Gazprom Neft is a vertically integrated oil company, an important part of Russia’s energy industry and a significant player in the global energy market.
of proved hydrocarbon reserves 34% year-on-year
of hydrocarbon production Flat year-on-year
of refining throughput 2.6% year-on-year
Amid the COVID-19 pandemic, Gazprom Neft ensured the continuity of all operational processes. Its flexibility, human focus, new organisational approaches and active process digitisation helped the comapny protect the health of its employees across company offices and sites.
A company committed to sustainable development
Gazprom Neft is consistently integrating sustainability into its strategy and operations. The goal of the Gazprom Neft Strategy to 2030 is to become a benchmark for global industry peers in terms of efficiency, safety and technological advancement.
We produce resources for the future, enriching the world with the energy, knowledge, and technology to advance.
The company generates economic and social benefits for a wide range of stakeholders, and makes a significant contribution to the economic development and improvement in the standard of living for people in Russia and abroad. In catering for the needs of society, Gazprom Neft assesses and seeks to minimise any current and future negative impact from its operations on the social and economic environment and on ecosystems.
We create new areas of growth in the regions in which we operate, and boost the quality of their development.
Sustainability values have become an integral part of the company’s corporate culture. The Gazprom Neft Corporate Code of Conduct, which is based on its Mission, Vision and Values, outlines the priorities for ethical and responsible business conduct.
We think in terms of responsible ownership and careful management of our resources.
Key practices adopted by the company
Target Zero strategic priority: zero harm to people, the environment, or property in our operations
Safety Framework, based on key risks and safety barriers
Development of a safety culture
Digital platform for operational risk management
Environmental management system
Biodiversity conservation programme
Greenhouse gas emissions accounting and monitoring
Increasing utilisation of associated petroleum gas (APG)
A single incentive model for employees
Partnership with trade unions
Training, leadership and career development programmes
Integrated quality management system
Comprehensive quality control solution (SMOTR)
Gazprom Neft Neftekontrol digital system
Integrated Customer Support Centre (ICSC)
The Quality 360˚ integrated programme to engage with retail customers
Well-being of local communities
Home Towns social investment programme
Support for health workers and volunteers amid the COVID-19 pandemic
Support for the indigenous minorities of the Russian Far North
Import substitution and local sourcing programmes
A corporate governance system comprised of the core elements intrinsic to public companies with good governance practices
Compliance with legal requirements and the Listing Rules of PJSC Moscow Exchange
Distribution of roles in managing sustainability and related risks among the company’s governing bodies
Adoption of safety and performance enhancing solutions
Digitisation of core operating processes
Systemic management through innovation centres
Active development of import substitution
Supporting initiatives and membership of associations
Gazprom Neft recognises the special role of business in sustainable development. The company contributes to a sustainable future by joining efforts with the public, government, partners and other stakeholders.
Gazprom Neft is a signatory to the UN Global Compact supporting the UN Sustainability Development Goals (UN SDGs)
The company supports the implementation of the Paris Agreement and the Concept to Form the System of Monitoring, Reporting and Verifying Greenhouse Gas Emission Volumes in Russia
Gazprom Neft participates in the Carbon Disclosure Project (CDP)
Gazprom Neft has joined the Anti-Corruption Charter of Russian Business
Gazprom Neft and WWF have signed a Memorandum of Understanding
The company has joined and actively supports the Scientific and Technical Council of the Russian Federal Service for Supervision of Natural Resources (Rosprirodnadzor)
The company’s approach to sustainability and corporate social responsibility is based on ISO 26000 (Guidance on social responsibility)
Gazprom Neft continues its engagements with RSPP and other NGOs
Creating value for stakeholders
Gazprom Neft’s business is driven by its corporate mission and an understanding of its responsibility to current and future generations.
Company strategy and sustainable development
Why ESG is growing in importance
Society’s demand for businesses to be socially responsible continues to grow. Companies around the world are required to comply with an increasing number of requirements and guidelines from regulators to be environmentally and socially responsible An increasing number of international institutional investors are applying responsible-investment principles and promoting the ESG agenda through participation in various initiatives (PRI,PRI — Principles for Responsible Investment IIGCC,IIGCC — The Institutional Investors Group on Climate Change. ClimateAction100+, etc.)
