Corporate social programs

G4-LA7, G4-EC3
The key corporate social programs are aimed at providing social support to employees:
Healthcare programs (including voluntary medical insurance)
Programs of assistance to employees in purchasing housing
Program of social support to women and families with children
Non-state pension scheme program

Industrial Safety

Across its entities, the Company strives to build a fundamentally new framework of personnel health management based on timely identification and management of health-related risks.

To that end, a number of projects were implemented in 2015 and 2016, including the introduction of automated pre-shift medical checkups for employees involved in underground operations.

The traditional pre-shift examination approach has limited effectiveness as it requires a lot of healthcare professionals with uneven workloads. A totally new level of performance was achieved after a pilot project was launched at the Yareganeft Oil Mines Division of OOO LUKOIL-Komi. In combination with an automated personnel health management system, automated pre-shift checkups The checkup procedure is set forth by Order of the Russian Ministry of Health dated December 15, 2014 No. 835n. help to drastically speed up the checkup procedure (a 3-fold reduction in time) while also contributing to secondary prevention of significant diseases.

At mine entrances, equipment has been installed which automatically performs examinations of workers before each shift. Checkup results are submitted into the automated employee health management system, which accumulates data from regular medical examinations. By consolidating and analyzing the data, the Company can identify employees that are exposed to a high risk of professional and/or significant diseases, and can also better assess the impact from operating conditions.

There are plans to extend this approach to vehicle drivers and employees responsible for the maintenance of power supply facilities.

A special emphasis is placed on early identification and prevention of cardiovascular conditions. For employees who fall into a disease risk group, the Company develops ongoing monitoring plans (individual health improvement recommendations, an additional checkup plan, and a set of treatment and prevention activities required for each employee). G4-LA7

All employees in risk groups benefit from prevention and treatment measures provided by on-site health posts and healthcare facilities under VMI programs. Health post staff request employees to attend for the treatments they have been prescribed. Health posts also operate the Health Awareness and Hypertension Awareness Centers. The effectiveness of all measures is also controlled using data from the automated personnel health management system.

First aid at LUKOIL Group entities is provided by more than 100 health posts, pre-shift inspection rooms, and first-aid stations. Every year, employees get vaccinated against flu, tick-borne encephalitis and other dangerous diseases.

VMI

VMI programs now cover over 90% of personnel. A more flexible insurance coverage mechanism is available to employees, who have the opportunity to expand their VMI coverage at their own cost, thus meeting their personal needs.

Housing Program

In 2015–2016, the Company provided housing support to its employees in accordance with the Fundamental Principles of the LUKOIL Group’s Housing Policy (human resources and social components). The costs associated with the human resources component of the housing policy are allocated in accordance with the operating personnel’s requirement for housing (external staff and young professionals). The costs associated with the social component of the housing policy are allocated to assist the personnel in housing improvements by subsidizing the interest rates applicable to mortgage loans provided by the banks.

Pension Support

During the reporting period, the LUKOIL Group, in line with its corporate pension standard, focused its efforts on the accumulation of pension capital for its personnel, using every available opportunity under the applicable law or local regulations, including:

  • efficient management of the funded part of the pension;
  • participation in the governmental pension savings cofinancing program;
  • participation in the corporate program of non-state pensions, which includes standard and participatory pension plans.

As part of the program for mandatory government pension insurance, 82,154 employees have their funded component of the retirement pension in JSC NPF LUKOIL Garant as of the end of 2016, including 40,842 employees who take part in the government co-financing program.

At the end of the reporting period, the Standard Pension Plan covered 41,365 people, while the Participatory Pension Plan had 39,246 active participants. Non-state pensions paid in 2016 averaged RUB 2,290.

Non-state pension coverage in Russia G4-EC3
Indicator 2015 2016
Total contributions by LUKOIL Group entities to JSC NPF LUKOIL Garant under corporate pension agreements, million RUB 936 917
Number of former employees who receive corporate pensions, persons 41,422 43,094
Pension payments, million RUB 1,763 1,804
Total employee contributions under individual agreements for non-state pension schemes with JSC NPF LUKOIL Garant, million RUB 451 486
Number of employees who signed individual agreements for non-state pension schemes in the reporting period, persons 5,424 5,706
Number of employees who are the fund’s contributors, persons 37,185 43,574

Non-state pension support abroad

Total contributions by LUKOIL Group entities, million USD

Pension support to employees of foreign entities of the LUKOIL Group is provided in accord-ance with applicable national laws and local regulations of subsidiaries.

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