4.1. Environmental Protection and Climate Preservation Management

The well-being of future generations depends on the health of our planet. Gazprom strictly complies with environmental laws and takes measures to minimize adverse environmental impacts and preserve the climate. These activities are carried out in partnership with all stakeholders — public authorities, communities, and employees of the Gazprom Group’s companies.

Documents regulating environmental protection and climate preservation activities:

• Environmental Policy of PJSC Gazprom;Approved by Resolution of the Management Committee of OJSC Gazprom No. 21 dated May 25, 2015.
• Comprehensive Environmental Program of PJSC Gazprom for 2020–2024;
• “Water of Life” Water Resources Utilization System Development Program of PJSC Gazprom for 2016–2020;
• Master Plan for Production and Consumption Waste Management at PJSC Gazprom’s Facilities in Various Regions of Russia;
• Biodiversity Preservation Program Based on the List of Flora and Fauna Species Being Indicators of Marine Ecosystems Stability in the Arctic Zone of the Russian Federation;
• Energy Efficiency and Energy Saving Policy of PJSC Gazprom;Approved by Resolution of the Management Committee of PJSC Gazprom No. 39 dated October 11, 2018.
• Roadmap for GHG Emissions Management at the Gazprom Group’s Companies until 2030.

Environmental protection management at PJSC Gazprom is based on the Environmental Policy that outlines the Company’s commitment to sustainable development. The Environmental Policy sets forth Gazprom’s key obligations along with the implementation mechanisms: to guarantee environmental safety, in particular, during the development of hydrocarbon fields in the continental shelf and the Arctic zone of the Russian Federation, and minimize the risks of adverse environmental impacts, in particular, on highly vulnerable natural environments and the environments that need to be protected and preserved as a matter of crucial importance.

As per the resolution of the Board of Directors, the Environmental Policy of PJSC Gazprom is recommended to be followed by all of the Gazprom Group companies.

The Environmental Management System (EMS) of PJSC Gazprom is the mainstay of the Company’s Environmental Policy. It is designed to set and pursue environmental goals, manage environmental aspects of PJSC Gazprom’s operations, and ensure the fulfillment of the assumed obligations.

The EMS of PJSC Gazprom is certified for compliance with the international standard ISO 14001:2015 “Environmental management systems — Requirements with guidance for use.” Based on the re-certification audit held in December 2020, the EMS of PJSC Gazprom was certified for compliance with the requirements of ISO 14001:2015 until December 2023.

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 37 wholly-owned subsidiaries engaged in core business operations.

Business processes of the subsidiaries included in the EMS scope:

• Natural gas and gas condensate production, including offshore production;
• Gas and gas condensate processing;
• Gas and gas condensate transportation;
• Underground gas storage;
• Exploration;
• Well construction, enhancement and overhaul, including offshore wells;
• Construction and operation of offshore drilling rigs, specialized ships and other watercraft;
• Development and operation of offshore fields, onshore supply bases, and port infrastructure;
• Power and water supply to the Unified Gas Supply System facilities and the operation of UGSS power-generating equipment;
• Management of investment projects to build UGSS facilities.

The environmental management system in place at Gazprom Neft is certified for compliance with ISO 14001:2015, with the certification scope covering the key production assets of Gazprom Neft. Apart from that, 12 subsidiaries of the Gazprom Neft Group have their own compliance certificates.

Environmental protection management at Gazprom Energoholding covers all stages of the production process and relies on the environmental protection functional units. Their work includes overall management, methodological support, prompt communication of changes in environmental legislation, and the analysis of risks associated with such changes to assist with making informed management decisions. They also monitor the negative impact of the Gazprom Group’s power generation operations.

The Coordinating Committee for Environmental Protection of Gazprom Energoholding ensures an integrated approach and coordination of the activities of its subsidiaries and affiliates.Updated Order of Gazprom Energoholding No. 112-GEH dated December 28, 2018.

Gazprom Energoholding arranges regular annual extended off-site meetings for 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 Group’s power generation companies on a cross-company basis enable their experts to assess the organization of environmental protection activities and compliance with environmental legislation at the subsidiaries.

Despite the pandemic, Gazprom Energoholding companies continued to develop regulatory and permitting documentation, performed industrial environmental control and implemented investment initiatives focused on environmental protection. Production control activities were performed on an ongoing basis.

The environmental management system at Gazprom Neftekhim Salavat is fully compliant with ISO 14001:2015, as confirmed by a re-certification audit conducted by SAI GLOBAL in 2020. Based on the audit results, the company’s EMS was certified for compliance with ISO 14001:2015.

The following documents were approved in 2020:

• Environmental Policy of Gazprom Neftekhim Salavat;
• Environmental Targets of Gazprom Neftekhim Salavat.

