Board of Directors

The role of the PJSC LUKOIL Board of Directors (hereinafter, the Board of Directors) in promoting sustainable development is strategic in nature and focuses on LUKOIL Group entities attaining high safety standards as well as an appropriate level of responsibility and ethics. With extensive experience in business and working for public organizations, Board members have expertise in such areas as industrial safety, occupational health and environmental protection, HR management, and risk management.

Each year the Board receives a strategic analysis of key trends in the oil and gas sector, which are associated, among other things, with transformational processes in the global energy sector. For example, in 2017 the report was devoted to boosting energy efficiency in the automotive sector and changes in the electric car fleet.

In 2018, the development outlook for a low-carbon economy was published. Based on a review of the related report, the Board of Directors set the following objectives for 2019:

  • Analyze the Company's operations in terms of climate issues
  • Analyze growth opportunities in the context of transitioning to a low-carbon economy
  • Develop the gas strategy of LUKOIL Group
  • Prepare a renewable energy sources (RES) development program
  • Continue integrating sustainable development issues into the processes of planning and assessing the attainment of results

In 2018, the Board of Directors assessed and approved activities to improve levels of health, safety, and environmental protection as well as measures for their further enhancement, including developing leadership mechanisms, improving the culture of safety and sustainable development, and replicating best practices.

The list of issues considered by the Board in 2018 comprised:

  • Progress on drafting the Sustainability Report of PJSC LUKOIL for 2017
  • The functioning and improvement of the risk management and internal control systems
  • The functional program "Information Strategy of LUKOIL Group"
  • Amending the PJSC LUKOIL Code of Business Conduct and Ethics
  • Occupational health and safety activities and measures to increase workplace safety



Information on the composition and activities of the Board of Directors and its committees in 2018
Indicators Board of Directors of PJSC LUKOIL Strategy and Investment Committee Audit Committee HR and Compensation Committee (HRCC)
Number of members 11
4
3
3
Composition (ratio of independent
/ executive directorsIn accordance with the recommendations of the Corporate Governance Code, executive directors are understood to be not only members of the Management Committee of PJSC LUKOIL, but also individuals that have a contractual relationship with the Company.
)
5/3
+ 3

non-executive directors
2/2
3/0
2/0
+ 1

non-executive director
Gender composition, women
/ men
2/9
1/3
0/3
0/3
Number of meetings 19
(in-person + remote)
6
(in-person, no remote meetings)
9
(in-person+ remote)
6
(in-person+ remote)
Number of sustainability issues considered 9
8
2
5
Attendance at in-person meetings

The Board's committees perform preliminary reviews of issues related to the risks and key sustainability issues that fall within their competence, and also prepare recommendations related to planning activities.