Sustainable Development

Strategic Intent

Strategic Intent

Rosneft understands its responsibility for the Health, Safety and well-being of our employees, contractors, communities and stakeholders and the protection of the environment around which the Company operates. This responsibility encompasses the activities conducted by over 300 thousand company employees and about 200 thousand contractor employees.

We assess, prioritize and eliminate HSE risks in our workplace and strive for the highest standards of care for our workforce and contractors while minimizing the environmental footprint from Company operations. We also continue to remediate and eliminate historical environmental impacts in a systematic way.

In the area of carbon management and energy transition, we analyze risks to the company and identify opportunities for our portfolio, including conducting scenario analyses and stress testing to inform further management actions.

Responsible HSE Governance

In December 2018, the Rosneft Board of Directors approved the strategic guidelines for the company linked to implementation of the UN Sustainable Development Goals. The Company’s mission, values, objectives, and strategic guidelines are therefore aligned with these 17 United Nations Sustainable Development Goals.

More specifically, the Board identified five SDGs of strategic priority for Rosneft’s core businesses, including SDG 3 on Good Health and Well-Being; SDG 7 on Affordable and Clean Energy; SDG 8 on Decent Work and Economic Growth; SDG 13 on Climate Action and SDG 17 on Partnerships for the Goals.

Since the announcement of these commitments, governance has been strengthened across a number of key HSE risk areas through more robust management processes and procedures, increased capability and improved monitoring of HSE performance across the company.

HSE Performance Goals

Rosneft-2022 strategy is aimed at continuous improvement of HSE performance equivalent to top quartile amongst our industry peers, and including targets of a 5% reduction of Greenhouse gas emissions on a per unit basis and 8 million tonnes of avoided CO2 equivalent emissions by 2022.

From Commitment to Action

The Strategic Planning Committee of the Board of Directors reviews HSE performance, updates of the corporate HSE strategy implementation and progress against the Company’s strategic goals on a quarterly basis. These goals form part of the performance KPIs of the Executive Team.

The Company’s HSE Committee is an advisory body to the CEO and the Management Board and is led by senior Executives and includes senior management representatives from across the company. In 2019, the Committee met six times to review progress on a number of HSE programs including contractor management, aviation safety, integrity management and environmental performance.

In 2019, a Carbon Management Sub-Committee was established and is also led by a Senior Executive to oversee the development of the carbon management agenda, as well as monitor delivery of annual carbon reduction and energy efficiency plans.

Strategic HSE Areas

  • Leadership and Safety Culture
  • Competency and Capability development
  • Safety Management System
  • Internal Controls
  • Risk and Integrity Management
  • Reporting and Performance Analysis
Safety of our people is our top priority

Safety of our people is our top priority

Our highest priority is the safety of our employees, contractors, operations and the communities in which we operate. We focus on creating a culture where employees are strongly encouraged to report any hazards or incidents.

The Company’s Safety Leadership objective is to embed the principles of the revised corporate HSE Policy and HSE Leadership standard launched in 2018. These principles focus on improving direct communication between management and employees to create a safer working environment. In 2019, over 83 thousand employees were trained on the Golden Safety Rules to manage the performance of high-risk activities across the organization.

The Company continues to invest significant resources in the development of its safety management activities, training of its personnel and improvement of operational safety barriers, with about 55 billion rubles spent on these activities in 2019.

Our 2019 survey involving over 3.5 thousand employees showed that our safety culture continues to improve with 94% of respondents understanding the importance of personal responsibility in adhering to the Golden Safety Rules in their jobs.

> 83 thousand employees
completed the Golden Safety Rules course in 2019
HSE Training (number of employees)
Обучение по направлению ПБОТОС
RUB 55 bln
has been spent on occupational health and safety
See website

Operational Risk Assessments

Building on the work done in 2018, and as part of a formal company procedure, a number of systematic improvements in risk management have been implemented to assess and strengthen operational safety barriers. These actions are expected to both contribute to the prevention of potential accidents in key risk areas as well as reduce the severity of their consequences across the Company. In 2019, this process was implemented across 72 Rosneft Group Subsidiaries.

Process Safety and Integrity Management

The implementation of targeted well control management programs has resulted in preventing well blowouts or uncontrolled releases from exploration and development drilling for over two years (11 million meters drilled). There were also no process safety incidents involving over 61,000 high-pressure operating vessels. Rosneft has also introduced a new company procedure on energy isolation for safely conducting repairs or maintaining equipment.

Driving safety and road transport

Due to the scale of Rosneft’s operations, our employees & contractors drive over 2 billion kilometers annually. A Vehicle Safety Management System is in place and sets requirements for both vehicles and drivers to reduce the risks to employees, contractors and third parties. As a result, over 50 thousand drivers were trained in defensive driving, and over 52 thousand vehicles were equipped with in-vehicle monitoring systems. In addition, we work with the regional authorities near to the Company’s operations and the State Road Traffic Safety Inspection Department in Russia to reduce transport accidents in these regions.

