LUKOIL Group’s strategic goals

Our absolute priorities at all levels of the value chain are issues of industrial, environmental, social, as well as the personal safety of employees of LUKOIL Group entities and improvement of the safety culture in the supply chain.

Our approach to managing sustainability is based on alignment of the Company’s interests and plans with the United Nations sustainable development principles, universal values, global trends, as well as national and regional development priorities.

In 2017, the Board of Directors of PJSC LUKOIL determined four strategic goals of LUKOIL Group in the area of sustainable development that can be aligned with 11 UN Sustainable Development Goals and 15 targets.

We implement many programs and annually disclose their results in public reports. The 2019 results demonstrate that the Company is evolving thanks to continuous improvement of its sustainability performance.

1 INDUSTRIAL AND ENVIRONMENTAL SAFETY, RELIABILITY AND EFFICIENCY OF PROCESSES 2 COMPETITIVENESS 3 SOCIAL RESPONSIBILITY, A WORTHY CONTRIBUTION TO SOCIAL DEVELOPMENT 4 RETURN ON EQUITY, RETURN ON INVESTMENT, AND CONTINUOUS CREATION OF SHAREHOLDER VALUE
STRATEGIC SUSTAINABLE DEVELOPMENT GOALS OF LUKOIL GROUP We are committed to improving industrial safety, reducing on-the-job injury rates, ensuring accident-free operation of our production facilities, and continuously reducing our environmental impacts We are focused on boosting our overall operational performance and achieving more rational use of resources (natural, human, production, and financial) We take a very responsible attitude towards our stakeholders and always take their needs into account. We pursue a responsible social policy towards our employees and make a significant contribution to improving living standards in the regions where we operate We follow a flexible reinvestment policy, work constantly to improve our performance and foster technological development. Thanks to successful implementation of our strategy, we maintain our competitive advantages, create shareholder value, and boost the Company’s investment appeal
SDGs






KPIs The efficient use of APG reachedIndicators dynamics is assessed in relation to 2018, unless otherwise indicated. Comparison with indicators for a longer period is caused by specific indicators. 97.6% throughout LUKOIL Group The lost time accident frequency rate (LTAFR) amounted to 0.19 Refinery yieldThe indicator relates to the processing of raw materials by LUKOIL Group entities at its own refineries (excluding mini-refineries). — 89.4% As compared to 2014Starting from 2014, the list of organizations covered by the study has changed while the scope of the study has remained unchanged., the EII index (Solomon) decreased to 96.5% The energy intensity of refining one tonne of basic raw material at petrochemical plants amounted to 270 kWh/t Specific revenue (labor productivity) amounted to RUB 77 million/person The free cash flow was RUB 702 billion, up 26% on 2018.
UNCTAD INDICATORS The lost time injury frequency rate (LTIFR) stood at 0.13
  • As compared to 2016 (the base year), methane emissions decreased by 46%, and GHG emissions dropped 3.3% across Russian Entities
  • The share of electric power generated from renewable sources in 2017–2019 averaged 6%
  • The share of LUKOIL Group employees covered by collective agreements equaled 88.9%
  • Share of young employees in the total LUKOIL Group employee headcount was 37%
  • The amount of training reached over 258 thousand person-courses
  • External social support contributions in LUKOIL Group were RUB 9 billion
The revenue of LUKOIL Group stood at RUB 7,841 billion
INDICATORS UNDER OTHER REPORTING SYSTEMS
    Russian entities cut their air pollutant emissions by 7.2%
  • The refining depth (the Nelson Index) for LUKOIL Group refineries rose up to 9.1
  • The Information Strategy of LUKOIL Group is being implemented
  • Project teams have been formed
  • Employees of LUKOIL Group received over 300 thousand health-related servicesA service provided to an employee under social programs is the provision of the relevant service at the employee’s request or the provision of an amount of money to pay for the service or compensate for its cost.
  • The share of local managers in foreign entities of LUKOIL Group was 33%The indicator is calculated using the number of senior managers.
  • 785 projects in Russian regions received support
  • The dividends paid on shares amounted to RUB 180.7 billion, a rise of 14.1% on 2018
PLANS
  • Further increase in the APG use
  • Further implementation of industrial and environmental safety programs
  • Further introduction of safety culture tools
  • Development of cooperation with contractors in the area of occupational health and safety
  • Development of further long-term goals to reduce GHG emissions; preparing the inventory of GHG emissions
  • Further implementation of the energy conservation program
  • Further improvement in the efficiency of processing raw materials and modernization of the product mix
  • Further introduction of leadership tools into HR management
  • Implementation of programs to improve operational efficiency, digitalization and investment programs
  • Formation of key management personnel
  • Further implementation of social and economic development programs in regions
  • Implementation of programs to improve operational efficiency, digitalization and investment programs
  • Improvement of corporate governance
REPORTING GUIDELINES GRI
IPIECA
UNCTAD
SASB
RSPP
GRI
IPIECA
UNCTAD
SASB
GRI
IPIECA
UNCTAD
SASB