6.1. Environmental Sustainability Management and Environmental Control
System of Management
Environmental protection at PJSC Gazprom is governed by the Environmental Policy that reflects the Company’s commitment to the sustainable development principles. It sets forth Gazprom’s key obligations: to guarantee compliance with the environmental standards and requirements set by the Russian laws and international regulations related to environmental protection, as well as the laws of the countries where the Company runs its business; to reduce adverse environmental impacts; to implement a resource-saving policy; to make every effort to preserve the climate and biodiversity and compensate for possible environmental damage; and more.
As per the resolution of the Board of Directors of PJSC Gazprom, the Environmental Policy of PJSC Gazprom is recommended to be followed by all the Gazprom Group companies.
The Environmental Management System (EMS) is the mainstay of Gazprom’s Environmental Policy. It is designed to set and pursue environmental goals, manage environmental aspects of PJSC Gazprom’s operations, and fulfil assumed obligations.
The EMS of PJSC Gazprom is certified for compliance with the requirements of the ISO 14001:2015 international standard “Environmental management systems — Requirements with guidance for use”. Based on the re-certification audit held in 2019, the EMS of PJSC Gazprom was certified for compliance with the requirements of ISO 14001:2015 until December 2020.
PJSC Gazprom’s EMS encompasses all management levels ranging from the Company’s Board of Directors to branches and production facilities of its subsidiaries. It covers the structural subdivisions of PJSC Gazprom Administration, PJSC Gazprom Environmental Inspectorate, and 34 fully-owned subsidiaries involved in core activities, namely, exploration, production, transportation, storage, and processing of gas and gas condensate, as well as investment project management in construction.
EMSs of 26 subsidiaries of the Gazprom Group are also certified for compliance with the ISO 14001:2015 requirements.
For more details on the scope of PJSC Gazprom’s EMS see Page 9, PJSC Gazprom Environmental Report 2019
For details on the structure of PJSC Gazprom’s EMS see Page 9, PJSC Gazprom Environmental Report 2019
The EMS in place at Gazprom Neft is certified for compliance with the requirements of the ISO 14001:2015 international standard, with the certification scope covering the key production assets of Gazprom Neft. Apart from that, 12 subsidiaries of the company have individual compliance certificates.
Environmental protection management at Gazprom Energoholding covers all stages of the production process and relies on the environmental protection functional units.
The Office of the Production Director of Gazprom Energoholding oversees environmental protection management across the company, while the Coordinating Committee for Environmental Protection ensures a comprehensive approach and coordination of the activities of the company’s subsidiariesOperates as a standing committee since 2016 (updated Order No. 112-GEH dated December 28, 2018)..
Gazprom Energoholding arranges regular annual extended offsite meetings of technical and environmental managers of its subsidiaries to share their achievements and targets in environmental protection.
Technical audits of environmental safety conducted by the Gazprom Energoholding companies on a cross-company basis enable the experts of Gazprom Energoholding to assess the organization of environmental protection activities and compliance with environmental legislation at its subsidiaries.
The environmental protection management system at Gazprom Neftekhim Salavat is certified for compliance with the requirements of the ISO 14001:2015 international standard, as is confirmed by the results of the compliance audit conducted by SAI GLOBAL in 2019.
Corporate Environmental Targets and Their Achievement
Within its EMS, PJSC Gazprom sets environmental targets based on significant environmental aspects identified on an annual basis and develops and implements environmental protection programs. The corporate environmental targets of the Company are set for a three-year period.
