About the Report

The Gazprom Group’s Social Impact Report (the “Report”) is a document that provides a comprehensive overview of the Gazprom Group’s sustainable development policy, key goals and results achieved during the reporting period, as well as details about the Gazprom Group’s contribution to Russia’s social and economic development. Part of the Gazprom Group’s non-financial reporting, the Report is intended for stakeholder groups and reflects their comments and proposals.

The terms “PJSC Gazprom” and the “Company” used in the Report refer to the parent company of the Gazprom Group — Public Joint Stock Company Gazprom (Open Joint Stock Company Gazprom or OJSC Gazprom before July 17, 2015).

For the purpose of this Report, “the Gazprom Group”, “the Group” or “Gazprom” mean PJSC Gazprom and its subsidiaries and entities. Certain indicators also include data from the Gazprom Group’s joint operations, joint ventures, and associated entities.

Similarly, the Gazprom Neft Group and Gazprom Neft mean PJSC Gazprom Neft, its subsidiaries and entities, the Gazprom Mezhregiongaz Group means Gazprom Mezhregiongaz LLC and its subsidiaries, Gazprom Energoholding means Gazprom Energoholding LLC and its subsidiaries, and Gazprom Neftekhim Salavat means Gazprom Neftekhim Salavat LLC and its subsidiaries.

The Gazprom Group’s Social Impact Report 2023 was prepared taking into account the indicators and metrics presented in the following sources:

National projects

Russia’s national development goals and national projects (programs) approved by Decree No. 204 of the President of the Russian Federation On the National Goals and Strategic Objectives of the Russian Federation through 2024 dated May 7, 2018 (as amended) and Decree No. 474 of the President of the Russian Federation On the National Development Goals of the Russian Federation through 2030 dated July 21, 2020

MED

Guidelines of the Ministry of Economic Development of the Russian Federation for the preparation of sustainable development reporting approved by the Ministry’s order No. 764 dated November 1, 2023

BR

The Bank of Russia’s Recommendations on Disclosure by Joint Stock Companies of Non-Financial Information Pertaining to Their Activities (Letter of the Bank of Russia No. IN-06-28/49 dated July 12, 2021)

RUIE

Reference performance indicators of the Russian Union of Industrialists and Entrepreneurs (RUIE)

Gazprom Group Indicators

List of indicators to assess the Gazprom Group’s progress in sustainable development approved by order of PJSC Gazprom No. 354 dated September 21, 2023

For more details and recommendations that have been used in the preparation of this Report, see Appendix.

Overview

The 2023 Report is the twelfth sustainability report of the Gazprom Group.

The previous Report was published in June 2023.

Report name The Gazprom Group’s Social Impact Report 2023
Reporting period From January 1 to December 31, 2023 (calendar year)
Reporting cycle Annual
Main documents used
to prepare the Report
  • Targets adopted as part of Russia’s development goals and national
    projects (programs)Decree No. 474 of the President of the Russian Federation On the National Development Goals of the Russian
    Federation through 2030 dated July 21, 2020.

    For details on the Gazprom Group’s contribution to the national
    development goals of the Russian Federation, see the 1 About
    the Gazprom Group section.

  • Guidelines of the Russian Ministry of Economic Development
    for the preparation of sustainable development reportingOrder of the Ministry of Economic Development No. 764 dated November 1, 2023 On Approval of Guidelines for
    the Preparation of Sustainable Development Reporting.

    For the index of sustainable development standards
    and recommendations, see the interactive version of the Report: www.sustainability.gazpromreport.ru/

  • Recommendations of the Bank of Russia on Disclosure by Joint Stock
    Companies of Non-Financial Information Pertaining to Their ActivitiesLetter of the Bank of Russia No. IN-06-28/49 dated July 12, 2021.

    For details on independently reviewed key indicators, seeАppendix.

  • Bank of Russia’s recommendations for boards of directors of public joint
    stock companies to take into account ESG and sustainable development
    factorsLetter of the Bank of Russia No. IN-06-28/96 dated December 16, 2021.

    The Bank of Russia’s Recommendations for Boards of Directors of
    Public Joint Stock Companies to Take into Account ESG and Sustainable
    Development Factors (Letter of the Bank of Russia No. IN-06-28/96 dated
    December 16, 2021) https://www.cbr.ru/Crosscut/LawActs/File/5757

  • Reference performance indicators of the Council on Non-Financial
    Statements of the Russian Union of Industrialists and Entrepreneurs
    (RUIE)Base performance indicators. Recommendations for application in corporate governance and corporate nonfinancial reporting / F. Prokopov, E. Feoktistova et al.; under the general editorship of A. Shokhin. — M.: RUIE,
    2008. — 68 pages.

    For the index of sustainable development standards
    and recommendations, see the interactive version of the Report: www.sustainability.gazpromreport.ru/

  • Moscow Exchange’s ESG Best Practice Guide for Issuersfs.moex.com/f/16010/mosbirzha-esg-rus-book-1012.pdf
  • GOST R ISO 26000-2012 Guidance on Social ResponsibilityApproved and put into effect by order of the Governmental Agency for Technical Regulation and Metrology
    (Rosstandart) No. 1611-st dated November 29, 2012.

