearly used in the water recycling dumping and minimizing the release of fresh water are located, have deteriorated as a result 30%. systems of our production hazardous chemicals and materials, halving of intensive human activity. Threats of depletion of facilities, ensuring low water the proportion of untreated wastewater, Water pollution remains and substantially increasing recycling and fresh water and irreversible changes in water-related high in both developed consumption. safe reuse globally. ecosystems and the entire hydrosphere have arisen. and developing countries. ✓✓The discharge of polluted Microplastic content was wastewater has been found in 80% of the world’s completely stopped at oil fresh water sources and in Target 6.4. By 2030, substantially increase refineries. 93% of bottled water. water-use efficiency across all sectors and ✓✓In some regions, the quality ensure sustainable withdrawals and supply of wastewater from LUKOIL of freshwater to address water scarcity and companies is higher than at substantially reduce the number of people local natural sites. suffering from water scarcity.

OUR GOALS Our goal is the rational use of natural resources, consumption, as well as reducing both used for production and located in the regions the volume and improving of activity of our production facilities. We reduce the quality of wastewater. the negative impact on water resources and, where possible, eliminate it by optimizing fresh water 10 LUKOIL’s contribution to the UN Sustainable Development Goals 11

PROGRAMS AND ACTIVITIES

Energy conservation program Development of in-house generation Since 1997, targeted programs Large investments were directed to the development have been implemented to of in-house generation to meet the needs of optimize and reduce energy production in electric and thermal energy. consumption. During this period, Generation facilities using associated petroleum gas significant savings were achieved were built in the Russian regions experiencing a lack due to the modernization of energy. of process equipment and improvement of the reservoir In 15 years (2004–2018) more than 40 power pressure maintenance system at generation facilities operating on associated oil extraction facilities. petroleum gas were commissioned.

The energy management Renewable energy projects system is certified for compliance with LUKOIL has been investing in renewable energy for the international standard over 10 years. The priority areas are hydropower, ISO 50001. wind and solar energy. The generated energy is used by our production facilities and supplied to the network to external consumers.

A large renewable generation facility (solar power plant) was commissioned in 2018 at the refinery.

THIS WAY, OUR ACTIVITIES RESULT CONTRIBUTE TO THE FOLLOWING WHY IS THIS IMPORTANT? TWO TARGETS UNDER GOAL 7: Like water, energy is essential for human life to meet the need for warmth, food and movement. Today, The energy sector accounts ✓✓In 10 years (2009–2018) five Target 7.2. By 2030, increase substantially energy is generated primarily from fossil fuels (coal, for about 60% of total projects for the construction of the share of renewable energy in the global global greenhouse gas oil and gas), which increases the concentration of large facilities using renewable energy mix. emissions. greenhouse gases in the atmosphere and worsens energy sources were carried air quality. Investments in sustainable energy Since 2010, the energy out. infrastructures and enhancement of energy efficiency Target 7.3. By 2030, double the global rate intensity of industrial ✓✓The consumption of fuel and of production determine the prospects for future production decreases of improvement in energy efficiency. energy resources is optimized economic growth. annually by more than 2%. and reduced every year owing to energy-saving measures. ✓✓In 10 years (2009–2018) the share of consumption of energy generated by in-house generation facilities increased to 30% of the total volume of electricity consumed by OUR GOALS production activities. Our goal is to increase the energy efficiency energy, we increase the share of of our production activities. Moreover, by available clean energy. implementing projects in the field of renewable 12 LUKOIL’s contribution to the UN Sustainable Development Goals 13

PROGRAMS AND ACTIVITIES

Labor rights and human rights of employees is guaranteed using the possibilities of industrial medicine and programs of voluntary LUKOIL has a direct cooperation medical insurance (VMI). agreement with the International Labor Organization. Our VMI programs cover more than 90% cooperation includes of employees. the exchange of best practices and the implementation of projects aimed at providing More than 100 first-aid stations are available at employment and creating production facilities. decent jobs for young people.

