In 2008, LUKOIL Group performed its regular activities aimed at the ensuring of industrial and environmental safety, prevention of and recovery from emergencies.
Our priorities are defined by the HSE Policy in the 21st century. The document formulates a strategic goal of the Company, i.e. to provide sustainable development by means of a balanced solution of social and economic challenges along with preservation of a positive environment. In order to implement the Policy, a HSE Management System has been elaborated. During supervisory audits, which were carried out in June of 2008, the Company successfully confirmed its compliance with the international standards ISO 14001 and OHSAS 18001.
Environmental protection activities of LUKOIL were highly appraised by the Russian Federation Ministry of Natural Resources and Environment. LUKOIL received two Ministerial awards in the nomination The Best Environmental Project of 2008.
The Company also joined the Global Compact, a voluntary UN initiative aimed at better sustainable development and stronger corporate social responsibility.
The Policy implementation mechanism is mainly through mid-term environmental safety programs based on long-term LUKOIL Group Strategic Development Programs.
In 2008, the Company completed the LUKOIL Group 2004—2008 Environment Safety Program. The cost of implementation was RUR 32.2 billion. The Program results show that the objectives set in the Company's Policy have been successfully accomplished. Most of the environmental impact factors were getting better and better over years allowing per unit environmental impact factors of LUKOIL Group companies to be lower compared with Russia's industry average. Detailed information on environmental impact can be found in the LUKOIL 2007—2008 Sustainability Report.
The Company developed and adopted yet another Environment Safety Program, for 2009—2013. The new Program envisages 483 measures, totaling RUR 58.5 billion. In November and December of 2008, the Program draft was presented to governmental and public organizations in the course of public consultations. According to the Program, the Company's commitments are to:
dispose of accumulated and newly generated wastes;
ensure that up to 95% of associated gas is utilized by 2012;
implement Kyoto Protocol mechanisms;
increase production volumes of environment -friendly Euro-4 and Euro-5 fuel;
ensure that environmental impact produced by LUKOIL Group, both in Russia and abroad, is within the standards established by national and international legislations.
The Company shares the global community's position on climate change and keeps looking for ways Kyoto Protocol mechanisms could be applied to the UN Framework Convention on Climate Change. Measures aimed at preventing climate change are reflected in the Company's Policy as a crucial aspect of sustainable development. In 2008, LUKOIL performed an inventory of greenhouse gases emitted by the LUKOIL Group facilities. The Company is now developing three pilot projects to reduce greenhouse emissions.