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

General standard and specific disclosures

Standard Disclosures
Strategy and Analysis
G4-1

Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.

 

Letter to Shareholders, Investors and Partners  


PRINCIPLES OF SUSTAINABLE DEVELOPMENT 


GOALS AND COMPONENTS OF SUSTAINABLE DEVELOPMENT 

G4 -2 Provide a description of key impacts, risks, and opportunities.


POSSIBLE MAIN RISKS 

Organizational Profile
G4 -3 Report the name of the organization.

ABOUT THE COMPANY 


SCOPE OF THE REPORTING 

G4 -4 Report the primary brands, products, and services.

CORPORATE BRAND OF TATNEFT COMPANY  

G4 -5 Report the location of the organization’s headquarters. CONTACT INFORMATION 
G4 -6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

GEOGRAPHY OF ACTIVITY  


PRINCIPLES OF SUSTAINABLE DEVELOPMENT 

G4 -7 Report the nature of ownership and legal form.

ISSUED SHARE CAPITAL HOLDINGS 


IFRS FINANCIAL STATEMENTS FOR 2017 

G4 -8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). GEOGRAPHY OF ACTIVITY  
G4 -9

Report the scale of the organization, including: Total number of employees; Total number of operations; Net sales (for private sector organizations) or net revenues (for public sector organizations); Total capitalization broken down in terms of debt and equity (for private sector organizations); Quantity of products or services provided.

MAIN SEGMENT-FORMING ENTERPRISE 


FINANCIAL EFFICIENCY 


CONSOLIDATED ASSETS 


IFRS FINANCIAL STATEMENTS FOR 2017 

G4 -10

Report the total number of employees by employment contract and gender.
Report the total number of permanent employees by employment type and gender.
Report the total workforce by employees and supervised workers and by gender.
Report the total workforce by region and gender.
Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as selfemployed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.
Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).

COMPANY’S STAFF  
G4 -12 Describe the organization’s supply chain. SUPPLY CHAIN 
G4 -13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including (changes in the location of, or changes in, operations, including facility openings, closings, and expansions; changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations); changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination)/

CONSOLIDATED ASSETS 


IFRS FINANCIAL STATEMENTS FOR 2017  

Commitments to external initiatives  
G4 -14

Report whether and how the precautionary approach or principle is addressed by the organization.

INTEGRATED CORPORATE RISK MANAGEMENT SYSTEM AND INTERNAL CONTROL 
G4 -15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

SCOPE OF THE REPORTING 


GOALS AND COMPONENTS OF SUSTAINABLE DEVELOPMENT 

G4 -16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: Holds a position on the governance body; Participates in projects or committees; Provides substantive funding beyond routine membership dues; Views membership as strategic. COMPANY’S MEMBERSHIPS IN ASSOCIATIONS, NATIONAL AND INTERNATIONAL ORGANISATIONS 

Identified Material Aspects and Boundaries

G4 -17

List all entities included in the organization’s consolidated financial statements or equivalent documents.

Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

SCOPE OF THE REPORTING 


IFRS FINANCIAL STATEMENTS FOR 2017  

G4 -18
G4 -19
G4 -20
G4 -21

Explain the process for defining the report content and the Aspect Boundaries. Explain how the organization has implemented the Reporting Principles for Defining Report Content.
List all the material Aspects identified in the process for defining report content.
For each material Aspect, report the Aspect Boundary within the organization, as follows: Report whether the Aspect is material within the organization. The list of entities or groups of entities included in G4-17 for which the Aspect is material. Report any specific limitation regarding the Aspect Boundary within the organization.
For each material Aspect, report the Aspect Boundary outside the organization.

