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SUSTAINABLE DEVELOPMENT REPORT TO BE THE PREMIER ENERGY SOURCE FOR ASIA-PACIFIC 2 3 1. MESSAGE FROM THE CHAIRMAN OF THE COMMITTEE OF 6.6. ENGAGEMENT WITH NON-GOVERNMENTAL 9.1.2. General Information .........................................................................145 APPENDIX 7. EXECUTIVE DIRECTORS AND CHIEF EXECUTIVE OFFICER ...........4 AND NON-PROFIT ORGANISATIONS ......................................... 90 9.1.3. Recruiting, Hiring and Onboarding New Employees ..........................148 Certificate of Public Endorsement ...................................................228 2. ABOUT THE REPORT .......................................................................... 10 6.7. ENGAGEMENT WITH JAPANESE STAKEHOLDERS ......................91 9.1.4. Remuneration and Bonus System .................................................... 151 APPENDIX 8. 2.1. GENERAL INFORMATION ................................................................12 6.8. ENGAGEMENT WITH CUSTOMERS .............................................. 92 9.1.5. Social Benefits and Compensations ............................................... 152 Conclusion on the Results of the Review of the Sakhalin 2.2. REPORT PREPARATION STANDARDS ..............................................14 6.9. ENGAGEMENT WITH STATE AND LOCAL 9.1.6. Individual Performance Review .......................................................155 Energy 2019 Sustainable Development Report GOVERNMENT AUTHORITIES ........................................................ 93 by the RUIE Non-Financial Reporting Council 2.3. REPORTING PRINCIPLES FOR DEFINING REPORT 9.1.7. Personnel Training and Development .............................................156 CONTENT AND QUALITY .................................................................15 6.10. INTERNATIONAL AND REGIONAL COOPERATION .................. 94 for the Purpose of Public Endorsement ...........................................229 9.2. LABOUR SAFETY AND PROTECTION ...........................................168 2.4. DEFINING MATERIAL AND PRIORITY TOPICS 7. ECONOMIC IMPACT MANAGEMENT ......................................... 98 APPENDIX 9. 9.2.1. General Information .........................................................................168 TO BE INCLUDED IN THE REPORT ...................................................15 7.1. IMPORTANCE OF THE SAKHALIN-2 PROJECT FOR THE Abbreviations and Definitions .........................................................232 2.5. DEFINITION OF THE REPORT SCOPE .............................................21 RUSSIAN FEDERATION AND THE SAKHALIN OBLAST ............100 9.2.2. Industrial Safety ................................................................................. 170 2.6. PUBLIC ENDORSEMENT OF THE REPORT ......................................21 7.2. FINANCIAL BENEFITS TO THE RUSSIAN FEDERATION 9.2.3. Safety Culture .................................................................................... 172 3. CORPORATE SOCIAL RESPONSIBILITY AND THE SAKHALIN OBLAST .........................................................100 9.2.4. Road Safety ....................................................................................... 176 AND SUSTAINABLE DEVELOPMENT .............................................. 22 7.3. RUSSIAN CONTENT .......................................................................102 9.3. OCCUPATIONAL HEALTH ..............................................................177 3.1. INTRODUCTION ................................................................................ 24 7.3.1. Strategy and Results ..........................................................................102 9.4. HUMAN RIGHTS .............................................................................. 179 3.2. SAKHALIN ENERGY’S CSR SYSTEM ............................................... 25 7.3.2. Standards Harmonization Project ....................................................106 9.4.1. Human Rights: Principles and Management System ..................... 179 3.3. PERFORMANCE STANDARDS ......................................................... 26 7.3.3. Sakhalin Energy Maintenance and Repair Facility 9.4.2. Grievance Mechanisms ....................................................................180 in Sakhalin Industrial Park ................................................................106 3.4. SUSTAINABLE DEVELOPMENT POLICY ......................................... 28 9.4.3. Grievance Handling in 2019 ........................................................... 181 7.3.4. Vendor Development Programme ...................................................107 3.4.1. Basic Provisions of the Sustainable Development Policy ............... 28 9.4.4. Human Rights Training ...................................................................... 