RUEN
2019 Interactive Sustainability Report

Global Business Challenges and New Opportunities

CLIMATE CHANGE PROBLEMS AND WORLD TRENDS IN THE TRANSITION TO A NEW LOW CARBON MODEL OF ECONOMIC DEVELOPMENT

THE COMPANY TAKES INTO ACCOUNT FACTORS AND SCENARIOS RELATED TO THE POTENTIAL INFLUENCE OF THE GOALS OF THE PARIS AGREEMENT ON THE CLIMATE ON THE WORLD BALANCE OF PRIMARY CONSUMPTION OF ENERGY CARRIERS, REDUCING THE REDUCED RANGE

  • Analysis of a complex of factors associated with climate change.
  • Oil and gas reserves and production planning, incl. expected growth in demand for natural gas, oil refining and petrochemicals, electricity production, technological policy, as well as own energy consumption, operational efficiency goals, taking into account the reduction of environmental impact.
  • Calculation of control targets for reducing greenhouse gas emissions over a 5-year period.
DYNAMIC GROWTH OF HIGH-TECH SOLUTIONS IN THE OIL INDUSTRY

CUTTING-EDGE RELIABLE TECHNOLOGICAL BASIS

  • Introduction of advanced technologies.
  • Development of targeted technological solutions for the in- house production, including fields at the late stage of development, on the basis of the corporate scientific base and strategic partnership with the leading centers of the industry, including import-substituting technologies and equipment.
  • Extensive investment in R&D.
VOLATILITY OF MACROECONOMIC PARAMETERS AND WORLD PRICES OF OIL AND OIL PRODUCTS

STRONG FINANCIAL STANDING

  • The Company’s strategy takes into account various scenarios of macroeconomics development; planning is carried out on the basis of the scenario approach.
  • Balanced investment policy and built-in protection against low oil prices.
  • Focus on high operational efficiency and profitability at all business levels.
HIGHLY- COMPETITIVE INDUSTRY ENVIRONMENT

SUSTAINABLE COMPETITIVE POSITION

  • Calibrated production targets based on the analysis of industry factors.
  • Reliable pool of financial and economic sustainability and technological potential.
  • Focus on leadership.
  • Deepening of the Vertical Integration Process.
  • Maximizing the returns on existing assets and increasing margins.
DIGITAL TRANSFORMATION (INDUSTRY 4.0) IN BUSINESS PROCESSES AND PRODUCTION ACTIVITIES

FORMATION OF THE COMPANY’S SINGLE INTEGRATED PLATFORM

  • Integration of digital solutions in management and production activities at all stages of planning, implementation, control, and reporting.
  • Digital modeling of production base and processes.
  • Application of unique information solutions and artificial intelligence in production activities.
INCREASING RESPONSIBILITY FOR CYBER SECURITY

FOLLOWING ADVANCED CYBER-PROTECTION STANDARDS FOR BUSINESS PROCESSES, FINANCIAL OPERATIONS, CORPORATE INFORMATION, PERSONAL DATA

  • Key cyber security initiatives are aimed at protecting all types of assets of the Company.
  • Synergy of digital solutions and security.
  • Integration of information protection processes and tools into ongoing digital transformation strategic initiatives.
  • Analysis and control of the security of the use of advanced technologies.
  • Improving the effectiveness of cyber security features.
  • Control cyber attacks.
GROWING ENVIRONMENTAL AND SOCIAL RESPONSIBILITY

REDUCTION OF ENVIRONMENTAL FOOTPRINT TO THE LEVEL WHERE THERE IS A POTENTIAL FOR SELF-RECOVERY OF ECOSYSTEMS FAVORABLE LIVING CONDITIONS IN THE TERRITORIES OF THE COMPANY’S OPERATION

  • Control over the environmental impact of production activities and environmental safety at an acceptable level.
  • High level of industrial and occupational safety.
  • Target programs and investment in social infrastructure development.
  • Resource saving programs, renewable energy sources.
INCREASE IN REQUIREMENTS TO THE LEVEL OF PROFESSIONAL COMPETENCIES OF AND INCENTIVES FOR PERSONNEL

HIGH LEVEL OF COMPETENCE AND EMPLOYEE ENGAGEMENT

  • Hiring highly-qualified employees.
  • Professional development and personal growth programs for personnel.
  • Corporate University.
  • Decent labor remuneration and social guarantees.
  • Incentive system and KPIs.