Sustainable Development Goals and Results for 2011-2013

In the reporting period, the sustainable development strategy was implemented in accordance with the ­2011-2013 mid-term goals approved in 2010.

Sustainable Development Goals and Results for 2011-2013

Key Goals

Key Objectives

Key Results

SUSTAINABLE DEVELOPMENT MANAGEMENT

Development of systems and organisational structures for sustainable development management

  • Adoption of a new version of the Code of Corporate Conduct
  • Development of an integrated risk management system
  • Development of an integrated Health, Safety and Environment and Social Protection.HSE and social protection management system
  • Development of anti-corruption procedures
  • Development of a dialog with internal and external stakeholders within the framework of existing cooperation mechanisms
  • Projects aimed to improve the sustainable development management system have been developed and are being implemented:
  • “Matrix” – improvement of functional efficiency of the Exploration and Production Segment;
  • “Arrow” – improvement of efficiency of the subsidiary management system.
  • In 2013, the Integrated Risk Management System (Integrated Risk Management System. Risk management is a continuous regulated process covering risk identification, assessment, monitoring and response at all levels within the Company.IRMS) was extended to all Gazprom Neft’s key assets. An IRMS automation project was initiated to enhance the efficiency of the system processes. The first stage of the project was completed by year-end 2013, allowing for the creation and launch of the commercial operation of the Company’s risks database.

Sustainability reporting improvement

  • Application of version G 3.1. of the Sustainability Reporting Guidelines issued by the Global Reporting Initiative
  • Application of international industry standards for the disclosure of information on activities in the area of sustainable development
  • Arrangement for external certification of corporate reports on sustainable development

The Sustainable Development Report 2013 was certified by the Centre for Corporate Social Responsibility and For definition of Non-financial Reporting please refer to Sustainability Reporting.Non-Financial Reporting at the Russian Union of Industrialists and Entrepreneurs.

IMPROVING ECONOMIC STABILITY AND EFFICIENCY OF CORE OPERATIONS

  • Improvement of the efficiency of oil production, development of new fields
  • Increasing the oil conversion ratio and output of light oil products
  • Transition to new standards of motor fuel quality

Crude Oil and Gas Production

  • Implementation of major projects in oil production, integration of new acquisitions
  • Intensification of exploration and the start of the new deposits development
  • Maintaining stable yield at existing fields

Refining

  • Modernisation of refining facilities and transition to new standards of motor fuels
  • Development of retail chain
  • Expansion and completion of filling station chain rebranding
  • Increase in sales of petroleum products through marginal distribution channels

Development of Exchange Trade

  • Achieve leading positions among VIOCs in terms of trading on exchanges
  • Becoming a guaranteeing supplier of the Saint Petersburg International Mercantile Exchange
  • Development of the Prirazlomnoye field commenced. The Company was the first in Russia to start oil production on the Arctic shelf and the first in the world to do it from a stationary platform.
  • The Company was the first in the Russian oil and gas industry to commence reorganisation of its regional sales model. The main purpose of the project is to strengthen the sales and ensure better corporate governance. The project envisages the reorganisation of the 9 existing regional petroleum product suppliers into 8 specialised entities, each covering a specific type of business.
  • Gazprom Neft has switched over to Class 5 fuel production more than two years ahead of the deadlines provided for in the Technical Regulations.
  • GAZPROM filling stations that were launched outside Russia at the end of 2012 appeared in Bulgaria, Bosnia and Herzegovina last year, and their number grew in Romania and Serbia.
  • In 2013, the Company sold over 2.29 million tonnes of petroleum products in exchange trading, a 10% increase year-on-year. The total exchange sales of the Company in 2013 accounted for 10.2% of the petroleum product output (7.5% in 2012). At year-end 2013, the Company ranked second among Russian VIOCs in terms of volumes of petroleum products exchange sales.

