1.1. Sustainability Management

The priorities of Gazprom in sustainable development are to:
  • secure reliable gas supplies to consumers;
  • use natural resources in a sustainable way and improve energy efficiency;
  • preserve climate and biodiversity and minimize adverse environmental impacts;
  • respect human rights;
  • ensure safety of employees and establish safe labour conditions;
  • develop HR potential;
  • foster zero tolerance to corruption; 
  • improve the corporate governance system;
  • improve the quality of life for the population and facilitate social and economic development in the regions of operation;
  • make investments in a socially responsible manner;
  • promote innovative development;
  • build global and national partnerships for sustainable development;
  • comply with laws and regulations;
  • manage risks;
  • ensure information transparency;
  • consistently improve economic efficiency;
  • contribute to (children’s) sports;
  • support retired employees.

Corporate sustainability goals are integrated into Gazprom’s business strategy and achieved through implementing the Company’s development plans with respect to its core activities.

 

Economic Performance and Innovative Development Goals of PJSC Gazprom:
  • improve technological and organizational capabilities of the Company through encouraging innovative development and adoption of innovative technologies;
  • improve labour efficiency.
Human Rights Goals of PJSC Gazprom:

Rights of employees to labour and education:

  • comprehensively motivate each employee to achieve the Company’s goals;
  • provide employees with competitive salaries and benefits;
  • create and develop an unbiased and efficient framework to assess personal contribution of each employee;
  • ensure that employees’ professional expertise meets the Company’s requirements and the teams are prepared to undertake production and management tasks.

Occupational health and safety rights of employees:

  • create a safe working environment and protect the lives and health of the employees;
  • ensure reliable operation of hazardous industrial facilities;
  • reduce the rate of mortality due to occupational or other diseases, particularly cardio-vascular diseases;
  • improve the efficiency of the operational control over the compliance with occupational health and industrial safety requirements;
  • ensure compliance with the fire safety requirements at the facilities of the Company.

Rights of indigenous minorities, local communities and other stakeholders:

  • ensure gas supplies and expand gas infrastructure across Russian regions; 
  • facilitate regional programs promoting the use of gas as motor fuel;
  • participate in solving social issues in the constituent entities of Russia; take part in building a network of social infrastructure facilities;
  • support indigenous minorities in promoting their interests and rights to their traditional lifestyle (work and cultural activities), and preserve their original living environment;
  • promote the principles of equality, fairness and non-discrimination across the Company; ensure the absence of unreasonable restrictions on competition among bidders in the process of procurement of goods, works and services; 
  • seek to increase the number of independent directors on the Company’s Board of Directors.
Environmental Protection Goals of PJSC Gazprom:
  • reduce greenhouse gas air emissions, including methane emissions;
  • reduce pollutant (hazardous) air emissions;
  • decrease discharge of polluted and insufficiently treated wastewater into surface water bodies; 
  • reduce the share of waste sent for burial;
  • reduce the fees for excessive environmental impact.
Resource Saving, Energy Saving and Energy Efficiency Goals of PJSC Gazprom:
  • continuously reduce unit costs through standardisation, rational use and saving energy resources in production operations;
  • consistently improve energy efficiency through efficient production process management and implementation of innovative technologies and equipment.

Sustainability management is integrated into the corporate governance system of PJSC Gazprom.

 

PJSC Gazprom's Sustainability Management System
GRI 102-20GRI 102-19GRI 102-26

The Company’s leadership officials of different levels are in charge of sustainability management and control.Strategic sustainability management, as well as review and approval of top-level documents, including documents governing individual aspects of sustainable development, fall within the competence of the PJSC Gazprom Board of Directors. General management of sustainability aspects is the responsibility of the PJSC Gazprom Management Committee. Relevant departments and directorates are in charge of day-to-day sustainability management within the scope of their respective competences. The Coordinating Committee for Responsible Use of Natural Resources ensures comprehensive approach to and coordination of the activities of organizational units and subsidiaries as related to environmental protection and energy efficiency, and the Quality Assurance Council of PJSC Gazprom does the same in the sphere of quality management. PJSC Gazprom subsidiaries develop their own by-laws with regard to specific aspects of sustainable development and implement respective local programs and initiatives. The Sustainable Development Council operates under the PJSC Gazprom Science and Technology Council, which is presided over by the Chairman of the PJSC Gazprom Management Committee.

The Gazprom Group’s commitment to the sustainable development principles is reflected in its key strategic documents.

