Definition of Material Topics to Be Covered in the Report

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The Gazprom Group interprets material issues as such topics that reflect material impacts of the Group on the economy, environment, staff and society, as well as the topics that may significantly influence the assessments and decisions of the stakeholder groups.

In the course of the Report preparation, the material topics were ranked on the basis of two criteria: the topic’s importance for the stakeholders and the significance of the Gazprom Group’s impact with regard to the topic.

The material topics were defined using a three-stage process: creating the list of potential material issues (questionnaire development), surveying stakeholder groups and the Task Force members, development of the materiality matrix for material topics.

During the first stage of developing the list of potential material topics, the non-financial reporting of the Russian and international energy companies and media publications were analysed, consultations with the experts were held and recommendations of the investment community representatives were taken into account. While developing the list of material topics, Gazprom also relied upon the Principles of the United Nations Global Compact, provisions of the Social Charter of the Russian Business, non-financial GRI Standards for sustainability reporting and the national standard GOST R ISO 26000:2012.

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The list of potential material topics was extended as a result of stakeholder engagement. Two new topics were added to the list: “Gas infrastructure expansion in Russian regions” and “Natural gas vehicle fuel market development”.

At the second stage, the material topics were defined by surveying the stakeholder groups. Representatives of nineRepresentatives of the “Foreign regulators of the energy markets” stakeholder group did not participate in the survey such groups from more than 50 constituent entities of the Russian Federation and certain foreign countries participated in the survey. Over 1,500 questionnaires were collected and processed during the survey. The respondents were proposed to rank each topic on a scale from 1 to 3, where 1 means low importance and 3 means high importance.

In addition, 24 members of the Task Force established the extent the Gazprom Group’s impact upon each topic using expert judgement.

At the third stage, the materiality matrix was developed and priority topics that should be mandatorily included in the Report were identified.

Materiality Definition Process
Stage Methods used Outcome
1. Compiling the list of potential material topics Analysis of non-financial reporting of other companies in the same sector and the list of GRI disclosures taking into account the specifics of the sector List of 25 topics
2. Surveying the representatives of stakeholder groups and Task Force members Survey and expert judgement methods Ranked lists of material topics provided by stakeholder groups and Task Force members
3. Materiality matrix development The significance of Gazprom Group’s impact within the material topics is shown along the vertical axis, and the importance of the issues for stakeholder groups is shown along the horizontal axis Matrix of Material Topics. The topics located in the upper right-hand quadrant of the matrix were deemed priority ones and mandatory for disclosure
Matrix of Material Topics
Importance of the topics for stakeholder groups
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No. Topic Stakeholder groups most interested in the topic
1. Gazprom Group’s procurement system and procurement localization 2,4,5
2. Gazprom Group’s economic performance 1,2,5
3. Anti-corruption practices of Gazprom Group 1,2,4
4. Innovations and R&D at Gazprom Group 3,5,6
5. Gazprom Group’s participation in social and political activities 6,7,9
6. Compliance with social, economic and environmental requirements of the law 2,5,9
7. Compliance with anti-trust and monopoly laws 2,4,8
8. Gazprom Group’s efforts in replenishment of hydrocarbon reserves 2,3,5
9. Emission management at Gazprom Group 2,5,9
10. Waste handling at Gazprom Group 2,6,9
11. Effort taken by Gazprom Group to maintain acceptable water quality in the Group’s areas of operations 2,4,9
12. Gazprom Group’s efforts to preserve biodiversity 3,7,9
13. Energy saving and energy efficiency at Gazprom Group 2,4,5
14. Disturbed land remediation by Gazprom Group 5,7,9
15. Occupational health, industrial and fire safety at Gazprom Group 2,4,5
16. Gazprom Group’s presence at the labour market and impact upon employment of the population 3,5,6
17. Freedom of association and collective bargaining 1,4,5
18. Training and education for employees and prospective employees 1,5,6
19. Social benefits and non-financial motivation of the employees at Gazprom Group 1,5,6
20. Equal opportunities for all employees of Gazprom Group 1,2,5
21. Interaction with local communities in Gazprom Group’s areas of operations 2,6,7
22. Rights of indigenous peoples in Gazprom Group’s areas of operations 3,6,7
23. Gazprom Group’s social projects 6,7,9
24. Gas Infrastructure Expansion in the Russian Federation 5,7,8
25. Natural Gas Vehicle Fuel Market Development 3,5,8
Stakeholder groups legend:

1 — Shareholders

2 — Investors

3 — Media

4 — Business partners

5 — Personnel

6 — Public and educational organizations

7 — Local communities

8 — Consumers

9 — Government and local authorities

Disclosure of material topics in Gazprom Group’s Sustainability Report 2018
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Topics Sections
Management impacts
[6] Compliance with social, economic and environmental requirements of the law (GRI 307, GRI 419) Section 4. Life in a Favourable Environment
GRI Content Index
[7] Compliance with anti-trust and monopoly laws (GRI 206) GRI Content Index
[3] Anti-corruption practices of Gazprom Group (GRI 205) GRI Content Index
Appendix 2 for the Section “About Gazprom Group”
Economic impacts
[8] Gazprom Group’s efforts in replenishment of hydrocarbon reserves (GRI OG1) Section 1. Energy for People
[2] Gazprom Group’s economic performance (GRI 201) Appendix for the Section “Energy for People”
[1] Gazprom Group’s procurement system and procurement localization (GRI 204) Section 1. Energy for People
Appendix 2 for the Section “About Gazprom Group”
[4] Innovations and R&D at Gazprom Group Section 1. Energy for People
[24] Gas Infrastructure Expansion in the Russian Federation Section 1. Energy for People
[25] Natural Gas Vehicle Fuel Market Development Section 1. Energy for People
Social impacts
[20] Equal opportunity for all employees of the Company (GRI 405) Appendix for the Sections “Focus on the Person. People at Gazprom” and “Focus on the Person. People Next to Us”
[18] Training and education for employees and prospective employees (GRI 404) Section 2. Focus on the Person. People at Gazprom
[19] Social benefits and non-financial motivation of the employees at Gazprom Group (GRI 401) Section 2. Focus on the Person. People at Gazprom
[15] Occupational health, industrial and fire safety at Gazprom Group (GRI 403) Section 2. Focus on the Person. People at Gazprom
[21] Interaction with local communities in Gazprom Group’s areas of operations (GRI 413) Section 3. Focus on the Person. People Next to Us
[23] Gazprom Group’s social projects (GRI 203) Section 3. Focus on the Person. People Next to Us
Environmental impacts
[11] Effort taken by Gazprom Group to maintain acceptable water quality in the Group’s areas of operations (GRI 303) Section 4. Life in a Favourable Environment
[9] Emission management at Gazprom Group (GRI 305) Section 4. Life in a Favourable Environment
GRI Content Index
[10] Waste handling at Gazprom Group (GRI 306) Section 4. Life in a Favourable Environment
[12] Gazprom Group’s efforts to preserve biodiversity (GRI 304) Section 4. Life in a Favourable Environment
[14] Disturbed land remediation by Gazprom Group (GRI 304) Section 4. Life in a Favourable Environment
[13] Energy saving and energy efficiency at Gazprom Group (GRI 302) Section 4. Life in a Favourable Environment
Appendix for the Section “Life in a Favourable Environment”