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SUSTAINABILITY REPORTEnterprises for 2001–2005 is being implemented to meet the requirementsof the corporate Industrial Safety Policy.Product environmental safetyLUKOIL Group makes significant investments in production of environmentallysafe fuel.The Company is convinced that national corporations, as well as allRussian citizens, must be interested in modernising Russian refineries.These days petroleum products are used primarily in transportation,including privately owned vehicles, and therefore qualityrequirements must be significantly higher. The use of more environmentallysafe fuel is good for the health of the nation. It follows thatthe introduction of new fuel quality standards is a task of nationalimportance which should be undertaken by means of consolidatedefforts. Russia must follow the rest of the world in implementingstrict measures to reduce hazardous emissions from motor andheating fuels.The Company is prepared to deliver a steady supply of petroleum productsof the highest quality to the domestic market. LUKOIL refinerieswere among the first ones to stop completely the production of leadedpetrol. The Company has invested substantial amounts of money inequipment capable of producing motor fuel that complies with internationalstandards, including high octane automobile petrol, low sulphurdiesel fuel (with sulphur levels at or below 0.05% by mass), JetA-1 fuel, and universal motor oils.An advanced refining unit was launched at OOO LUKOIL-Permnefteorgsintez in September 2004. The unit produces petroleumproducts whose quality and environmental characteristics meet futureEuropean requirements. Reconstruction of the petrol reprocessingand reforming units at OOO LUKOIL-Volgogradneftepererabotkaresulted in petrol components with a higher octane number, and asa result the use of high-octane toxic additives has been reduced by2.2 times.In 2003, LUKOIL products for the second time were winners in theBest Motor Oil category at the nation-wide Popular Brand competition.76
ENVIRONMENT, SAFETY, AND HEALTHInteraction with stakeholdersThe Company acknowledges society's right to live in a safe environmentand believes that unavoidable conflicts of interests must beresolved through a compromise respectful of the public interest.The Company aims to be open, to respond to requests for informationand to discuss existing problems in good faith. The Company fullydemonstrated its methods of interaction when it launched new projectsin the Baltic Sea (see the insert on page 89).Specialists from the Department for Industrial Safety, ResearchOperations and Ecology constantly participate in considering draft lawsconcerning environmental protection at sessions under the auspices ofthe Russian Union of Industrialists and Entrepreneurs and the RussianChamber of Commerce and Industry. Together with governmental bodiesand research and public organisations, the Company has taken partin international and domestic conferences, seminars and symposia onenvironmental safety, waste utilization, and rational use of waterresources among other topics.ENVIRONMENTAL IMPACT OF THE COMPANYPriorities and resultsThe company has defined its priorities for improving the environmentalsituation in the territories of its operation. It has identified ecologicalconsiderations and target indicators to be reached in order to reducethe negative environmental impact of LUKOIL Group operations as awhole, as well as the impact of each of its separate operations: oil andgas production, oil refining, petrochemical production, gas refining, anddistribution of petroleum products. Those aspects were taken intoaccount during the preparation of the LUKOIL Group EnvironmentalSafety Programme for 2004–2008.The Company has been successful in reducing most of the elementsof environmental impact both in proportional terms (per ton of oil producedand refined, etc.) and also in gross quantity (for all Russianenterprises of the Company). This is particularly significant as77
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SUSTAINABILITY REPORTINTRODUCTIONBY
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SUSTAINABILITY REPORTCORPORATE PROF
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CORPORATE PROFILEket. In 2004 the A
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SUSTAINABILITY REPORTfirst time tha
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SUSTAINABILITY REPORTThe issue of r
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SUSTAINABILITY REPORTCOMPANY CONTRI
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COMPANY CONTRIBUTION TO ECONOMICDEV
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Page 38: SUSTAINABILITY REPORTSOCIAL POLICY"
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Page 43 and 44: SOCIAL POLICYCollective bargaining
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Page 47 and 48: SOCIAL POLICYREGULATION OF LABOUR,
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Page 55 and 56: SOCIAL POLICYHealth careThe Company
Page 57 and 58: SOCIAL POLICYNeither the market nor
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