RUEN
2019 Interactive Sustainability Report

The Company's position on climate change

The company aims to move towards carbon neutrality by 2050, with a phased reduction in CO2 emissions from 2016 levels.

The Company clearly sees its contribution to sustainable energy future in the context of transition of the global economy to a low-carbon development path associated with climate change and ensuring global economic growth.

The Company shares the global climate change concern and the Caring for Climate Strategic Global Partnership initiative of the UN Global Compact and the secretariat of the Framework Convention on Climate Change (UNFCCC), embodied in the Paris Agreement.

The Company shares the global climate change concern and the Caring for Climate Strategic Global Partnership initiative of the UN Global Compact and the secretariat of the Framework Convention on Climate Change (UNFCCC), embodied in the Paris Agreement.

Given that energy companies generate significant greenhouse gas emissions during their production activities that can affect the climate and create climate risks, as well as an increase in energy demand to achieve and maintain a good quality of life, the Company seeks to contribute to sustainable development and building of innovative energy infrastructure..

«The Company shapes a clear-cut stance in planning its contribution to reducing carbon footprint. We set our goals, monitor and control greenhouse gas emissions on the basis of the international standards, best practice in the industry and ongoing progress. The human factor is crucial as we need to convince our communities that we are in the group of enterprises that will go forward on climate change agenda, because it is a serious responsibility to the public and the future.»

László Gerecs
Member of the Board of Directors of PJSC TATNEFT,
independent director authorized by the Board
of Directors on climate policy of the Company. 
From his report made at the II Science and Innovation
International Forum, Almetyevsk, October 2019

We join the Science Based Targets (SBTi) platform to set scientifically based targets to reduce greenhouse gas emissions.

In the process of building a system of accounting and reporting of greenhouse gas emissions in TATNEFT Group, the Company adheres to the GreenhouseGasProtocol (GHGProtocol) standards and recommendations and aims to ensure disclosure of information regarding climatic aspects in accordance with the recommendations of the Task Force On Climate-Related Financial Disclosures (TCFD) , as well as participate in the authoritative international climate rating Carbon Disclosure Project (CDP). 

In assessing the scopes of greenhouse gas accounting, we consider and intend to expand the application of the World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI) Greenhouse Gas Protocol Corporate Standard for Accounting and Reporting.

The company is implementing comprehensive measures.

As we shape our strategy to move towards low-carbon production and carbon neutrality by 2050 to ensure sustainable development in the long term, we intend to achieve ambitious goals and contribute to the achievement of global goals for decarbonizing the economy. Given that energy companies generate significant greenhouse gas emissions during their production activities that can affect the climate and create climate risks, as well as an increase in energy demand to achieve and maintain a good quality of life, the Company seeks to contribute to sustainable development and building of innovative energy infrastructure.

5%LOWER GREENHOUSE GAS EMISSIONS FROM 2016
96.4%EFFECTIVE APG UTILIZATION RATE
2015SINCE 2015 COMPANY’S GREENHOUSE GAS EMISSIONS ACCOUNTING
~ 3 MLNTONNESCOMPANY PREVENTS AIR EMISSIONS OF NEARLY 3 MLN OF CO2-EQUIVALENT GREENHOUSE GASES PER YEAR THANKS TO HIGH APG UTILIZATION RATE
STRATEGIC GUIDELINES

The Company recognizes the importance of meeting the needs and demand of the public for moving towards cleaner energy and takes into account the fundamental trend of rebalancing of energy mixes towards less carbon-intensive fuels, development of new energy sources to reduce greenhouse gas emissions, as well as a variety of possible long-term scenarios for global energy system transition to decarbonization. Although, the social and economic growth and better quality of life involve higher energy consumption. Being aware that there are a lot of uncertainties in the energy transition consumers are expected to continue using oil and gas for a long time to come. Not all types of economic activity can be easily, quickly, or costeffectively electrified. We see a permanent role of oil and gas in the future along with renewable energy, hydrogen and new technologies. The key task in this direction is to develop our business model, which seeks to minimize and subsequently to zero emissions. These ambitions will be determined by specific goals for the long term with intermediate target values 

CONSUMERS AND PARTNERS

A significant part of emissions associated with the Company activities are emissions from consumers of our products. We will work with our partners, contractors and customers so that they should also take steps to reduce their emissions to achieve the common goal of coming to zero emissions.

