Process Safety Management

PJSC Gazprom has in place the ISPSM integrated into its business process management.

The ISPSM is based on a set of standards of the Integrated System of Process Safety Management group and, in particular, STO Gazprom 18000.1-001-2021 Integrated System of Process Safety Management. Key ProvisionsApproved by order of PJSC Gazprom No. 2 dated January 12, 2021.. It is designed for achieving the targets and fulfilling the commitments under the Occupational, Industrial, Fire and Road Safety Policy of PJSC GazpromApproved by order of PJSC Gazprom No. 416 dated September 17, 2019..

The ISPSM complies with GOST R ISO 45001-2020Occupation Health and Safety Management Systems. Requirements with Guidance for Use. national standard. PJSC Gazprom and 63 of its subsidiaries with a total headcount of over 588.5 thousand people passed the certification.

The data is based on the headcount of the gas subsidiaries of the core business, distribution of petroleum products, low-pressure pipeline networks (gas distribution), oil and electric power businesses, including employees dismissed on December 31, 2023.

Internal audits of compliance with legislative and corporate requirements are conducted as part of corporate control over compliance with process safety requirements at the Gazprom Group’s facilities.

Corporate control includes a multi-tier framework consisting of administrative production control over compliance with process safety requirements, corporate inspection control, and ISPSM audits.

Administrative production control over compliance with process safety requirements focuses on preventing potential accidents, as well as conducting self-assessment and evaluation of the activities of structural units and branches to manage process safety risks.

Corporate inspection control is aimed at monitoring compliance with industrial, fire and occupational safety requirements, as well as controlling the remedy of violations identified after inspections by state supervisory authorities.

The ISPSM is audited by PJSC Gazprom's structural unit with authorization in industrial safety. The audit verifies ISPSM performance (effectiveness) in subsidiaries. Heads of PJSC Gazprom's dedicated structural units conduct on-site inspections of core subsidiaries to assess the management of key process safety risks.

In addition, the Gazprom Group is subject to ongoing monitoring by trade unions and occupational safety officers to ensure compliance with process safety requirements.

PJSC Gazprom has approved STO Gazprom 18000.1-002-2020 Integrated System of Process Safety Management. Hazard Identification and Risk Management for Process Safety PurposesApproved by order of PJSC Gazprom No. 37 dated January 30, 2020..

In 2023, the assessment identified no critical risks related to process safety in PJSC Gazprom. The Company identified 21 process safety risks, including seven significant risks:

• the risk of injury in a road accident;
• the risk of injury as a result of exposure to extreme temperatures;
• the risk of hazardous substances release with subsequent fire at HIFs of gas trunklines;
• the risk of injury as a result of falling, collapsing, falling objects, materials, earth;
• the risk of injury to employees exposed to moving, flying or rotating objects and parts;
• the risk of injury to a worker due to a fall at different heights;
• the risk of loss of containment in process equipment and technological devices at HIFs of gas trunklines.

For each risk, the Company developed management measures, response methods, and mitigants.

PJSC Gazprom thoroughly investigates each incident, identifies its causes in due time, and develops recommendations to prevent similar incidents in future. Incident investigation is regulated by laws and STO Gazprom 18000.1-008-2019 Integrated System of Process Safety Management. Analysis of Incident Root Causes. Procedure for Identification and Development of Preventive MeasuresApproved by order of PJSC Gazprom No. 208 dated May 31, 2019 (as amended)..

To investigate an incident, PJSC Gazprom creates a committee to take a record of the circumstances of the incident, collect data about the incident and all the associated events, analyze the available materials and identified causes, and prepare an investigation report. Experts review the submitted materials to assess the completeness and reliability of the collected data, correctness of the analysis and conclusions about the causes of the incident. Upon completion of the investigation, prevention measures are developed and implemented. Employees of PJSC Gazprom's structural units and branches are also informed of the investigation findings.