Achievement of the 2017–2019 Corporate Environmental Targets by PJSC Gazprom in 2019, %
|№||Corporate Environmental Target||Organizations in scope of the EMS application||Target achievement status||Actual performance in the reporting period||Baseline (2014)|
|1.||Reduce methane emissions in the atmosphere (during repair works at GTS), %||All subsidiaries involved in natural gas transportation||Reduction by 13.1 p.p.||49.58%||In 2014, the actual volume of gas exhausted during GTS repairs was 62.7% of the planned volume|
|2.||Reduce specific NOx emissions in the atmosphere, t/mcm||All subsidiaries involved in natural gas transportation||Reduction by 5.0%||4.1 t/mcm||In 2014, NOx unit emissions from gas transportation amounted to 4.32 t/mcm of fuel gas|
|3.||Decrease discharge of polluted and insufficiently treated wastewater into surface water bodies, %||All subsidiaries||Reduction by 28.2 p.p.||11.94%||In 2014, 40.13 % of wastewater discharged by subsidiaries into surface water bodies was classified as polluted and insufficiently treated|
|4.||Decrease the share of waste sent for burial, %||All subsidiaries||Reduction by 52.9%||20.55%||In 2014, the share of waste sent for burial was 43.6 % of the total waste managed|
|5.||Reduce the fees for excessive impact, %||All subsidiaries||Reduction by 7.5 p.p.||8.26%||In 2014, the share of the fees for excessive negative environmental impact was 15.8 % of the total fees paid|
|6.||Reduce specific consumption of fuel and energy resources for internal operating needs, kg of reference fuel per mcm•km||All subsidiaries involved in natural gas transportation||Reduction by 0.4 %||26.93 kg of reference fuel per mcm•km||In 2014, specific consumption of fuel and energy resources (natural gas and electric power) for internal operating needs during gas transportation via gas trunklines amounted to 27.03 kg of reference fuel per mcm•km|
For details on the achievement of Corporate Environmental Targets by the Gazprom Neft Group see Page 91, Sustainable Development Report 2019 of Gazprom Neft
Achievement of the 2017–2019 Corporate Environmental Targets by Gazprom Energoholding in 2019, %
|№||Target environmental performance indicator||Baseline (2014)||Target (2019)||Actual (2019)||Target achievement status|
|1.||Reduce specific NOx emissions in the atmosphere in 2019 (versus the baseline level of 2014) by 0.02 t / million kWh||0.41 t / million kWh||0.39 t / million kWh||0.34 t / million kWh||
– 0.04 (versus the target level) /|
– 0.07 (versus the baseline level) t / million kWh
The target was achieved.
|2.||Reduce the share of waste sent for burial in 2019 (versus the baseline level of 2014) by 2.11 %||95.4 %||93.3 %||88.1 %||
– 5.2 % (versus the baseline level) /|
7.3% (versus the target level)
The target was achieved.
Measures aimed at the subsequent use of bottom ash waste in economic activities are being carried out. Bottom ash waste production was reduced due to lower share of coal in the fuel mix.
|3.||Reduce the share of excess fees for negative environmental impact in 2019 (versus the baseline level of 2014) by 8.38 %||23.6 %||15.3 %||11.5 %||
– 12.1 % (versus the baseline level) / |
– 3.8 % (versus the target level)
The target was achieved.
Achievement of the 2017–2019 Corporate Environmental Targets by Gazprom Neftekhim Salavat in 2019, %
|№||Environmental target||Target||Оценка степени достижения экологической цели в отчетном году (достигнута / не достигнута), основные выполненные мероприятия|
|Baseline (2015)||Actual, reported (2019)|
|1.||Reduce nitrogen dioxide emissions in the atmosphere||1,050.459 t||945.770 t||
Emissions were reduced by 10.0 %.
|2.||Reduce ammonia emissions in the atmosphere||3,517.377 t||1,047.815 t||
Emissions were reduced by 70.2 %.
|3.||Reduce hydrogen sulphide emissions in the atmosphere||9.210 t||6.714 t||
Emissions were reduced by 27.1 %.
|4.||Stabilize fees for pollutant air emissions of the stationary facilities made since 2017, keeping them at the level of 2015||RUB 3,710,000||RUB 1,259,577,000||
Fees were reduced by 66.05 %.
|5.||Improve environmental protection capabilities of the company’s employees||73 employees||12 employees||
As part of the company’s cost optimization, the required number of employees were trained in compliance with the
legislation of the Russian Federation
In 2019, PJSC Gazprom approved its 2020–2022 Corporate Environmental Targets using the levels of 2018 as the new baseline.
In 2019, the Company developed and approved PJSC Gazprom’s Comprehensive Environmental Program for 2020–2024 to implement the measures aimed at achieving the 2020–2022 Corporate Environmental Targets. The Program serves as a mid-term planning tool that streamlines all actions and activities aiming to boost the efficiency of environmental management, ensure environmental safety, and maintain the rational use of natural resources along with energy saving. It takes into account the key provisions of the previously adopted BAT roadmaps of PJSC Gazprom and the GHG emissions management systems until 2030 of the Gazprom Group.
