Table of the Report’s Conformance to the GRI Guidelines

Table of the Report’s Conformity to the GRI Guidelines (G4 basic version), UN Global Compact and RUIE’s Core Performance Indicators (2008)
General standard disclosures
Indicator Statement
STRATEGY AND ANALYSIS
G4-1 Statement from the most senior decision-maker of the organization
G4-2 Description of key impacts, risks, and opportunities
ORGANIZATIONAL PROFILE
G4-3 Report the name of the organization.
G4-4 Report the primary brands, products, and services.
G4-5 Report the location of the organization’s headquarters.
G4-6 Report the number of countries where the organization operates, and names of countries where either the organization has major subdivisions or that are specifically relevant to the sustainable development issues covered in the report.
G4-7 Report the nature of ownership and legal form.
See 2016 Annual Report, p. 121
G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).
G4-9 Report the scale of the organization, including:
  • total number of employees; total number of subdivisions; net sales;
  • total capitalization broken down in terms of debt and equity; quantity of products or services provided.
See the net debt to equity ratio, 2016 Annual Report, p. 121.
G4-10
CPI 3.1.1
a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of subcontractors.
f. Report any significant seasonal variations in employment
The Company doesn’t keep records on employment agreements with a breakdown by permanent employees and temporary employees. Workers who are legally recognized as self-employed, or individuals other than employees or supervised workers are not engaged to perform any share of the operations.
G4-11
UN GC Annex 3
CPI 3.1.4
Report the percentage of total employees covered by collective agreements.
G4-12 Describe the organization’s supply chain.
G4-13 a. Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including:
  • changes in the subdivisions or their location, or changes in operations, including facility openings, closings, and expansions;
  • changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations);
  • changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination of such relationships.
See also the Sustainable Development of the Russian Regions and Corporate Social Responsibility Practices in the Foreign Assets, p. 3, 40
G4-14 Report whether and how the precautionary approach or principle is addressed by the organization.
The Company employs the precautionary approach as part of its existing risk management system in the exercise of the EI procedures and planning of its Environmental Safety Program activities. See also the Sustainable Development of the Russian Regions and Corporate Social Responsibility Practices in the Foreign Assets, p. 9, 36, 47
G4-15
CPI 3.3.4
List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.
G4-16
CPI 3.3.5
a. List memberships of associations (such as industry associations) and/or national or international advocacy organizations in which the organization:
  • holds a position on the governance body;
  • participates in projects or committees;
  • provides substantive funding beyond routine membership dues;
  • views membership as strategic.
PJSC LUKOIL is a member of RUIE, the Russian Chamber of Commerce and Industry, the Russian Union of Oil and Gas Producers.
V.Y. Alekperov, President and CEO of PJSC LUKOIL, is a member of the Management Committee of the Russian Union of Industrialists and Entrepreneurs (RUIE) and head of the Energy Policy and Energy Efficiency Committee within the Council of the Russian Union of Oil and Gas Producers.
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17 a. List all entities included in the organization’s consolidated financial statements or equivalent documents.
b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents are not covered by the sustainability report.
The organization can report on this Standard Disclosure by referencing the information in publicly available consolidated financial statements or equivalent documents.
Major subsidiary list – see the 2016 Annual Report, Annex 5, note 33, p. 115
G4-18 a. Explain the process for defining the report content and the Aspect Boundaries.
b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.
G4-19 List all the material Aspects identified in the process of defining report content. About the Report
G4-20 For each Material Aspect, report the Aspect Boundary within the organization, as follows:
  • report whether the Aspect is material within the organization;
  • if the Aspect is not material for all entities within the organization, select one of the following two approaches and report either:
    • the list of entities or groups of entities included in G4-17 for which the Aspect is not material or,
    • the list of entities or groups of entities included in G4-17 for which the Aspect is material.

Report any specific limitation regarding the Aspect Boundary within the organization.

G4-21 For each Material Aspect, report the Aspect Boundary outside the organization, as follows:
  • report whether the Aspect is material outside the organization;
  • if the Aspect is material outside the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified;
  • report any specific limitation regarding the Aspect Boundary outside the organization
G4-22 If any indicators shown in the previous reports have been reworded, report the results of such rewording and specify the reasons for it.
Nothing has been reworded.
G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.
STAKEHOLDER ENGAGEMENT
G4-24 Provide a list of stakeholder groups engaged by the organization.
