According to LUKOIL’s Health, Safety and Environment Policy, environmental protection is one of the Company’s priorities. The integrated management system and the actions taken in 2019 to improve the environment are described in detail in the Safety section.
To enhance our environmental protection management system, LUKOIL systematized biodiversity conservation initiatives in 2019 as part of the expansion of our activities in this area. Criteria and approaches were developed to make our activities more systematic and to obtain more measurable results.
In addition, the Company continued to enhance data preparation methods in line with the GRI Standards, and disclosures are being expanded to better inform stakeholders.
For the first time, this Report includes disclosures on the environmental impacts of the refinery in Italy (ISAB S.r.l.) and oil product supply entities abroad (IOOO LUKOIL Belorussia and LUKOIL-BULGARIA EOOD). As before, the disclosures on the refineries LUKOIL Neftochim Burgas AD (Bulgaria) and PETROTEL-LUKOIL S.A (Romania), as well as the Uzbek production project LUKOIL Uzbekistan Operating Company LLC, data on which are disclosed from 2018, are included.
Most of the budget of the 2019 Environmental Safety Program (RUB 35.9 billion) was spent on measures to increase the sustainable use of associated petroleum gas (around 40% of the costs of the Program) and the reliability of pipeline transport.
Non-standard paymentsNon-standard payments, inter alia, may arise due to delays in obtaining permit documents. in the reporting year accounted for 4% of total penalties based on negative environmental impacts. In 2019, a significant fine of RUB 68.9 million was paid under a lawsuit filed by the Department of the Federal Service for Supervision of Natural Resources Management for the Komi Republic against LUKOIL-Komi for environmental damages.
Note. Data for LUKOIL Group for 2018 are presented in accordance with 2018 reporting boundaries, and for 2019 – in accordance with 2019 reporting boundaries.