2020–2022 Corporate Environmental Targets of PJSC Gazprom
|№||Corporate Environmental Target||
in scope of the EMS application
|1.||Reduce GHG emissions during transportation of natural gas, t of СО2 equivalent / bcm•km||All subsidiaries involved in natural gas transportation||55.3|
|2.||Reduce nitrogen oxide emissions in the atmosphere during transportation of natural gas, t/mcm||All subsidiaries involved in natural gas transportation||4.23|
|3.||Reduce excessive discharges of pollutants into surface water bodies, %||All subsidiaries||5.29|
|4.||Reduce the share of waste sent for burial in the total waste managed, %||All subsidiaries||38.28|
|5.||Reduce the share of subsidiaries whose fees for excessive negative environmental impact are above 5%, %||All subsidiaries||35|
PJSC Gazprom shares the key provisions of the precautionary principle (Principle 15 of the UN Rio Declaration on Environment and Development, 1992) and takes steps to minimize potential technogenic impact on the natural environment, especially when needed to preserve rare and endangered species of flora and fauna along with unique natural areas and sites.
During the environmental impact assessment performed as part of the investment projects’ development, the Company identifies the most vulnerable ecosystems and defines solutions to prevent disturbance of natural balance in the course of the construction and operation of its facilities. Operational environmental monitoring (OEM) is being carried out to track various environmental parameters, including the state of flora and fauna. The Company implements compensatory initiatives to preserve natural ecosystems, including measures to restore fish stocks.
The OEM system of Gazprom serves to control the environmental situation, namely, the parameters of water, air, and soil. It includes stationary and mobile environmental laboratories, meteorological and hydrological stations, automated control points, and observation wells.
The OEM system enables the Company to promptly receive reliable information about the environmental conditions of its facilities and the area influenced by them, conduct timely engineering review of the current environmental situation in the course of production and business activities, plan environmental protection activities, monitor their implementation, and make effective environmental management decisions.
In some cases, the OEM systems of the Gazprom Group are integrated with regional environmental monitoring systems.
If any specially protected natural sites or areas with a special environmental status are located within the territory influenced by the Gazprom Group’s business activities, the Group includes special provisions into the OEM programs so that the condition of these sites and/or areas can be duly monitored.
Over 8,000 of the Gazprom Group’s facilities were subject to environmental control in 2019.
The Gazprom Group’s expenses for operational environmental monitoring and environmental control amounted to RUB 2,528.35 million in 2019.
Gazprom Group’s expenses for operational environmental monitoring and environmental control, 2016–2019, RUB million
In 2020, the plan is to allocate over RUB 2.2 billion for operational environmental control (monitoring).
Control by Public Authorities
In 2019, state supervisory bodies held 628 checks of compliance with environmental requirements by the Gazprom Group’s facilities and identified 527 breaches, whereas 388 checks showed no breaches of environmental requirements.
Out of 527 breaches identified, 50 breaches (9.5%) were overturned by courts of law, 284 breaches (54%) were remedied within the established timeframes, and the period for remedying 103 breaches did not expire during the reporting year. In total 377 breaches were eliminated in 2019, including 93 breaches identified in the previous years.
269 breaches (51%) posed no threat to the environment and did not entail any penalties for legal entities.
In 2019, the penalties paid by the Gazprom Group amounted to RUB 14.63 million, including RUB 2.25 million paid for the breaches identified in the previous years.
Environmental penalties paid by the Gazprom Group (excluding joint operations) in the Russian Federation, 2016–2019, RUB million
Gazprom Group’s Spending on Environmental Protection in 2019
In 2019, the Gazprom Group’s environmental protection expenditures totalled RUB 53.22 billion, down 22.8% versus 2018.
Gazprom Group’s environmental protection expenditures, 2016–2019, RUB million
|Investments in capital assets aimed at environmental protection and rational use of natural resources||22,542||35,585||29,189||20,421|
|Current environmental protection expenditures||34,103||34,468||39,154||32,180|
|Negative environmental impact fees||825||768||616||618|
|Total environmental protection expenditures across the Gazprom Group||57,470||70,820||68,959||53,219|
The decrease in the Gazprom Group’s investments in capital assets aimed at environmental protection and rational use of natural resources as compared to 2018 is attributable to the completion of a number of investment projects by the Gazprom Neft Group.
In 2019, the Gazprom Group’s current environmental protection expenditures declined by 17.8% versus 2018 due to a change in the cost accounting methodology at Gazprom Neftekhim Salavat. In general, the reduction in the expenditures did not have a negative impact on the implementation of environmental protection activities.
Gazprom has seen its negative environmental impact fees go down in recent years. This was mainly driven by lower pollutant emissions from APG flaring at the Gazprom Neft fields, elimination of mark-up factors, and offset of previous excessive payments.
For more details on the environmental protection expenditures breakdown see Page 16–19, PJSC Gazprom Environmental Report 2019