⁽¹⁾ Approved by order of PJSC Gazprom No. 208 dated May 31, 2019 (as amended).

The Gazprom Group has adopted a procedure for informing each employee about the process safety policy and objectives, as well as about each employee's personal responsibility and contribution to the ISPSM performance and improvement. Employees receive information about the requirements of ISPSM regulations applicable to their activities, learn about the actual and potential consequences of non-compliance. Personnel are made aware of the accident investigation procedure, risks, possible process safety incidents, and the actions to be taken by employees when they occur.

The Group has authorized occupational safety officers representing the interests of employees on process safety issues.

Training of the Gazprom Group personnel in process safety forms the foundation for a safe working environment and preventing accidents. Training and professional development programs have been developed for each employee category at both the Gazprom Group's internal professional training centers and specialized educational organizations.

The Group organizes occupational safety training for personnel at its own educational organizations, including Gazprom Corporate Institute. In the reporting year, the Group's employees received process safety training in 33 programs and 20 e-courses. In 2023, the Institute developed a professional development program for building a system of psychological support for the personnel responsible for process safety. The training is centered around developing the competencies of employees of subsidiaries and entities who provide psychological support to colleagues responsible for process safety. The program is scheduled to start in 2024. In the reporting year, the total number of the Gazprom Group employees who completed training in process safety reached 173,687Data on managers, specialists, and other white-collar staff who completed pre-certification training in industrial safety, occupational health, etc. The number of employees who completed training is stated in man-courses (where one person received training twice, they are counted twice, etc.)..

The Gazprom Group requires contractors to strictly comply with the applicable rules and standards regulated by the corporate document STO Gazprom 18000.2-015-2021 Integrated System of Process Safety Management. Requirements for Process Safety Management System. Procedure for Interacting with Contractors to Ensure Compliance with Process Safety Requirements at PJSC Gazprom’s FacilitiesApproved by PJSC Gazprom’s resolution No. 269 dated June 7, 2021.. This document sets forth requirements for contractors’ process safety management system, interaction procedure, role distribution and areas of responsibility of all parties at construction, reconstruction and repair sites. It provides separate regulations for stages with potentially high risks associated with the presence of hazardous substances at assets under construction.

All contractor agreements for construction, renovation, diagnostics, maintenance, overhaul and current repair of PJSC Gazprom's facilities include mandatory conditions for meeting the requirements of STO Gazprom.

All accidents involving contractors' employees are investigated in accordance with legal requirements. Contractor agreements provide for the analysis of incident causes and development of preventive measuresAccording to STO Gazprom 18000.4-008-2019..

To make interaction with contractors more efficient, PJSC Gazprom appointed Gazprom InvestA wholly owned subsidiary of PJSC Gazprom. as a single technical customer for implementing its investment projects. To ensure the ISPSM operation and improvement and coordinate interaction with contractors on process safety matters, Gazprom Invest established a Process Safety Commission including first-line managers and a representative of employees. The Commission meets at least once in six months.

The Group oversees the implementation of process safety training programs for contractor employees. In the reporting year, more than 110 thousand employees from 37 Gazprom Group’s contractors received process safety training in leadership and behavioral safety audit, process safety culture, risk assessment, VR training in electrical and fire safety, working at heights and hot works. In addition, 7,891 drivers of contractors took the Defensive Driving course.

Suppliers are audited in accordance with STO Gazprom 178-2020 Procedure for Comprehensive Audit of Companies Manufacturing or Planning to Manufacture Products for the Needs of PJSC GazpromApproved by PJSC Gazprom's resolution No. 283 dated August 10, 2020.. Comprehensive audits of suppliers are conducted in three stages: desk audit, on-site audit and drafting of a comprehensive audit report. As part of audits of counterparties' management systems, the Company verifies compliance with process safety requirements stipulated by Gazprom standardsSTO Gazprom 18000 series. and contractual terms and conditions.