Stakeholder engagement

LUKOIL recognizes its responsibility to stakeholders and maintains a continuous dialogue with them. We endeavor to build long-term constructive relations that are based on the principles of partnership, Company participation in implementing long-term development goals, and transparency of operations and information. These principles are set forth in the Social Code, the Code of Business Conduct and Ethics, and the LUKOIL Group’s Health, Safety and Environment Policy in the 21st Century. The corporate website, Annual Report, and Sustainability Report are the main channels used to update our stakeholders on our activities.

In 2020, in response to the COVID-19 pandemic, many traditional contacts and work processes were successfully switched to a remote format using modern digital solutions. We made every effort to stay as open and transparent as ever in response to the emergence of fundamentally novel issues related to the pandemic. LLK-International, for example, provided excellent online customer support and quality training in new digital logistics skills for employees and dealers.

Leading media outlets, both in Russia and abroad, extensively covered LUKOIL’s efforts to provide assistance in the fight against the pandemic, to improve the situation through deliveries of medical equipment, ventilators, medicines, protective clothing for doctors, and disinfectants.

We distinguish the following groups of stakeholders:

CLIENTS
EMPLOYEES AND TRADE UNIONS
NATIONAL AND LOCAL LEGISLATIVE AND EXECUTIVE AUTHORITIES
SHAREHOLDERS AND INVESTORS
SUPPLIERS AND CONTRACTORS
SOCIETY
Stakeholder engagement
Principal regular channels for interaction Main events in 2020 Issues of importance in 2020 Results
CLIENTS

Surveys and studies

Loyalty programs

Mobile apps

Universal hotline and grading system in a mobile application

Registration of Company addresses in social networks

Ongoing information campaign for gas station retail customers and wholesale clients to promote goods and services and the placement of materials focused on enhanced safety measures to fight the pandemic

Compliance with sanitary regulations

Providing information on gas station operations and product ranges, the benefits of the “Fill Up with Profit” loyalty program, and publicizing features of the LUKOIL gas stations mobile app

The Company is perceived as being a supplier of quality goods and services

Leader in consumer trust and brand awareness ratings among the largest Russian fuel suppliers

Consistent growth in the quality of fuels and services at gas stations

EMPLOYEES AND TRADE UNIONS

Meetings of the President of PJSC LUKOIL with employees

Collective agreements and contracts with trade unions

Social and safety culture programs

Corporate events and media, sports competitions

The 10th agreement between the Employer and the Trade Union Association for 2021–2023 was signed

Ongoing information campaign for employees related to COVID-19 pandemic

Most questions are related to remote working arrangements and changes to work schedules and processes due to restrictions

The Company is perceived as being a responsible employer

A system of social partnership is in place

Commitments under the Agreement between the Employer and Trade Unions are fulfilled

SUPPLIERS AND CONTRACTORS

Tenders

Hotline

Agreements with strategic suppliers

Technology field days in the Russian regions

Workshop (Perm, the Russian Federation)

A road map for the development of cooperation with enterprises in the Perm Territory was signed. The primary issues in the supply chain:

  • Digital logistics, changes in contract terms due to the pandemic
  • Protecting the employees of contractors and service entities against infection

The Company is perceived as being a reliable partner

Extensive experience in international projects

Transparency of tender procedures

Engagement with ‘local producers’

SHAREHOLDERS AND INVESTORS

Lines of communication:

  • investor conferences – regularly
  • meetings and calls with investors – regularly
  • senior management interviews in the media
  • press releases – regularly
  • annual and other reports, analyst handbook – annually
  • corporate website – regularly

Participation in 16 conferences, over 250 meetings attended by more than 500 investors.

Over 1.5 thousand requests from shareholders and professional securities market participants processed.

Two General Shareholders Meetings held.

The most popular international sustainability ratings, which are of interest to the investment community, were analyzed; the Company’s position in these ratings was significantly improved

Responses to inquiries from representatives of the investment community and credit rating agencies were provided, including on the following topics:

  • fiscal policy to deal with adverse conditions
  • climate strategy and the climate management system
  • results of the inventory of GHG emission sources, reduction of GHG emissions and pollutants
  • sustainability KPIs for top management
  • measures to reduce injuries, including for contractors
  • activities to minimize oil spillages in the Komi Republic
  • impact of the COVID-19 pandemic
  • ensuring the safety of facilities in the Arctic zone
As of December 31, 2020, 63 percent of analysts of investment banks and finance companies recommended buying the Company’s shares
NATIONAL LEGISLATIVE AND EXECUTIVE AUTHORITIES
Participation in industry associations, expert councils, and working groups as part of public discussion mechanisms for the drafting of regulatory legal acts Company experts and representatives were involved in developing the system of government oversight

The Company submitted proposals as part of its anti-crisis response to the pandemic, including the following issues:

  • tax and environmental regulation
  • investment and export incentives
  • control and supervision activities
  • labor relations and other matters.

Some of the Company’s initiatives were included in the National Action Plan to restore employment and personal income, ensure economic growth, and provide long-term structural changes. The Company contributed to the discussion of the Energy Strategy of the Russian Federation

The Company is perceived as being a responsible business participant

Society

Meetings of the President of PJSC LUKOIL with the heads of the constituent entities of the Russian Federation

Workshops and meetings with the governments of the constituent entities of the Russian Federation and executive authorities

Online meetings between the President of PJSC LUKOIL and the heads of the constituent entities of the Russian Federation Cooperation agreements (or supplementary agreements) signed with nine constituent entities of the Russian Federation

The Company is perceived as being a strategic social investor

Consistent support to businesses and regions in the social areas that matter most in people’s lives
Youth support and new opportunities
Ongoing involvement jointly with our regional partners in projects designed to improve the quality of life

Roundtables, dialogues Roundtables (Astrakhan and Elista, Russia)

Saiga antelope population rescue program

Increased efforts in the area of ecological safety

Public discussions on the D33 project (Kaliningrad, Russia, online) Project impact on the natural environment and local communities
Roundtable held by the Federal Agency for Ethnic Affairs, attended by representatives of the National Delphic Council of Russia (Syktyvkar, Russia) Support for indigenous minorities of the North and public organizations, preservation of languages and folk crafts
III International Youth Scientific and Practical Forum "Oil Capital -2020" (Nizhnevartovsk, Russia) The 90th anniversary of Yugra, production of the twelve-billionth tonne of oil in the region, and the 55th anniversary of the Samotlor oil field discovery. Oil and gas industry development trends
Talk show, "Dialogue of Equals" (Usinsk, Russia)

LUKOIL-Komi Environmental Policy

Human Resources Policy

Social projects in the Komi Republic

Social and Cultural Projects Competition The Accelerator for Active Youth Project (Kogalym, Russia) Selection of the best youth ideas for subsequent support