SCOPE OF THE REPORTING 


MAIN SEGMENT-FORMING ENTERPRISE 

G4 – 22

Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

SCOPE OF THE REPORTING 
G4 -23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. SCOPE OF THE REPORTING 
Stakeholder Engagement  
G4 -24
G4 -25
G4 -26
G4 -27

Provide a list of stakeholder groups engaged by the organization.
Report the basis for identification and selection of stakeholders with whom to engage.
Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

Stakeholders  


SCOPE OF THE REPORTING 

Report Profile  
G4 -28

Reporting period (such as fiscal or calendar year) for information provided.

SCOPE OF THE REPORTING 
G4 -29 Date of most recent previous report (if any). SCOPE OF THE REPORTING 
G4 -30

Reporting cycle (such as annual, biennial).

SCOPE OF THE REPORTING 
G4 -31 Reporting cycle (such as annual, biennial). CONTACT INFORMATION 
G4 -32 Report the ‘in accordance’ option the organization has chosen. Report the GRI Content Index for the chosen option (see tables below).  Report the reference to the External Assurance Report, if the report has been externally assured. (GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.) SCOPE OF THE REPORTING 
G4 -33 Report the organization’s policy and current practice with regard to seeking external assurance for the report. SCOPE OF THE REPORTING  
Governance  
G4 -34 These Standard Disclosures provide an overview of: The governance structure and its composition; The role of the highest governance body in setting the organization’s purpose, values, and strategy; The competencies and performance evaluation of the highest governance body; The role of the highest governance body in risk management; The role of the highest governance body in sustainability reporting; The role of the highest governance body in evaluating economic, environmental and social performance; Remuneration and incentives. COMPANY’S MANAGEMENT SYSTEM 
G4 -35
G4 -36
G4 -37

Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.

Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

GENERAL SHAREHOLDERS MEETINGS 


COMPANY’S MANAGEMENT SYSTEM 

G4 -38
G4 -39

Report the composition of the highest governance body and its committees by: Executive or non-executive; Independence; Tenure on the governance body; Number of each individual’s other significant positions and commitments, and the nature of the commitments; Gender; Membership of under-represented social groups; Competences relating to economic, environmental and social impacts; Stakeholder representation.

Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement).

BOARD OF DIRECTORS 


COMMITTEES OF THE BOARD OF DIRECTORS 

G4 -40 Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members, including:  Whether and how diversity is considered; Whether and how independence is considered; Whether and how expertise and experience relating to economic, environmental and social topics are considered; Whether and how stakeholders (including shareholders) are involved. BOARD OF DIRECTORS 
G4 -41 Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum: Cross-board membership; Cross-shareholding with suppliers and other stakeholders; Existence of controlling shareholder; Related party disclosures.

PRINCIPLES AND PRIORITIES OF CORPORATE GOVERNANCE 


REPORT OF PJSC TATNEFT ON COMPLIANCE WITH PRINCIPLES AND RECOMMENDATIONS OF THE CORPORATE GOVERNANCE CODE OF THE BANK OF RUSSIA

п. 1.3.1. 

п. 2.1.5. 

п. 2.3.1. 

п. 2.4.3. 

п. 2.4.4. 

п. 2.6.1. 


ANTI-CORRUPTION POLICY 

G4 -42 Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts. BOARD OF DIRECTORS 
G4 -43 Report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics. BOARD OF DIRECTORS  
G4 -44

Report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment.  
Report actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practice.

EVALUATION OF THE PERFORMANCE OF THE BOARD OF DIRECTORS 
G4 -45
G4 -46
G4 -47

Report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities. Include the highest governance body’s role in the implementation of due diligence processes. Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks, and opportunities.

Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics.

Report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities.

INTEGRATED CORPORATE RISK MANAGEMENT SYSTEM AND INTERNAL CONTROL 
G4 -48 Report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered. COMPANY’S MANAGEMENT SYSTEM 


SCOPE OF THE REPORTING 

G4 -49
G4 -50

Report the process for communicating critical concerns to the highest governance body.

Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.

BOARD OF DIRECTORS 
G4 -51
G4 -52
G4 -53

Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration: Fixed pay and variable pay;  Sign-on bonuses or recruitment incentive payments; Termination payments; Clawbacks; Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees.