We apply the youth Social policy employment approaches LUKOIL’s social policy is implemented with the active developed within participation of employees and trade unions. the framework of Collective agreements reflect the issues of improving the partnership in all countries working conditions, social support for workers, of presence. wages etc. Long-term social programs demanded by employees are being implemented. Health and safety A unique system of social partnership with LUKOIL has in place a health and employees and trade unions, recognized at safety system certified under the international level, has been built. the OHSAS 18001 standard. The number of jobs exposed to harmful workplace factors has been reduced. Health protection WHY IS THIS IMPORTANT? Decent work is a key factor for sustainable economic THIS WAY, OUR ACTIVITIES and social development, especially in conditions According to CONTRIBUTE TO THE FOLLOWING of technological transformation. The fundamental the International labor RESULT principles of the International Labor Organization, organization, in the world TWO TARGETS UNDER GOAL 8: according to which work should be free, fairly there is still a deficit of decent work: unstable paid, safe, socially protected and provide equal ✓✓More than 100,000 Target 8.3. Promote development- opportunities for all, remain relevant. employment is growing, and the share of the employees work on under an oriented policies that support working poor is decreasing indefinite employment contract productive activities, decent job slowly. that guarantees employment creation, entrepreneurship, creativity and social support. and innovation.

✓✓The share of employees Target 8.8. Protect labor rights and covered by collective promote safe and secure working agreements exceeds 90%. environments for all workers. ✓✓In15 years (2004–2018) the number of accidents OUR POSITION decreased by almost three times. We adhere to the ILO fundamental principles and absolute priority is to provide respect human rights in the workplace, including fair a working environment that is wages, opportunities for professional development, safe for the life and health of acknowledging the value of family relationships. Our employees. 14 LUKOIL’s contribution to the UN Sustainable Development Goals 15

PROGRAMS AND ACTIVITIES

Technical retrofitting of power generation facilities Since 2012, we have completely switched The program for retrofitting to the production of motor fuels compliant and reconstructing generation with the environmental standard Euro 5. facilities was completed in The combustion products of new fuels contain 2014. Five new generation less sulfur, soot, carcinogenic and other facilities operating on natural dangerous substances. gas have been built, old Digital development program generation technologies have been replaced by modern LUKOIL has considerable experience in technological solutions using implementing information technologies. In 2018, a combined cycle, which are the implementation of the digital transformation characterized by lower specific program began, which involves the optimization of fuel consumption and increased business processes and staff work, the transition to efficiency. a new level of information exchange systems and cybersecurity. New technologies such as artificial Modernization of oil refineries intelligence, Big Data and industrial Internet of Things are being tested. In 2016 the refinery modernization program was In the exploration and production segment, completed, and LUKOIL now digitalization will make field development has modern processing facilities more efficient. that meet safety and energy efficiency standards. During this period, industrial units for In the refining segment, it is planned to create deep oil conversion, removal a digital refinery. of sulfur compounds and other equipment were built. WHY IS THIS IMPORTANT? Industrialization improves human living conditions, but at the same time has a negative impact on According to UNIDO, THIS WAY, OUR ACTIVITIES the environment. Despite the general orientation of industry is an important RESULT CONTRIBUTE TO THE FOLLOWING developed countries to innovative development, in driver of decent work, TARGET UNDER GOAL 9: many industrial sectors the issues of replacement providing about 500 million of obsolete equipment and production processes, jobs worldwide (1/5 of introduction of the best available technologies, the global workforce). ✓✓The depth of oil processing Target 9.4. By 2030, upgrade remains relevant. at our refineries has been infrastructure and retrofit industries to increased to 88%. make them sustainable, with increased ✓✓Every year the share of fuel resource-use efficiency and greater oil production decreases, and adoption of clean and environmentally the share of light petroleum sound technologies and industrial products increases. processes. ✓✓The intensity of greenhouse gas emissions from production OUR POSITION has been reduced. Our motto is “LUKOIL is always moving forward”. Focusing on innovative development, we increase oil recoverability, introduce the best technologies in oil refining, create new high-quality products. 16 LUKOIL’s contribution to the UN Sustainable Development Goals 17

PROGRAMS AND ACTIVITIES

Environmental Safety Waste (“old damage”) accumulated at a number of Program, Waste Sub-Program companies in Russia and abroad before they joined the Company is also disposed of. In particularly As a part of the environmental vulnerable natural areas, sumpless drilling is used safety program, measures (all waste is removed from the production area). are taken to dispose of all Drilling waste is partly used to make products used waste generated, preventing in the construction of new production facilities. its accumulation. The entire volume of generated waste Over the last six years (as of December 31, is transferred to contractors 2018), the volumes of “old” damages curtailed for further disposal, technical by 575 thousand tonnes (as compared with and biological reclamation the data at the beginning of 2013, the latest of the land on which it was inventory-checking) previously stored is carried out.

