Identification of significant themes of the report

The company builds its activities in accordance with generally accepted ethical standards and values, based on the recognition of the importance of respect and observance of the fundamental equal human rights proclaimed by the UN Universal Declaration of Human Rights. As an international company conducting business projects in countries with different political systems and cultural traditions, we take into account national diversity and strive to treat it with care and do not allow any form of harassment or discrimination.

We adhere to the principles in the field of labor relations and environmental protection, enshrined in the conventions of the United Nations and the International Labor Organization (ILO).

The principles of the Company’s business ethics include strict implementation of the law, honest, fair relations with all interested parties, fair competition, transparency in the provision of information. We support the initiatives of the state and society in the field of economic, social and cultural progress.

The company shares global concerns about climate change and recognizes the value of society’s request for a transition to cleaner energy. The company takes into account the possibility of scenarios for the transition of the global energy system to decarbonization and a change in the energy balance towards less carbon-intensive fuels and, in general, to a low-carbon global infrastructure. At the same time, we understand that the demand for energy will continue to grow as a necessary condition for socio-economic progress. This is a double challenge for oil companies to maintain operational efficiency while reducing the carbon footprint and overall environmental impact, opening up new opportunities for the business to move towards high environmental friendliness of production, the development of low-carbon energy sources such as gas, renewable sources, biofuels, planning production of highly efficient environmentally friendly fuels and petrochemical products; development of innovative «green” technologies. The company considers the fundamental trend of transition to a low-carbon economy as a potential for diversification based on innovative development.

The company consistently and comprehensively adheres to initiatives related to climate aspects and the reduction of greenhouse gas emissions, and also takes an active part in the discussion and implementation of measures regarding the regulation of greenhouse gas emissions at the national and international level.

In 2018, in connection with preparations for the ratification of the Paris Agreement by the Russian Federation, the Company increased its focus on climate change. The Company’s approaches to taking into account climatic aspects and risks were formed, which was reflected in the new version of the Company’s Policy in the field of industrial safety, labor protection and the environment taking into account climate change.

The company provides managerial decisions on the development of a corporate system of accounting and management of greenhouse gas emissions in the direction of their reduction and carbon footprint reduction (the aggregate of greenhouse gas emissions produced by Tatneft Group companies that have an environmental impact, measured in CO2 equivalent). At the same time, the Company considers not only emissions from its own operations, but also emissions from the use of products that are produced and delivered to the market by Tatneft Group companies, as well as in the supply chain related to the activities of Tatneft Group and emissions from contractors, working at the facilities of the Company and / or on projects of the Company. Our goal is to reduce emissions below the acceptable level. Emission accounting and reporting are carried out in strict accordance with the methodology established by the regulators.

The company plans targets for reducing total greenhouse gas emissions and takes appropriate measures to meet these targets, including:

• introduction of advanced technologies to reduce emissions and capture emissions into the atmosphere;
• emission reduction;
• improving the efficiency of systems for accounting and control of greenhouse gas emissions;
• search for effective solutions for the safe disposal of greenhouse gases;
• efficient use of associated petroleum gas;
• improving energy efficiency of production operations;
• development of low carbon energy sources such as gas, renewable sources, biofuels;
• production and use of clean fuels.

Currently, the Company plans to set a target level of emission reductions by 2030 and is implementing procedures for calculating targets for a 5-year period.

Currently, the Company is implementing a targeted project that comprehensively covers processes for the development of the planning management system, taking into account and disclosing information on the climate policy of Tatneft. The project takes into account recommendations for the disclosure of financial information related to climate change TCFD, as well as for the disclosure of information on greenhouse gas emissions The Carbon Disclosure Project (CDP) and the International project science-based targets (setting science-based goals for reducing greenhouse gas emissions).

In the field of the environment, the fundamental principles of the Company are the careful and rational use of natural resources, the maximum possible reduction in negative environmental impacts and the provision of ecosystem self-healing potential.

The company implements comprehensive measures to reduce the environmental impact to a level below acceptable standards through the use of innovative technologies and equipment, increasing the effectiveness of monitoring and control systems at all facilities and territories of the Tatneft Group.

Our goal is to ensure continuous improvement of the effectiveness of the integrated management system for industrial and environmental safety, labor protection and the environment. Currently, work is underway to switch to the standard for occupational health and safety management ISO 45001: 2018 and environmental management ISO 14001: 2015. At this stage, in accordance with the requirements of ISO, the fundamental documents have been updated, a standard procedure has been developed for risk management and internal audit of the management system, and a matrix of the main business processes in the field of OSHE. Key targets in the field of industrial safety and labor protection were established and included in the KPI system. The company plans to achieve leadership in the industry in terms of industrial safety and the level of favorable and safe working conditions.

In 2019, a new version of the Company’s Policy in the field of industrial safety, labor protection and the environment taking into account climate change was formed. The policy was reviewed by the Management Board of the Company and recommended for approval by the Board of Directors of PJSC TATNEFT.

The policy applies to PJSC TATNEFT and other organizations of the TATNEFT Group in so far as they do not contradict the laws of the Russian Federation and the national laws of the countries in which the enterprises of the TATNEFT Group operate. The requirements of the Policy become mandatory for execution in subsidiaries and other companies of the Tatneft Group, as well as in the implementation of joint activities on contractual terms after the implementation of the Policy in these companies in accordance with their Charter or in any other manner prescribed by law, taking into account the specifics of interaction with carrying out activities in business processes, at facilities and territories of activity of Tatneft Group enterprises. The policy is aimed at ensuring uniform requirements for employees of contractors when delivering products and services, carrying out work at the Company’s facilities and / or in the interests of the Company, including the obligation to be guided in the planning and implementation of activities by applicable international law and the requirements of applicable law.

The policy provides for the control of potentially negative impacts on the environment, labor and health protection, industrial and environmental safety in the supply chain and the implementation of appropriate measures to minimize / eliminate such impacts.

The social policy of the Company is based on the priorities of corporate responsibility, the importance of human capital, ensuring a decent standard of living and a safe social infrastructure in the regions where Tatneft Group operates. These priorities are integrated into Strategy 2030 and should help increase equity, maximize returns on assets and corporate resources.

Carrying out production activities, all divisions of the Company interact to some extent with local communities, implementing targeted programs for the development of local communities and conducting a systematic assessment of the impact of their activities on local communities in the field of social and environmental aspects.

The enterprises of the Tatneft Group are city-forming in most of the settlements of the regions of activity. The company creates high-quality jobs and hires the local population, together with municipal authorities, implements projects for the improvement of cities and towns of the regions of activity, takes part in the construction of socially significant objects.

We are making a significant contribution to improving social infrastructure — in support of healthcare, science, education, spiritual heritage, culture and sports. Coordinated actions with the heads of cities and settlements in the territories of our activity give a successful result in improving the quality of life not only of the Company employees and their family members, but also of the local population.