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Sustainable Development Report 2019 / 2 / 1 As Respecting Humanrights Sustainable Development Report 2019 Sustainable Development Report 2019 4 Statement from the chairman of the management board Gazprom Neft CONTENTS at a glance Responsibility for the well-being of future generations and care for the environment are integrated in our strategy and business model Online Sustainable Development Report 2019 8 Gazprom Neft at a glance 11 Geographical footprint 12 Business model 18 Company strategy and sustainable development About the Report Dear Readers, We are delighted to present Gazprom Neft’s Sustainable Sustainability Repot1 for 2019. This is the company’s 12th non-financial public report, which outlines the company’s approaches to complying development with the principles of corporate social responsibility, its contribution to sustainable social and economic management development, and its environmental initiatives. Management system based on the accommodation The Report discloses information of stakeholders’ interests and balanced management about Gazprom Neft PJSC as well as its subsidiaries and controlled entities (referred of economic, environmental and social aspects of business to in this Report as “Gazprom Neft” or “the company”) for the calendar year of 20192. The company’s financial and operating performance is presented based on Gazprom Neft PJSC’s consolidated data. Unless otherwise specified, 28 Corporate culture the data on the company’s labour relations, social initiatives and environmental performance relates 32 Corporate governance to Gazprom Neft PJSC as well as its subsidiaries 38 Sustainability risk management and controlled entities in Russia and the CIS. 42 Anti-corruption activities Information provided herein was obtained from corporate reports, information requests in line 43 Respecting human rights with the guidelines contained in the nonfinancial 45 Sustainability technologies reporting standards, and corporate media. 49 Product quality assurance The Report discloses the details of management approaches, activities and progress in achieving 59 Supply chain management economic efficiency, ensuring occupational 62 Stakeholder engagement and environmental safety, supporting and developing personnel, and contributing to social and economic development throughout those regions in which the company operates, as well as respecting human rights. / 1 / Hereinafter “the Report” / 2 / The data on changes in the company’s structure that occurred in 2019 are presented in the Corporate Governance section of Gazprom Neft’s Annual Report 2019. Employee Health and safety development Systemic approach to reduce the number Employee social benefits, personnel development of accidents and injuries programmes and education platforms for young specialists 78 HSE management system 114 Human resources profile 80 Occupational health and safety 116 Remuneration and social benefits 85 Occupational health and preventive medicine 118 Training and development for employees 86 Industrial safety 122 Cooperation with schools and HEI 126 Talent pool development Environmental safety Social policy Mitigating environmental impact, adoption Contributing to regional development, of environmental management systems evaluation and management of social impact and best international practices 93 Climate impact management 132 Implementing social and economic 95 Preserving biodiversity agreements 97 Air quality 135 The “Home Towns” Programme 99 Water resources management 147 Social initiatives abroad 101 Waste management and land use 149 Engaging with indigenous peoples 104 Energy Efficiency of the Russian Far North Appendices 150 Appendix 1. Additional information 156 Appendix 3: GRI content index and sustainable development metrics 172 Appendix 4. Independent 154 Appendix 2. Identification of the Report’s assurance report material topics 176 Terms and abbreviations 180 Contacts and feedback GAZPROM NEFT For more details Appendix 4. С. 154 on assessment С. 172 Independent of Material topics refer assurance to Appendix 2. report Reporting 2019 Report Material topic GRI Standard standards and assurance In preparing the report, the company Financial stability and operational efficiency relied on the GRI Standards GRI 201 (Core option) and ISO 26000:2010 (Guidance on social responsibility), Supplier relations GRI 204 as well as the Reference Performance Indicators of the Russian Union Anti-corruption GRI 205 of Industrialists and Entrepreneurs (RSPP). Compliance GRI 206 Appropriate disclosure of qualitative and quantitative information Human rights GRI 410 prepared in accordance with GRI Standards was assured in accordance with International Standard Product safety and quality GRI 416 on Assurance Engagements (ISAE) 3000 (Revised) “Assurance Occupational and production