Report how performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives.
REMUNERATION FOR MEMBERS OF MANAGEMENT BODIES 
Этика и добросовестность
G4 -56

Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

CORPORATE BRAND OF TATNEFT COMPANY » 


COMPANY’S DECLARATION ON CONSUMER INTERACTION 


HUMAN RIGHTS 


STAKEHOLDER ENGAGEMENT 

G4 -57
G4 -58

Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.

Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines

ANTI-CORRUPTION POLICY 


HOTLINE 


TRADE UNION ORGANIZATIONS 

CATEGORY: ECONOMIC

Aspect: Economic Performance
EC1 Direct economic value generated and distributed. IFRS FINANCIAL STATEMENTS FOR 2017 
EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. CLIMATE CHANGES AND CLIMATIC RISKS 
EC3 Coverage of the organization’s defined benefit plan obligations.


Stakeholders  

EC4 Financial assistance received from government. IFRS FINANCIAL STATEMENTS FOR 2017 
Aspect: Market Presence
EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. COMPANY’S STAFF 
EC6 Proportion of senior management hired from the local community at significant locations of operation. COMPANY’S STAFF 
Aspect: Indirect Economic Impacts
EC7 Development and impact of infrastructure investments and services supported.

PRINCIPLES OF SUSTAINABLE DEVELOPMENT 


GOALS AND COMPONENTS OF SUSTAINABLE DEVELOPMENT 


GOALS AND PRIORITIES 

EC8 Significant indirect economic impacts, including the extent of impacts. CHARITY 
Aspect: Procurement Practices
EC9 Proportion of spending on local suppliers at significant locations of operation. SUPPLY CHAIN 

CATEGORY: ENVIRONMENTAL

Aspect: Energy
EN3 Energy consumption within the organization

ENVIRONMENTAL RESPONSIBILITY 

EN4

Energy consumption outside of the organization

ENVIRONMENTAL RESPONSIBILITY 

EN5 Energy intensity

ENVIRONMENTAL RESPONSIBILITY 

EN6 Reduction of energy consumption

ENVIRONMENTAL RESPONSIBILITY 

EN7 Reductions in energy requirements of products and services

ENVIRONMENTAL RESPONSIBILITY 

EN19 Reduction of greenhouse gas (GHG) emissions.


CLIMATE CHANGES AND CLIMATIC RISKS 

EN20 Emissions of ozone-depleting substances (ODS).


CLIMATE CHANGES AND CLIMATIC RISKS 

EN21 NOX, SOX, and other significant air emissions.


CLIMATE CHANGES AND CLIMATIC RISKS 

Aspect: Effluents and Waste
EN22 Total water discharge by quality and destination


Environmental activity 

EN23 Total weight of waste by type and disposal method Total number and volume of significant spills


Environmental activity 

EN24 Total weight of waste by type and disposal method
Total number and volume of significant spills


Environmental activity 

EN25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention2 Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.


Environmental activity 

EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s discharges of water and runof.


Environmental activity 

Aspect: Overall
EN31 Total environmental protection expenditures and investments by type


Environmental activity 

Aspect: Supplier Environmental Assessment
EN32

Percentage of new suppliers that were screened using environmental criteria.

SUPPLY CHAIN

EN33

Significant actual and potential negative environmental impacts in the supply chain and actions taken.

SUPPLY CHAIN 

Aspect: Environmental Grievance Mechanisms
EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

There were no significant complaints during the reporting period.

CATEGORY: SOCIAL

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK
Aspect: Employment
LA1

Total number and rates of new employee hires and employee turnover by age group, gender, and region.

COMPANY’S STAFF 

Aspect: Occupational Health and Safety
LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs.

TRADE UNION ORGANIZATIONS 

LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of workrelated fatalities, by region and by gender.