Key strategic documents
GRI 102-26

Economic aspect

  • Long-Term Development Program of PJSC Gazprom
  • Innovative Development Program of PJSC Gazprom until 2025
  • Regulation on Procurement of Goods, Works, and Services by PJSC Gazprom and Gazprom Group Companies
  • Quality Management Policy of PJSC Gazprom

Social aspect

  • HR Management Policy of PJSC Gazprom, its Subsidiaries And Entities
  • General Collective Labour Agreement of PJSC Gazprom and its Subsidiaries for 2019–2021
  • Comprehensive Program for Improvement of HR Management at PJSC Gazprom, its Subsidiaries and Entities in 2016–2020
  • PJSC Gazprom’s Process Safety Management System Development Strategy until 2021
  • PJSC Gazprom’s Occupational, Industrial, Fire and Road Safety Policy
  • Regional Policy Concept of OJSC Gazprom 

Corporate governance

  • Articles of Association of PJSC Gazprom
  • Corporate Governance Code of PJSC Gazprom
  • Code of Corporate Ethics of PJSC Gazprom
  • Risk Management and Internal Control Policy of PJSC Gazprom
  • Regulation on the General Shareholders Meeting of PJSC Gazprom
  • Regulation on the Board of Directors of PJSC Gazprom
  • Regulation on the Audit Committee of the Board of Directors of PJSC Gazprom 
  • Regulation on the Nomination and Remuneration Committee of the Board of Directors of PJSC Gazprom
  • Regulation on the Management Committee of PJSC Gazprom
  • Regulation on the Chairman of the Management Committee of PJSC Gazprom
  • Regulation on the Audit Commission of PJSC Gazprom
  • Policy for Arranging and Conducting External Audits of PJSC Gazprom, its Subsidiaries and Entities
  • Anti-Corruption Policy of PJSC Gazprom
  • Dividend Policy of PJSC Gazprom

Environmental aspect

  • Environmental Policy of PJSC Gazprom
  • Energy Efficiency and Energy Saving Policy of PJSC Gazprom
  • Energy Saving and Energy Safety Improvement Program of PJSC Gazprom for 2017–2019
GRI 102-15

Gazprom’s sustainable development progress is monitored based on a set of key performance indicators (KPIs) across different areas of the corresponding activities.

 

PJSC Gazprom’s KPIs related to sustainability:

Financial and economic indicators, innovative development indicators:

  • economic profit growth;
  • return on equity;
  • shareholders return;
  • labour productivity;
  • integrated KPI for innovation (including the number of patents and share of R&D expenses in revenue).

Human rights indicators:

  • average number of hours used by employees for professional education during the year;
  • number of employees who participated in professional development / average headcount per year;
  • reduction in workplace incidents rate;
  • reduction in workplace accidents rate.

Environmental protection, resource and energy saving, and energy efficiency indicators:

  • reduction in unit greenhouse gas emissions (in CO2 equivalent);
  • reduction in specific consumption of fuel and energy resources for internal process needs and transportation losses.

Membership in international organizations and support of sustainable development initiatives demonstrate the Company’s commitment to the sustainable development principles, enable exchange of information and best practices, and support a dialogue on relevant topics. The ESG ratings of PJSC Gazprom reflect the Company’s sustainability progress and its assessment by domestic and international communities.

GRI 102-13

The Gazprom Group companies are part of the management bodies of and contribute to the work of international industry associations, such as the International Business Congress (IBC), the International Gas Union (IGU), the Global Gas Centre (GGC), the European Natural Gas Vehicle Association (ENGVA), the German-Russian Forum, the Boao Forum for Asia (BFA), etc.

PJSC Gazprom consistently strengthens its relationships with rating agencies and expands the number of its international ratings. In 2017, the Company was included in three international ESG ratings, and in 2019 that number increased to seven.

Gazprom in ESG ratings, 2017–2019
2017 2018 2019
SAM ESG SAM ESG SAM ESG
MSCI Sustainalytics Sustainalytics
CDP MSCI MSCI
CDP CDP
CHRB ISS-Oekom
CHRB
Vigeo Eiris

In 2019, PJSC Gazprom improved or retained its ranking scores in key ESG ratings.

 

Gazprom’s ranking scores in ESG ratings, 2018–2019
Ratings 2018 2019
SAM ESG 36 36
Sustainalytics 54(1) 61(4)
MSCI BB BBB(5)
CDP C(2) C
ISS-Oekom C(6)
CHRB 6.5(3) 10.4(7)
Vigeo Eiris 38(8)

(1) Sustainalytics score as of 2018.

(2) Source: www.cdp.net

(3) CHRB Score as of October 26, 2018.

(4) Sustainalytics Score as of June 27, 2019.

(5) Source: www.msci.com

(6) ISS Oekom ESG Corporate Rating as of September 10, 2019.

(7) CHRB Score as of September 26, 2019.

(8) Vigeo Eiris Score as of November 2019.

According to CDP’s international rating, PJSC Gazprom has been a top player in the Energy sector of the Russian investment partnership rating for eight consecutive years.

The Company also holds top positions in Russian ratings. For five years running, it has been ranked among the leaders of the “Responsibility and Transparency” and “Sustainable Development Vector” indices of the RUIE. In 2019, PJSC Gazprom was placed first in the Sustainable Development ranking of the Expert magazine and was among the Top 3 in RAEX-Europe’s annual ESG ranking. Gazprom also ranks among the Top 10 in the environmental transparency rating of Russian oil and gas companies conceived by WWF Russia and CREON Group.