Letter from the Customer care Employee Sustainable Improving product quality Development Report Chairman of the development 2020 CONTENTS and service Management Board Unlocking the potential of 58 Product quality assurance employees 66 Care about consumer health and safety All sustainable development 123 Employer brand 68 Continuous consumer engagement reports on the company’s 125 Human resources development 71 Improvement of digital products and services website Gazprom Neft 127 Human resources profile 73 Customer personal data protection at a glance 129 Compensation and social benefits for employees 132 Employee training and development About the Report Creating a sustainable future 138 Partnerships with educational organisations Dear readers, Health and safety 142 Talent pool development 8 2020 highlights We are delighted to present to you Gazprom Neft’s Sustainable 11 A company committed to sustainable development Working safely Development Report1 2020 .This is the 13th non-financial public report, which details the company’s approaches to responsible business conduct 16 Creating value for the stakeholders 78 COVID-19 response and its contribution to sustainable development. 18 Company strategy and sustainable development 80 HSE management system Social policy The Report discloses information about Gazprom Neft PJSC as well as 22 Strategy 2030 83 Occupational health its subsidiaries and controlled entities (referred to in this Report as Contributing to regional “Gazprom Neft” or the “company”) for the calendar year 2020.2 The 88 Occupational health and disease prevention company’s financial and operating performance is presented based on development Gazprom Neft PJSC’s consolidated data. Unless otherwise specified, 89 Industrial safety information on the company’s labour relations, social initiatives, and 149 The company’s social agenda under environmental performance relate to Gazprom Neft PJSC as well as its Sustainable the COVID-19 pandemic subsidiaries and controlled entities in Russia and the CIS. 152 Gazprom Neft’s social projects development Information provided herein was obtained from corporate reports, Environmental 157 Social and economic agreements with regional requests for information in line with the guidelines contained in non- governments financial reporting standards, and corporate media. management 159 Gazprom Neft’s social projects abroad safety The Report discloses the details of management approaches, activities Conducting our business and progress towards achieving economic efficiency, ensuring Caring about the occupational and environmental safety, supporting and developing responsibly personnel, contributing to social and economic development throughout environment the regions in which the company operates and respecting human rights. 27 Corporate governance Appendices 98 Climate change The Report contains forward-looking statements on the company’s mid 31 Sustainability risk management 162 Sustainable development highlights and long-term plans, and their feasibility depends, among other things, 109 Air protection on a number of economic, social and legal factors beyond the company’s 34 Ethics 167 Identification of the Report’s material topics 112 Preserving biodiversity control. Consequently, actual results may differ from those expressed in 35 Anti-corruption such statements. 170 GRI content index 113 Water resource management 36 Human rights and anti-discrimination 183 Independent Limited Assurance Report 115 Waste management and land use 38 Technology and innovation 186 Terms and abbreviations 42 Supply chain management 189 Contacts and feedback 45 Stakeholder engagement 1 — Hereinafter referred to as the “Report”. 54 Tax compliance 2 — Information on changes in the company’s structure that occurred in 2020 is presented in the “Governance system” section of Gazprom Neft’s Annual Report 2020. Sustainable Development Report 2020 Reporting standards and For more details on how the Report’s material topics were assurance The Report’s material topics identified and prioritised, see Appendix 2. Gazprom Neft at a glance Material topic GRI Standard Section of the Report UN Sustainable Development Goals (UN SDGs) This Report has been prepared in accordance with the GRI Standards (Core option) and Sustainable GAZPROM NEFT development Financial stability and operational efficiency GRI 201 ISO 26000:2010 (Guidance on management AT A GLANCE social responsibility), as well as the Reference Performance Indicators of the Russian Supplier engagement GRI 204 Union of Industrialists and Entrepreneurs (RSPP) and Anti-corruption GRI 205 SUSTAINABLE Recommendations of the Customer DEVELOPMENT Task Force on Climate-related care Anti-trust compliance GRI 206 MANAGEMENT Financial Disclosures (TCFD). Human