    For details on the self-assessment of the Gazprom Group’s compliance
    with recommendations of GOST R ISO 26000-2012 Guidance on Social
    Responsibility in relation to the Report, see the interactive version
    of the Report: www.sustainability.gazpromreport.ru/

  • GOST R 71198-2023 Business Reputation Index of Business Entities (EPS
    rating)Approved and put into effect by order of the Governmental Agency for Technical Regulation and Metrology
    (Rosstandart) No. 1765-st dated December 29, 2023.
  • International standards recommended by national regulators, including
    the Global Reporting Initiative’s Universal Standards for Sustainability
    Reporting, the Global Reporting Initiative’s Oil and Gas Sector Standard
    for Sustainability Reporting, UNCTAD, the standards of the Sustainability
    Reporting Standards Board

    For the index of sustainable development standards
    and recommendations, see the interactive version of the Report: www.sustainability.gazpromreport.ru/

Independent
professional auditor’s
assurance
FBK, LLC
Public assurance

Council on Non-Financial Reporting of the RUIE, ESG indices,
and sustainability ratings

For the Report on compliance with RUIE recommendations, see
the interactive version of the Report: www.sustainability.gazpromreport.ru/

Public consultations

Representatives of stakeholder groups

During the preparation of the 2023 Report, remote public consultations
were held to make sure that the information disclosed is relevant
for stakeholders. A total of 11 representatives of stakeholders took part
in the consultations.

For the outcomes of public consultations, see Appendix.

Sustainability Reporting

Since 2021, the Gazprom Group’s Social Impact Report (the “Report”) has been part of documents reviewed by the annual General Shareholders Meeting of PJSC Gazprom (Sustainability Report until 2022).

PJSC Gazprom has in place the Task Force for the Preparation of the Gazprom Group’s Social Impact Report, whose performance is reviewed by the Chairman of the Management Committee.

The Report is approved by relevant units and the Chairman of PJSC Gazprom’s Management Committee and then reviewed by the Sustainable Development Committee of the Board of Directors and then by the Board of Directors.

In order to improve the quality of published information and stakeholder confidence, the Reports undergo external validationAudited by FBK. with respect to key sustainability indicators, as well as independent public assurance by the RUIE to assess the completenessCompleteness means the coverage of all operations of the Gazprom Group by the Report, including values, strategic benchmarks, governance frameworks, key achievements, and stakeholder engagement framework. and relevanceRelevance means disclosure of information on the Gazprom Group’s implementation of the principles of responsible business practices that are enshrined in the Social Charter of Russian Business adopted by the Russian Union of Industrialists and Entrepreneurs. of the disclosed information.

Regular and timely publication of Reports enables the Gazprom Group to:

  • confirm the Company’s transparent and comprehensive approach in the area of social responsibility, environmental protection and corporate governance;
  • update the disclosed information based on the audience’s needs;
  • build stakeholder confidence;
  • ensure external evaluation and analysis of material non-financial information (in particular by government agencies, investment community, rating agencies, and media);
  • increase the Group’s appeal as a responsible employer, user of natural resources, partner and taxpayer.

Approach to Presenting Indicators

For comparability purposes, the Report shows the majority of key indicators for a three-year period (2021–2023). Disaggregated data provided throughout the Report may not add up precisely to the relevant totals presented in other reports due to rounding.

Report Publication and Distribution

The Report is publicly available in the Russian and English languages on PJSC Gazprom’s website and is also available in an interactive version. sustainability.gazpromreport.ru

 

Material Topics

Procedure for Defining Material Topics

The Company has a Task Force for the preparation of the Gazprom Group’s Social Impact Report. The Task Force is made up of PJSC Gazprom’s various units and subsidiaries to coordinate activities on focal sustainable development areas and engage with stakeholders. The Task Force works to improve the preparation process and streamline disclosures in the Report.

Material topics are those reflecting material impacts the Group has or may have on the economy, environment and local communities.

The material topics were selected in several stages.

  1. Following consultations with experts and PJSC Gazprom performance analysis, the Task Force made a list of the Group’s actual and potential impacts. Due to the considerable number and wide range, the impacts were grouped by topic, which served as a basis to put together a list of potential material topics.
  2. To determine material topics to be disclosed in the Report, the Company staged an online survey covering 3,114 stakeholder representatives (ten groups, excluding foreign regulators of energy markets) and 23 Task Force members.

The respondents were invited to assess the degree of impact for each topic on the scale from 1 to 3 (from less to more significant).

The results were used to compile a ranged list of impacts and corresponding topics. Priority (material) topics were those with an average score of above 2.4.

List of material topics

No. (descending
priority)
Material topic
1. Implementation of gas supply development and gas infrastructure expansion programs in Russian
regions
2. The Gazprom Group’s economic performance
3. The Gazprom Group’s social projects
4. Health and process safety at the Gazprom Group and its contractors
5. Social benefits and non-financial motivation of the employees at the Gazprom Group
6. The Gazprom Group’s presence in the labor market and employment impact
7. The Gazprom Group’s legal compliance (social, economic, environmental and antimonopoly
requirements)
8. Innovations in the Gazprom Group
9. Training and education for employees and prospective employees at the Gazprom Group
10. The Gazprom Group’s procurement system and procurement localization
11. Interaction with local communities in Gazprom Group’s areas of operations
12. Equal opportunities for all employees of the Gazprom Group
13. Quality management at the Gazprom Group
14. The Gazprom Group’s efforts to preserve biodiversity and land
15. Anti-corruption practices of the Gazprom Group
16. The Gazprom Group’s participation in governmental, public, and international initiatives
17. Emissions management at the Gazprom Group
18. The Gazprom Group’s efforts to maintain acceptable water quality in regions of operation

List of topics that did not meet the required threshold

No. (descending
priority)
Topic
19. Waste handling at the Gazprom Group
20. Freedom of association and collective bargaining at the Group