3. Environmental Protection

PJSC Gazprom’s commitment to the sustainable development principles underlies its long-term strategic goals in environmental protection.

• The Company works continuously to mitigate its negative impact on the environment and takes every step possible to save resources, preserve the climate and conserve biodiversity.
• In its capital investment projects, Gazprom minimizes 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.
• PJSC Gazprom insures itself against environmental risks, prioritizing environmental damage prevention over remediation.
• The Company improves energy efficiency of its production processes and takes measures to reduce greenhouse gas emissions.
• We also respect the interests of indigenous minorities and their right to preserve traditional lifestyles and original living environments.
• PJSC Gazprom promotes environmental awareness among its employees and supports their involvement in the mitigation of environmental risks, continuous improvement of the environmental management system and environmental performance indicators.
• The Company makes its environmental data openly available to every stakeholder.

The Environmental PolicyApproved by resolution of the Management Committee of OJSC Gazprom No. 21 dated May 21, 2015 reflects the current trends in environmental protection, energy efficiency and climate impact mitigation. The document sets forth Gazprom’s key commitments and how they will be met:

• guarantee of environmental safety, in particular, during the development of hydrocarbon fields in the continental shelf and the Arctic Zone of the Russian Federation;
• minimization 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.

The Environmental Management System (EMS) is the mainstay of PJSC Gazprom’s Environmental Policy. The EMS encompasses all management levels ranging from the Company’s Board of Directors to branches and production facilities of its subsidiaries.

As part of the EMS, Gazprom sets corporate environmental targets for a three-year period and carries out environmental protection programs. The commitments made by Gazprom underlie its long-term strategic goals in environmental protection.

The Management Committee of PJSC Gazprom is its supreme governance body for environmental protection management. Members of the Management Committee and executives of structural units of PJSC Gazprom’s Administration sit on the Coordinating Committee for Responsible Use of Natural Resources. The directorate in charge of the Gazprom Group’s comprehensive environmental policy and energy efficiency improvement policy carries out decisions made by the Coordinating Committee and top managers and communicates with PJSC Gazprom’s subsidiaries and entities. PJSC Gazprom’s EMS Improvement Task Force is entrusted with delivering a comprehensive approach to environmental protection problems.

The EMS of PJSC Gazprom is certified for compliance with the requirements of ISO 14001:2015 “Environmental management systems — Requirements with guidance for use”. Based on the recertification audit held in December 2020, the EMS of PJSC Gazprom was certified for compliance with ISO 14001:2015 until December 2023. In 2021, the Company passed a surveillance audit to confirm the EMS compliance with ISO 14001:2015.

The effectiveness of PJSC Gazprom’s Environmental Policy is confirmed by independent public rating agencies.

Gazprom ranks among the leaders of the “Responsibility and Transparency” and “Sustainable Development Vector” indices of RUIE. Its subsidiaries have long topped the Oil and Gas Production and Transportation category of the Fundamental Efficiency Rating compiled by Interfax-ERA for major companies and reflecting their environmental performance and energy efficiency.

PJSC Gazprom moved up two places to 6th in the environmental transparency rating of Russian oil and gas companiesRating by CREON Group and WWF Russia.

In 2021, the Gazprom Group companies were named the best in the Russian oil and gas industry according to CDP’s international rating. Based on the performance indicators disclosed, they were assigned B for Climate Change, while PJSC Gazprom received A in 4 out of 11 categories (Emissions Scope 1 and 2, Management, Emission Reduction Initiatives, and Disclosure of Opportunities). CDP experts once again recognized the fact that Gazprom takes all the possible and coordinated steps to preserve the climate, discloses full and reliable information on climate issues, and works extensively to manage and solve climate-related challenges.

In 2021, PJSC Gazprom continued to persistently reduce its environmental footprint.

The Company made a decision to increase 1.5-fold the number of mobile compressor stations for trunkline repairs. This will prevent up to 80% of to-be-released methane from getting into the atmosphere.

The project titled Technical Solutions for Higher Efficiency of Treatment Facilities won an annual Regional Development: the Best for Russia award. These solutions comprise cultivation and introduction of microorganisms into the sewage treatment tanks to guarantee a thorough and effective cleanup of effluents.

The Gazprom Group invests a lot of effort in raising environmental awareness among its employees, partners, contractors and local communities in the regions where its companies operate.

The Gazprom Group requires that the suppliers and contractors strictly adhere to the established environmental protection standards and procedures when working at Gazprom’s facilities. As part of the bidding and procurement processes, the bidders have to present documents certifying their compliance with relevant requirements. Contractors failing to meet the above criteria are not allowed to take part in the bidding and procurement procedures.

Subsidiaries of PJSC Gazprom have a construction control system in place to monitor that the suppliers and contractors working at the Company’s facilities take measures and fulfill obligations stipulated by PJSC Gazprom’s Environmental Policy and that they meet environmental protection requirements set out in the environmental laws of the Russian Federation.

Risks (threats and opportunities) are identified and assessed in accordance with the requirements set out in the regulatory documents of PJSC Gazprom’s Risk Management and Internal Control System (RMICS).

In 2017, the Company identified key risk categories, one of them being environmental risksOrder of PJSC Gazprom No. 848 dated December 15, 2017 on Approval of Provisional Risk Index of PJSC Gazprom, its Subsidiaries and Entities and Appointment of Risk Owners and Co-owners identified and assessedAccording to the Risk Management Guidelines Based on Qualitative Assessment approved by decree of PJSC Gazprom No. 394 dated November 28, 2017 annually. Results of risk assessments (assessments of threats and opportunities) are disclosed in PJSC Gazprom’s Risk Register and a risk description.

PJSC Gazprom’s EMS assesses the risks for each of the Company’s subsidiaries and production facilities. Mitigation measures are developed when environmental risks are found to be high. These risks are also assessed as part of design and construction of the Company’s facilities. Capital projects are audited by competent organizations and government authorities.

Any existing problems or long-term risks identified are then analyzed at the corporate level, with measures scheduled and taken to mitigate those risks and solve the existing problems.

In accordance with the precautionary principle1 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 a comprehensive environmental impact assessment 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.

Key indicators of the Gazprom Group’s environmental performance in 2021