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Management system

In LUKOIL Group the corporate Integrated System of Management of Industrial, Fire, Radiation Safety, Emergency Prevention and Liquidation, the Protection of Civilians, Occupational Safety and Environmental Protection (hereinafter, the HSE Management System) is in effect, and forms an essential part of the general management system. An integrated approach to HSE management has been developing on a voluntary basis since the mid-1990s.

To develop the HSE Management System, the Company has in place the Health, Safety, and Environmental Committee of PJSC LUKOIL. The Committee reviews relevant HSE matters, including HSE Policy development, measures for material HSE risks and environmental matters management, proposals for motivating the Group entities’ employees to comply with HSE requirements (including through KPIs), HSE compliance performance, and HSE activities performance analysis, as well as responses to regulatory and other changes. The Committee also prepares proposals to the Company’s governance bodies for approving key HSE documents, such as the Health, Safety and Environment Policy Implemented by LUKOIL Group in the Twenty-First Century, targeted segment-specific functional programs, and the Company’s local regulations.  Targeted programs performance is reviewed annually at the Management Committee meeting. PJSC LUKOIL’s Board of Directors also annually reviews issues on the Company’s HSE status and measures to improve occupational safety, and makes decisions on the priority areas for improving the HSE Management System.

Targeted functional programs

In accordance with the corporate requirements for planning HSE activities, LUKOIL Group annually creates threeyear medium-term targeted functional programs on a sliding basis in the sphere of environmental and industrial safety, which form an integral part of the Budget and Investment Program. As a part of the planning, program parameters are determined for one year and benchmarks for two years.

The implementation of environmental and industrial safety programs for 2018–2020 have facilitated a reduction in negative environmental impacts and improved industrial safety and occupational safety performance.

Following the implementation of environmental safety program activities, environmental performance improved in 2018, including in terms of reducing pollutant emissions into the atmosphere and reducing water consumption from above-ground sources in the electrical energy sector.

The updated Environmental Safety Program for 2019–2021comprises over 900 measures, with a total cost of around RUB 106.5 billion (RUB 89.1 billion in investments; RUB 17.4 billion in operating expenses). 45 Russian and foreign LUKOIL Group entities participate in the program.