PJSC Tatneft. Annual report 2017
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PJSC Tatneft. Annual report 2017

Principles and priorities of corporate governance

The Company’s corporate governance system is based on the requirements of the Russian legislation, the requirements of the Moscow Exchange listing rules, the principles of the Corporate Governance Code recommended for use by the Bank of Russia, international standards of corporate governance and business ethics, governments and UN goals for sustainable development.

Basic principles of corporate governance of the company

Respect and protection of shareholders’ legal rights

Decision making based on consistency and collegiality

High professionalism of the board of directors

Progressive and transparent dividend policy

Informational openness and transparency

Ethical and human rights

Rejection of corruption in all its forms

Sustainable development

RIORITIES OF CORPORATE MANAGEMENT

The Company builds corporate governance on the integration of key priorities that form a single platform for managing the Company’s shareholder value and improving the quality of its asset structure.
Increasing the investment attractiveness and shareholder value of the Company based on long-term sustainable development with the integration of ESG factors.
Constructive interaction of shareholders and investors with the Board of Directors and executive bodies for joint development of tasks and making effective decisions.
Building an effective process of strategic and investment planning, implementation of production and business plans and operational performance.
Professional and ethical responsibility of members of the Board of Directors, the Executive Directorate, officers and employees of the Company.
A comprehensive system to ensure a high level of personnel competence, effective motivation mechanisms and KPI systems.
Ensuring the safety and quality of the asset structure by improving the ownership and organizational structure of the vertical integration of the Company and the unified corporate standards of Tatneft.
Maintaining the Company’s high business reputation and corporate social responsibility.
Formation of mechanisms to prevent and resolve corporate conflicts.
Ensuring transparency of activity and information openness of the Company.
Development of an integrated risk management and internal control system.
PRIORITIES OF 2017

In 2017, the Company paid considerable attention to the improvement of internal corporate procedures in accordance with the recommendations of the Corporate Governance Code recommended by the Bank of Russia.

  • Development of procedures to ensure the implementation of shareholder rights.
  • Further development of the KPI system.
  • Improving the working procedures of the Board of Directors.
  • Improving internal procedures for sustainable development.
  • Improving the internal control and risk management system.
  • Updating the Company’s internal documents in the light of changes in legislation.
2018 PRIORITIES

In 2018, the Company continues to work on improving corporate governance, focusing on international best practices and principles of socially responsible investment.

  • Distribution of areas of responsibility of members of the Board of Directors, Management Board and key employees.
  • Development of a risk management and internal control system in the Company (RMS).
  • Development of a corporate support system for subsidiaries.
  • Improving the practice of evaluating the performance of the Board of Directors and corporate governance.
  • Improving the practice of independent directors.
  • Amendments to the internal documents of the Company.
  • Improving sustainable development management procedures.

PREVENTION OF POSSIBLE CONFLICTS OF INTERESTS

G4 -41

The issues of preventing and minimizing possible conflicts of interest among members of the Board of Directors are in the area of increased attention of the Company. To prevent possible conflicts of interest in the Company, certain restrictions and requirements are imposed on members of the Board of Directors. Thus, in accordance with the Regulation on the Board of Directors of PJSC TATNEFT, a member of the Board of Directors must refrain from actions that would or could lead to a conflict of interest. There were no conflicts of interest of members of the Board of Directors in the reporting year.

In 2017, within the framework of the project «Improvement of the Integrated Personnel Assessment System of TATNEFT Group», it was proposed to introduce a section «Making personnel decisions on appointments, taking into account a conflict of interests», which will allow assessing the risk of a conflict of interests at the stage of personnel decisions made.