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2019 Interactive Sustainability Report

Scope of the reporting

We adhere to the principles of consistency, objectivity, timeliness and completeness of disclosure of information that is significant to our environment and presents the latest data, comparable to previous periods.

Our sustainability reports are addressed to a wide range of stakeholders: shareholders, investors, representatives of state and municipal authorities, employees, partners and clients, public and environmental organizations, scientific and educational institutions, a wide range of Russian and international communities, and the local population. We strive to present information in a balanced manner in accordance with the interests of each group.

In preparing this report, we consider and apply the following standards and guidelines:                                                                                                                                               

  • UN Global Compact Principles;
  • OECD Guidelines for Multinational Enterprises;
  • Compass SDGs;
  • UN Guiding Principles on Business and Human Rights;
  • ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy;
  • ISO 26000 Guidance on Social Responsibility);
  • GRI Standart;
  • АА 1000 (Account Ability);
  • Provisions of the Social Charter of Russian Business;
  • Baseline performance indicators. Recommendations for use in management practice and in corporate non-financial reporting of the Russian Union of Industrialists and Entrepreneurs.
  • Business Reporting on SDGs;

In order to reflect the Company's position on climate and decarbonization-related policies and corporate actions, this report takes into account the following international initiatives and platforms:

  • The Paris Agreement;
  • The global oil and gas industry association for advancing environmental and social performance (IPIECA);
  • The Task Force on Climate-related Financial Disclosures – TCFD.

In preparing the report, elements of the Integrated Reporting Standard of the International Integrated Reporting Council (IIRC) were used, as well as published research and recommendations in the field of corporate reporting.

In accordance with the approaches reflected in the above documents and guidelines, the Company is developing its own system of public reporting indicators.

The list of indicators and the procedure for their disclosure, including the distribution of responsibility, terms and procedure for the formation and disclosure of indicators, are determined by internal local documents. The preparation of public reporting is also reflected in the Company's KPI system.

The key communication of the Report is the formation among stakeholders of the most complete understanding of the Company's activities as a whole, strategic plans and the potential for their implementation, achieved results, as well as measures taken to improve the efficiency of the business model, taking into account aspects of sustainable development.

This Report focuses on the key challenges and opportunities for sustainable development that arise, both in the current period and in the strategic perspective. We assess external risks that can affect the sustainability of the Company and our own impact on the environment.

This sustainability report was generated for the period from January 1 to December 31, 2019, and includes information on the Tatneft Group as a whole. The designations “PJSC TATNEFT”, “TATNEFT Group”, “Group”, “Tatneft”, “Company”, “we” and “our” used in the text of this Report are considered to be equivalent and refer to the TATNEFT Group as a whole , PJSC TATNEFT and / or its subsidiaries, depending on the context.

At the same time, given that the Company joined the UN Global Compact at the end of 2019 and the main actions to integrate the Sustainable Development Goals into business processes were integrated during 2020, this Report includes the facts of the Company's activities that occurred during 2020. In particular, in 2020, priority Sustainable Development Goals, leaders for each Goal were identified and Roadmaps were formed.

Another significant event of 2020, which was included in this Report, was the Company's decision to move to carbon neutrality by 2050 with a phased reduction in greenhouse gas emissions by 10% by 2025 and by 20% by 2030 from the base year 2016.

The Report also includes information on the Company's actions in the context of the COVID-19 pandemic, which is significant in terms of sustainable development.

Report preparation principles

Engagement with stakeholders

In order to match the content of the Report with fair expectations of stakeholders and the fullest disclosure of information on material topics, the Company engages representatives of interested parties in the process of discussing issues related to the preparation of the Report, including the structure of the content and selection of material topics, and the list of performance indicators.

Sustainable development context

When preparing the report, the Company considers the results of its activities in the context of sustainable development, including all significant issues, indicators and initiatives in the field of preserving economic sustainability, improving environmental safety and strengthening social stability in society. It also examines and analyzes aspects of human rights observance, ensuring cybersecurity and the level of combating and preventing corruption.

Materiality

We strive to include in the Report aspects, issues and indicators that are material and significant for stakeholders. When determining the importance of issues, such factors as the strategic goals and objectives of the Company, significant risks and opportunities, industry factors, and the impact of the Company's activities on the environment and social environment are taken into account.

Accuracy

The Company strives to ensure that the information provided in the Report is accurate and detailed enough so that stakeholders can use it to make decisions. The margin of error in the data is minimized. Data are presented using generally accepted international units and calculated using standard coefficients.

Timeliness

The Company understands the need to provide timely information in the Report, therefore, the Report is published annually at the same frequency.

Considering that the Company joined the UN Global Compact in the status of a participant in December 2019, this Report includes, in addition to information for 2019, information on significant events in the implementation of the Sustainable Development Goals during 2020.

Clarity

We make every effort to ensure that the information presented in the Report is clear, understandable and useful for various stakeholders. The report contains a list of abbreviations explaining industry, scientific and technical, technical terms and abbreviations.

Reliability

The information and data disclosed in this Report are based on internal documentation that can be assessed by independent parties. Information that cannot be documented is not included in the Report.

React

In order to ensure a balanced approach in identifying significant topics in the field of sustainable development, as well as identifying areas for improving the efficiency of interaction with stakeholders, the Company forms a Public Council of representatives of stakeholders who are competent and independent in relation to the Company and use a systematic approach. The results of the Company's interaction with stakeholders are reflected in the Report. The Report is drawn up with the direct participation of the Company's Management.

The report is prepared by the Working Group, which includes the responsible managers and specialists of the Company. The procedures for preparing the Report include the formation of internal regulatory documents for the preparation and analysis of information for the Report, interaction with stakeholders and providing feedback on the Report from stakeholders.

We believe that an important condition for the preparation of a high-quality Report is an independent verification of the disclosed information, as well as public assurance of the Report.

We plan to develop and improve the practice of preparing public reporting, also following the evolving international approaches and experience. In particular, it is planned to create an independent expert group - the Public Council, representing stakeholders in the field of the Company's activities as a whole and in achieving the effectiveness of sustainable development.

The Company fully assumes obligations to stakeholders and discloses information on the fulfillment of the obligations assumed by the Company.