Climate change and reduction of greenhouse gas emissions

G4-EN15 GC7,8 CPI 2.5,
G4-EN18 GC 8 CPI 2.6

LUKOIL acknowledges the importance of combating global climate change, and supports Russia’s contribution to the global effort to reduce greenhouse gas emissions.

The concept underlying the system for monitoring, reporting and verifying the volume of greenhouse gas emissions in Russia Russian Government Executive Order No. 716-r of April 22, 2015. involves the introduction of unified methods and the implementation of measures that will help reduce the carbon intensity of the Russian economy.

LUKOIL is involved in shaping of the statutory and regulatory framework governing greenhouse gas emissions and is set to plan its operations in accordance with the decisions that have been made.

Between 2015 and 2016, the Company worked to develop a corporate system to keep records of and manage greenhouse gas emissions. The calculations use the Methodology developed by the Russian Ministry of Natural Resources. Order No.300 of the Ministry of Natural Resources of June 30, 2015.

In 2016, Russian entities of the Group produced a total of 31.3 million СО2 equivalent to direct GHG emissions. The largest contributors (78%) to the total direct emissions are fixed combustion sources. G4-EN15 GC7,8 CPI 2.5

No guidelines for the calculation of indirect greenhouse gas emissions have been approved in Russia so far and the legislation under consideration is currently being assessed for its regulatory impact. Therefore, the Company is unable to calculate its indirect greenhouse gas emissions for 2016.

Specific direct greenhouse gas emissions in Russia G4-EN18 GC 8 CPI 2.6
Business sector 2016
Oil and Gas Production in Russia, tons of CО2 equivalent/tons of reference fuel of produced hydrocarbons 0.108
Oil Refining in Russia, tons of CО2 equivalent/tons of processed raw stock 0.173
Petrochemicals, tons of CО2 equivalent/tons of processed raw stock 0.352
Product Marketing and Distribution in Russia, tons of СО2 equivalent/tons of sold petroleum products 0.001
Midstream, tons of CО2 equivalent /tons of transported oil and petroleum products 0.004
Power Engineering, tons of CО2 equivalent/MW*h of generated electricity/steam 0.339
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