G4-25 Report the basis for identification and selection of stakeholders to be engaged.
G4-26 Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key issues and concerns, including through its reporting. Report the stakeholder groups that raised each of the key issues and concerns.
REPORT PROFILE
G4-28 Reporting period (such as fiscal or calendar year) for which information is provided.
G4-29 Date of most recent previous sustainability report (if any).
G4-30 Reporting cycle (such as annual, biennial).
G4-31 Provide the contact person for questions regarding the report or its contents.
G4-32 a. Specify the preparation option ‘in accordance’ with GRI the organization has chosen.
b. Report the GRI Content Index for the chosen option.
c. Report the reference to the External Assurance Report, if the report has been externally assured.
GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.
Certificate of public assurance of the report by RUIE. Independent audit of the non-financial report by KPMG.
G4-33 a. Report the organization’s policy and current practice with regard to seeking external assurance for the sustainability report.
b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided.
c. Report the relationship between the organization and the external assurance providers.
d. Report whether the highest governance body or senior executives are involved in seeking external assurance for the organization’s sustainability report.
CORPORATE GOVERNANCE
G4-34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.
The corporate governance structure is detailed in the 2016 Annual Report, p. 80-108
G4-42 Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts
G4-44 Report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social issues
G4-46 Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social issues
G4-50 Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them
ETHICS AND INTEGRITY
G4-56
UN GC Annex 10
CPI 1.1
Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.
Specific standard disclosures
Material Aspects DMA and Indicators
ECONOMIC CATEGORY
Economic performance DMA
2016 Annual Report, p. 14-17
G4-EC1 Economic value generated and direct economic value distributed
See the 2015 and 2016 Annual Reports, featuring the following indicators: proceeds, OPEX, taxes paid, excise taxes and duties, credit and loan payments, distribution of dividends, per-sonnel costs, benefit plan payments.
G4-EC3 Coverage of the organization’s defined benefit plan obligations CPI 1.8
Additionally see the 2016 Annual Report, Note 22 to the consolidated financial statements, p. 101. The National Rating Agency confirmed the highest reliability rating of AO NPF LUKOIL-GARANT at “AAA”.
G4-EC4 Financial assistance received from government
Federal and regional laws provide for tax benefits in a number of Russian constituent entities where PJSC LUKOIL’s subsidiaries operate
Presence in the markets DMA
G4-EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation
Average salary in the Russian entities of the LUKOIL Group compared to average salary in regions of presence
Indirect economic impact DMA
G4-EC7 Development and impact of infrastructure investments and services supported
G4-EC8 Significant indirect economic impacts, including the extent of impacts
Reserves GRI G4 OG1 Proved reserves and production
Proved reserves – see the 2016 Annual Report, p. 45
ENVIRONMENTAL CATEGORY
Energy DMA
G4-EN3 Energy consumption within the organization
UN GC Annex 7, 8;CPI 2.2
G4-EN5 Energy intensity
G4-EN6 Energy reduction
UN GC Annex 7.8
GRI G4 OG3 Total renewable energy production by sources
Water DMA
G4-EN8 Total water withdrawal broken down into sources
UN GC Annex 7, 8 ; CPI 2.3
G4-EN10 Percentage and total volume of water recycled and reused
Conservation of ecosystems, including biodiversity DMA
G4-EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside the protected areas or adjacent to them
UN GC Annex 8
Sustainable Development of the Russian Regions and corporate social responsibility practices in the foreign assets
G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas
G4-EN14 Total number of IUCN Red List of Threatened Species and national conservation list species with habitats in the areas affected by operations, by level of extinction risk
Individual cases described
Atmospheric emissions DMA
G4-EN15 Direct GHG emissions (Scope 1)
UN GC Annex 7, 8 ; CPI 2.5
Total volumes of direct GHG emissions are disclosed for 2016. Data on GHG emissions are disclosed for the first time; in future the reporting system will be improved
G4-EN18 Greenhouse gas emissions intensity
G4-EN20 Emissions of ozone-depleting substances
UN GC Annex 7.8
G4-EN21 NOx, SOx and other significant air emissions
UN GC Annex 7, 8 ; CPI 2.6
Effluent discharges and waste handling DMA
G4-EN22 Total water discharge by quality and destination
UN GC Annex 8 ; CPI 2.7
G4-EN23 Total weight of waste by type and disposal method
UN GC Annex 8 ; CPI 2.8
G4-EN24 Total number and volume of significant spills
UN GC Annex 8 ; CPI 2.9
G4-EN25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention, Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
UN GC Annex 8
The Company does not perform such operations.
