RATING
Outlook
Negative
SECTOR
Oil & Gas Operations
Chief Sustainability Officer
T: N/A
E-mail: N/A
Stock Exchange and Ticker
Moscow Exchange (MCX)
Website
Contact
T:+7 (812) 777 00 05
E.mail: info@gazprom-international.com
Listing
- #49 Global 2000 (2022)
Awards
- CDP – B
- Refinitiv – B
- MSCI – BB
- Bloomberg – 61
- Responsibility and Transparency index (RUIE) – A (leader group)
- Sustainable Development Vector index (RUIE) – A (leader group)
Revenue
$103.62B
Market Capitalisation
$97B
Employees
477,600
Content source
Gazprom Sustainability Report
Evaluation of Gazprom
The business has not set clear targets and reported clear progress regarding these targets. Gazprom follows GRI reporting standards and a lot of environmental performance data were recorded in the report, however, they attempt to spin this data as the company is sustainable. However, we can still see a little light in terms of transparency with the two ISO certificates it holds.
While claiming to address the SDGs and being sustainable, the company mentions in its report covering all 17 of them without clear benchmarks or progress evidence. This attitude contributes to its loud greenwashing campaign, which aims at convincing stakeholders that the company is greener than it actually is.
Last but not least, the several environmental crimes of which Gazprom has been charged, but not prosecuted by the Russian government. This creates a great environmental debt to pay off for the oil and gas company.
The company received a D with a negative outlook.
Sustainability Scorecard
Gazprom Company Activity
Gazprom PJSC is a global energy company. The company focuses on geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, as well as generation and marketing of heat and electric power. It operates through the following segments: Production of Gas, Transportation, Distribution of Gas, Gas Storage, Production of Crude Oil and Gas Condensate, Refining and Electric & heat energy generation and sales.
The Production of Gas segment engages in the exploration and production of gas. The Transportation segment engages in the transportation of gas. The Distribution of Gas segment involves in the sale of gas within the Russian Federation and abroad. The Gas Storage deals with the storage of extracted and purchased gas in underground gas storages. The Production of crude oil and gas condensate segment engages in the exploration and production of oil and gas condensate, sales of crude oil and gas condensate. The Refining segment is involved in the processing of oil, gas condensate and other hydrocarbons, and sales of refined products. The company was founded in 1989 and is headquartered in Moscow, Russia. (Source: Forbes)
Gazprom Sustainability Activity - As per company declarations
Gazprom International adheres to the principles of sustainable development and continuous performance improvement by implementing and maintaining an integrated system that enables the management of quality, health, safety, and environment (IMS).
These principles are materialized through the achievement of the following strategic targets:
— define clearly the functional relationships between the structural units, systemize the business processes of Gazprom International, and create an effective system to manage a holding company that meets internationally recognized standards;
— comply with all statutory and regulatory requirements for health, safety, and environment, industrial standards and sets of regulations, as well as Gazprom’s applicable requirements;
— enable the identification, assessment, and monitoring of material risks for quality, health, safety, and environment, to which the Company’s staff, contractors, and other stakeholders may be exposed;
— work safely, keep the staff’s physical, mental, and social welfare to a maximum, as well as minimize the adverse effect of the Company’s operations on communities where works are done.
Certificate & Labels, Standards and Frameworks
- ISO 14001:2015
- ISO 50001:2018
Gazprom in the news: Press Reviews and Social Media
Highlights from Gazprom Sustainability Report
Achievements
- On January 1, Gazprom started supplying gas to Serbia and Bosnia and Herzegovina via a new route – the TurkStream gas pipeline across the Black Sea and the national gas transmission systems of Bulgaria and Serbia. Supplies to Hungary and Croatia through the same route commenced on October 1
- In April, the Svobodny thermal power plant came onstream in the Amur Region. The main purpose of the plant is to provide the Amur Gas Processing Plant with thermal energy (steam) and electricity.
- In May, Gazprom launched the construction of the Complex for Processing Ethane-Containing Gas (CPECG) near Ust-Luga, Leningrad Region, a unique cluster combining capacities for gas processing, gas chemistry, and natural gas liquefaction.
- In June, the first production train of the Amur Gas Processing Plant (GPP), one of the largest of its kind in the world, was put into operation.
- In September, Gazprom launched the world’s biggest Logistics Center for servicing helium containers (helium hub) in the Primorye Territory. It will be used to deliver liquid helium to the global market. The first of three helium separation, liquefaction and packaging units at the Amur GPP came onstream.