181 7.4. SUPPLY CHAIN MANAGEMENT ...................................................108 3.4.2. UN Sustainable Development Goals................................................ 29 9.4.5. Monitoring Human Rights.................................................................182 8. ENVIRONMENTAL IMPACT MANAGEMENT ..............................110 3.5. HSE AND SOCIAL PERFORMANCE MANAGEMENT ................. 36 9.5. SOCIAL INVESTMENT AND CONTRIBUTION TO THE 8.1. GENERAL INFORMATION ..............................................................112 SUSTAINABLE DEVELOPMENT OF THE HOST REGION ...........183 3.5.1. HSE and Social Performance Management System ....................... 36 8.2. INDUSTRIAL ENVIRONMENTAL CONTROL ................................113 9.5.1. Social Investment and Sustainable Development: 3.5.2. Impact Assessment .............................................................................. 38 8.2.1. General Information ..........................................................................113 Sakhalin Energy’s Principles and Approaches ..............................183 3.5.3. Inspection and Audit ........................................................................... 39 8.2.2. Impact on Atmospheric Air ................................................................113 9.5.2. The Energy Social Initiatives Fund ...................................................185 4. ABOUT THE COMPANY .................................................................... 40 9.5.3. Safety is Important Programme ....................................................... 187 8.2.3. Impact on Water Bodies ....................................................................114 4.1. SAKHALIN ENERGY ........................................................................... 42 9.5.4. Hurry Up For Good Deeds Programme 8.2.4. Waste Management ..........................................................................116 4.2. MAIN PRODUCTION RESULTS IN 2019 ........................................ 44 (Support for Charity Initiatives of Employees) ...............................188 8.2.5. Energy Production and Consumption ..............................................117 4.2.1. Assets .................................................................................................... 44 9.5.5. Korsakov Sustainable Development Partnership Council ............189 8.2.6. Greenhouse Gas and Ozone-Depleting Substance Emissions .........118 4.2.2. Development Projects ......................................................................... 53 9.5.6. Sakhalin Indigenous Minorities Development Plan....................... 191 8.2.7. Utilisation of Associated Gas in Production ...................................120 4.2.3. Hydrocarbon Production and Export ............................................... 53 9.5.7. Special Projects for Capacity Building of the Sakhalin 8.2.8. Environmental Protection Costs 4.3. INNOVATION AND CONTINUOUS IMPROVEMENT ................ 57 Oblast Non-profit Sector and Developing Volunteering and Payments for Negative Impact.................................................120 in the Region ......................................................................................193 4.3.1. Digital Transformation ........................................................................ 57 8.3. ENVIRONMENTAL MONITORING 9.5.8. Special Cultural Projects Dedicated to the 25th 4.3.2. Continuous Improvement Programme ............................................... 58 AND BIODIVERSITY CONSERVATION ........................................ 121 Anniversary of Sakhalin Energy ...................................................... 195 4.3.3. Intellectual Property Business Process .............................................. 60 8.3.1. General Information ......................................................................... 121 9.5.9. Preservation and Promotion of the Linguistic Heritage 4.4. BUSINESS CONTINUITY MANAGEMENT ....................................61 8.3.2. Soil Monitoring ..................................................................................122 of Sakhalin Indigenous Minorities ...................................................196 5. CORPORATE GOVERNANCE .......................................................... 62 8.3.3. River Ecosystems Monitoring ........................................................... 124 10. THE COMPANY’S PLANS FOR 2020. DEVELOPMENT STRATEGY UP TO 2024......................................198 5.1. COMPANY’S MISSION, VISION, 8.3.4. Flora and Vegetation Monitoring .................................................... 126 11. APPENDIX ..........................................................................................204 VALUES, AND
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