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Interaction with Stakeholders

PJSC LUKOIL Sustainable Development Concept:

In its activities the Company pursues the sustainable development principles and aims to ensure a good balance between socio-economic and environmental development. The Company's Sustainable Development Concept includes the following:

  • Closer attention to the environmental consequences of major activities, mitigation of environmental impact and negative climatic effects;

  • Introduction of technological, managerial and scientific innovations to business processes;

  • Search for solutions and engineering processes to secure energy and resource saving;

  • Search for alternative energy sources;

  • Production of environmentally-friendly products.

LUKOIL upholds the principles of the Global Compact and of the Social Charter of Russian Business, which is reflected in the Company's activities that contribute to sustainable economic growth and social responsibility enhancement.

Social Responsibility

LUKOIL is a responsible member of the civil society and a bona fide player on the market. While realizing its responsibility towards all the stakeholders in the regions of its presence, the Company pursues a socially responsible policy in the area of environmental protection and environmental management system, handles labor and employment issues, organizes large-scale charitable events and sponsorship campaigns.

LUKOIL develops the Company's responsible business practices in the field of charity, social partnership, environment, and support to indigenous minor nations of the North. 

Sustainable Development Objectives

Sustainable development objectives are integrated into the general business strategy and achieved as part of the target programs and development plans developed for specific business segments. 

While developing and approving plans, budgets and investment programs, the Board of Directors takes into account the objectives outlined in the Environmental Safety Program of the LUKOIL Group Organizations, as well as in the Policy and Functional Strategy for Personnel Management, and in the charity and sponsorship programs. Achievement of strategic objectives is monitored at the strategic and operative levels.

Relations with Stakeholders

Relations with stakeholders is one of the key components of the business process management system.

The key groups of stakeholders are defined in a number of the Company's regulations, including:

  • PJSC LUKOIL Code of Business Conduct;

  • Social Code of PJSC LUKOIL;

  • PJSC LUKOIL Health, Safety, and Environmental Policy in the XXI Century;

  • PJSC LUKOIL Human Resources Management Policy.

Relations with stakeholders are in place at every level of the Company's management; a wide range of mechanisms and forms of cooperation are used; they correspond to the nature of issues and the scope of joint interests. 

Apart from the forms of interaction that are required by the law or market environment, LUKOIL applies various mechanisms to work with this stakeholder group. PJSC LUKOIL has a Policy on Stakeholder Relations in place. It sets out the Company’s commitments with regard to the protection of shareholders’ rights, identification and analysis of challenges, as well as improvement of the existing and development of new forms of interaction. Meetings with shareholders in the regions have become one of the new forms of interaction. The Department of Investor Relations acts as a responsible subdivision.

In 2014, the 2015-2017 Agreement between the Employer and the Trade Union Association was signed. The Company pays special attention to the terms of employment that are fully compliant with the legitimate rights of employees and ensure best practice sharing. Programs that maintain and improve the efficient health and social protection program are under way. Despite the challenging economic environment, the Company was able to avoid mass layoffs. The Company continuously keeps an eye on the efficiency of its incentive program.

The key form of relations at the regional level is socio-economic cooperation agreements (for more details refer to “Interaction with the Regions” page).

LUKOIL cooperates with major Russian and international companies. For example, the Company has a long-term partnership with PJSC Gazprom. The Company’s products are supplied to major mechanical engineering, transportation, and industrial companies in Russia and abroad.

The concept of a Customer-Focused Gas Station was adopted. It is used to implement the mechanisms of customer surveys, and to plan the customer appeal and satisfaction improvement activities.

The Company interacts with a wide range of public, business, and municipal organizations making use of various cooperation frameworks. In addition to the Social and Cultural Projects Competition – a common interaction mechanism in all of the Company's regions of presence – the Company also makes use of other forms. For example, for many years it has been member of the Russian Union of Industrialists and Entrepreneurs and other business associations. LUKOIL also provides assistance to the leading Russian institutions, including the Russian Geographical Society with whom the Company has a cooperation agreement to promote R&D and popularize science.

The Company also acts as a member, host and sponsor of forums, discipline-related and regional conferences, round tables and other events. In particular, LUKOIL is a regular sponsor of major economic forums in Saint Petersburg and Sochi, large-scale sporting events (such as regional and national competitions in different kinds of sport, etc.), theatrical performances, exhibitions, tours, and other important events for the country.

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