LUKOIL STEPS UP IN THE CDP CLIMATE CHANGE RATING
Thursday, December 17, 2020
LUKOIL has stepped up in the CDP (Carbon Disclosure Project) international climate change rating by one notch and entered the C List, which resulted from developing the Company's carbon management system.
In particular, in 2020 LUKOIL carried out inventory emission sources according to GHG Protocol as part of working out further objectives to reduce GHG emissions. This led to expansion of the operational and organizational accounting boundaries of emissions and their more comprehensive estimation. In addition, it was the first time when indirect GHG emissions were calculated (Scope 2 and 3).
As part of enhancement of management system for climate change issues, the Strategy, Investment and Sustainability Committee of the LUKOIL Board of Directors has changed its name and functionality. It was renamed into the Strategy, Investment, Sustainability and Climate Adaptation Committee, with its respective functions and responsibilities added to the updated Regulations on the Committee. Furthermore, a member of the Board of Directors responsible for climate change issues was appointed, and the Health, Safety and Environment Policy of LUKOIL Group in the 21st Century now includes the priority task of minimizing the impact of LUKOIL's operations on the climate.
With over 15 years of successful experience in implementing measures aimed to reduce GHG emissions, LUKOIL is at the forefront among international oil and gas companies with the lowest per unit GHG emissions.
In 2019, direct GHG emissions decreased by 0.9% compared to 2016, despite an increase in hydrocarbon production, mainly due to implementation of programs for rational use of associated petroleum gas. At the same time, methane emissions were halved. Indirect emissions from generation of purchased energy were reduced by 17% thanks to developing in-house generation and implementing energy-saving programs.