Sustainable Development Management

LUKOIL is one of the leaders in the global oil and gas market, and is committed to the responsible production of affordable energy in order to meet the needs of people and the economy in Russia and around the world, while striving to develop resources in a cleaner and more environmentally friendly manner.

The Company’s management and its employees share this view of corporate goals and strategy in the context of a speeding up in global developments. The positions that we take largely determine how our customers and partners, investors and shareholders, government agencies, and all other stakeholders perceive LUKOIL.

We recognize our social responsibility and remain committed to integrating the goals of the 2030 Agenda for Sustainable Development and the Paris Agreement into our activities with regard to reducing greenhouse gas (GHG) emissions, advancing new technologies and improving energy efficiency, preserving natural ecosystems, and ensuring workplace safety. LUKOIL actively participates in international initiatives and discussions on a wide range of sustainability-related issues and supports actions that are required to mitigate the consequences of climate change
Our mission

All of LUKOIL’s activities support the Company’s mission — to use the energy of natural resources for the benefit of progress and humanity. Our operations are based on corporate values that allow us to conduct our business while adhering to the highest ethical standards.

Our values
Efficiency and Technologies

Safety and Environmental Sustainability
Partnership
People dedicated to achieving the Company’s goals are our most valuable asset
Social Responsibility
Ethics
Key documents
  • The LUKOIL Code of Business Conduct and Ethics
  • The Anti-Corruption Policy of PJSC LUKOIL
  • The Risk Management and Internal Control Policy of PJSC LUKOIL
  • The LUKOIL Group Antimonopoly Policy
  • The Health, Safety, and Environment Policy of LUKOIL Group in the 21st century
  • Human Capital Management Policy of PJSC LUKOIL
  • The Social Code of PJSC LUKOIL
  • LUKOIL Group’s Technical Policy on Energy Efficiency
  • Information Policy

LUKOIL’s positions in ratings

In 2020, LUKOIL substantially enhanced its positions in leading international and domestic sustainability ratings. The ratings in particular underscored the improvement of carbon management and the development of anti-corruption practices within the Company.

RATING
Previous CurrentAs at the end of 2020.
CDP D C
S&Global 30 46
Sustainalytics 42 33
ISS ESG C– C
MSCI BB BBB

Note.
In terms of Sustainalytics Risk Rating, the assessment corresponds to the level of risk. The lower, the better. For SAM S&P, the higher the score, the better.

LUKOIL’s improved standing is also reflected in the following ratings and rankings:

  • The MOEX — RSPP Responsibility and Transparency Index and MOEX — RSPP Sustainable Development Vector Index: in the top 10
  • The FTSE Russell ESG International Rating: 3.7 scores (out of 5)
  • The Corporate Human Rights Benchmark: 7.5 (Russian average: 7.3)
  • The ESG Corporate Rating RAEX Rating Review: 2nd place
  • World Wildlife Fund (WWF) and CREON analytical group rating of environmental transparency of Eurasian oil and gas companies: top three
Awards

The LUKOIL Group Sustainability Report for 2019 won top positions at both Russian and international report contests:

  • LUKOIL won first place in the Russian Ministry of Energy Contest for the best socially-oriented energy company in the Best Non-Financial Report by an Oil and Gas Company Category among Companies with 20 to 110 Thousand Employees.
  • LACP (League of American Communications Professionals) awarded LUKOIL a Gold Winner rank among sustainability reports presented by oil and gas companies.
  • The LUKOIL Group Sustainability Report won Silver at the world’s biggest corporate annual reports contest ARC Awards, in the Sustainability Report: Americas & Europe category
  • The interactive e-version of the Report won a LACP Silver and an ARC Awards Bronze
  • LUKOIL was the winner at the RSPP All-Russian competition “Leaders of Russian Business: Dynamics, Responsibility, Sustainability - 2020” in the nomination “For High Quality of Sustainability Reporting.”
Sustainable Development Awards
  • LUKOIL won the ComNews Awards in the category of Best Solution for Remote Work of Geographically Separated Specialists. The 2020 awards celebrated the best digital projects and solutions for the at-home and remote working regimes neccesitated by the COVID-19 pandemic.
  • LUKOIL won an award in the Best in Social Good and Public Service category for its media project “LUKOIL’s Cultural, Social and Tourism Initiatives in Kogalym”.
  • LUKOIL received the Grand Prix of the Eventiada IPRA Golden World Awards 2020 for the best initiative supporting the Ninth UN Sustainable Development Goal (Building resilient infrastructure, promoting sustainable industrialization, and fostering innovation). Since 2020, the Eventiada IPRA Golden World Awards has partnered with the United Nations and joined the program to support UN Sustainable Development Goals.

Management

PJSC LUKOIL President Vagit Alekperov and several other LUKOIL executives made the list of the top 1,000 Russian managers, an annual rating published by the Kommersant Publishing House and the Russian Managers Association.

Vagit Alekperov, President of LUKOIL, was named among the Russian business leaders.

Toby T. Gati, an Independent Member of the PJSC LUKOIL Board of Directors, won in the Best Independent Director nomination as part of the top-1,000 award for managers in a Russian company of the Russian Institute of Directors.

Victor Blazheev, Roger Munnings, and Pavel Teplukhin, Independent members of the Board of Directors, were named among the 50 Best Independent Directors in the XV National “Director of the Year” Award.

Alexander Matytsyn, First Vice President of LUKOIL, was listed as one of the 100 best Russian financial directors.

Evgeny Khavkin, Vice President — Chief of Staff of PJSC LUKOIL, was named among the 50 most effective corporate governance directors.

Gleb Ovsyannikov, Head of LUKOIL Public Relations, was named one of the 100 best public and corporate relations directors.