THIS WAY, OUR ACTIVITIES RESULT CONTRIBUTE TO THE FOLLOWING TARGET UNDER GOAL 12:

✓✓For about 10 years (2009– Target 12.5. By 2030, substantially 2018), the volume of waste reduce waste generation through generation and disposal prevention, reduction, recycling and remains comparable (virtually reuse. all generated waste is disposed of or transferred to specialized organizations as is generated). WHY IS THIS IMPORTANT? Creating sustainable production and consumption models that ensure economic progress without According to the World increasing pressures on natural resources and Bank, due to accelerating the climate is a fundamental global goal. Better urbanization and management of the planet’s resources, reduction population growth, waste of waste generation, reuse and recycling are key generation will reach up tasks to ensure the transition to a new economic to 3.4 billion tonnes by paradigm. 2050, while as of 2016 this figure was estimated at 2.01 billion tonnes.

The share of recycled plastic is no more than 10% of the production of the primary product.

OUR POSITION Our approach entails careful use of extracted natural resources, preventing waste accumulation and reducing its generation whenever possible. 18 LUKOIL’s contribution to the UN Sustainable Development Goals 19

PROGRAMS AND ACTIVITIES

Program for Rational includes measures for the construction of new and Associated Petroleum Gas Use reconstruction of long-in-operation APG treatment, transportation and processing facilities. Reduction The problem of reducing of APG flaring improves the environmental situation associated petroleum gas (APG) in the main areas of the Company’s oil and gas flaring has received considerable production. attention since the founding of LUKOIL. Activities aimed During the implementation of the corporate at the beneficial use of APG program, the volume of APG flaring decreased were included in the corporate more than tenfold. programs and were carried out on the majority of Russian extraction facilities. Since 2013, Russian organizations The Pyakyakhinskoye field (Yamalo-Nenets of LUKOIL Group have been Autonomous District of Russia), commissioned implementing a separate in 2016, achieved zero APG flaring in a short program for the rational use of period of time. associated petroleum gas, which WHY IS THIS IMPORTANT? Climate change is one of the main challenges of THIS WAY, OUR ACTIVITIES the modern stage of human civilization. A century RESULT CONTRIBUTE TO THE FOLLOWING According to TARGET UNDER GOAL 13: and a half of industrialization, population growth, the Intergovernmental deforestation, and increased agricultural activity have Panel on Climate Change, increased the concentration of greenhouse gases from 1880 to 2012 ✓✓In three years (2016–2018) Target 13.1. Strengthen resilience and the average global in the atmosphere. As a result, destructive natural greenhouse gas emissions adaptive capacity to climate-related disasters occur more often, losses in many sectors of temperature on Earth increased by 0.85 °C. By from LUKOIL’s production hazards and natural disasters. the economy increase, and people’s living conditions the end of the 21st century activities were reduced by change. there may be an increase of 1.6 million t of CO2e. 1.5–2.5 °C compared ✓✓The APG utilization rate in to pre-industrial times. LUKOIL Group was 97.4% Global human-caused in 2018. emissions of carbon dioxide need to fall by almost 45% by 2030 compared to 2010 (to keep the temperature OUR GOALS rise no more than 2 °C). We recognize the importance of actions to prevent climate change and support global efforts to reduce greenhouse gas emissions. Our goal is to keep increasing the use of associated petroleum gas by reducing flaring and to make further efforts to reduce greenhouse gas emissions. We are developing a corporate accounting system for greenhouse gas emissions and a climate risk management system, developing projects that contribute to the adaptation of our activities to the changing conditions. 20 LUKOIL’s contribution to the UN Sustainable Development Goals 21