GOVERNANCE

Climate change issues are addressed at the strategic level of the Company's management. In September 2019, the Board of Directors adopted a new version of the Climate Change Environmental Policy. At the same time, the Board of Directors appointed a member of the Board of Directors, Independent Director László Gerecs to be responsible for overseeing the Company's climate change activities. In March 2020, the Board of Directors considered the Environmental Program Roadmap with considerations to the climate change to formulate target values for reducing greenhouse gas emissions. The topics of reducing the environmental impact and climate aspects are regularly reviewed by the Board of Directors and the Management Board. The Corporate Governance Committee of the Board of Directors under the leadership of the Chairman of the Committee - General Director of PJSC TATNEFT Nail U. Maganov routinely coordinates shaping of program actions with regard to the TATNEFT Group’s climate change policy and sustainable development.

INTERNATIONAL AND NATIONAL INITIATIVES

The Company is committed to the international initiatives aimed at preventing climate change in accordance with SDG 13 of the UN Global Compact on Climate and related international and national programs. The IPIECA industry standard is being integrated into the Company's activities to improve the sustainable development practice in the oil and gas industry. It is planned to join the Company to the Science Based Targets Project (setting scientifically based goals to reduce greenhouse gas emissions) and a number of other effective platforms.

BUSINESS OPERATIONS

The tasks to reduce greenhouse gas emissions are consistently integrated into business processes. We plan to assess the impact on the environment, including an anthropogenic one, throughout the entire value chain, including logistics and supply. IN 2019, WE LAUNCHED TWO SPECIAL TASK PROJECTS:

  • Implementation of initiatives and actions of the Company on climate aspects. Greenhouse gas management and accounting processes.
  • Analysis and selection of effective methods for reducing emissions, capturing and processing of carbon dioxide. We carry out a detailed inventory of emission sources, analysis and selection of promising methods for reducing emissions, carbon dioxide capture and processing.

The Company intends to develop a product line with lower carbon emissions and to develop renewable energy (clean low-carbon energy generation) and biofuels. In order to improve the climate management system effectiveness, it is planned to integrate the standards, such as ISO14064–1: 2018; ISO 14064–2: 2019; ISO14064-3: 2019. 

INFORMATION DISCLOSURES

The Company discloses financial climate-related information TCFD (Task Force on Climate-related Financial Disclosures) and intends to become one of the CO2 disclosure leaders of the Carbon Disclosure Project (CDP)

REPORTING

Climate information is disclosed in the Annual Reportand Sustainability Report. In 2020, an independent verification of greenhouse gas emissions is planned to be done by international standards.

GREEN TATNEFT BRANDS

High environmental properties of the Company's products, energy efficiency and performance of the production processes and its model of rational consumption of resources that contribute to the continuous reduction of specific greenhouse gas emissions into the atmosphere form a single “green” brand of the Company. All products of the TANECO fuel line such as gasoline of grades AI-92, AI-95, AI-98, AI-100 and diesel fuel comply with the EURO-6 environmental standard and represent a “green” calling card of the Company. In order to create a favorable environment and increase the absorption of greenhouse gases TATNEFT has been implementing a landscaping program since 2000 with more than 10 million seedlings of trees and shrubs planted over this period.

SCIENCE

In order to reduce the negative impact on the environment and climate, increase the sustainability of ecosystems, the Company uses the best available technologies and solutions that have proved their effectiveness. At the same time, innovative methods are being sought. The development of new technologies is provided by the research and development unit of the TATNEFT Group, which interacts with the leading experts and specialists based on TatNIPIneft.

SCIENCE AND INNOVATION INTERNATIONAL FORUM OF THE COMPANY

In October 2019, TATNEFT organized the 2nd Science and Innovation International Forum in Almetyevsk, bringing together distinguished Russian and international experts, representatives of government agencies, and leading industry experts. Opening the plenary session of the Forum, the General Director of TATNEFT Nail U. Maganov noted the importance of contribution of industrial companies and joint efforts in solving the global agenda of reducing the carbon footprint. A panel discussion on Global Decarbonization and Green Technologies was held during the forum.