SAFETY

The reporting year’s changes and results
A SUSTAINED LONG-TERM TREND TOWARDS REDUCTION IN ON-THE-JOB INJURY RATES BOTH AT LUKOIL GROUP ENTITIES AND CONTRACTOR ORGANIZATIONS
INTRODUCTION OF DRONES AND INNOVATIVE OIL LEAK DETECTION SYSTEMS
INCREASED SHARE OF CORROSION-RESISTANT PIPELINES IMPROVED THE SITUATION IN SIBERIA, AND THE PERM TERRITORY
ON THE AVERAGE, AN 11 PERCENT INCREASE PER YEAR DURING THE PAST FIVE YEARS OF PIPELINES WITH INTERNAL ANTI-CORROSION COATING
AN INCREASE IN THE SHARE OF THE COMPANY’S CORROSION-RESISTANT PIPELINES — NOW OVER ONE-THIRD OF THE TOTAL (32.2 PERCENT) (23.6 PERCENT IN 2016)
CONTRIBUTION TO IMPLEMENTATION OF SDG
  • 82 percent was the coverage of employees of LUKOIL Group entities, which have occupational health and safety and environmental management systems certified of compliance with the requirements of ISO 14001 and ISO 45001 standards.
  • Outbreaks of COVID-19 were treated and contained.
Plans for 2021 and the midterm

To implement the Program of Industrial Safety, Improvement of Labor Conditions and Occupational Safety, and Emergency Prevention and Liquidation of LUKOIL Group entities for 2021–2023.

To continue integration of digital technology and new safety culture tools.

To implement and replicate best practices for safe operation and actions in both routine situations and emergencies.

To review Company oil and oil product spill prevention and response plans at the hazardous facilities of the Group entities.

Context

Occupational safety and health, a key element of well-regulated workplaces Source: Ensuring Safety and Health at Work during the Pandemic. International Labor Organization (ILO), 2020. , have become increasingly important during the COVID-19 pandemic In response to the pandemic, ISO published on an expected basis newly developed standard ISO/PAS 45005, Occupational health and safety management — General guidelines for safe working during the COVID-19 pandemic. . Changes in the organization of work and production processes (for example, limiting the number of people on the premises) may create new hazards that need to be identified early. There is also a growing need for measures to reduce the level of work-related stress.

The demands of workers and the requirements for safe working conditions are certain Source: COVID-19 and the World of Work. International Labor Organization (ILO), 2020. to change in the post-coronavirus world. Companies must prepare for this Source: The Sustainable Development Goals Report, United Nations, 2020. by implementing appropriate health and safety measures and creating a comfortable work environment to ensure the safety of all personnel. The effectiveness of business continuity plans tailored to specific situations will largely determine how quickly companies are able to act.

Furthermore, experts note that the quality of management of information technology related to swift spread of data analysis instruments, machine learning and neural networks needs to be enhanced. This pervasive reliance on complex algorithms can pose risks to both business processes and employees, since the internal structure and functioning of the systems are usually hidden from end users, making it difficult to assess the correctness of their work.

Integrated Health, Safety, and Environmental Protection Management System
ELEMENTS OF THE MANAGEMENT SYSTEM
CORPORATE DOCUMENTS
GOALS
Corporate policy establishes LUKOIL Group’s strategic goals, principles, and obligations
LUKOIL Group Policy for Health, Safety, and Environmental (HSE) Protection in the 21st Century; approved by the decision of the Management Committee of PJSC LUKOIL dated May 25, 2020 HSE Policy
PRIORITIES / STANDARDS
Corporate standards are applicable to all LUKOIL Group entities.
Safety culture tools are used
15 corporate standards of STO 1.6 “HSE Management System” series (approved by Orders of PJSC LUKOIL No. 26 dated February 11, 2019, No. 86 dated May 17, 2019, No. 98 dated June 11, 2019, and No. 149 dated August 26, 2019)
RISK MANAGEMENT
The Material HSE Risks Register and the Material Environmental Issues Register are updated on an annual basis. These Registers are analyzed by the HSE Committee of PJSC LUKOIL and approved by the First Executive Vice President of PJSC LUKOIL
STO LUKOIL 1.6.6 (order of PJSC LUKOIL No. 133 dated July 24, 2019)
COMMUNICATIONS WITH TRADE UNIONS
An ongoing contact is maintained with authorized occupational health and safety representatives and trade unions
Agreement between the employer and the Trade Union of PJSC “Oil Company ‘LUKOIL’” for 2015–2020
KEY PERFORMANCE INDICATORS
The composite indicator “Ensuring the Required HSE Levels at LUKOIL Group Entities” comprising those related occupational injuries and accident rates, and also the key environmental impacts (pollutant emissions and discharges, waste management) is established annually
Regulations on Evaluating the Key Performance Indicator “Ensuring the Required HSE Levels at LUKOIL Group Entities,” approved by Order of PJSC LUKOIL No. 83 dated April 22, 2020
CERTIFICATION OF THE MANAGEMENT SYSTEM
The Integrated HSE Management System has been certified for compliance with the international standards ISO 14001–2015 and ISO 45001–2018
As at December 31, 2020, certificates issued to 42 LUKOIL Group entities were in effect (covering 82% of total LUKOIL Group headcount)
TARGETED PROGRAMS, PROJECTS, AND INITIATIVES
The Program of Industrial Safety, Improvement of Labor Conditions and Occupational Safety, and Emergency Prevention and Liquidation of LUKOIL Group entities for 2020–2022 HSE Policy .
The Environmental Safety Program for 2020–2022 ESP - The Environmental Safety Program. During the previous reporting period, the target programs for 2019–2021 were in effect.
The Programs were approved by Order of PJSC LUKOIL No. 28 dated February 18, 2020
FURTHER INFORMATION