Our production activities in all business segments have an impact on the environment. LUKOIL recognizes its responsibility to society and future generations and works continuously to preserve a healthy environment, and to use natural resources sustainably in the regions where the Company operates.
In compliance with statutory requirements and voluntary principles, LUKOIL assesses and monitors the impact of its operations at all stages, from design to completion. Through continuous identification of risk, we strive to prevent negative scenarios from occurring whenever possible.
We continue to improve the awareness and competence of specialists and managers of the Group’s entities regarding environmental protection activities. For this purpose, we hold annual competitions across the Group’s entities and at the corporate level of PJSC LUKOIL. The authors of the best eco-projects receive rewards. The Safety Days program always covers best environmental protection practices and also deals with other challenging issues.
The Environmental Management System is a part of the Integrated Health, Safety and Environmental Protection Management System detailed in the “Safety” section of this report.
Assessment and monitoring
As part of the current risk management system, LUKOIL employs a precautionary approach in the performance of Environmental and Social Impact Assessment procedures and in planning Environmental Safety Program activities. The ESIA operations are performed at the design stage as per the legislation of the countries of operation, the requirements of international financial corporations, and LUKOIL’s corporate standards. The results of this assessment form an integral part of the project documentation and are later used in environmental monitoring. Overseas exploration and mining activities also require social and environmental impact assessments before project launch. (See the relevant case study in the "Principles of Sustainable Development in Production Projects outside Russia" section).
Interaction with local communities
Interaction with local residents, public and environmental organizations, administrations, and government agencies to exchange information on our scheduled activities and find the best solutions to problems is an essential part of our business. We use the ISO 14001:2015 standard, which requires a mandatory response to inquiries regarding the environmental management system of our company. We hold public hearings on new projects and current operations (as part of the ESIA) in our operating regions; many Group entities provide local residents with an opportunity to submit their concerns and suggestions via our hotline. All LUKOIL’s entities organize annual environmental campaigns to clean up natural areas and plant trees, bushes, and plants.
Environmental safety program
The Environmental Safety Program for 2020–2022During the previous reporting period, the target program for 2019–2021 was in effect. consists of nine subprograms and includes more than 900 events; 45 Russian and foreign entities of LUKOIL Group participate in the program. The program is planned for three years, and targets are set annually. The structure of activities is determined by the nature of the primary production’s impact on the environment taking into account continuous improvements in management. Under the program, we build environmental protection facilities and upgrade and expand the extensive fleet of machinery and equipment used for environmental purposes.
As a result of dedicated work to ensure compliance with legal requirementsExcess payments may arise, inter alia, due to delays in obtaining approvals and permit.for adverse environmental impacts has been steadily decreasing over the past five years. At the same time, the share of excess payments in the total amount of payment for such impacts in 2020 was 13.6 percent (4 percent in 2019). Higher indicator values were due to the delay in obtaining permits caused by the new requirements of Russia’s Ministry of Natural Resources and EnvironmentOrder of the Ministry of Natural Resources and Environment of the Russian Federation No. 341 of July 31, 2018, On Approval of the Procedure for Establishing and Maintaining a List of Methodologies for Calculating Emissions of Harmful (Contaminating) Substances into the Atmosphere by Stationary Sources. The Ministry of Natural Resources of the Russian Federation is responsible for maintaining the list of methodologies. To date, the methodologies used to calculate emissions of oil and gas production enterprises have not been included in the list. Information on over-the-limit payments refers to LUKOIL-Kaliningradmorneft LLC. coming into force, according to which only the methodologies on the regulator’s list may be used to calculate the impact indicators.
The reporting boundaries for environmental indicators include all Russian entities having a significant environmental impact as well as the following foreign entities: refineries in Italy (ISAB S.r.l.), Romania (PETROTEL-LUKOIL SA), and Bulgaria (LUKOIL Neftohim Burgas); production project operator in Uzbekistan (LUKOIL Uzbekistan Operating Company); oil product supply companies abroad (IOOO LUKOIL Belorussia in Belarus and LUKOIL-BULGARIA EOOD in Bulgaria).