PROGRAMS AND ACTIVITIES

Industrial environmental Environmental monitoring results have been control and monitoring published annually on the corporate website A system of continuous industrial since 2003. environmental control of the sea areas is used at the facilities of offshore fields and transport. Emergency prevention and mitigation The innovation of the system At our production facilities we implemented lies in the complex nature of a safety system that provides a high degree observations: satellite surveys, of protection of the marine environment from underwater observations the possible negative impact of production at subsea and geophysical operations. Corporate standards to ensure stations, measurements directly the reliability of offshore pipelines contain more at production facilities and in strict safety requirements compared to Russian their vicinity. In the process of laws. monitoring, possible pollution and the state of biological Biodiversity Preservation Program resources are monitored. The program defines the principles and approaches to biodiversity conservation at marine Identification of possible facilities operating in the Russian Arctic zone. pollution is carried out Extensive studies of indicator species in the Arctic according to the methods of ecosystems are carried out. the European Space Agency.

THIS WAY, OUR ACTIVITIES WHY IS THIS IMPORTANT? RESULT CONTRIBUTE TO THE FOLLOWING TWO TARGETS UNDER GOAL 14: In Earth’s history, the oceans have played a crucial role in regulating the climate and oxygen content According to research ✓✓Long-term observations in Target 14.1. By 2025, prevent and in the air. The oceans made the planet fit for human results, oceans absorb the areas of responsibility of significantly reduce marine pollution of life. the World Ocean is a habitat for many life forms about 30% of human- LUKOIL production facilities all kinds, in particular from land-based and an important source of food for humans. Human produced carbon dioxide, did not find any significant activities, including marine debris and impact is manifested in the progressive pollution neutralizing the effects of impact on the state of nutrient pollution. of ocean waters and the depletion of biological global warming. the marine environment that resources. requires response. Target 14.5. By 2020, conserve at least 10 percent of coastal and marine areas.

OUR GOALS LUKOIL aims to minimize the impact of production the marine environment of any activities of offshore facilities. Our basic approach is production and household waste. the application of the “zero discharge” principle, and We strictly observe it at all stages constant environmental monitoring. “Zero discharge” of exploration and oil production. means complete prohibition of the discharge into 22 LUKOIL’s contribution to the UN Sustainable Development Goals 23

PROGRAMS AND ACTIVITIES

Environmental Safety Program, Our organizations collaborate with nature reserves Biodiversity Sub-Program and sanctuaries to support research studies and observations, as well as projects to conserve or Within the framework of restore species of flora and fauna. the Environmental Safety Program, LUKOIL Group Prevention of oil pollution and elimination of production facilities implement the consequences of oil spills biodiversity conservation measures, including: Plans for prevention and elimination of the consequences of oil and oil products spills have • Introducing fish and bird been developed for all facilities that are potential protection devices preventing sources of emergency oil and oil products spills. their death near and at Systematic work is carried out to reduce the risk production facilities of pipeline failures, which brings tangible results. • Monitoring of environmental Rehabilitation of contaminated soil is carried out in all components: conditions of areas where the Company operates. the atmosphere and surface water; soil quality • Rehabilitation of disturbed and oil-contaminated soils • Landscaping and improvement of industrial areas

WHY IS THIS IMPORTANT? THIS WAY, OUR ACTIVITIES RESULT CONTRIBUTE TO THE FOLLOWING Terrestrial ecosystems, including forests, TARGET UNDER GOAL 15: mountains, land and living organisms, are heavily According to scientists, if used by humans and are the only source of food forest shrinking exceeds and basic materials. Biodiversity is a condition for 20%, there will be ✓✓Measures for the protection Target 15а. Mobilize and significantly the preservation of a healthy biosphere, which significant climate change and restoration of terrestrial increase financial resources from all is necessary for the restoration of the human and transformation of many ecosystems are included sources to conserve and sustainably use habitat. Intensive and irrational use of terrestrial traditional industries in all in the environmental safety biodiversity and ecosystems. countries of the world. ecosystems leads to changes in natural landscapes, programs of LUKOIL Group reduction of land fertility, loss of biodiversity, and, and have been financed for as a result, to the destruction of ecosystems. more than 15 years.

