SOCIAL RESPONSIBILITY POLICY IMPLEMENTATION

GRI 102-29

Within the framework of its activities, Zarubezhneft Group significantly impacts social and economic development of the regions where it is present. The Company adheres to a policy of extensive social responsibility towards local communities and society as a whole. Zarubezhneft JSC contributes to the sustainable development of the regions where it is present as an employer, a taxpayer, and an essential economic activities participant.

Zarubezhneft Group has been cooperating constructively with local authorities and public organizations. The subsidiaries annually conclude agreements with regional administrations, governing joint activities on regional development.

The Group provides support to socially vulnerable groups; implements social and charitable projects in health care, education, improving housing conditions, culture and sports; and development of social infrastructure.

For the purpose of forming unified approaches to implement charitable and sponsorship activities, Zarubezhneft JSC has adopted relevant regulations, and has regular meetings of the Commission for Consideration of Social Appeals, received both by the Corporate Center and the subsidiaries. These tools aim to create the most efficient, simple, and transparent mechanism for the Zarubezhneft Group to provide assistance.

Charitable and sponsorship activities:

  • Supporting culture, sports, and a healthy lifestyle;
  • Preserving cultural and historical heritage, supporting military and patriotic activities and events;
  • Assisting creative teams and artists;
  • Supporting poor and low-income social stratums, orphans, war veterans, and the disabled;
  • Developing scientific and educational programs and professional development programs;
  • Organizing events timed to coincide with significant events of the fuel and energy sector.

In total, in 2019, Zarubezhneft Group allocated 149 MM RUB to charity and sponsorship (including social and economic agreements executed with administrations of the regions where the Group subsidiaries and joint ventures operate), with 136 MM RUB thereof for charity and 13 MM RUB for sponsorship programs.

In 2019, the volunteer movement continued to develop as part of the Councils of Young Experts work agenda. Traditionally, the Company’s employees help children from orphanages, residents of senior homes, disabled people, and veterans of the Great Patriotic War. Subsidiary employees, in addition to participation in joint activities with the Corporate Center, conduct activities to help socially vulnerable groups, as well as arranging donor and charitable sports events.

Care for the environment and rational use of resources also remains an important area of corporate volunteering. In 2019, Zarubezhneft Group employees held a series of activities and volunteer clean-up days. Thus, the employees of Zarubezhneft JSC, Zarubezhneft-Dobycha Kharyaga LLC, and Zarubezhneftestroymontazh LLC took part in the Ecological Volunteer Action in the Lomonosov Moscow State University Botanical Garden, supported by Eco-Center Zapovedniki. The Kharyaga field employees organized a volunteer clean-up day on the banks of the Lek-Kharyaga River, which flows along the road to the EP-2 well cluster pad. The event was arranged as part of the All-Russian Environmental Event “Let Our Rivers and Lakes Have Clean Banks and Shores” (Rus.: “Nashim Rekam i Ozeram – Chistye Berega”). On an annual basis, RMNTK Nefteotdacha JSC employees continue to participate in the ecological event “River Ribbon” (Rus.: “Rechnaya Lenta”).

Volunteer and charitable activities help the employees to develop a sense of personal responsibility and willingness to participate in public events. This is a distinctive part of the corporate culture that is supported and encouraged by the Company.