rights GRI 410 Appropriate disclosure of qualitative and quantitative information prepared in accordance with the GRI Health Product safety and quality GRI 416 CUSTOMER CARE and safety Standards was assured in accordance with International Standard on Assurance Engagements Occupational health and safety, process safety GRI 403 HEALTH AND SAFETY (ISAE) 3000 (revised): Assurance Engagements Environmental other than Audits or Reviews safety of Historical Financial Energy efficiency and energy saving GRI 302 Information. The Independent Limited Assurance Report Water use GRI 303 is provided in the Appendix. PricewaterhouseCoopers Audit Preserving biodiversity GRI 304 ENVIRONMENTAL JSC acted as the independent Employee development auditor. GHG and other pollutant emissions GRI 305 SAFETY Waste generation, treatment and disposal GRI 306 Environmental compliance GRI 307 Social policy Labour relations and employment, talent pool development GRI 401 Labour/management relations, freedom of association and collective GRI 402 bargaining GRI 407 EMPLOYEE Employee training and development GRI 404 DEVELOPMENT Equal working conditions for all groups of employees GRI 405 Appendices Indirect economic impacts GRI 203 Rights of indigenous peoples GRI 411 SOCIAL POLICY Engagement with local communities GRI 413 4 5 Sustainable Development Report 2020 Dear friends, The new challenge of 2020 – the Last year saw Gazprom Neft go all out to protect Gazprom Neft COVID-19 pandemic – again confirmed its employees, partners and clients from COVID-19, at a glance performing more than one million coronavirus tests in the the extreme importance of sustainable past year alone and establishing more than 140 “buffer development in today’s world. zones”, making it impossible for anyone to access our Preserving the unique nature of our production facilities’ “green” zones without first clearing planet – and continuing to protect this these. More than 70 safety “barriers” were put in place throughout the company in order to combat the spread of Sustainable while securing a high standard of living development the virus. management for future generations – is the overriding challenge for everyone on Earth. Our employees are Gazprom Neft’s most critical asset. We are putting in place an employee-centred corporate Gazprom Neft’s work has always been contingent culture, in which everyone can discover their personal upon the principle of sustainable development. potential, to the greatest possible extent, while working 2020 saw us making several major steps towards towards common goals. The company has a “talent pool” Customer maximum transparency and openness in sharing best system in place, together with opportunities for training care practices in this area with the global community. The and professional development, including at Gazprom company became a signatory to the United Nations Neft’s Corporate University – an approach that seems Global Compact – the largest international sustainable to be highly appreciated by employees and jobseekers, development initiative in the world. We were also with Gazprom Neft winning first place in the 2020 LETTER FROM THE CHAIRMAN CHAIRMAN THE FROM LETTER BOARD MANAGEMENT THE OF involved in the 2020 CDP ratings (the leading HeadHunter rankings of Russia’s best employers, as well business survey on companies’ performance in climate as being ranked among the country’s top employers Health responsibility) receiving a CDP rating of B – the by international company Universum. Quite apart from and safety highest of all Russia’s oil companies. this, however, I would like to highlight our employees’ commitment to changing the world for the better: around Protecting the environment has always been – and 6,000 Gazprom Neft employees are actively involved in remains – a priority for Gazprom Neft. Our effective volunteering initiatives. environmental policy allowed the company to reduce its greenhouse gas emissions by 9.7% year-on-year The Company has always invested heavily in improving in 2020. Every year sees us investing significant living standards in those locations in which we operate, Environmental safety resources in environmental protection and nature through our “Home Towns” corporate social responsibility conservation programmes, implemented throughout (CSR) programme. Activities in 2020 involved a major all areas of our business – from oil exploration and focus on supporting these regions in combatting production to the refining and sale of petroleum COVID-19. More than 2.7 million pieces of personal products. Research into the unique ecosystem of the protective equipment (PPE) for doctors, as well as Arctic – and activities centred around preserving this – medicines, sanitisers and medical equipment (including