Sustainable Development Principles

Since 2017, the Group has been publishing sustainable development reports, governed by international standards of sustainable development, a GRI supplement for the oil and gas industry, and UN recommendations on Sustainable Development Goals until 2030. The development of such reporting improves the quality of management at the Company and facilitates minimisation of risks in the field of sustainable development.

The Report for 2017 reflects sectoral specifics of Transneft’s corporate social responsibility, including:

  • Safe operation of the oil and petroleum products trunk pipeline transportation system, as well as counter-terrorism protection of operating facilities and information security
  • Environmental protection activities
  • Industrial safety and occupational health
  • HR management
  • Stakeholder engagement

In doing so, Transneft is aware of its responsibility to current and future generations. The Company seeks to increase reliability, industrial and environmental safety of operations, reduce negative environmental impact and ensure social support in the regions of the Group’s operations.

The Group seeks to hold a responsible and open dialogue with representatives of stakeholder groups, to take their opinions and interests into account in making business decisions and regards constructive collaboration as the most important element of interaction with groups of stakeholders.

Stakeholders and Their Specific Interests
Stakeholder Group Specific Interests Forms of engagement
Investment community (shareholders, investors, analysts, rating agencies)
  • Shareholder value increase
  • Financial and operational performance
  • Business development strategy
  • Investment programmes
  • Dividend policy
  • M&A deals
  • Debt indicators and structure
  • Publishing reports on the Company’s website and on the Interfax: Centre of Corporate Information Disclosure site
  • Holding General Meetings of Shareholders
  • Holding meetings of the Board of Directors and of the Committees under the Board
  • Communicating with minority shareholders on their rights
  • Placing reference information on the Company’s website
  • Meeting with analysts and investors, publishing presentations for investors on the Company’s website
  • Publishing the Analyst Handbook
  • Reporting to rating agencies
  • Loan providers (lenders, bond holders)
  • Financial and operational performance
  • Debt indicators and structure
  • Credit ratings
  • Investment programmes
  • Business development strategy
  • Holding meetings and negotiations to improve and develop banking services for Transneft and its entities
  • Disclosing information about the debt structure and policy in the Company’s financial statements and annual reports
  • Placing information on bonds (issue prospectuses, coupon rates, yield curve, payment schedule) on the Company’s website
  • Consumers (vertically integrated oil companies, companies participating in stock trading of petroleum products, companies storing petroleum products at loading depots)
  • Connection conditions
  • Pipeline network development plans
  • Tariffs
  • Participation of the Company’s representatives in the Consumer Council’s meetings to discuss matters of Transneft’s operational activity.
  • Placing information on contracts signed on the Company’s website
  • Placing tariff information on the Company’s website
  • Feedback system
  • Transneft’s employees and trade unions
  • Salaries
  • Social support
  • Healthcare and household support
  • Professional growth opportunities
  • Creation of new jobs
  • Collective agreements
  • Personnel incentive system
  • Professional education and advanced personnel training
  • Mandatory medical examinations Sports and cultural events Social benefits for employees: voluntary health insurance, accident insurance, organization of recreation for employees and their family members, non-state pension schemes
  • Professional associations
  • Receiving information about the Company’s prospective development
  • Joint work
  • Holding regular meetings
  • Disclosing information on the corporate website
  • Government authorities (the Government of the Russian Federation, industry regulatory bodies and organizations, ministries and agencies, regional executive authorities)
  • Uninterrupted and accident-free operation of the oil and petroleum products pipeline network
  • Operational and financial performance
  • Business development strategy
  • Compliance with regulatory requirements
  • Investment programmes
  • Increasing efficiency
  • Engagement with members of the Expert Board under the Russian Government on matters of implementing the Corporate Governance Code (CGC) at the Company and amending the Long-Term Development Programme
  • Reviewing reports on execution of the Long-Term Development Programme, as regards the improvement of corporate governance.
  • Participating in proceedings of the Expert Board on Corporate Governance of the Bank of Russia and the Moscow Exchange Share Issuer Committee
  • Interacting within the framework of the effective regulatory acts
  • Government supervision and oversight bodies
  • Compliance with the law
  • Compliance with environmental regulations and standards
  • Compliance with safety standards and rules
  • Regular inspections
  • Regular meetings and joint work
  • Local governance bodies
  • Compliance with environmental regulations and standards
  • Compliance with safety standards and rules
  • Taxes
  • Pipeline network development
  • Local infrastructure development
  • Employment
  • Interacting within the Board of Directors
  • Cooperation agreements
  • Social and charitable programmes
  • Public hearings to assess environmental impact of new projects
  • Population in the regions of operation (including indigenous minorities, as well as civil society organisations)
  • Creating new jobs and level of labour remuneration
  • Participation in local infrastructure development
  • Charity
  • Social and charitable programmes
  • Public hearings to assess environmental impact of new projects
  • Mass media publications
  • Suppliers and contractors
  • Procurement transparency
  • Environmental, technical and other regulations and standards in supplier selection
  • SME support in the course of procurement
  • The Company’s anti-corruption policy
  • Commission for Dealing with Suppliers and Contractors
  • Steering Committee
  • Pursuing the Company’s policy in quality control enhancement, development and adoption of standards and mechanisms for work performance and control
  • Feedback system
  • Placing information on procurement and other matters for suppliers and contractors on the Company’s website
  • Placing information about SME support on the Company’s website
  • Business community (RID, RSPP, Russian Gas Society)
  • Collaboration
  • Receiving information about the Company’s prospective development
  • Public events (forums, conferences, etc.)
  • Social and charity organisations
  • Social responsibility
  • The Company’s effectiveness and development prospects
  • Interacting in social projects
  • Cooperation agreements
  • Public environmental organisations
  • Compliance with environmental regulations and standards
  • Environmental protection programmes and activities
  • Energy efficiency improvement
  • Investments and current expenses on environmental protection
  • Certification of all divisions of the Group’s companies in accordance with the Environmental Management System (EMS)
  • Holding environmental audits and publishing environmental reports
  • Public hearings to assess environmental impact of new projects
  • Educational institutions (universities etc.)
  • Targeted personnel training
  • Sectoral science development
  • Developing innovative technologies, including those mitigating negative environmental impact
  • Collaboration in research and development
  • Personnel training, retraining and refresher courses
  • Requests for R&D
  • Research community (research institutes, hi-tech companies, startups etc.)
  • Facilitating the development of sectoral science
  • Using innovative technologies
  • Engaging with scientific organisations and placement of requests for R&D
  • Publishing the Passport of Transneft’s Innovation Development Programme for 2017-2021 on the corporate website
  • Publishing an innovation proposal submittal form on the website of the PTI
  • Mass Media
  • Transparency of business processes
  • Ensuring prompt access to information about the Company’s operations
  • Holding events for the media (briefings, press conferences etc.)
  • Quick distribution of news
  • Handling mass media requests
  • The Code of Ethics and Conduct for Employees of Transneft and Transneft Subsidiaries is in place.

    In 2018, following the publication of the Sustainable Development Report for 2017, the Company proved one of the leaders in the field of sustainable development, based on the Responsibility and Transparency and Sustainable Development Vector indexes of RSPP for 2018. In addition, Transneft climbed 25 positions up and ranked 34th (59th in 2017) in the National Corporate Transparency Rating of largest Russian companies by the Russian Regional Integrated Reporting Network. As per this rating, the Company’s transparency rose to Level II (42.8 points). Transneft received the Breakthrough of the Year award, as it scored a maximum increase in the number of points, compared to the previous year, and moved to a higher transparency level in the rating.