The COVID-19 pandemic has reaffirmed the need to join forces to support sustainability. Protecting the health of employees and customers has become more important for companies. The crisis caused by the pandemic has had an impact on corporate margins, with companies forced to optimise their costs or rethink their business models. Human rights topics such as equal access to healthcare, food, water, sanitation, work, education and entertainment have grown more important while climate change challenges remain crucial.
Regulation and climate agenda
The lower global energy consumption in 2020 is estimated to have reduced anthropogenic greenhouse gas emissions by 5%—7%. This offers an opportunity to get closer to the emission curve envisioned by the Paris Agreement, provided that other countries also make sustained efforts.
Renewable energy and transport development
Despite the challenging environment in 2020, global investments in renewable energy remained flat at $300 billion, as in the past few years. In 2020, more solar and wind capacity was added in absolute terms, with per-unit costs gradually decreasing. Major new wind energy projects in Europe supported these figures amid sharply falling investments in the USA and China, the latter remaining the undisputed leader in renewable capacity additions.
The total size of the global low-carbon energy market, by some estimates, reached an all-time high of $500 billion, spearheaded by the growth in electric vehicles (EV).
Gazprom Neft’s Development Strategy to 2030 provides for a scenario-based approach that takes into account uncertainties around the future of global energy. The company assesses the resilience of its project portfolio under various scenarios and regularly updates its structure.
The company uses alternative energy development scenarios:
In the Volatility scenario, oil glut and shortages alternate, leading to large swings in oil prices. The saturation of vehicle markets, competition between fuel types and improved fuel efficiency are leading to a gradual slowdown in oil demand growth.
The Expansion scenario assumes a rapid global economic growth driven by the consumer goods sector. The growing demand for energy cannot be fully covered by renewables or offset by energy efficiency initiatives, which warrants a sustained increase in the consumption of conventional energy resources. Strong demand for oil will support consistently high prices and, accordingly, will make developing hard-to-recover reserves more viable.
The New World scenario assumes a fast-track global transition to lowcarbon and renewable energy, with peak oil consumption reached in this decade and oil prices declining over a long period of time.
Key sustainability priorities
The company’s key sustainability priorities include ensuring maximum operational safety, reducing the environmental footprint, developing employees and fostering regional development while catering for the interests of stakeholders.
The UN SDGs guide governments, business communities and other stakeholders in advancing a sustainable development agenda. Gazprom Neft embraces the UN SDGs and strives to contribute to their achievements. The company’s activities contribute to all 17 UN SDGs, with Gazprom Neft capable of having a direct positive impact on some of them, or mitigating its negative impacts on others, given the nature of its business.
UN SDGs prioritised by the company:
In developing its HSE practices, Gazprom Neft is focused on reducing work-related injury, occupational disease and industrial accident rates and minimising its negative environmental impacts.
The company provides access to energy for consumers in Russia and in other countries, with a focus on driving energy efficiency across key business areas while maintaining reliability, safety and performance achieved through technology innovation. The company builds up renewable generation capacity at assets where it brings economic and environmental benefits.
Gazprom Neft is fostering a unique corporate environment and culture in which employees can unlock their full individual potential through working towards common goals. The company seeks to create a working environment free from bullying and harassment, and prohibits discrimination on the grounds of ethnicity, gender, age, background and so forth.
Gazprom Neft embraces the goals of the Paris Agreement that supports action against climate change. The company acknowledges that if no decisive action is taken today, then dealing with the consequences of climate change will require significantly more effort and costs in future.
Gazprom Neft has made remarkable progress in the last 25 years, and is now a major player in the global oil and gas sector. Adopted in 2018, the key objective of the company’s new Development Strategy to 2030 (Strategy 2030) is to build a next-generation company and to become a benchmark for both Russian and international industry peers.