INDUSTRIAL SAFETY AND OCCUPATIONAL HEALTH  

LA7 Workers with high incidence or high risk of diseases related to their occupation.

INDUSTRIAL SAFETY AND OCCUPATIONAL HEALTH  

LA8 Health and safety topics covered in formal agreements with trade unions.

TRADE UNION ORGANIZATIONS 

Aspect: Training and Education
LA9 Average hours of training per year per employee by gender, and by employee category.

COMPANY’S STAFF 

LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

COMPANY’S STAFF 

LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category.

COMPANY’S STAFF 

Aspect: Diversity and Equal Opportunity
LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

COMPANY’S STAFF 

Aspect: Equal Remuneration for Women and Men
LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

COMPANY’S STAFF 

Aspect: Supplier Assessment for Labor Practices
LA14 Percentage of new suppliers that were screened using labor practices criteria. SUPPLY CHAIN 
LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken. SUPPLY CHAIN 
Aspect: Labor Practices Grievance Mechanisms
LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms. There were no significant complaints during the reporting period.
SUB-CATEGORY: HUMAN RIGHTS
Aspect: Investment
HR1 Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening. HUMAN RIGHTS 
HR2

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

HUMAN RIGHTS 
Aspect: Non-discrimination
HR3 Total number of incidents of discrimination and corrective actions taken. Not identified
Aspect: Freedom of Association and Collective Bargaining
HR4

Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights.

Not identified
Aspect: Child Labor
HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. Not identified
Aspect: Forced or Compulsory Labor
HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor. Not identified
Aspect: Security Practices
HR7 Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations. HUMAN RIGHTS 
Aspect: Indigenous Rights
HR8 involving rights of indigenous peoples and actions taken. Not identified
Aspect: Assessment
HR9

Total number and percentage of operations that have been subject to human rights reviews or impact assessments.

HUMAN RIGHTS 
Aspect: Supplier Human Rights Assessment
HR10 Percentage of new suppliers that were screened using human rights criteria. SUPPLY CHAIN 
HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken. Not identified
Aspect: Human Rights Grievance Mechanisms
HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms. There were no significant complaints during the reporting period.
SUB-CATEGORY: SOCIETY
Aspect: Local Communities
SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs. GOALS AND PRIORITIES
SO2 Operations with significant actual or potential negative impacts on local communities. Not identified
Aspect: Anti-corruption
SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified. ANTI-CORRUPTION POLICY 
SO4 Communication and training on anti-corruption policies and procedures. ANTI-CORRUPTION POLICY 
SO5 Confirmed incidents of corruption and actions taken. ANTI-CORRUPTION POLICY 
Aspect: Public Policy
SO6 Total value of political contributions by country and recipient/beneficiary. INTERACTION WITH PUBLIC AUTHORITIES 
Aspect: Anti-competitive Behavior
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Not identified
Aspect: Compliance
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. No significant fines or non-financial penalties
Aspect: Supplier Assessment for Impacts on Society
SO9 Percentage of new suppliers that were screened using criteria for impacts on society. SUPPLY CHAIN 
SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken. Not identified
Aspect: Grievance Mechanisms for Impacts on Society.
SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms. There were no significant complaints during the reporting period.
SUB-CATEGORY: PRODUCT RESPONSIBILITY
Aspect: Customer Health and Safety
PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement. COMPANY’S DECLARATION ON CONSUMER INTERACTION 
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes. Not identified
Aspect: Product and Service Labeling
PR3 Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements. COMPANY’S DECLARATION ON CONSUMER INTERACTION 
PR4 Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements Not identified
PR5 Results of surveys measuring customer satisfaction. Results of surveys measuring customer satisfaction are integrated into business processes to improve the quality of products and services.
Aspect: Marketing Communications
PR6 Sale of banned or disputed products. Not sale
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes. Not identified
Aspect: Customer Privacy
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. There were no significant complaints during the reporting period.
Aspect: Compliance
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Not identified