Rosneft became the only Russian oil and gas company announced as Global Compact LEAD in the area of sustainable development
Rosneft became the only Russian oil and gas company announced as Global Compact LEAD in the area of sustainable development due to ongoing commitment to the United Nations Global Compact and its Ten Principles for responsible business. The announcement of Rosneft Global Compact LEAD took place within the framework of the 76th session of the General Assembly of the United Nations.
Rosneft was identified as being among the most highly-engaged participants of the world's largest corporate sustainability initiative. In 2021, only 37 companies, out of which four companies belong to the oil and gas business, were assigned the Global Compact LEAD status.
Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, said, "LEAD companies represent the highest level of engagement with the UN Global Compact. More than ever before, the world needs businesses of all sizes - like the ones announced as LEAD today - that continuously work to improve their sustainability performance and take action to build a better world."
"Recognition as a Global Compact LEAD participant confirms Rosneft's reputation of a company with high standards of corporate responsibility, and a superior asset portfolio that ensures sustainable economic development with a minimal environmental footprint," - said Igor Sechin, Rosneft Chief Executive Officer. Mr Sechin reminded that Rosneft was the first Russian company that publicly confirmed its commitment to the 17 Sustainable Development Goals of the United Nations, and integrated them into the corporate strategy.
Mr Sechin noted that Rosneft is the largest taxpayer of the Russian Federation, and plays a strategically important systemic role in the Russian energy industry and national economy on the whole, accounting for about four percent of Russia's gross domestic product. For over ten years, Rosneft has been sharing the sustainable development principles of the United Nations Global Compact, and, through its operations, promoting development of the global economy based on the principles of equity, equality, and effective climate action.
Rosneft has demonstrated its commitment to the UN Global Compact this year by participating in Action Platforms on Sustainable Finance and Sustainable Ocean Business. Each UN Global Compact Action Platform convenes business, Global Compact Local Networks, leading experts, civil society, Governments and UN partners to solve complex and interconnected issues and innovate around the Sustainable Development Goals.
Rosneft's Communication on Progress (CoP) at the advanced level and other related information is available in its Participant profile on the UN Global Compact website https://www.unglobalcompact.org/what-is-gc/participants/11003-Rosneft-Oil-Company
To be eligible for LEAD, a company must:
- Be a participant in at least two UN Global Compact Action Platforms to demonstrate its engagement with the UN Global Compact and commitment to defining and fostering leadership practices in line with the Ten Principles and the Global Goals.
- Submit or commit to submitting an Advanced Communication on Progress - an annual sustainability report detailing progress on implementing the Ten Principles.
Rosneft Oil Company is the leader of the Russian Oil Industry and the world's largest public energy company in terms of hydrocarbon production. The Company accounts for 6% of global oil production. The Company operates in 23 countries and 78 Russian regions. Rosneft owns 13 refineries in Russia, as well as stakes in 6 refineries abroad, and operates the largest Russian retail network of 3,057 retail sites and over 6 thousand retail sites abroad.
Rosneft's ability to ensure stable supplies to international energy markets, in sufficient quantities and at affordable prices, is critical for global energy security and for meeting the 17 UN Sustainable Development Goals.
In 2018, the Company's Board of Directors approved Rosneft strategy on compliance with the 17 UN Sustainable Development Goals. Following the global practices, the Company has determined five goals of strategic priority, which are directly supported by its core operations: Good Health and Well-Being; Affordable and Clean Energy; Decent Work and Economic Growth; Climate Action; and Partnerships for the Goals. However, given its pivotal role in the energy sector and the scale of its activities, the Company also contributes to the achievement of the remaining 12 goals of the UN.
Preserving the environment for future generations is an integral part of Rosneft corporate culture and business principles. The Company aims at becoming the leading performer in minimizing the environmental footprint of its operations and in sustainability of its production facilities. In 2018-2022, our "green" investments will total RUB 300 bln.
Leadership in innovation and R&D activities is an important growth driver for the Company. The Company has adopted and regularly updates the Innovative Development Program aimed to make the Company one of the industry technology leaders. In 2020, the program investments amounted to RUB 50.3 bln, including R&D investments of RUB 26.8 bln.
Rosneft continues to improve its positions in the international ESG ratings. FTSE Russell, a division of the London Stock Exchange, has once again included Rosneft in the list of participants of the FTSE4Good Index Series, which is updated twice a year. According to its indicators, the Company is ahead of 90% of the participants in the rating of the international oil and gas industry of the Industry Classification Index (ICB supersector) with a score of 3.9 points out of 5.
According to the assessment of V. E (Vigeo Eiris), which is part of the Moody's Corporation group, Rosneft entered the Top-100 of the Best Emerging Market Performers Ranking, becoming the only Russian oil and gas company that demonstrated this result. The Best Emerging Market Performers Ranking includes 843 companies from 36 sectors and 31 countries. The performance of the companies included in the Top-100 of this list confirms their high standards in the field of human rights, environmental protection, corporate governance, business ethics and contribution to social and economic development. In April 2021, the Sustainalytics international agency improved the Company's ESG risk rating twice, and Rosneft showed the best performance among the Russian oil and gas companies with the 33.9 score.
Rosneft Information Division
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20 September 2021
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