About the Report

PJSC LUKOIL is pleased to present the ninth Sustainability Report of LUKOIL Group (the "Report"), which reflects the performance results for the period from January 1, 2018 to December 31, 2018.

The previous report was published in July 2018 (for the reporting period from January 1, 2017 to December 31, 2017). The Company received awards for the quality of its nonfinancial reporting in 2018 at the Moscow Exchange's Annual Report Awards in the special category "Best Corporate Social Responsibility and Sustainability Report"; in a competition held by the Russian Ministry of Energy in the category "Best Public Non-Financial Report of a Company in the Oil and Gas Sector with more than 100,000 Employees"; in the Russian Union of Industrialists and Entrepreneurs National Competition "Leaders of Russian Business. Dynamics, Responsibility, Sustainability 2018" in the category "High Quality of Sustainability Reporting"; and in an Environmental Responsibility Rating from the World Wildlife Fund.

Since 2014, LUKOIL Group has been consistently ranked in the top 10 in the "Responsibility and Transparency" and the "Sustainability Vector" indices prepared by the Russian Union of Industrialists and Entrepreneurs (RSPP), based on an analysis of the public reporting of the 100 largest companies in Russia. In April 2019, the Moscow Exchange began the daily calculation and publication of stock exchange indices (the MOEX-RSPP Responsibility and Transparency Index and the MOEX-RSPP Sustainability Vector Index), based on these instruments.

We have been publishing sustainability reports since 2005 . They are addressed to a wide range of stakeholders and seek to provide balanced information that is relevant to the interests of each group. As part of its corporate governance system, the Company pays significant attention to improving its sustainability efforts and to enhancing the quality of the information reported. We believe an important factor in meeting these objectives is the performance of an independent audit of the information disclosed, as well as a public verification of the Report. The audit firm's opinion under a limited assurance engagement with respect to the Report. The conclusions on the public verification of the Report, by the RSPP Non-Financial Reporting Council.

A new stage in the development of non-financial reporting in LUKOIL Group is the integration of goals and objectives presented in the 2030 Agenda for Sustainable Development of the UN (hereinafter, the 2030 SDGs) into the system for analyzing operations and submitting reporting data, as well as a gradual expansion of the reporting scope.

In preparing this Report, we used the following non-financial reporting standards and guidelines:

  • Business Reporting on SDGs
  • the Sustainability Reporting Standards of the Global Reporting Initiative (GRI) ("Core" option). Certain GRI Standard indicators and the table of general and specific standard reporting elements are provided in Appendices 1 and 2
  • the United Nations Global Compact
  • the Social Charter of Russian Business and the Basic Performance Indicators of the Russian Union of Industrialists and Entrepreneurs

We also focused on the following documents:

  • SASB (Sustainability Accounting Standards Board) Reporting Standards, related to determining essential topics for the oil and gas industry
  • IPIECA (International Petroleum Industry Environmental Conservation Association) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting, 2015