Mitigating negative environmental impacts and the effective use of resources

A responsible attitude towards the environment is a strategic priority for Gazprom Neft. The Company is aware of its responsibility to society in this regard and objectively assesses and seeks to minimise environmental risks while increasing investment in environmental programmes.

The Company’s strategic goals in ensuring environmental safety and the sustainable use of natural resources are:

  • to reduce its environmental footprint and support a favourable natural and living environment;
  • to prevent environmental damage from business activities;
  • to preserve biodiversity amidst conditions of a growing man-made burden;
  • the sustainable use, restoration and protection of natural resources.

Based on these plans, the Company prioritises the following activities:

  • risk management in environmental safety;
  • environmental monitoring and industrial environmental control;
  • management of the emergency prevention and containment system and mitigating the consequences of emergencies;
  • commissioning environmental facilities;
  • implementing a programme for the value-added use of associated petroleum gas;
  • developing energy conservation and improved energy efficiency programmes;
  • developing production waste recycling/disposal programmes;
  • implementing programmes to modernise oil refining assets;
  • developing and implementing biodiversity conservation programmes;
  • developing and introducing eco-technologies;
  • training and developing environmental safety personnel.
Expenses on environmental services and ensuring environmental safety and protection Note: The Report presents updated statistics on environmental safety costs that take into account the total current costs for all environmental protection activities and expenses on environmental services in accordance with the state statistical reporting 4-OS ‘Information on the current costs of environmental protection and environmental payments’. The new form was approved by Order No. 387 of the Federal State Statistics Service dated 4 August 2016. (RUB mn) Excluding expenses on the capital construction, reconstruction and repair of fixed assets that have a positive environmental effect.
Indicator 2012 2013 2014 2015 2016
Total, including: 4,431.0 6,162.2 6,159.7 6,377.6 6,875.6
protecting the atmosphere 966.1 1,017.1 1,464.3 665.5 496.3
wastewater collection and treatment 2,041.2 2,163.5 1,834.3 2,430.3 2,720.6
waste management 708.1 775.4 753.7 1,538.9 1,363.8
protection and rehabilitation of land, surface water and groundwater 687.9 2,169.1 1,312.4 1,434.5 1,461.7
environmental radiation protection and environmental protection against noise, vibration and other types of physical impacts 1.6 3.1 23.8 6.2 1.9
biodiversity conservation and protection of natural areas 0.9 0.6 16.3 89.7 51.6
research and development to reduce negative environmental impacts 10.0 16.2 42.2 9.8 7.9
other environmental protection activities 15.2 17.2 712.7 202.7 771.8

An integrated control system in industrial safety, in particular in environmental safety, utilised by Gazprom Neft enables the Company to achieve its strategic goals and meet its environmental safety obligations.

Such activities are controlled using an environmental management system, which meets the requirements of ISO 14001. In 2016, Gazprom Neft underwent an independent audit and confirmed the environmental management system meets the requirements of ISO 14001:2015. In an effort to improve its environmental safety performance, the Company continuously improves its business processes as part of the management system and engages with stakeholders. Thanks to this work, Gazprom Neft is gradually shifting away from carrying out measures to mitigate damage to assessing environmental risks and introducing preventive measures to warn about the impact of its production activities on the environment.

The Company insures risks associated with environmental damage to all Gazprom Neft enterprises. The insurance coverage reimburses any expenses by the enterprises that may arise as a result of the unforeseen, unintentional or sudden pollution of environmental facilities in accordance with environmental legislation.

Investment in environmental safety and protection totalled RUB 14.3 billion in 2016. Expenses on environmental services and operating costs to ensure environmental safety and protection amounted to RUB 6.876 billion in 2016.

RUB 14.3 bn investment in environmental safety and protection in 2016
Payment for negative environmental impact
(RUB mn)
Source: Company data
Structure of payment for negative environmental impact (RUB mn)
Indicator 2012 2013 2014 2015 2016
Emissions to the atmosphere 778.4 1 828.7 406.3 783.2 196.1
Discharges to the environment 0.5 0.8 1.8 0.7 0.2
Production waste disposal 87.2 98.0 137.5 53.2 74.5