GRI G4 OG6 Total volume of APG flaring
GRI G4 OG7 Total drilling waste (drilling mud and cuttings), disposal and placement approaches
The indicator is partially reflected.
General information DMA
G4-EN31 Total environmental protection expenditures and investments by type
UN GC Annex 8 ; CPI 2.12
SOCIAL CATEGORY
Labor practices and decent work
Employment DMA
G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region
UN GC Annex 6 ; CPI 3.1.2 and 3.1.3
G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation
Employee-Employer relations G4-LA4 Minimum notice periods regarding substantial operational changes
In accordance with the laws of the countries where LUKOIL is present
Health and on-site safety DMA
G4-LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs
G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absentee rate, and total number of work-related fatalities, by region and by gender
CPI 3.1.5 - 3.1.8
G4-LA7 Workers with high incidence or high risk of diseases related to their occupation
G4-LA8 Health and safety issues covered in formal agreements with trade unions
DMA / CPI 3.1.11
G4-LA9 Average hours of training per year per employee by gender, and by employee category
UN GC Annex 6 ; CPI 3.1.10
The report indicates the number of persons that underwent training
G4-LA10 Programs for skill management and lifelong learning that support the continued employability of employees and assists them at the end of their career.
G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category
UN GC Annex 6
Diversity and equal oppor-tunities G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, or minority group membership
Equal remuneration for women and men G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
The basic amounts of employees’ salaries are not dependent on their gender.
Labor practices assessment G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken
Grievance mechanism in regard to labor practices DMA
G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms
Indicates grievances submitted by the LUKOIL Group employees to the Business Ethics Committee
Human Rights
Freedom of association and collective negotiations DMA
HR4 Subdivisions and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights
No such violations have been discovered in the reporting period
Child labor DMA
HR5 Subdivisions and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor
No such violations have been discovered in the reporting period
Forced or compulsory labor DMA
HR6 Subdivisions and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
No such violations have been discovered in the reporting period
Rights of indigenous peoples/ minorities DMA
G4-HR8 Total number of incidents of violations involving rights of indigenous peoples and actions taken
UN GC Annex 1; CPI 3.2.3
No such cases have been identified in the reporting period, all contractual obligations have been fulfilled. Also see the Sustainable Development of the Russian Regions and Corporate Social Responsibility Practices in the Foreign Assets, p. 15, 38
G4-OG9 Operations affecting the indigenous peoples and activities to establish relations with such peoples
See the Sustainable Development of the Russian Regions and Corporate Social Responsibility Practices in the Foreign Assets, p. 15, 38
Grievance mechanisms in cases of human rights violations DMA / CPI 3.1.12
G4-HR12 Number of grievances concerning human rights
UN GC Annex 1; CPI 3.2.2
No such cases have been identified in the reporting period
COMMUNITY
Local communities DMA CPI 3.3.1 and 3.3.3
G4-SO1 Percentage of subdivisions with implemented local community engagement, impact assessments, and development programs
UN GC Annex 1; CPI 3.3.2
All Company subsidiaries have programs for local community engagement in place and in progress.
Anti-corruption DMA
G4-SO4 Communication and training on anti-corruption policies and procedures
UN GC Annex 10
G4-SO5 Confirmed incidents of corruption and actions taken
UN GC Annex 10
No such cases have been identified in the reporting period
Government Policy G4-SO6 Total monetary value of political contributions
UN GC Annex 10; CPI 3.3.1
LUKOIL does not make political contributions
Anti-competitive behavior G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust and monopoly practices and their outcomes
Compliance DMA
G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
For the details, see 2016 Annual Report, Note 29 to the Consolidated Financial Statements, p. 110
PRODUCT RESPONSIBILITY
Labeling of Products and Services G4-PR5 Results of surveys measuring customer satisfaction
Marketing communications G4-PR6 Sale of banned or disputed products
As required by the Russian law, the LUKOIL filling stations do not sell alcohol (including beer), while tobacco products are sold in accordance with Federal Law No.15-FZ of February 23, 2013 “On Protection of Health of the Public from Exposure to Environmental Tobacco Smoke and Consequences of Tobacco Use”
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