2019 Interactive Sustainability Report

Identification of significant themes of the report

The key topic of the report is “Growth strategy. Sustainable Development ”is a reflection of the Company's long-term priorities.

The main approach to the formation of the content of the Company's report is to assess the social significance and complexity of the provision of information.

Determining the materiality of sustainable development, the Company is based primarily on aspects affecting the interests of Tatneft and our environment (stakeholders), as well as influencing the industry, social, environmental and corporate factors in 2019.

Every year we use a structured approach to select topics for the content of the report. This approach is based on interaction with various groups and representatives of stakeholders, which allows us to understand the relevance of the topics on our activities for the environment. We take into account opinions and recommendations to analyze opportunities to improve our plans and improve the effectiveness of outreach programs and investments in sustainable development.

The stakeholder circle includes the Company's shareholders and investors, employees, business partners, customers, suppliers and contractors, local communities, civil society organizations, research and training centers, local social infrastructure organizations and many others.

We collect opinions in a variety of ways, including formal and informal meetings, polls and round tables.

In preparing this report in the context of the COVID - 19 pandemic, we made extensive use of online communication channels when discussing the topic of the report, as well as choosing the topic of our actions for sustainable development.

Online capabilities allowed us to extensively interact with our stakeholders and take into account their views as much as possible in order to ensure a balance, relevance and completeness of disclosure of information material to stakeholders. 

The identified topics were discussed at the level of the Working Group for the preparation of the Report, authorized by the Company's Management to form the content of the Report.

External opinion

This report includes several quotes and comments with opinions on the Company's activities or the overall situation in the industry, as well as on aspects related to the Company's activities. These are the opinions of academics, partners, contractors and consumers, opinion leaders and local communities.

The opinions expressed are personal and do not reflect the views of TATNEFT Company. The authors of these comments do not receive remuneration.

The most significant topics

Sustainable development planning

In order to grow long-term shareholder value and create overall business value, the Company follows the UN Sustainable Development Principles and Goals. This is the most significant and effective corporate initiative that brings together the efforts of states and companies on a global scale.

Developed corporate responsibility from the very beginning of the Company's activity made it possible to create a basis for effective actions in this area. Sustainability planning means assessing risks and opportunities and integrating them into the value chain, from project design and investment program to the full life cycle of a project, products and services.

We integrate ESG factors into our activities at the management decision-making level. We are aware of the importance of ESG aspects to the sustainability of our business model, both strategically and in the current stages of operations.

In a strategic context, sustainable development issues are considered by the Company's Board of Directors, including strategic analysis of key trends in the oil and gas industry and the development of business areas, innovation policy, socially oriented programs, environmental issues, personnel management and other areas that consolidate the stability of the Tatneft Group's development. Direct participation of top management in ensuring internal factors of sustainable development in accordance with the assigned competencies in the areas of activity allows to create an effective corporate governance system ESG aspects. Assessment of the achievement of sustainable development results is provided for by the KPI system.

The Company's attitude to socially responsible investment

Socially Responsible Investment (SOI) is the most important criterion for assessing the responsibility and sustainability of a business. In recent years, SOI has become an integral part of the investment valuation used by the international stock market - ESG indices. The goal of developing socially responsible investment is not only to generate income on investment, but also to create positive social changes, reduce negative impact on the environment, and, in general, comply with best corporate governance practices and ethical standards. Accordingly, the value of sustainable development indices for public companies will grow. The company takes this into account and will expand the boundaries of disclosure of information in the field of sustainable development for a fair assessment of the relevant indices, as well as improve the overall sustainability management system.

The Company's position on the observance of human rights

The company conducts its activities in accordance with generally accepted ethical standards and values, based on the recognition of the importance of respect and observance of the fundamental equal human rights proclaimed by the UN Universal Declaration of Human Rights. As an international company that implements business projects in countries with different political systems and cultural traditions, we take into account national diversity and strive to treat it with care and do not tolerate any form of harassment or discrimination. The Company strives to prevent any adverse impact on human rights associated with its activities, products or services, business relations, as well as with the preservation of the socio-cultural identity of the peoples living in the territory of the TATNEFT Group enterprises.

The Company's position on climate change. Decarbonization targets.

The company shares the concern of all humankind on the issue of climate change. In 2019, TATNEFT Company adopted a new version of the Policy in the field of industrial safety, labor protection and the environment taking into account climate change. This means that the Company ensures the adoption of managerial decisions on the development of the corporate system of accounting and management of greenhouse gas emissions towards their reduction and reduction of the carbon footprint (the aggregate of greenhouse gas emissions produced by the enterprises of the TATNEFT Group, measured in CO2 equivalent). At the same time, the Company considers not only emissions from its own operations, but also emissions from the use of products that are produced and supplied to the market by Tatneft Group enterprises, as well as in the supply chain associated with the activities of Tatneft Group and emissions generated by contractors, working at the facilities of the Company and / or on the projects of the Company.

This area is under close scrutiny by the Board of Directors of the Company, including the appointment of an independent director responsible for climate issues, Mr. Gerecs Laszlo.

In 2020, the Company announced plans to decarbonize by 2050 with a sequential reduction of CO2 emissions by 10% by 2025 and by 20% by 2030.

Currently, the Company is implementing a target project that comprehensively covers the development of a planning management system, accounting and disclosure of information on the climate impact of the TATNEFT Group enterprises. The project takes into account the recommendations for the TCFD, as well as the disclosure of information on greenhouse gas emissions The Carbon Disclosure Project (CDP) and the International Project Science based targets (setting scientifically based goals to reduce greenhouse gas emissions).