Download Report (PDF; 3.90 Mb) - Lukoil

SUSTAINABILITY REPORTon international documents ratified by the Russian Federation supplementedby voluntary principles proclaimed by the UN in the GlobalCompact. The Social Code was adopted by the Board of Directors and isbinding for all enterprises of the Company. The Social Code is subject toperiodic reconsideration. The Company has also adopted internal policiesand regulations which will be covered in subsequent sections of thisReport.NON-FINANCIAL REPORTINGThe commitment to report voluntarily and regularly on sustainabledevelopment was made by the Company's top management. This isour first report, and in it we have attempted an analysis of theCompany's economic, social and environmental achievements duringthe past two years. The reporting process has helped the Companyto adjust its concept of sustainable development and its approachesto non-financial reporting in general.The Report is based on widely used international standards (the GlobalReporting Initiative [GRI] Sustainability Reporting Guidelines and theAA 1000 framework). We believe it is important to use methodologicaland conceptual approaches accepted by the professional community:both standards have undergone extensive development through theefforts of various professionals from different countries.LUKOIL shares the key principles of the Global Reporting Initiative,which are compatible with the information disclosure policy of theCompany. At the same time, some of the reporting principles were notfully used in the first report. This primarily concerns the level of stakeholderengagement in the reporting process. The Company participatesin conferences and forums; it is involved in the legislativeprocess, regularly meets with representatives of Russian regional governments,and conducts public hearings with ecological organisations.The Company and its employees regularly negotiate with the activeparticipation of the trade union association. However, the stakeholderengagement does not have a systematic character at this point: theCompany is just beginning that process.An open dialogue with stakeholders is a new cultural element in thiscountry, and one which has not yet sufficiently developed. We find this10