Governance structure

Oversight concerning the setting and meeting of respective aims and objectives is exercised at strategic (the Board of Directors of PJSC LUKOIL, the Management Committee of PJSC LUKOIL, Strategy, Investment, and Sustainability Committee of the Board of Directors of PJSC LUKOILThe Committee was renamed in March 2019 the Strategy, Investment, and Sustainability Committee of the Board of Directors of PJSC LUKOIL (by a decision of the Board of Directors dated March 6, 2019, Minutes No. 4). ) and operational (the Management Committee of PJSC LUKOIL, LUKOIL Group entities) levels.

Sustainability management system structure at PJSC LUKOIL
Management level Sustainability directions
The Board of Directors of PJSC LUKOIL Chairman: Valery Grayfer Issues considered at Board of Director meetings include the following:
  • Monitoring and assessing the results of the Environmental Safety Program and the Industrial Safety, Better Working Environment, Emergency Prevention, and Responses Program of LUKOIL Group Entities
  • Annually reviewing the report "The State of HSE in LUKOIL Group"
  • Reviewing information about major incidents and accidents, their causes, the results of response measures, as well as actions taken to mitigate similar risks in the future
Strategy and Investment Committee of the Board of Directors of PJSC LUKOIL Chairman: Igor Ivanov, independent member of the Board of Directors The committee oversees:
  • Prepares recommendations for the Board of Directors on:
    • activities in the sphere of sustainable development
    • developing and enhancing corporate governance and sustainability systems and practices
    • updating the strategy for environmental and industrial safety and social responsibility
  • Monitors the improvement of the HSE Management System of LUKOIL Group
  • Analyzes the causes behind industrial and environmental accidents, which are then reported to Board of Director members
  • Reviews the Sustainability Report of LUKOIL Group Decision of the Board of Directors, protocol No. 4 dated March 6, 2019.
  • Oversees:
    • progress on activities, projects, and programs in various areas of sustainable development
    • interactions with internal and external stakeholders on sustainable development issues
  • Evaluates the Company's long-term performance
The Audit Committee of the Board of Directors of PJSC LUKOIL Chairman: Viktor Blazheyev, independent member of the Board of Directors The Committee oversees:
  • Processes that ensure the reliable and effective functioning of the risk management and internal control systems
  • Procedures that ensure compliance with legislative requirements, corporate ethical standards, respective rules and procedures, and the requirements of stock markets
  • The functioning of the system to notify potential cases of unfair actions of LUKOIL Group entity employees and third parties, as well as other violations within the Company's operations
HR and Compensation Committee (HRCC) Chairman: Roger Munnings, independent member of the Board of Directors The committee oversees:
  • Prepares proposals for the Board of Directors to develop corporate personnel policy
  • Makes annual assessments of the performance of the Board of Directors and its members
  • Develops and periodically revises the Remuneration Policy for Board of Director members, the Management Committee, and the President of the Company, and also monitors its implementation
The Management Committee of PJSC LUKOIL President and Chairman of the Management Committee: Vagit Alekperov Carries out the management of the Company. Issues considered at Management Committee meetings include the following:
  • The progress and implementation of target programs and development plans, and approving their results
  • Decision-making on strategic HSE issues in LUKOIL Group, determining and approving the policy in this area, and analyzing and enhancing the system's performance
  • Approving the Environmental Safety Program and the Industrial Safety, Better Working Environment, Emergency Prevention, and Responses Program of LUKOIL Group Entities
  • The functioning of the risk management and internal control systems
The Corporate Secretary of PJSC LUKOIL Natalia Podolskaya The Corporate Secretary of PJSC LUKOIL and the Office of the Corporate Secretary:
  • Interacts with the Board of Directors and its committees on sustainable development issues
  • Initiates activities aimed at improving the quality of sustainability management, with a view to their deeper integration into business processes
  • Takes part in coordinating the preparation of sustainability reports
  • Interacts with stakeholders and responds to questions from shareholders and investors about the Company's performance in the sphere of sustainability
The Working Group on the Sustainability Report Head: Yevgeniy Khavkin, member of the Management Committee of PJSC LUKOIL, Vice President and Chief of Staff of PJSC LUKOIL The Working Group on the Sustainability Report:
  • Organizes communications and interactions among PJSC LUKOIL business units whose operations relate to sustainability, and assigns respective tasks to implement changes in management systems for sustainability reporting
  • Organizes and monitors the process of drafting the Sustainability Report
  • Takes measures to improve the system for collecting, preparing, and disclosing reporting information
  • Considers other sustainability related issues
The Health, Safety, and Environment (HSE) Committee of PJSC LUKOIL Chairman: Ravil Maganov, First Executive Vice President of PJSC LUKOIL The Health, Safety, and Environment (HSE) Committee:
  • Develops the HSE Policy and sets objectives, targets, and KPIs for LUKOIL Group entities
  • Analyzes the impact of HSE initiatives
  • Assesses whether LUKOIL Group operations comply with applicable legislative and other HSE requirements
  • Prepares proposals to enhance LUKOIL Group HSE Management System
LUKOIL Group entities
Heads of LUKOIL Group entities Make operational decisions at enterprise level to ensure that industrial safety, environmental protection, and injury rate targets are attained as required. Ensure that the target indicators approved by the Corporate Center are attained.
Heads of dedicated business units Provide leadership on the implementation of strategic and target programs.