ENERGY FOR PEOPLE - JSC Gazprom Neft

10CORPORATEGOVERNANCEEnergy for lifeENERGY FOR PEOPLECORPORATEGOVERNANCEIn the long term perspective JSC GazpromNeft positions itself as an internationalvertically integrated oil company of Russianorigin, one of the leaders in oil industry.In order to achieve this goal the Companyrecognizes the necessity to perfect thecorporate governance system of JSCGazprom Neft. High-level corporate cultureincreases investment appeal of the Company(both to Russian and foreign investors),its information and financial transparencyand ensures the trust of partners andshareholders.The Company aims for high-levelcorporate governance that can only beachieved through:AASetting up efficient procedures forstrategic and investment planning;AAPublic financial statements, that allowboth shareholders and investors toobjectively assess the results of theCompany’s activity;AAHaving a system of internal controland audit and a risk managementsystem to give a reasonableguarantee of the Company achievingits strategic goals;AAUnderstanding social responsibility;AAAn efficient staffing policy in order toattract highly qualified professionals tothe Company;AAAn adequate remuneration policy forthe Company’s senior management;AAAn information policy, aimed tofully satisfying the informationalrequirements of the shareholders,investors and other parties andproviding timely and reliableinformation.JSC Gazprom Neft carries out theabove by means of:AAEnsuring transparency of theownership structure and of thestructure of JSC Gazprom NeftGroup;AAPlanning activities for different timehorizons (short-, medium- and longtermplanning);AAInvolving the Board of Directorsin controlling the major areas ofcorporate governance (strategic,investment, budget planning, internalcontrol and risk management, etc);AAPlanning Company’s investments;AADrawing up financial statementsin accordance with the GenerallyAccepted Accounting Principles (USGAAP);AAMaking detailed public financialstatements (including informationon the related-party transactions,major counterparties, list of interestedparties for the transactions, quarterlyfinancial statements with notes);AAEnsuring high financial transparencyby adhering to the internationalstandards for financial statements andissuing the management reports bothin Russian and in English;AAEstablishing a separate structuralentity for risk management, ensuringthe integrated system of riskmanagement and strategic planning;AAActive social policy of the Company,making public CSR reports;AAImplementing an efficient motivationsystem for the senior executivemanagement of the Company;AAEstablishing positive relations withregional and local authorities,regulatory bodies of the industry,employees and major counterparties;AAImproving workplace safety andcompliance with environmental safetyrequirements.Over the reporting period in orderto improve the level of corporategovernance the Company has done thefollowing:AALaunched a project aiming at quickerfinancial closing and publishing theconsolidated financial statements atan earlier date than most Russiancompanies;AAReduced dividend payout period;AASignificantly expanded the scope ofinformation available to investors onthe official website of the Company:apart from the information subject toobligatory disclosure, JSC GazpromNeft publishes the following:––Investor’s Calendar;––Company’s financial statements;94