Sustainable development management
In its business, LUKOIL focuses on the sustainable development goals as laid out in the UN Declaration “Transforming Our World: the 2030 Agenda for Sustainable Development”, and seeks to integrate them into its business objectives, corporate culture and decision-making system.
The achievement of seventeen global goals to secure the future for humanity and our planet, is expected to be fulfilled by means of a global action program in which a significant role is played by business. LUKOIL is already implementing programs and providing assistance to the initiatives that meet sustainable development goals. With the adoption of the sustainable development policy and strategy, the Company’s related activities will grow in focus and scale.
E. Feoktistova, Managing Director for Corporate Responsibility,
Sustainable Development and Social Entrepreneurship, RUIE
LUKOIL’s sustainable development model seeks to meet the need of society for energy in an economically, environmentally and socially acceptable manner. The approach to sustainable development is based on the harmonization of the Company’s short- and long-term interests with universal human values and national development priorities.
While developing and approving plans, budgets and investment programs, the Board of Directors considers whether it is feasible to achieve the goals outlined in the Environmental Safety Program of the LUKOIL Group entities, as well as the Policy and Functional Strategy for Personnel Management and charity and sponsorship programs. Thus, sustainable development objectives are integrated in the general business strategy of the Company and they are attained through implementation of targeted programs and development plans across business segments.
Control over sustainable development implementation is carried out at both strategic and operational levels.
|Board of Directors|
|Strategy and Investment Committee|| |
|Human Resources and Compensation Committee|| |
|PJSC LUKOIL Health, Safety and Environment Committee (HSE)|
|PJSC LUKOIL Central Office:|
|heads of Divisions and structural subdivisions||Develop target programs and control their implementation|
|LUKOIL Group entities:|
|heads of entities||Implement target programs|
The list of KPIs includes a comprehensive indicator that characterizes performance in a number of aspects of sustainable development – Ensuring the Required Level of Occupational Safety, Health and Environmental Protection in the LUKOIL Group Entities. The indicator is used to guide the work of the PJSC LUKOIL employees and managers and executives of the LUKOIL Group entities.
|Specific KPI components||Criteria of the Ensuring the Required HSE Management Level Indicator|
|Health, Safety and Environment (HSE) Indicators:|
|presence of fatal accidents for which the employer is held responsible||absence of fatal accidents for which the employer is held responsible in the period assessed|
|presence of fatal accidents as a result of work conducted by contractors, service providers or subcontractors||absence of fatal accidents as a result of work conducted by contractors, service providers or subcontractors|
|accident frequency rate||the accident frequency rate does not exceed the limit set by the decision of PJSC LUKOIL Management Board|
|emergency (incident) at a LUKOIL Group entity’s facility, which has caused material damage||absence of an emergency (incident), which has caused material damage|
|execution of planned activities||complete execution of planned activities in order to meet strategic goals|
|violations of regulatory requirements||absence of violations of HSE regulatory requirements traced by supervisory authorities|
|compliance of the HSE management system with ISO 14001:2004 and OHSAS 18001:2007||absence of significant flaws in the Management System as evidenced by auditing reports in the period assessed|
|Environmental impact is assessed by the following indicators:|
| ||meeting the environmental impact targets for the reporting period to ensure consistent impact reduction|