PJSC Gazprom Environmental Report 2019 The Environmental Report features photographs taken by the employees of Gazprom’s subsidiaries. The photos were exhibited at the 7th Pristine Russia Festival in Moscow in January–February 2020. PJSC Gazprom Environmental Report 2019 Message 5 Introduction 6 Environmental management 8 Environmental management system 8 Environmental goals and programs 14 Environmental financing 16 Environmental impact indicators 20 Atmospheric air impact 20 Utilization of associated petroleum gas 23 Water use 24 Waste management 28 Land use 31 Prevention of accidents 33 International activities 34 Preventing negative impact on the environment 37 Environmental assessment of projects 37 Environmental risk insurance 38 Operational environmental control and monitoring 39 State environmental supervision 41 Improving energy efficiency and energy saving 44 Low-carbon development 50 Role of natural gas in low-carbon development 50 Greenhouse gas emissions 56 Use of renewable and secondary energy sources 61 Scientific and technical support of environmental protection 62 Innovative research and development 62 Use of the best available techniques 64 PJSC Gazprom’s Science and Technology Prize 65 International cooperation 66 Information disclosure 70 Conservation of biodiversity and voluntary environmental responsibility 72 Glossary of main terms and abbreviations 75 Address and contacts 77 Appendix 78 4 PJSC Gazprom Environmental Report 2019 Message Dear readers, This is the Gazprom Group Environmental Report for 2019. year, we succeeded in mitigating the Company’s main Sustainable development and preservation of the negative environmental factors and achieving the corporate environ ment for the next generations are at the core of environmental goals. The Company introduced a compre- PJSC Gazprom’s extensive business activities. The ongoing hensive list of energy-saving measures and completed the expansion of gas infrastructure and switching to methane- implementation of ISO 50001:2018; PJSC Gazprom’s Energy fuelled vehicles contribute to a large extent to regional Management System was successfully certified for the environmental improvement and the implementation of the compliance with the requirements of the standard. In 2019, Clean Air national project. Gazprom's Comprehensive Environmental Program for The year 2019 proved to be of paramount importance for 2020–2024 was developed and approved, that envisaged us, as it saw the launch of two large-scale gas transmission a number of measures aligned with the national targets on projects — the TurkStream offshore gas pipeline that secures innovative environmental development of the Russian economy. gas supplies to the European and Turkish markets, and the By ensuring reliable supplies and satisfying the growing first Russian gas pipeline to China — Power of Siberia. global demand for energy, Gazprom is implementing the best PJSC Gazprom is strongly committed to addressing environ- available techniques, focusing on energy performance mental challenges of the European Union and China through improvements and reducing the carbon footprint of products. these projects. Our Company helps to shape the future that will be in tune Gazprom is conscientious in ensuring environmental with the United Nations Sustainable Development Goals and safety and preserving natural resources. In the reporting the Paris Agreement. Oleg E. Aksyutin Deputy Chairman of the Management Committee — Head of Department, Chairman of Gazpom Coordinating Committee for Sustainable Resource Management 5 PJSC Gazprom Environmental Report 2019 Introduction The present Environmental Report has been prepared in arrangements, research and technical upgrade of the industrial accordance with PJSC Gazprom’s Management Committee complex aimed at enhancing environmental safety of Gazprom Resolution On Organization and Holding of the Annual Group’s facilities. General PJSC Gazprom’s Shareholders Meeting. Data are provided in general for the Gazprom Group, The Report uses annual statistical reporting data on PJSC Gazprom (including five-year retrospective data) and for environmental protection (EP) and energy efficiency collected some companies from the Group that significantly contribute by the corporate information & management system along to reviewed aspects of activities. with other content from nature protection reports, corporate The terms PJSC Gazprom and the Company used in the websites, Russian and international publications by the Report refer to the parent company of the Gazprom Group, Group’s companies. Public Joint Stock Company Gazprom and its 100% owned The Report highlights EP and energy efficiency activities subsidiaries and organizations involved in hydrocarbons of Gazprom Group’s