Weaknesses and Setbacks
- Lack of clear and quantitative targets
- Unclear progress
Targets vs Progress Reported
| Target | Results reported |
|---|---|
| No quantitative and clear target set |
UN SDGs Compliance Analysis
Progress made toward SDG targets
As reported by Gazprom
- Bringing gas to consumers in rural settlements for local infrastructure development
- Respecting local communities’ interests and ensuring responsible targeted social investment
- RUB 294.74 million amount allocated to support traditional lifestyles of indigenous minorities of the North, including their agroindustrial activities
- 9,500 agricultural facilities were supplied with natural gas
- RUB 4,888.0 million payments for rehabilitation treatment
- 569,421 people insured under voluntary medical insurance programs
- RUB 131.0 million payments for targeted preventive initiatives as part of voluntary medical insurance programs
- 52,806 face masks and 1,623 t of disinfectants purchased to ensure employee safety
- 1,147 kt of hazardous emissions were captured and neutralized by Gazprom Group’s waste gas treatment facilities
- 353,700 employees, 250,100 executives, specialists, and other employees completed training under skills upgrading and professional retraining programs
- 9,663 students completed an internship with the Gazprom Group entities
- 27 schools have Gazprom Classes
- 17 partner universities, 25 specialized departments, 209 programs for skills upgrading and professional retraining
- Equal remuneration for men and women in positions with the same level of professional expertise
- The same ratio of fixed and variable remuneration for both genders
- 28.5% of women among the Gazprom Group’s staff
- 41.2% of women among specialists and other white-collar staff
- 24.1% of women among executives
- 29,600 women hired within the Gazprom Group in 2021 (37.1% of the total number of new hires)
- 2 women among the 14 members of the Management Committee of PJSC Gazprom (one of the women is Deputy Chairman of the Management Committee)
- 97% of wastewater discharged into surface water bodies is partially clean and partially treated
- 2,048 wastewater treatment plants with a total daily capacity of 1,838.266 m3
- 11,851.7 mcm volume of water recirculated and reused
- RUB 9.1 billion invested in protection and sustainable management of water resources
- RUB 14.3 billion current expenses related to wastewater collection and treatment
- RUB 183.8 million allocated to protection and replacement of fish reserves
- 31.5 million fish of various species were released to water bodies
- 247.2 bcm gas sales to Russian consumers
- 227.9 bcm gas sales to non-FSU countries
- 33.1 bcm gas sales to FSU countries
- 12.27 bcm sales of large-scale LNG in foreign markets
- 153.6 billion kWh electric power sales
- 122.3 million Gcal heat power sales
- Over 350,000 tons annual hydrogen output
- 13.2 million MWh electric power generation from renewable energy sources and secondary energy resources
- RUB 3,85 billion invested in renewable and secondary energy sources
- 3,202.8 million GJ fuel and energy consumption at Gazprom Group
- 167.4 million GJ fuel and energy savings resulting from the implementation of Gazprom Group’s energy saving programs
- 79,800 people hired in 2021
- 2,966 university and vocational school graduates пhired in 2021
- 42,000 contracts concluded with small- and medium-sized enterprises for an amount of RUB 248.5 billion
- 641 trade union organizations within Gazprom Workers Union
- 364,038 members of Gazprom Workers Union
- 29 in-house technical labor inspectors and 7,507 occupational safety officers participated in occupational safety activities
- 100% of employees of PJSC Gazprom and its subsidiaries, which signed the General Collective Bargaining Agreement, were covered by collective agreements
- 84 sports facilities were completed under the Gazprom for Children Program, which covers 5 federal districts of Russia
- Over RUB 13.8 billion allocated to urban infrastructure improvement
- RUB 24.6 billion the Gazprom Group’s investments in R&D
- RUB 12.8 billion economic benefit from the application of R&D results
- RUB 11.4 billion the Gazprom Group’s expenditures on the development of software and digital transformation
- RUB 21.9 billion economic effect from the implementation of technologies based on import substitution
- 72.1% gas infrastructure penetration in Russia
- 2,700 km of gas pipelines built as part of the gas infrastructure expansion program
- 68 constituent entities of the Russian Federation are covered by the gas infrastructure expansion program
- 0 cases of discrimination across the Gazprom Group
- 0 violations of rights and conflicts with local communities, including indigenous minorities of the North
- RUB 39.5 billion PJSC Group’s charity spending
- 948 mcm Sales of compressed natural gas at CNG filling stations in Russia
- 386 Number of active gas filling stations of the Gazprom Group and Gazprom Gazomotornoye Toplivo in Russia
- RUB 6.8 billion Investments by the Gazprom Group and Gazprom Gazomotornoye Toplivo in the development of gas filling infrastructure
- 17,194 new vehicles converted by consumers to natural gas as a result of dedicated marketing programs (up 95.4%)
- 179 waste treatment and recycling facilities with a total annual capacity of 286,000 tons
- RUB 703.82 million was invested in implementing waste recycling, treatment, and dumping projects
- RUB 7.08 billion were the current waste management expenses
- 3,046,590 tons of waste were generated in 2021, down 6% year-on-year
- 97% of waste is low-hazard and almost nonhazardous (Classes IV and V)
- 6% reduction of methane emissions at the Gazprom Group
- RUB 36.5 billion spent on air protection and reduction of GHG emissions
- RUB 5.7 billion current expenditures on air protection and climate change prevention
- 301.21 kg of СО2 per boe carbon intensity of the Gazprom Group’s products. It is one of the lowest rates among global oil and gas majors
- 7,429 people were trained in environmental programs at various educational institutions
- Over 3,290 voluntary initiatives were run to clean up the waterside of rivers and lakes
- RUB 13.634 billion was invested in protection and sustainable use of lands, including remediation
- RUB 6.647 million current expenditures on preservation and restoration of land, open and ground water
- 17,199.4 hectares was the area of remediated disturbed land
- More than 459,300 young trees were planted
- More than 7,039 hectares of land cleaned up
- RUB 97.54 billion total environmental expenditures by the Gazprom Group in 2021
- RUB 3,083.8 million expenses on operational environmental monitoring and control
- 6,585 facilities of the Gazprom Group underwent operational environmental monitoring and control
- RUB 269.9 million current expenditures on biodiversity preservation and protection of designated natural areas
- 2,970 employees completed anti-corruption training
- More than 6,570 Hot Line reports were reviewed in connection with countering fraud, corruption and theft at the Gazprom Group
- 0 cases of corruption
- 24 subsidiaries were included in the tax monitoring system to improve tax transparency in the Gazprom Group
- 81 cooperation agreements with regions of the Russian Federation are currently in force
- Реализуются 18 roadmaps are being implemented in 18 regions of the Russian Federation to stimulate the manufacture of import-substituting products
- 17 Joint Coordination Committees and Joint Working Groups for key projects and lines of cooperation with foreign partners
- 79,760 Gazprom Group employees participated in volunteer activities
Sustainability Certificates, Awards and Listings
