About the Report

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”, “Gazprom Group entities”, 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.

“Core subsidiaries of PJSC Gazprom” means subsidiaries responsible for the core operations of PJSC Gazprom (gas production, transportation, processing, and underground storage).

Similarly, “Gazprom Neft” means PJSC Gazprom Neft, its subsidiaries and entities, “Gazprom Mezhregiongaz” means Gazprom Mezhregiongaz LLC and its subsidiaries, “Gazprom Energoholding” means Gazprom Energoholding LLC and its subsidiaries, “Gazprom Neftekhim Salavat” means Gazprom Neftekhim Salavat LLC and its subsidiaries, and “Gazprom GNP Holding” means Gazprom GNP Holding LLC and its subsidiaries.

This Report uses lists of Gazprom Group subsidiaries and entities, as well as organizations in which Gazprom has investments classified as joint operations, associates, and joint ventures; these lists are based on the principles of the Gazprom Group’s consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS).

For the purpose of the Process Safety section,

“gas business companies” means gas business companies covered by the ISPSM (Integrated System of Process Safety Management) excluding Gazprom GNP Holding and Gazprom Mezhregiongaz.

Gazprom Neft means the subsidiaries of Gazprom Neft as well as the joint ventures under its operational control in Russia and abroad.

“Gazprom Energoholding” means Gazprom Energoholding LLC, its subsidiaries, and JSC Gazprom Teploenergo (including its subsidiaries), which is under the operational control of Gazprom Energoholding LLC.

For the purpose of the Environmental Protection. Improving Energy Efficiency and Energy Saving section,

“the Gazprom Group’s entities” means PJSC Gazprom (the parent company of the Gazprom Group) and its subsidiaries responsible for the core operations.

Gas business entities include PJSC Gazprom companies and six subsidiaries of PJSC Gazprom, except for Gazprom Energoholding LLC and Gazprom Neftekhim Salavat LLC, whose data are presented within the metrics of Gazprom Energoholding and Gazprom Neftekhim Salavat, respectively.

The environmental impact, ecological, and economic indicators are shown for the Gazprom Group’s operations in Russia. Foreign operations are considered separately.

The Gazprom Group’s Social Impact Report 2024 was prepared taking into account the indicators and metrics presented in the following sources:

National Development Goals

The national development goals of the Russian Federation, approved by Decree No. 309 of the Russian President On the National Development Goals of the Russian Federation through 2030 and for the Future until 2036 dated May 7, 2024

National Project:

The national and federal development projects (programs) of the Russian Federation, approved by Decree No. 309 of the Russian President On the National Development Goals of the Russian Federation Through 2030 and for the Future until 2036 dated May 7, 2024

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)

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)

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

Recommendations for disclosure of non-financial information by PJSC

Key indicators reviewed independently and aligned with the Recommendations on Disclosure by Joint Stock Companies of Non-Financial Information Pertaining to Their Activities

Gazprom’s GHG emissions of PJSC Gazprom

Gazprom’s GHG emissions reviewed by an independent practitioner as per limited assurance request

Overview

Sustainability Reporting

The Gazprom Group’s Social Impact Report (the "Report")Known as the Gazprom Group’s Sustainability Report until 2023. It is published in accordance with the Procedure for Preparation, Publishing and Distribution of the Gazprom Group’s Social Impact Report approved by order of PJSC Gazprom No. 20 dated January 20, 2020 (as amended). 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 2024 Report is the thirteenth sustainability report of the Gazprom Group. The previous Report was published in June 2024.

From 2022, the Gazprom Group’s Social Impact Report has been part of documents provided to the annual General Shareholders Meeting of PJSC Gazprom.

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

To improve the quality of published information and foster stakeholder confidence, our Reports undergo external validationAuditor — FBK LLC. with respect to key sustainability indicators. PJSC Gazprom also secures annual independent assurance for information on greenhouse gas emissions, including methane emissionsAuditor — TSATR — Audit Services LLC. As part of the validation, our auditors conduct audits in line with International Standard on Assurance Engagements (ISAE) 3410: Assurance Engagements on Greenhouse Gas Statements..

