Rosneft: Only Russian Oil & Gas Company to Lead in the Field of Sustainable Development Within the the UN Global Compact LEAD Initiative
Rosneft became the only Russian oil and gas corporation to receive the status of a company – a leader in the field of sustainable development and was included in the Global Compact LEAD initiative for its unwavering commitment to the United Nations Global Compact and its Ten Principles of Responsible Business. The announcement of the Company’s inclusion in the list of participants took place within the framework of the 76th session of the UN General Assembly.
Rosneft has been named one of the most active participants in the world’s largest corporate sustainability initiative. In 2021, only 37 companies worldwide have this status, four of which are in the oil and gas business.
Sanda Ojiambo, Chief Executive Officer of the UN Global Compact, said: “LEAD companies have the highest level of participation in the UN Global Compact. More than ever, the world needs different companies that, like the LEAD members announced today, are continually working to improve sustainability outcomes and are committed to making the world a better place. ”
“Recognition as a Global Compact LEAD member confirms Rosneft’s reputation as a company with high social responsibility and a high-quality portfolio of assets that is capable of ensuring sustainable economic development with minimal environmental impact,” said Igor Sechin, Chief Executive Officer of Rosneft. He recalled that Rosneft was the first Russian company to publicly reaffirm its commitment to 17 UN sustainable development goals and integrated them into the corporate strategy.
Igor Sechin noted that Rosneft is the largest taxpayer in the Russian Federation, it is a strategic backbone company in the Russian energy industry and the national economy as a whole, which accounts for about four percent of the country’s gross domestic product. The company has supported the principles of sustainable development of the UN Global Compact for more than ten years and through its activities contributes to the development of the world economy on the principles of justice, equality and effective counteraction to climate change.
As part of its commitment to the principles of sustainable development, in 2021 Rosneft took part in the UN Global Compact Sustainable Finance and Sustainable Ocean Business Action Platforms. The UN Global Compact Action Platforms bring together business representatives, national Global Compact networks, leading experts, civil society representatives, governments and UN partners to address complex and interrelated issues and drive innovation in line with the UN Sustainable Development Goals.
Extended information on the results achieved by Rosneft is available in the Participant’s profile on the UN Global Compact website https://www.unglobalcompact.org/what-is-gc/participants/11003-Rosneft-Oil-Company
Information about the company
Also, one of the conditions for obtaining the status is the publication of expanded information on the results achieved – an annual report on sustainable development with a detailed description of the success in the implementation of the Ten Principles of Sustainable Development of the UN Global Compact.
Rosneft is the leader in the Russian oil industry and the largest public oil company in the world in terms of hydrocarbon production. The share in world oil production is 6%. The company operates in 23 countries and 78 regions of Russia. Rosneft owns 13 large refineries in Russia and shares in 6 operating foreign refineries, operates the largest retail network in Russia, which has 3,057 filling stations, and more than 6 thousand filling stations in foreign markets.
Rosneft’s ability to provide stable supplies to international energy markets in sufficient quantity and at affordable prices is critical to global energy security and the achievement of the 17 UN Sustainable Development Goals.
In 2018, the Board of Directors of the Company approved Rosneft’s strategy in terms of adherence to 17 UN sustainable development goals. In accordance with global practice, the Company has identified five priority goals, the achievement of which it will contribute in the course of its core activities: “Good health and well-being”, “Affordable and clean energy”, “Decent work and economic growth”, “Fight against climate change ”,“ Partnership for Sustainable Development ”. At the same time, taking into account the backbone role in the energy industry and the scale of its activities, the Company also contributes to the achievement of the other 12 UN goals.
An integral part of the Company’s corporate culture and business principles is the preservation of the environment for the benefit of future generations. The company aims to achieve leadership positions in minimizing environmental impact and improving the environmental friendliness of production. The volume of green investments during 2018-2022 will amount to RUB 300 billion.
Leadership in innovation and research and development (R&D) is an important factor in the development of the Company. The Innovative Development Program was adopted and is regularly updated, the strategic goal of which is to make the Company one of the world’s technological leaders in the energy industry. In 2020, 50.3 billion rubles were allocated for its implementation, including 26.8 billion rubles for R&D.
Rosneft strengthens its position in international ESG ratings. FTSE Russell, a division of the London Stock Exchange, has again included Rosneft in the list of members of the FTSE4Good Index Series, which is updated twice a year. In terms of its indicators, the Company is ahead of 90% of the participants in the rating of the international oil and gas industry of the Industrial Classification Index (ICB supersector) with a rating of 3.9 points out of 5.
According to the agency VE (Vigeo Eiris), a member of the Moody’s Corporation, Rosneft entered the Top-100 ESG of the Best Emerging Market Performers Ranking, becoming the only Russian oil and gas company to demonstrate this result. The VE the Best Emerging Market Performers Ranking includes 843 companies from 36 sectors and 31 countries. The ratings of the companies included in the Top-100 of this rating confirm their high standards in respect of human rights, environmental protection, corporate governance, business ethics and contribution to social and economic development. In April 2021, the international agency Sustainalytics improved the Company’s position in the corporate ESG risk management rating twice. With a score of 33.9, Rosneft became the best among Russian oil and gas companies.
