Involvement of the board of directors and consideration in strategic plans
Despite some uncertainty surrounding climate change issues in Russia, the topic of climate is in high on the agenda of the PJSC LUKOIL Board of Directors and the Strategy, Investment, and Sustainable Development Committee of the Board of Directors of PJSC LUKOIL, which initiates discussing issues related to this subject at Board level and elaborates relevant positions and plans.
At the executive level, the PJSC LUKOIL Management Board and the First Executive Vice President for HSE are involved in discussions of issues related to the climate and greenhouse gas emissions, including as a part of HSE Committee meetings. This topic is also covered in the annual Report to the PJSC LUKOIL Management Board about the state of HSE.
Assessments of climate change risks are taken into account when establishing the Uniform Scenario Conditions (USC) used to develop strategies, evaluate investment projects, and create annual and mid-term plans. A baseline USC scenario provides for the influence of existing national programs adopted under the Paris Agreement on the global balance of the primary consumption of energy resources. In addition, the USCs include a forecast of the cost of CO2 emissions, which is used in strategic planning processes.
A scenario related to the accelerated reduction of hydrocarbon consumption in the transport sector has also been developed, in order to assess corresponding risks and to test the Company's sustainability strategy.