LUKOIL recognizes, respects, and observes human rights and is guided in its activities by the fundamental principles established by the UN Universal Declaration of Human Rights.
The Company's position is presented in the LUKOIL Group Human Rights Policy and is disclosed with respect to the following aspects:
Employment relationship rights;
Safety and health rights;
Freedom of association and collective bargaining rights;
Economic, social and cultural rights;
Local communities and indigenous peoples' rights.
The Policy also defines the Company's obligations, confirming its commitment to the principles of respect for human rights.
The Company's commitments apply to all regions and areas of operation. A human rights risk assessment is included in the overall risk management framework. If human rights violations occur as a result of the Company's and/or its individual representatives' activities, LUKOIL undertakes measures to eliminate the consequences of such violations.
The Company's position on human rights extends to its relations with partners and counterparties. When entering into contractual relations with partners, LUKOIL informs them of the requirements to ethical business conduct and observance of human rights and encourages them to follow these requirements, defining them as a condition for long-term cooperation.
LUKOIL routinely monitors the observance of human rights.
As part of the LUKOIL Group's production activities the Company regularly organizes meetings to discuss human rights issues, such as the right to fair and favorable working conditions and social security rights, etc. Moreover, it arranges sessions with trade union representatives.
Periodically, training or information events are held on the issues of compliance with labor rights, information security, safe behavior in places of mass gathering of people in public. Twice a year, Professional Training Days for managers of LUKOIL Group entities are organized, where the most current issues are discussed.
The Company has a mechanism for filing complaints and proposals, through which users can report, among other things, violations of human rights. All requests are processed by the Business Ethics Commission.
The main monitoring tools include:
corporate audits of HR services to verify compliance with labor laws and corporate requirements (HR audits);
surveys on the moral and psychological environment in labor groups.
Recognizing the right of employees to freedom of association and collective bargaining for the protection of labor rights, LUKOIL has been cooperating on an ongoing basis in the long term with the International Association of Trade Union Organizations of PJSC LUKOIL (IATUO) and IndustriALL Global Union. The exchange of experience helps LUKOIL to implement best practices in complying with labor rights and serves as a platform for social dialogue.
During negotiations with trade unions, the scope of the Company's social commitments, which are set forth in collective agreements, is revised and updated on a regular basis. These collective agreements cover all full-time staff. Moreover, the Russian entities that did not conclude collective agreements are directly covered by the Industry Agreement for Organizations of the Oil and Gas Sectors and the Construction of Oil and Gas Facilities of the Russian Federation
HR audits involve auditing the processes associated with the documentation of labor relations, payroll, the compliance with national labor laws, the Company's regulations, and other requirements covering labor law provisions.
Another objective of the HR audits is to review effective management systems, including those ensuring non-discrimination and compliance by employees with the Code of Business Conduct and Ethics. Based on the results of the audits, the Company develops recommendations for the enhancement of personnel management processes.
Monitoring of psychological context is conducted by regular surveys (no more than once every two years at the same enterprise). The survey diagnoses the level of employee satisfaction with labor conditions and identifies the most significant and most challenging aspects of work according to employees. The survey uses the methodology of the Stockholm School of Economics based on the Employee Satisfaction Index (ESI) model, which is widely used in Europe and in Russia.
The organization of corporate security services activity, including in critical situations, is strictly regulated by internal standards and instructions. Regular briefings are held for security service employees on the procedure for being on duty, interaction with visitors to corporate facilities, and the rules for safe handling of protective equipment. Service employees may only make lawful demands of visitors and address them in a respectful and constructive manner.
LUKOIL shares the principles enshrined in the UN Declaration on the Rights of Indigenous Peoples and the Resolution of the World Conference on Indigenous Peoples, and is committed to ensuring a harmonious balance between the economic activities of LUKOIL Group entities in the territories of indigenous minorities of the North and the latter's interests in preserving their traditional lifestyle and economic activity.
LUKOIL respects the rights of indigenous minorities of the North (IMN) provided for by Russian laws, including the right to use land and other natural resources. The Company fulfills its commitments in relation to IMN in four regions of our operations: the Khanty-Mansi Autonomous Area – Yugra, the Yamal-Nenets Autonomous Area, the Nenets Autonomous Area, and the Krasnoyarsk Territory.
In Russia, subsoil use, including the allocation of land plots in traditional settlement areas and/or areas of economic activity of IMN, is regulated by state authorities (under license agreements or other documents that entitle companies to use such subsoil sites). The terms and conditions of the use of licensed areas, including providing compensation to indigenous communities, are established by federal and regional authorities. Hence, issues related to respect for the rights of indigenous peoples, including resettlement issues, are governed by Russian federal and regional legislation.
Interaction with IMN is carried out within licensing obligations of LUKOIL Group entities, as well as federal and regional programs to support indigenous peoples. LUKOIL regularly contacts with representatives of the indigenous community, takes their opinion into account when planning and implementing exploration and production projects.
The Company strives to avoid involuntary resettlement of subjects of the right of traditional resource use from the territories occupied by them and applies the principle of Free Prior Informed Consent. In order to obtain such a consent, the Company engages representatives of IMN to participate in decision-making on projects that affect their rights at various stages of project implementation: public hearings prior to starting operations (in accordance with the legislation of the Russian Federation), and information events as projects are implemented.
Compensation payments are made annually under licensing obligations, economic agreements with the heads of areas of traditional resource use, and agreements on social and economic development with reindeer farms.
The Company collaborates with indigenous community organizations and supports them through grant financing in the framework of the Competition for Social and Cultural Projects of PJSC LUKOIL.