Overall, 28 subsidiaries and entities of the Gazprom Group have environmental management systems certified for compliance with ISO 14001:2015.

PJSC Gazprom has implemented a single software package encompassing the whole environmental protection process of a vertically integrated company, from collecting and processing production data to generating summary reports submitted to corporate and government systems. The software package has been developed on the basis of the domestic 1C platform as part of IMS development projects covering all core operations of PJSC Gazprom.

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.

Actions focused on achieving the 2020–2022 Corporate Environmental Targets are implemented in accordance with PJSC Gazprom’s Comprehensive Environmental Program for 2020–2024. The Program serves as a medium-term planning tool that streamlines all actions and initiatives aiming to boost the efficiency of environmental management and ensure environmental safety, rational use of natural resources, and energy saving. It takes into account the key provisions of the previously adopted BAT roadmaps of PJSC Gazprom and the Roadmap for GHG Emissions Management at the Gazprom Group Companies until 2030.

In 2019, PJSC Gazprom approved its 2020–2022 Corporate Environmental Targets using the 2018 performance as the baseline. The following environmental aspects were considered relevant and significant: methane emissions during repair works at gas trunklines and nitrogen oxide emissions from compressor stations, wastewater discharges, and waste disposal.

In accordance with the precautionary principle (Principle 15 of the UN Rio Declaration on Environment and Development, 1992), PJSC Gazprom takes steps to minimize potential technogenic impact on the natural environment, especially when it is necessary to preserve rare and endangered species of flora and fauna along with unique natural areas and sites.

As part of investment project development, Gazprom’s experts perform environmental impact assessments and identify the most vulnerable ecosystems. Their findings are used to develop project solutions aimed at preventing the disturbance of natural balance in the course of the construction and operation of Gazprom’s facilities. The Gazprom Group’s companies implement compensatory initiatives to preserve natural ecosystems, including measures to restore fish stocks.

Operational environmental control and monitoring (OECM) is carried out to track various environmental parameters, including the state of flora and fauna. In 2020, over 8,000 of the Gazprom Group’s facilities were subject to environmental control and monitoring. The Gazprom Group spent RUB 2.4 billion on operational environmental monitoring and control in 2020.

In 2017–2020, the Gazprom Group invested a total of RUB 10.3 billion in operational environmental monitoring and control activities.

In 2021, the plan is to allocate over RUB 2.8 billion for operational environmental control (monitoring).

In 2020, state supervisory bodies carried out 531 checks of compliance with environmental requirements by the Gazprom Group’s facilities, including 45 checks of construction projects, and identified 548 breaches, whereas 306 checks showed no breaches of environmental requirements.

Out of 548 breaches identified, 48 breaches (8.8%) were overturned by courts of law, 204 breaches (37.2%) were remedied within the established timeframes, the period for remedying 217 breaches did not expire in the reporting year, 58 breaches are being contested in courts of law, and 21 breaches were not remedied (the period for remedying expired).

272 breaches (50%) did not entail any penalties for legal entities.Non-monetary sanctions refer to instructions of government supervisory agencies, including those that do not entail any fines.

In 2020, the penalties paid by the Gazprom Group amounted to RUB 12.38 million, including RUB 3.63 million paid for the breaches identified in the previous years.

In 2020, the Gazprom Group’s environmental protection expenditures totaled RUB 49.12 billion, down 7.7% versus 2019.

The decrease in the Gazprom Group’s investments in capital assets aimed at environmental protection and rational use of natural resources as compared to 2019 is attributable to the optimization of costs on the construction of a gas turbine power plant and a comprehensive gas treatment unit at Gazprom Neft facilities, and to the actual completion of the gas infrastructure construction project at the Urmano-Archinskaya group of fields.

In 2020, the Gazprom Group’s current environmental protection expenditures increased by 7% versus 2019 due to an increase in the cost of environmental protection services related to safe handling of drilling waste. Also, gas transportation subsidiaries significantly increased their expenditures on environmental protection services related to air protection and climate change prevention as a result of the growing use of mobile compressor stations (MCS) in gas transportation to reduce pollutant emissions into the atmosphere.

Gazprom has been continuously enhancing environmental capabilities of its personnel. Training courses are arranged for managers and specialists, environmental officers, and employees of structural units that are not directly involved in environmental protection. In 2020, Gazprom Corporate Institute and other educational institutions provided training and professional development courses to 7,999 employees of Gazprom (1,927 of them received training in the EMS), including 5,890 employees of PJSC Gazprom and its subsidiaries (1,882 of them received training in the EMS), 885 employees of the Gazprom Neft Group (32 of them received training in the EMS), and 472 employees of Gazprom Energoholding.