When it comes to the carbon intensity of the Exploration and Production business segment, LUKOIL has already established itself as a leading company in this area in the oil and gas sector. To maintain this leading position, we are prepared to take further steps to reduce greenhouse gas emissions, and we have a clear vision on how to achieve this.
We are planning to set long-term goals to reduce greenhouse gas emissions, based on external changes and stakeholder requests. The Company also intends to perform an assessment of the impacts of climate change on its production facilities and infrastructure, especially in the Arctic and the permafrost zone.
The priority is to make changes to the corporate governance system, based on best global practices. LUKOIL already takes into account the climate factor when managing risks. We are also taking steps to provide more complete disclosures on greenhouse gas emissions in our public reporting.
We are reducing carbon dioxide emissions and are seeing a very positive trend vis-à-vis reducing methane emissions, driven mainly by associated petroleum gas utilization and the implementation of the environmental program.
We have experience in implementing projects that are comparable to the practices of leading oil and gas companies, for example, in the area of renewable energy. Such projects are being implemented at the refinery in Volgograd, where a solar power plant has been built. In the future, we plan to roll out this experience across the Group. We also see new lines of business that can be developed, including technologies for absorbing and disposing of carbon dioxide and the construction of pumped-storage facilities, with priority given to projects with the greatest commercial potential.
In our opinion, an important component of low-carbon development is a system of compensatory measures, such as reforestation and forest management projects.
At the same time, there are a number of factors that may affect the future of the oil industry. Thus an ability to adapt to external changes, combined with a flexible strategic approach, are imperative in modern business.