OUR GOALS Our goal is to preserve the diversity of natural vegetation, reproduction and biosystems and to ensure that they are treated migration of wild animals. In carefully, so that their ability to self-repair is cases where it is impossible not threatened. We strive to avoid operating in to follow this principle, we the habitats of valuable and specially protected take measures to minimize species of plants and animals, in particularly the impact. sensitive ecological zones, during periods of plant 24 LUKOIL’s contribution to the UN Sustainable Development Goals 25

EXAMPLES OF OUR PARTICIPATION IN INTERNATIONAL PARTNERSHIPS

Global partnership “Zero Smart Delta Resources Routine Flaring by 2030” The refinery in the Netherlands participates in We were among the first Russian the Smart Delta Resources platform, which comprises oil companies to join this global 11 major European industrial companies that initiative, committing ourselves combine their resources to determine effective ways to the rational use of associated of reducing energy and resource consumption, as petroleum gas, avoiding flaring. well as CO2 emissions by 20–50% by 2050. Our oil and gas production facilities implement a corporate UN Global Compact program for the rational use LUKOIL joined the Global Compact, which sets of associated petroleum gas, the 10 basic principles of corporate responsibility. which includes building transport By sharing these principles, we recognize our infrastructure and expanding responsibility to protect human rights and labor the use of APG for own relations, protect the environment and combat production needs as an energy corruption. We participate in the work of UN Global resource; we also search for Compact Russian network and support its activities. consumers of this product and its components.

THIS WAY, OUR ACTIVITIES RESULT CONTRIBUTE TO THE FOLLOWING TARGET UNDER GOAL 17:

✓✓For more than 15 years, Target 17.17. Encourage and promote we have been signing social effective public, public-private and and economic cooperation civil society partnerships, building on agreements with regional the experience and resourcing strategies administrations in the Russian of partners. WHY IS THIS IMPORTANT? Federation, joining our efforts to solve social problems and The scope of the challenges we need to overcome to combine efforts through promising tasks locally. to achieve the global Sustainable Development partnership projects and ✓✓ We provide ongoing support Goals requires significant long-term investments initiatives at the global and local to the families and businesses and the agreement of all interested parties on their levels. of the indigenous minorities of effective use. Therefore, it is particularly important the North through economic agreements with the heads of tribal lands and social and economic development agreements with reindeer farms. OUR POSITION ✓✓LUKOIL participates in a number of projects and Partnership is the basic principle of our interaction been cooperating for many initiatives, under which with society. LUKOIL is open to dialog. Sharing our years with the administrations it undertakes additional common desire to live in a safe and comfortable of Russian regions and public obligations to conduct business world, we participate in international activities in organizations. responsibly. the field of sustainable development, and have 26 LUKOIL’s contribution to the UN Sustainable Development Goals 27

PARTNERSHIPS AND INITIATIVES CONTACT IN WHICH WE PARTICIPATE INFORMATION

✓✓European Business Network ✓✓United Nations LUKOIL is open for feedback. Legal address for Corporate Social Responsibility, Global Compact We are striving to become and corporate headquarters better, so it is important and interesting for us to know your 101000, Russian Federation, opinion, receive feedback, Sretensky Boulevard, 11 offers, and comments. www.lukoil.ru, www.lukoil.com

Central office information service csreurope.org unglobalcompact.org Sustainability Report 2018 can be found +7(495) 627-44-44, 628-98-41 ✓✓World Bank and UN initiative ✓✓Cooperation Agreement at PJSC LUKOIL website “Zero Routine Flaring by 2030” for 2018–2022 between Fax: +7(495) 625-70-16 the International Labor Organization and Public Coordination Center Joint-Stock Company for Corporate Activities “Oil company ‘LUKOIL’”. +7(495) 981-79-77

[email protected] lukoil.com worldbank.org Investor Relations Department

✓✓UN Development Program in Russia +7(495) 627-16-96 “Mainstreaming Biodiversity Conservation into Russia’s Energy Sector Policies and Development ilo.org [email protected] Programs” ✓✓Green Office program Press Service

+7(495) 627-16-77

[email protected]

bd-energy.ru greenpeace.org ✓✓Business and Biodiversity Initiative under the Russian federal project entitled “Conserving Biodiversity and Developing Ecotourism”.