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Integrated HSE management system

LUKOIL Group has introduced corporate Integrated HSE Management System that is used to manage industrial safety, fire and radiation safety, emergency prevention and response, civil defense, occupational and health safety and environmental protection. An integral part of the Strategic Management System, the HSE Management System was developed upon the Company's initiative on the basis of requirements of the Russian legislation and world's best practices in the middle of 1990-s. The domain of the HSE Management System was defined on the basis of analysis of internal and external drivers that affect the achievement of its targets by the Company.

HSE requirements apply to contractors and subcontractors, too.

Based on laws and regulations of the Russian Federation and countries, where LUKOIL operates, the HSE Management System was certified for compliance with ISO 14001 (Environmental Management System) and ISO 45001 (Occupational Health and Safety Management Systems) standards in 2001 for the first time. LUKOIL Group companies, whose operations are associated with principal health, safety and environmental risks, undergo certification.

  • ISO 14001 certificate
  • ISO 45001 certificate

The Company has adopted Health, Safety and Environment Policy in the 21st Century, approved by PJSC LUKOIL Management Committee.

According to the Policy, the Company has developed and introduced a package of corporate standards for the Industrial Safety, Labor and Environmental Protection Management System.

  • LUKOIL Group Policy for Health, Safety, and Environmental Protection

The HSE management chain binds all LUKOIL Group's structures from PJSC LUKOIL's central office on top down to every production facility within LUKOIL Group.

Every year, PJSC LUKOIL Board of Directors and Management Committee address HSE status, set tasks to improve safety performance and decide on further development of the HSE Management System.

PJSC LUKOIL Management Committee approves annual HSE Reports. Containing data that are essential for LUKOIL Group's strategic development and investment programs, these reports serve as an established form of analysis of HSE performance by the Company's management.

PJSC LUKOIL HSE Committee is a body to develop and submit to corporate management proposals on how approve policies, designated programs and corporate regulations. The Committee meetings address a wide range of issues, related to the management of significant risks, environmental protection, performance against designated programs and changes in legal environment.

An incentive scheme, used to motivate corporate management and staff through key HSE performance indicators, is an important element of the Integrated Management System. LUKOIL's Management Committee establishes these performance indicators for every Group's company, for PJSC LUKOIL and the whole LUKOIL Group annually.

Safe labor conditions, life and health safety of its employees and employees of contractors working on the Company's sites are key priorities for LUKOIL.

The Integrated Management System provides for a unified approach to voluntary third party liability insurance and environmental insurance. The principles of insurance, including catastrophe coverage provisions, are defined by the Insurance Policy of PJSC LUKOIL and LUKOIL Group Companies. All LUKOIL Group companies that operate hazardous production facilities carry third party insurances.

If an emergency or an accident occurs at a hazardous production facility, the Company is committed to be liable for life or health injuries and payments to compensate damage recovery. 

All countries, where LUKOIL Group companies operate, have enshrined employers' liability for life and health safety at working place in laws. Employees who suffer employment injuries, diseases or become disabled because of an occupational accident, are entitled to monetary payments in the amounts, envisaged by insurance agreements and local laws and bylaws.

In most countries, where LUKOIL Group companies operate, employers are obliged to provide individual or group health and life insurance policies. All LUKOIL Group companies operate in full compliance with laws and act consistently in line with the Group's Insurance Protection Program, providing for obligatory insurances and voluntary coverage plans. Apart from obligatory payments, employees may be entitled to lump sum allowances in line with collective bargaining agreements. Terms and amounts of these allowances are defined in negotiations with trade unions and employees. 

The Integrated Management System provides for identification and management of risks and environmental issues. Risk-oriented approach facilitates systemic planning, development and implementation of annually reviewed designated three-year programs that are paired with corporate mid-term planning procedures and approved by PJSC LUKOIL Management Committee. 

Today, the Company is implementing three mid-term designated programs: 

  • LUKOIL Group Industrial Safety, Labor Protection, Emergency Prevention and Response Program for 2019 – 2021 (Industrial Safety Program);

  • LUKOIL Group Environmental Safety Program for 2019 − 2021 (Environmental Safety Program).

Financed from the Company's budget as part of its investment program, all designated programs are aligned with corporate procedures of mid-term planning. PJSC LUKOIL HSE Committee reflects on the progress made within each program and plans measures and events for the future period.

Designated programs are developed for three years and reviewed on an annual basis. 

Committed to maintain and enhance its competitive advantages, the Company plans measures with a focus on integrated and comprehensive approach to the development of LUKOIL Group. Program measures, based on best available technologies and advanced practices, available across oil and gas industry, are meant to 

  • facilitate development of assets and facilities, their technical, technological and management potential;

  • guarantee safety for employees and preserve the quality of the environment in locations where the Company’s facilities operate;

  • maintain and improve LUKOIL Group’s goodwill of a socially responsible business.

Appraisal of the Management System performance is based on the monitoring that incorporates audits, operation control, corporate supervision as well as safety and environmental protection contests. Control checks made as part of internal procedures help appraise how efficient the system itself and communicating of objective and up-to-date data on HSE status to the Company's management are.

Internal and external audits provide the Company with the feedback that helps consistently improve the management system for better compliance with the legislation and corporate standards. For these purposes, the Company develops integrated tools to address violations both at facilities that are audited and at similar assets at once.

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