Sustainable development is development that satisfies the needs of the present without compromising the ability of future generations to meet their own needs.
The Gazprom Group’sA group of companies consisting of PJSC Gazprom (parent company) and its subsidiaries. For more details on PJSC Gazprom and its subsidiaries, see Appendix 7 Sustainability Report 2021 (the Report) highlights the Gazprom Group’s contribution to the country’s economic development, well-being of employees and the general population, environmental protection, and climate protection.
This Report has been prepared in accordance with the Global Reporting Initiative Standards (GRI Standards): Core option.
The Report for the year 2021 is the tenth Sustainability Report of the Gazprom Group. The previous Report was published in June 2021.
|Report name||Gazprom Group’s Sustainability Report 2021|
|Reporting period||From January 1 to December 31, 2021 (calendar year)|
|Reporting standards, indicators, principles|
|Independent professional auditor’s assurance||FBK, LLC|
|Public endorsement||Council on Non-Financial Statements of the Russian Union of Industrialists and Entrepreneurs (RUIE)|
|Public consultations||Stakeholder representatives|
Gazprom has been publishing Sustainability Reports since 2008. Starting from 2017, the reports undergo assurance for compliance with the GRI Standards: Core option.
The Reports also disclose:
- RUIE performance indicators;
- United Nations Conference on Trade and Development (UNCTAD) indicators for entity reporting on contribution towards implementation of the UN Sustainable Development Goals.
The following documents are taken into account when preparing the disclosure:
- The Principles of the United Nations Global Compact;
- AA1000 Accountability Principles (AA1000AP, 2018) and AA1000 Stakeholder Engagement Standard (AA1000SES, 2015);
- recommendations and principles of the Task Force on Climate-related Financial Disclosures (TCFD);
- ISO 26000 guidance on social responsibility;
- Carbon Disclosure Project (CDP) documents;
- recommendations of the Bank of Russia on Disclosure by Joint Stock Companies of Non-Financial Information Pertaining to Their Activities;
- PJSC Moscow Exchange’s ESG Best Practice Guide for Issuers.
When preparing Sustainability Reports, Gazprom works in close collaboration with its stakeholders. At the first stage, we conduct a stakeholder survey to identify material topics, followed by public consultations on draft Reports, their independent public assurance at RUIE, and endorsement.
Since 2021, the Gazprom Group’s Sustainability Report has been included in the documents provided to the participants of Gazprom’s annual General Shareholders Meeting.
|Sustainability context||The Report provides information about the Gazprom Group’s production activities and its impact on the national economy, as well as about Gazprom’s environmental and climate protection activities, interaction with employees and local communities, and contribution to the national development goals of the Russian Federation|
|Materiality||The Report covers material topics, issues and indicators related to Gazprom’s economic, environmental, and social impact. The materiality of the information in the Report is determined on the basis of the assessment of Gazprom’s performance in the reporting period by its management, as well as on the basis of stakeholders’ opinion|
|Stakeholder inclusiveness||In line with Gazprom’s consistent approach to stakeholder engagement, the Report covers information that is of relevance to stakeholders|
|Completeness||The Report contains information on all areas of Gazprom’s sustainable development activities in the reporting period in accordance with the GRI Standards and the GRI Oil and Gas Sector Supplement|
|Balance||The Report includes both information on Gazprom’s achievements and references to the areas where certain processes need to be improved|
|Comparability||Gazprom’s economic, environmental, and social performance in the reporting period is compared to that in previous years|
|Accuracy||Gazprom is committed to providing accurate information on its performance results so that they can be objectively assessed by stakeholders. The Report uses both qualitative descriptions and quantitative information|
|Timeliness||The release of the Report is timed with the annual General Shareholders Meeting of PJSC Gazprom, which is in line with best practices and enables stakeholders to receive timely and relevant information on Gazprom’s operations and activities in the reporting period|
|Clarity||The information presented in the Report is clear and easy to understand for a broad audience, with terms and abbreviations explained in the Glossary. To visualize information, various tables, diagrams, charts, and infographics are used in the Report|
|Reliability||The information in the Report is reliable, ascertainable and verifiable|
Regular and timely publication of Sustainability Reports in accordance with the above principles enables Gazprom to:
- confirm the Company’s transparent and comprehensive approach to sustainable development and ESG matters;
- update the disclosed information based on the audience’s needs;
- build stakeholder confidence;
- ensure external evaluation and analysis of material non-financial information (by the investment community, rating agencies, public authorities, etc.);
- increase the Company’s investment appeal.
Report Preparation and Approval
To prepare the Report, the Company set up a Task Force involving members from various structural units and subsidiaries of PJSC Gazprom who coordinate the activities on the focal areas of sustainable development and engage with stakeholder groups. At the end of 2021, to further improve the non-financial reporting framework, the Procedure for Preparation, Publishing and Distribution of the Gazprom Group’s Sustainability Report was updated.