safety management GRI 403 Engagements other than Audits and Reviews of Historical Financial Energy economy and efficiency Information”. Independent GRI 302 Limited Assurance Report is presented in Appendix. Water use GRI 303 PricewaterhouseCoopers Audit acted as an independent auditor. Land and vegetation protection GRI 304 The Report contains forward- looking statements on the company’s Emissions GRI 305 mid and long-term plans, and their feasibility depends, Waste generation and management GRI 306 among other things, on a number of economic, social and legal factors Compliance to environmental laws and regulations beyond the company’s control. GRI 307 Consequently, actual results may differ from those plans. Labour relations and employment GRI 401 The Report has been approved Employee – employer relations, freedom of association GRI 402 GRI 407 by Gazprom Neft’s Management Board. Personnel training end development GRI 404 Fair remuneration and social benefits GRI 405 Indirect economic impact GRI 203 Respect for the rights of indigenous people GRI 411 Development programmes for local communities GRI 413 2 SUSTAINABLE DEVELOPMENT REPORT 2019 All Sustainable Development Reports are located on сompany’s website Report Section UN Sustainable Development Goals (UN SDGs) GAZPROM NEFT AT A GLANCE SUSTAINABLE DEVELOPMENT MANAGEMENT HEALTH AND SAFETY ENVIRONMENTAL SAFETY EMPLOYEE DEVELOPMENT SOCIAL POLICY 3 GAZPROM NEFT STATEMENT FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Dear friends! Gazprom Neft recorded good financial and operational results in 2019 – increasing hydrocarbon production, and delivering a record net profit. It enabled us to meet a new challenge in 2020 – the COVID-19 pandemic and, with it, the sharp drop both in demand for oil, and in the oil price – in a stable and sustainable financial position. The company began implementing its “Antivirus” programme, protecting employees against the disease and ensuring the full continuity of all operational and production processes. In addition to which, the company has also been proactive in helping those locations in which we operate to combat the spread of coronavirus – for example, in donating 1.3 million pieces of personal protective equipment (PPE) to medics throughout eight of Russia’s regions: this being just one of a multitude of such supportive initiatives. Thanks to our effective work and operational efficiency, the current situation has not impacted our long- term objectives – one of which is to become a global industry benchmark in terms of safety, technological advancement and efficiency, and all of which are fully consistent with the principles of sustainable development. The key priority for Gazprom million billion Neft is safety. A few years ago 1.3 7.5 we had, already, set ourselves the task of achieving “Target pieces of personal protective total social investments Zero” – no harm to people, facilities or the environment in undertaking equipment (PPE) purchased in 2019 our operations. for distribution – free of charge – to medical workers in eight regions of Russia 4 SUSTAINABLE DEVELOPMENT REPORT 2019 The company continues working as a manufacturer and supplier competition, every year: while towards that goal, not only of high-quality petroleum our own “Company University” also in striving to protect our employees, products, advanced technologies offers various forms of training, but also in working proactively and import-substitution products, running more than 156,000 courses with contractors to take and the originator of a number for employees in 2019. It’s no accident their attitudes to safety to a whole of innovative projects. The company’s that Gazprom Neft – for the third year new level. contribution to sustainable in a row – led the Randstad employer development is undertaken through rankings in 2019, winning first place An important objective for Gazprom various social and economic in the oil and gas industry. And that Neft is increasing efficiency agreements, as well as its spring 2020 saw our company rated in utilising associated petroleum gas “Home Towns” corporate social Russia’s No. 1 employer by online (APG). We are committed to further responsibility (CSR) programme, recruitment platform HeadHunter.ru. increasing current utilisation the core objective of which levels, including at new assets. is the consistent improvement There have been significant changes The modernisation of our Moscow of living standards in those regions in how business success is judged, and Omsk Refineries remains in which it has a presence. The Home recently. A modern company, today, ongoing, as does modernisation Towns programme supports cannot focus solely on operational of the NIS plant in Pančevo, educational, cultural and sports and financial performance. Serbia. One
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