I'm interested in

The page will reload with new widgets as you request.

Key Performance Indicators in Sustainable development

Since 2003, LUKOIL has a performance assessment system in place which is based on key performance indicators (KPIs), a set of metrics that illustrate key factors of success for the Group with account of industry-specific aspects and measure to which extent strategic goals have been achieved.  KPIs serve as a key tool for managing the performance of the Company as a whole and its specific assets.

The corporate performance assessment system is governed by the following local regulations:

  • Main Principles for Forming the Corporate Performance Assessment System in the LUKOIL Group, a document which sets out approaches and principles for forming KPIs;  

  • List of Key Performance indicators, a document which sets a list of KPIs broken down by business segments, business sectors and budgeting units of the LUKOIL Group as well as describes the process of their calculation. 

The List of KPIs contains about 60 unique indicators. It is approved by the Board of Directors of PJSC LUKOIL and revised once in two years. The set of KPIs is adjusted and updated as required to reflect changes in strategic goals and plans of the Company, its portfolio of assets and external environment. 

Performance assessment is carried out on a regular basis and includes the following stages:

  • monitoring current performance on a monthly basis;

  • quarterly and annual performance reviews.

Sustainability KPIs are included into the List of Key Performance Indicators that are used in planning, performance management and the personnel motivation system and apply to employees, top managers of PJSC LUKOIL and general directors of LUKOIL Group entities.  

    1. “Ensuring the Required HSE Levels at LUKOIL Group Entities”

To enhance the responsibility for the observance of the health, safety and environment requirements, the list of KPIs of the LUKOIL Group also includes a consolidated HSE indicator. This indicator encompasses the following metrics: 

  • no fatal accidents resulting from the fault of the employer, including accidents involving contractor personnel;

  • lost time accident frequency rate (LTAFR);

  • polluting emissions per unit of production;

  • discharge of polluted waste water per unit of production;

  • ratio of waste recycled to waste generated during the year;

  • compliance of the HSE management system with the requirements of international standards, etc.

Points resulting from assessing the level of health, safety and environment are used in the motivation system for managers of all levels, workers and office employees. 

General directors of LUKOIL Group entities receive their quarterly bonuses only if there were no fatal incidents involving their employees in the reporting quarter. Another important criterion is that there should be no accidents and incidents resulting in a material damage to property or facility downtime for more than 30 days. In case of the above situations, entities of the Group earn the maximum number of penalty points.

The unit weight of this KPI in the system of annual bonuses for managerial staff is 10% on average.


     2. The efficient use of APG

     3. Refinery yield

     4. Energy intensity index EII (Solomon)

     5. The electricity intensity of refining one tonne of basic raw material at entities of the "Petrochemicals" business sector

     6. Specific revenue (labor productivity)

     7. Free cash flow