Our Reports receive independent public assurance from the Russian Union of Industrialists and Entrepreneurs (RUIE), which evaluates 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 RUIE. of disclosed information. Draft reports are also submitted for Public Consultations.

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.

 

Report name The Gazprom Group’s Social Impact Report 2024
Reporting period From January 1 to December 31, 2024 (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. 309 of the President of the Russian Federation On the National Development Goals of the Russian Federation through 2030 and for the Future until 2036 dated May 7, 2024.

    Goals and key focus areas of sustainable (including green) development of the Russian Federation approved by resolution of the Russian Government No. 1912-r dated July 14, 2021

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

  • 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.

    Recommendations for developing methodology and assigning ESG ratings (sustainability ratings) (Letter of the Bank of Russia No. IN-02-05/46 dated June 30, 2023)

  • For details on independently reviewed key indicators, see the Key Indicators Reviewed Independently appendix.

  • 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.

  • 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 details on compliance, see the Index of the Guidelines of the Russian Ministry of Economic Development for the Preparation of Sustainable Development Reporting appendix.

  • Moscow Exchange’s A Guide for Issuers: How to Comply with Best Sustainability Practicesfs.moex.com/f/21348/mosbirzha-esg2024-rus-book-27.pdf

  • Additional rules, requirements and recommendations for information disclosure by issuers whose shares are included in Level One or TwoApproved by order of Moscow Exchange No. MB-P-2024-3132 dated September 24, 2024.

  • 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.

  • GOST R 71198-2024 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

Independent professional auditor’s assurance

FBK, LLC

For independent practitioner’s limited assurance report on key sustainability indicators disclosed in this Report, see the FBK Report appendix.

TSATR – Audit Services, LLC

For independent practitioner’s limited assurance report on key greenhouse gas emission indicators disclosed in this Report, see the TSATR — Audit Services Report appendix.

Public endorsement

Chairman of the Council on Non-Financial Reporting, Indices and Sustainability Ratings of the RUIE

Public consultations

Representatives of stakeholder groups

For the outcomes of public consultations, see the Opinion Issued Following Public Consultations appendix.

Approach to Presenting Indicators

For comparability purposes, the Report shows the majority of key indicators for a three-year period (2022–2024). 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.

Material Topics

Procedure for Defining Material Topics

The Company has a Task Force for the preparation of the Gazprom Group’s Social Impact ReportIn accordance with the Regulation on Permanent Task Force for Gazprom Group’s Social Impact Report Preparation approved by order of PJSC Gazprom No. 20 dated January 20, 2020 (as amended).. The Task Force is made up of PJSC Gazprom’s various units, subsidiaries and entities 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. Its performance is reviewed by the Chairman of the Management Committee.

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 6,168 stakeholder representatives (11 groups, including foreign regulators of energy markets) and 25 Task Force members.

The respondents were asked 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
  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. The Gazprom Group’s legal compliance (social, economic, environmental and antimonopoly requirements)
5. Health and process safety at the Gazprom Group and its contractors
6. The Gazprom Group’s presence in the labor market and employment impact
7. Training and education for employees and prospective employees at the Gazprom Group
8. Social benefits and non-financial motivation of the employees at the Gazprom Group
9. Innovations in the Gazprom Group
10. Interaction with local communities in the Gazprom Group’s areas of operation
11. The Gazprom Group’s procurement system and procurement localization
12. Anti-corruption practices of the Gazprom Group
13. Quality management at the Gazprom Group
14. Emissions management at the Gazprom Group
15. The Gazprom Group’s efforts to maintain acceptable water quality in regions of operation
16. Equal opportunities for all employees of the Gazprom Group
17. The Gazprom Group’s efforts to preserve biodiversity and land
18. Waste handling at the Gazprom Group
No. (descending priority)For comparability purposes, they were disclosed in the Report.
  Topic
19. The Gazprom Group’s participation in governmental, public, and international initiatives
20. Freedom of association and collective bargaining at the Group