companies in 2019, including actual exploration, production, transmission, underground storage, impact on air, water and land resources, waste management processing and maintenance of the Unified Gas Supply and measures undertaken to mitigate such an impact. The System (UGSS): Report specifies the issues of EP management and financing OOO Gazprom dobycha Astrakhan OOO Gazprom transgaz Stavropol OOO Gazprom dobycha Irkutsk OOO Gazprom transgaz Surgut OOO Gazprom dobycha Krasnodar OOO Gazprom transgaz Tomsk OOO Gazprom dobycha Kuznetsk OOO Gazprom transgaz Ufa OOO Gazprom dobycha Nadym OOO Gazprom transgaz Ukhta OOO Gazprom dobycha Noyabrsk OOO Gazprom transgaz Tchaikovsky OOO Gazprom dobycha Orenburg OOO Gazprom transgaz Yugorsk OOO Gazprom dobycha shelf Yuzhno-Sakhalinsk OOO Gazprom UGS OOO Gazprom dobycha Urengoy OOO Gazprom pererabotka OOO Gazprom dobycha Yamburg OOO Novy Urengoy gas chemical complex OOO Gazprom geologorazvedka OOO Gazprom energo OOO Gazprom transgaz Volgograd OOO Gazprom tsentrremont OOO Gazprom transgaz Grozny OOO Gazprom geotekhnologii OOO Gazprom transgaz Ekaterinburg OOO Gazprom nedra OOO Gazprom transgaz Kazan OOO Gazprom gazomotornoye toplivo OOO Gazprom transgaz Krasnodar OOO Gazprom avia Aviation Company OOO Gazprom transgaz Makhachkala OOO Gazpromtrans OOO Gazprom transgaz Moscow OOO Gazprom flot OOO Gazprom transgaz Nizhny Novgorod OOO Gazprom invest OOO Gazprom transgaz Samara OOO Gazprom sotsinvest OOO Gazprom transgaz Saint-Petersburg OAO Gazpromtrubinvest OOO Gazprom transgaz Saratov 6 PJSC Gazprom Environmental Report 2019 Introduction The terms Gazprom Neft Group and Gazprom Neft refer to PAO MOEK, PAO OGK-2, PAO TGK-1, PAO Murmansk CHPP, PAO Gazprom Neft and its subsidiaries. AO Saint-Petersburg heat distribution network, The term Gazprom neftekhim Salavat refers to OOO TSK Mosenergo). OOO Gazprom neftekhim Salavat and its subsidiaries. The Gazprom Group, Gazprom or the Group stand for The term Gazprom energoholding refers to OOO Gazprom PJSC Gazprom (with all listed above 100% owned subsidiaries energoholding and its subsidiaries (PAO Mosenergo, and organizations) and the following companies: Gazprom Neft Group as well as PJSC Gazprom’s subsidiaries operating abroad: Gazprom energoholding OAO Gazprom transgaz Belarus Gazprom neftekhim Salavat ZAO Gazprom Armenia Vostokgazprom Group OsOO Gazprom Kyrgyzstan OOO Gazprom mezhregiongaz Gazprom EP International B.V. AO Daltransgaz Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) OAO Severneftegazprom PAO Spetsgazavtotrans ZAO Purgaz The Group’s gas business companies comprise The environmental impact indicators, ecological and PJSC Gazprom (and all its 100% owned subsidiaries and economic indicators are given for Gazprom Group organizations involved in hydrocarbons production, trans- operations in the Russian Federation. Environmental mission, underground storage and processing, as well performance abroad is reviewed separately. as UGSS maintenance), OOO Gazprom mezhregiongaz, Vostokgazprom Group (OAO Tomskgazprom), AO Daltransgaz, Sakhalin Energy Investment Company Ltd, OAO Severneftegazprom, ZAO Purgaz, PAO Spetsgazavtotrans. 7 PJSC Gazprom Environmental Report 2019 Environmental management Environmental management system PJSC Gazprom adheres to the principles of sustainable Independent audit 2019 acknowledged development, which means a balanced and socially accept- PJSC Gazprom’s EMS conformance to ISO 14001:2015 able combination of economic growth and preservation of requirements. environment for future generations. PJSC Gazprom’s Environmental Policy is a fundamental document of the Environmental Management System (EMS). The Gazprom Management Committee is the top governing body in the Environmental Management System. PJSC Gazprom established the Coordinating Committee In 1995 PJSC Gazprom adopted in-house for Sustainable Resource Management with intention to ad- Environmental Policy and became the first Russian oil vance corporate management system in energy efficiency, and gas company to declare voluntary environmental environmental protection and sustainable development. responsibility. The Committee is primarily responsible for: — high environmental and energy performance of Revised version of the Company’s Environmental Policy PJSC Gazprom business processes, and their approved by the Management Committee in 2015 features compliance with the best global practices; current environmental protection, energy efficiency and — introduction of the best available techniques into climate control trends. The Environmental Policy stipulates PJSC Gazprom’s business activities to arrange rational use obligations and instruments for ensuring environmental safety of natural resources and reduction of carbon intensity; (specifically