Company and Regions: Strategic Social Partnership

The Company partners with governmental authorities and local communities in resolving regional development issues. Participating in the systemic social transformation of the regions, the Company maintains a dialogue with all stakeholders. Following these priorities, Gazprom Neft implements a set of social and charity projects by its own efforts and in cooperation with authorities of Russian regions and municipal entities, local communities, and ­non-profit organizations.

Regional policy management system

The regional activity management system extends to different functional levels of Gazprom Neft. The Corporate Communications Unit is responsible for the coordination of these activities.

The Company has a special collegial body, the Regional Policy Commission, comprising representatives of business units of the Company Corporate Centre and subsidiaries. The Commission’s functions include collecting and considering suggestions on implementation of the regional policy from the Company’s and its subsidiaries’ business units that update and accumulate information on the needs of regions in social development projects, as well as preparing recommendations as to realization of such suggestions. Adopted resolutions and issues may be considered at meetings of the Company’s Management Board, if necessary.

The Company chooses social investment objects based, without limitation, on the monitoring of social well-being, which includes surveys conducted by both the Company and independent agencies. In 2013, the Company carried out a study titled “Analysis of perception of the Company’s social policy and projects implemented in 2007–2013” relating to its activities in the YaNAD, KhMAD – Yugra, Omsk Region, and Orenburg Region. Based on the results obtained, it was decided in the reporting year to introduce a competition-based charity fund allocation system – a A tool to invest social funds based on competitive selection and funding of projects designed to address the key social challenges faced by local communities in the areas of the Company’s operation. The Company applies the tool as part of the “Home Towns” social investment programme.grants competition of social initiatives. Competing projects shall be proposed directly by social activists in the regions where the Company operates. The pilot grants competition was held in the Orenburg Region in 2013.

The introduction of new social policy tools required the Company to develop the management competencies of the experts responsible for the implementation of the regional policy. In 2013, the Company conducted a set of training workshops with the participation of leading charity and social responsibility experts and the managers of public organisations.

Organisational structure of regional policy management

In the reporting year, it was decided to introduce grants competitions as a new social investment tool within framework of the Home Towns programme. The pilot project has been implemented in the Orenburg Region comprising employees of local educational, healthcare, and cultural institutions and sports schools and centres. The Grants Panel composed of representatives of the Company, regional authorities, local mass-media, and social project planning experts, selected 12 projects out of 38 submissions, aimed to resolve key social challenges faced by the region. Total allocations for the approved projects amounted to RUB 1.6 million. These funds will be spent on creating an information centre within a library, opening a kids & teens drama school, developing a set of methodical textbooks for teachers in rural schools, and on other projects. In addition, winners were given advice on further implementation of the projects.

Similar competitions are planned to be held in key regions of the Company’s operations since 2014. They will not only serve as an additional financial tool to support regions, but also as an innovative mechanism to address social issues. The project will enable the Company to both support programmes that are critical for the regions, and create new centres of social life for local communities. Later on, such centres may develop without Company's support, independently creating opportunities for improvement of life quality in regions.

Social policy tools

Gazprom Neft’s social policy is implemented primarily through social and economic agreements with regional and municipal authorities, charitable donations, volunteering, and grants competitions of social initiatives.

In 2013, the Company signed 38 agreements on social and economic cooperation with the regional and municipal authorities of the Yamal-Nenets Autonomous District, the Khanty-Mansiysk Autonomous District – Yugra, Nenets Autonomous Districts, and Kemerovo, Leningrad, Omsk, Orenburg, Tomsk, and Tyumen Regions.

The Company implemented 348 projects in the reporting year, 59 more than in the previous reporting period. The Company’s social project territory also expanded significantly: in the reporting year, first projects were launched in both the Orenburg and Kemerovo Regions. Total funds allocated for Company’s social and charity programmes exceeded RUB 3.9 bn in 2013 (up RUB 1.5 bn over 2012), of which RUB 2.5 bn was spent on infrastructure investment as part of social and economic agreements with the Russian regions and municipal entities, and over RUB 1.2 bn was spent on supporting corporate charitable initiatives.

Stages of social project development and implementation

Regional development monitoring, maintaining a dialogue with stakeholders, identifying pressing social challenges

Developing a social investment programme for the upcoming reporting period (year), assessment of its relevance to the present needs of the community, social and economic goals of the region and Company’s development strategy

Programme planning, estimating the anticipated social benefits, determining qualitative and quantitative performance indicators

Project progress monitoring, achieving interim targets, making adjustments

Comprehensive programme evaluation, summarising outcomes, adding up best projects to the library of the Company’s successful social practices to scale them across other regions of operations

Active application of approaches to implementing the social policy as defined in Home Towns corporate programme of social investments commenced in 2013.