The information included in the Report is confirmed by the heads of dedicated units. The Report is approved by the Chairman of the Management Committee of PJSC Gazprom.
For comparability purposes, the Report shows the majority of key indicators for a three-year period (2019–2021). Disaggregated data provided throughout the Report may not add up precisely to the relevant totals presented in consolidated financial statements and management accounts due to rounding.
The Report includes the information about the Gazprom Group companies in line with the scope of consolidated statements under IFRS 10 Consolidated Financial StatementsNote 35, page 71, unless specified otherwise. Due to the existing differences in data gathering and consolidation, certain groups of disclosures may have their individual boundaries.
Report Publication and Distribution
The Report is publicly available in the Russian and English languages on the Company’s website and is also available in an interactive version. The printed version is distributed to the key stakeholders by direct mail.
Gazprom Group’s Stakeholders
In 2021, the list of Gazprom’s stakeholder groups was updated following public consultations on the 2020 Report and based on the decision by the Task Force for the Report Preparation. The Gazprom Group identifies eleven stakeholder groups:
Following the analysis of feedback from the Company’s stakeholders in 2021, the following key topics were identified: climate change (GHG emissions), social responsibility (extension of the Gazprom Group’s policies to its contractors, engagement with local communities), corporate governance.
Also, in 2021, an online survey of stakeholder groups was conducted with automatic results processing.
The survey covered 1,766 respondents (representatives of ten stakeholder groups with the exception of foreign energy market regulators), who were asked to rank each topic using a three-point importance scale.
The significance of the Gazprom Group’s actual impact within potential material topics was assessed by Task Force members using expert judgements. The activity involved 24 Task Force members.
The survey results and judgements formed the basis for developing a materiality matrix. The topics in the upper right-hand quadrant of the matrix were identified as the priority topics mandatory for disclosure. The threshold value for a topic to be included in this quadrant was 2.4 points.
List of material topics
|No.||Topic||Stakeholder groups with most interest in the topicPrioritized by extent of interest|
|Process safety at the Gazprom Group (GRI 403)||27||4, 9, 6|
|Compliance with social, economic and environmental requirements of the law (GRI 307, GRI 419)||8||7, 10, 9|
|Emissions management at the Gazprom Group (GRI 305)||10||10, 7, 8|
|Gazprom Group’s economic performance (GRI 201, GRI 207)||1||1, 2, 4|
|Respect of human rights (GRI 406)||21||7, 9, 6|
|Waste handling at the Gazprom Group (GRI 306, OG 7)||11||10, 8, 7|
|Social benefits and non-financial motivation of the employees at the Gazprom Group (GRI 401)||19||8, 4, 6|
|Training and education for employees and prospective employees (GRI 404)||18||9, 4, 8|
|Gazprom Group's efforts in replenishment of hydrocarbon reserves2||2||10, 8, 4|
|Equal opportunities for all employees of the Gazprom Group (GRI 405, GRI 406)||20||4, 6, 7|
|Innovations and R&D at the Gazprom Group3||6||10, 8|
|Compliance with anti-trust and monopoly laws (GRI 206)||9||5, 9|
|Gazprom Group’s efforts to maintain acceptable water quality in the Group’s areas of operations (GRI 303)||12||7, 10, 8|
|Energy saving and energy efficiency at the Gazprom Group (GRI 302)||14||7, 8, 6|
|Disturbed land remediation by the Gazprom Group (GRI 304)||15||10, 8, 7|
|Anti-corruption practices at the Gazprom Group (GRI 205)||5||2, 4, 6|
|Gas infrastructure expansion in Russia (GRI 203, GRI 413)||26||7, 8, 6|
|Interaction with local communities in the Gazprom Group’s areas of operations (GRI 413)||22||7, 8, 6|
|Gazprom Group's social projects (GRI 203)||24||8, 6, 9|
|Quality management (GRI 416)||7||7, 9, 2|
|Gazprom Group’s efforts to preserve biodiversity (GRI 304)||13||10, 7|
|Ensuring safer work of suppliers and contractors (GRI 403)||28||6, 7|
|Natural gas vehicle fuel market development||25||10, 8|
1 For more details on the Gazprom Group’s efforts in replenishment of hydrocarbon reserves, see PJSC Gazprom Annual Report 2021.
2 For more details on innovations and R&D, see About the Gazprom Group / Innovations at the Gazprom Group..
|Indigenous peoples in the Gazprom Group’s areas of operations||23|
|Response to COVID-19 pandemic and its consequences||29|
|Freedom of association and collective bargaining||17|
|Gazprom Group’s procurement system and procurement localization||3|
|Gazprom Group’s presence in the labor market and employment impact||16|
|Gazprom Group’s participation in political activities and international initiatives||4|