LABOUR PRACTICES AND HUMAN RESOURCES DEVELOPMENT

  • Enhancing employee motivation and loyalty system
  • Professional development of employees, implementation of targeted training programmes
  • Development of a candidate pool
  • Development of large project management skills
  • Staffing support for technological upgrading
  • Introduction of a unified remuneration system for all enterprises
  • Introduction of a unified system of social benefits and enhancement of non-financial incentives
  • The Corporate Code is the summary of the Company’s corporate values, ethical norms, and rules of employee conduct.Approval of the Corporate Code. Development of mechanisms for fostering an efficient corporate culture
  • Organisation of personnel training programs for staffing of foreign projects and filling stations
  • Introduction of a system ensuring organisational and technical support for training in developing competencies in new areas, as required by the Company
  • Establishment of a unified recruitment infrastructure
  • Selection of personnel to support strategic objectives
  • Creation of a management candidate pool
  • Young talent development support
  • A corporate Academy of Talent Pool and Prospective Manager Training was set up as part of the candidate pool development programme. Project Management School, an educational programme for employees aimed at building basic knowledge in project management, was also launched.
  • Implementation of worker training system started as part of continuous improvement of production processes. The pilot project implemented in 2013 in Gazprom Neft-Omsk Refinery won the prize of the All-Russian Conference of HR Managers.
  • Implementation of a project aimed at introduction of a system for annual employee assessment using an extended set of criteria continued. By year-end 2013, the project had been implemented at 18 subsidiaries of the Company.

OCCUPATIONAL HEALTH AND SAFETY, INDUSTRIAL SAFETY, MINIMIZATION OF THE ENVIRONMENTAL IMPACT; ENERGY EFFICIENCY AND ENERGY SAVING

  • Development of an integrated HSE and social protection system ensuring compliance with the laws applicable in the Company’s operating regions in Russia and abroad, and guided by best international practices
  • Implementation of programmes aimed at reducing employee injuries and environmental impact
  • Development of comprehensive programmes and projects through a regular analysis of the current situation and improvement of the management systems based on an assessment of their efficiency
  • Development of practices for auditing HSE and social protection management systems in subsidiaries
  • Introduction of corrective actions following the results of inspections, audits, and risk assessments
  • Development of an OHS training system for employees
  • Regular monitoring of the situation at the Company’s production facilities; introduction of standards for waste management, remediation of contaminated and disturbed land, and risk management
  • Development of corporate training programmes in environmental safety
  • Development of collaboration with state and expert and public organisations in environmental protection
  • Implementation of a programme for the remediation of sludge pits, oil-contaminated and disturbed land
  • Enhancing the effectiveness of APG utilisation
  • Implementation of programmes for energy saving and enhancing energy efficiency
  • In 2013, Gazprom Neft’s Integrated Environmental Management System was subjected to a certification audit and was declared compliant with The International Standardisation Organisation’s standard ‘Environmental Management Systems. Requirements with Guidance for Use’, 2004, which is one of the most widely used environmental management standards.ISO 14001:2004 international standard.
  • The APG utilisation level in the Company achieved 80% by year-end 2013 (up 14% year-on-year). The Company is an industry leader in terms of APG utilisation growth rates.
  • By implementing energy conservation measures by Exploration and Production Section.EPS and Logistics, Refinement and Sales Segment.LRSS, the Company has successfully saved more than RUB 1.2bn.

CONTRIBUTION TO THE DEVELOPMENT OF OPERATING REGIONS, SUPPORT FOR ADVANCEMENT OF LOCAL COMMUNITIES

  • Development of a systematic approach to relations with the regions subject to the Company’s long-term priorities for sustainable development
  • Enhancing the efficiency of the Company’s assistance to regions in addressing the challenges of social and economic development
  • Reaching comprehensive social and economic agreements with the authorities of Russian constituent entities
  • Monitoring of the social and economic situation in the regions
  • Recognition of specific regional concerns in the implementation of large investment projects
  • Charitable aid: organising of and participation in programmes of reputable independent charitable organisations consistent with the Company’s regional policy and the social priorities of the regions
  • Creating opportunities for self-fulfilment of the Company’s employees in social volunteering
  • Participation in programmes for the support of national identity and culture of the indigenous minorities living in the regions where the Company operates
  • Building a stakeholder engagement system in the regions
  • As part of the Home Towns social initiatives programme, the Company implemented 348 projects in 2013 (59 projects more than in 2012). In the reporting year, first projects were implemented in the Orenburg and Kemerovo Regions. Total funds allocated for the Company’s social and charity programmes exceeded RUB 3.9 bn in 2013, up by RUB 1.5 bn over 2012.
  • In 2013, the Company introduced grants competitions for social initiatives – a new social investment tool within the framework of the Home Towns programme. The pilot project was implemented in the reporting year in the Orenburg Region.
  • Corporate volunteer events involved more than 7,500 Company employees in 2013.