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Voluntary Initiatives

In addition to the compliance with statutory requirements concerning environmental conservation, on its way to social responsibility the Company is also actively involved in voluntary initiatives in this and other areas.
PJSC LUKOIL is a member of the UN Global Compact Russia, the largest international initiative that makes it possible for the companies to make sure their operations and strategies comply with ten common principles in the field of human rights, labor, environment and anti-corruption. Progress reports on implementation of the Global Compact’s ten principles are published as part of the Company’s Reports on Sustainable Development in the Russian Federation.
  • Reports on Sustainable Development
LUKOIL joined the Social Charter of Russian Business that outlines the principles of responsible business practices developed by the business community. The Charter is a platform for the development of corporate policy and practices in line with the sustainable development goals of the businesses based on efficient interaction with the stakeholders, including the shareholders, investors, trade union organizations, authorities, and civil society institutions.
  • Social Charter of Russian Business

One of the objectives of LUKOIL’s HSE Policy in the 21st century is to pursue the “zero discharge” principle in offshore development.

The “zero discharge” technology is part of the environmental safety system applied by the Company in 100% of its projects implemented on the continental shelf (the Barents, Baltic, and Caspian Seas).

LUKOIL’s experience in its efforts to protect the natural environment of the Baltic Sea was taken into consideration by the Baltic Marine Environment Protection Commission (Helcom) as it was developing the Action Plan to protect the environment from the oil platforms operating in the Baltic area. The Action Plan directly states the need for ensuring compliance with the “zero discharge” principle on the part of all countries operating at the Baltic shelf.

The “zero discharge” means that all the operational waste generated at the drilling rig except for water in the power units’ external cooling circuit is taken to onshore facilities where it is treated, neutralized, and recycled. This way the Company rules out marine environment pollution.

It is important that the waste generated during various operational cycles is stored separately, which makes the recycling process simpler and makes it possible to reuse certain components.

  • Zero Discharge Technique

In 2015, following the annual environmental efficiency rating assigned to the Russian oil and gas companies, LUKOIL took the 5th place among 21 oil and gas companies, improving on its previous result by 4 positions (the Company was rated 9th following 2014 rating).

Representatives of the Russian World Wildlife Fund (WWF) and KREON Analytical Group assessed the degree of potential environmental impact by the rating participants.

Environmental efficiency of the fuel and energy companies was assessed against a number of parameters, such as the quality of environmental management, the degree of environmental impact and information disclosure.

In future the Company is also planning to joint the annual environmental efficiency rating.

Since 2014, the Company has been submitting data to the voluntary CDP’s Online Response System. More than 820 institutional investors are involved in this project with the assets totaling USD 95 trillion.

In 2015, following its 2014 performance, the Company submitted an extension disclosure report on greenhouse emissions and related reduction activities as part of the international CDP project (Carbon Discloser Project), which helped improve the final score by 24 points.

Approbatory calculations of greenhouse emissions scheduled for 2016 are expected to provide more details as part of this project on the Company’s performance in 2015.

The new company performance assessment system that CDP is launching in 2016 significantly raises the benchmark and requires the leading companies to not only manage and reduce greenhouse emission, but to make sure such actions comply with the goals and objectives outlined in the Paris Climate Agreement.

The project implies fulfillment of voluntary obligations aimed at office ecology improvement.

Participation in this project makes it possible to cut office maintenance costs, make a considerable contribution to power consumption and green house gas emissions reduction.

The project provides for a number of energy saving measures in the following key areas:

  • electric power (abandonment of glow lamps, application of automated illumination control systems: photo relay, motion sensors, presence sensors);

  • heating (application of a manual or automated heat supply system subject to the presence of employees in office);

  • water (water meters installed, water consumption payments in accordance with their readings);

  • resources (utilization of paper and sanitary products manufactured either fully or partially from secondary raw materials, documents printed on both sides, separate collection of waste at least in three categories: paper, plastic, glass, disposable cutlery abandoned);

  • toxic contamination (no household chemicals containing chlorine and chloroorganics, as well as phosphates and phosphonates, collection and recycling of exhausted office printer cartridges, exhausted office equipment, batteries and accumulators).

The greatest part of the above obligations have been fulfilled in the LUKOIL’s headquarters in Moscow. The remaining recommendations have been implemented partially and will be fully implemented soon.

Since 2002, LUKOIL has been arranging a Social and Cultural Projects Contest in the regions of its presence. Since the very first Contest awards have always been available in the “Environment” nomination. The key goal of the projects in the “Environment” category is to provide environmental enlightenment and to create awareness about the environment. Implemented initiatives include projects aimed at the development of environmental and ethnographic tourism, including creation of environmental paths; projects aimed at support and raising awareness about the problems of nature reserves, publishing environmental coloring books, photo contests dedicated to the nature of the native land and children’s drawing contests, projects for the creation of near-school gardens and greenhouses.
  • More details on the contest

LUKOIL has become the first Russian oil company to have responded to the proposal by the All-Russian Society for Environmental Protection to audit the quality of the automobile fuel sold by the Company’s gas stations for compliance with the requirements of the applicable Technical Regulations.

The All-Russian Society for Environmental Protection conducted its first quality audit at a number of LUKOIL’s gas stations in Chelyabinsk. Based on the findings of a specialized laboratory all the fuel samples were fully Euro-5 compliant. It by far exceeds the requirements of the Technical Regulations providing for manufacturing and marketing of Euro-3 compliant automobile fuel in the Russian Federation starting on January 1, 2013. The LUKOIL’s gas stations that passed the fuel quality audit have been awarded “green” certificates.

  • Green Certificate of Gas Station No. 2
  • Green Certificate of Gas Station No. 7

“We are glad that LUKOIL has promptly responded to our proposal to conduct public environmental audit of the fuel sold at its gas stations. The positive audit results as part of the campaign “Pure Fuel — Clean City” implemented in Chelyabinsk testify to the fact that the Company adopted a responsible attitude to the quality and eco image of its products. I believe that it is an important part of the social responsibility of the business that has been widely discussed,” said Yuri Babak, Deputy Chairman of the Main Board of the All-Russian Society for Environmental Protection.

As reported earlier, on July 1, 2012 all LUKOIL’s Russian refineries started manufacturing Euro 5 compliant AI-92 and AI-95 automobile gasoline. From that point in time, the production of Euro 4 compliant gasoline was discontinued. The first batch of Euro 5 compliant AI-98 gasoline was manufactured by the LUKOIL-Nizhegorodnefteorgsintez refinery in May, 2011.

Thus, LUKOIL is well ahead of the requirements set by the state Technical Regulations in terms of its manufacturing commencement deadline for Euro 5 compliant engine fuels. It became possible due to the active implementation of a large-scale refinery upgrade program by LUKOIL.

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