Certifcation of management systems and polisy

Certification of management systems

The HSE management system has been certified for compliance with the international standards ISO 14001 and OHSAS 18001 since 2001; it is also based on Russian law provisions and the legislation of the countries in which LUKOIL Group operates.

The sphere of certification comprises LUKOIL Group entities in whose operations principal risks in the area of health, safety, and environmental protection from time to time arise.

As of December 31, 2018, certificates issued to PJSC LUKOIL and 48 LUKOIL Group entities were in effect (with total employee coverage of 83%With regard to the foreign entities LUKOIL Uzbekistan Operating Company LLC, ISAB S.r.l., S.C. LUKOIL ENERGY & GAS ROMANIA S.R.L., SIA VARS (VARS) and oil product supply entities. ).

The certification framework is steadily expanding, and foreign LUKOIL Group entities are regularly included in it. For example, from 2019 IOOO LUKOIL-Belarus will be included in the scope of certification.

During the three-year period in which a certificate is issued, an audit of the HSE Management System in LUKOIL Group entities is conducted. Depending on the nature of production, each entity undergoes an audit at least once, while hazardous production facilities and organizations where critical deviations have been established are audited every year or once every two years. In addition to external audits, corporate supervision over compliance between the HSE Management System and the requirements of law and corporate standardsThe requirements for audits are established by the corporate standard STO LUKOIL 1.6.12-2016 "HSE Management System. Procedure for Organizing and Conducting Audits" (Order No. 143 of PJSC LUKOIL dated August 2, 2016). is performed annually.

Number of entities where audits to determine compliance between management systems and the requirements of law and corporate standards were performed
2016 2017 2018
External audits (for compliance with ISO 14001 and OHSAS 18001 standards) 22 20 19
Internal audits (for compliance with corporate requirements) 25 26 27

Note. External audits are conducted within a three-year cycle in accordance with ISO committee recommendations; during this period, all LUKOIL Group entities that have been declared for certification and in which certification or supervisory audits are conducted are audited.

Policy

LUKOIL Group Policy for Health, Safety, and Environmental Protection in the 21st century (hereinafter, the Policy) is in effect at the Company. In 2018, amendments were made to the Policy’s contents, and a new version was approvedBy Resolution No. 9 of the PJSC LUKOIL Management Board, dated May 21, 2018.. The amendments stipulate the Company's obligations vis-à-vis applying risk-oriented approaches, including on climate change issues and preserving biodiversity.