52 thousand vehicles
are equipped with on-board monitoring systems

Managing the work of our contractors

In 2019, the Company introduced new contractor management requirements to improve conformance with Rosneft’s safe work practices. These requirements included HSE standards and procedures for contractor selection, mandatory risk assessment processes, performance monitoring and contractor personnel capability and training. In 2019, over 10 contractor safety leadership conferences were held across Russia to share best practices, lessons learned and to develop safety leadership competencies.

Improved Incident Investigation System

The Company has initiated a program to improve its incident investigation process and investigation capability to address root causes and sustainable corrective actions. Over 1.1 thousand employees have been trained on these investigative techniques.

The overall LTIF trend shows a decrease in the percentage of severe injuries.

Lost Time Injury Frequency (LTIF)across the Company
Производственный травматизмс потерей трудоспособности

Environmental Responsibility

Green Investment

The Company implements a number of organizational and technical environmental improvement activities as well as ecological and investment projects to improve environmental performance. The Rosneft-2022 strategy commits to investing RUB 300 bln in these “Green investments” aimed at reducing flaring of associated petroleum gas (APG), improving pipeline integrity, water and waste management and increasing land remediation.

A total of around 80 billion rubles was spent in 2018 and 2019 on these ‘Green Investments’ projects.

In the 2020-2022 period, Rosneft’s “Green Investments” will average
7 %
of the Company’s annual capital expenditure

Carbon Management – Managing Сlimate-related Risks and Opportunities

Rosneft has continued to strengthen its carbon-management processes as the Company seeks opportunities to reduce its operational carbon footprint.

The Carbon Management Sub-Committee leads the development of annual and longer-term carbon-management plans and tracks progress of existing programs, in particular, the Gas Investment Program and Energy Saving Program. Rosneft’s energy efficiency performance improved by 14% in the last two years resulting in 3.1 million tonnes of CO2 equivalent avoided emissions over this period.

As part of its commitment to work across industry groups, Rosneft joined the Methane Guiding Principles industry initiative with one of its senior Executives on its Steering Team.

The Company has developed a methane management plan in alignment with its peers and in 2019, Rosneft reduced its known fugitive emissions by 73% compared to 2018, benefitting from its major operational improvements.

Greenhouse gas emissions avoided in 2018 and 2019 (mln t CO2 eq.)

In 2019, Rosneft was awarded a B rating by CDP on climate change resilience, the highest among the participating Russian oil and gas companies

In 2019 Rosneft reduced known fugitive methane emissions from its upstream operations by
73 %
(year-on-year)

Environmental Management – Minimizing Our Environmental Footprint

Environmental Management – Minimizing Our Environmental Footprint

The Company aims at having the lowest possible footprint across its operations and has implemented organizational and technical improvements to drive its environmental agenda.

Water Stewardship

One of Rosneft’s strategic priorities is the sustainable use of water resources involving infrastructure upgrade projects and application of the best available technologies.

> 90 %
of water used in Company operations was recycled, minimizing freshwater withdrawal

Wastewater discharges were reduced by 4% in 2019

The Bashneft-Ufaneftekhim biological water treatment complex, one of the most advanced water treatment facilities in Russia and Eurasia, went into full operational in 2019. This resulted in significant wastewater quality improvement and greater than a twofold increase in recycled water.
In 2019, Rosneft participated in the CDP water rating for the first time and was awarded a
B- rating
by CDP

Non-GHG Air Emissions

In 2019, the Company recorded a 3% reduction in non-GHG air emissions into the atmosphere.

~ 1 million of forest plants
set out in 2019 as part of the forest preservation initiatives.

Increasing the efficiency of oil spill management

The Company’s oil spill response system reduces potential oil spill impacts from incidents once they occur and we work closely with responsible government agencies for transparent reporting and immediate response to incidents.

Rosneft’s in-field pipelines span over 120 thousand km and, in 2019, the Company completed implementation of the 2015-2019 Pipeline Reliability Improvement Program to increase pipeline reliability. This program led to a decrease in the pipeline failure rate by 30% compared to 2013 and a further reduction in oil spill volumes from pipeline failures in 2019.

Legacy Contamination and treatment of oil contaminated waste

In 2019, legacy oil-contaminated land was reduced by 16% year-on-year with a 6% improvement in the efficiency of treatment of oil-contaminated waste.

Biodiversity Conservation

The Company has also invested over 870 million rubles over the past five years for conserving biodiversity across Russia. In addition, Rosneft signed an Agreement in 2019 to cooperate with the Russian Ministry of Natural Resources on a national Ecology project. This project focuses on biodiversity conservation, primarily in the Arctic. The planned budget for this work is approximately 250 million rubles.

There is also focus on environmental activities within Rosneft’s international operations, such as Brazil, where waste management practices, water conservation efforts and reforestation activities have all been improved.

> 37 million fish fingerlings
of different species were released in support of ecosystems sustainability in 2019.

In 2019, Rosneft and the Russian Arctic National Reserve launched comprehensive restoration of the protected Frantz Josef Land Archipelago, Russia’s northernmost territory, involving the country’s best experts in geology, chemistry, biology and geography.

Legacy Contamination and treatment of oil contaminated waste