Oil & Gas Operations
Chief Sustainability Officer
Stock Exchange and Ticker
Moscow Exchange (MCX)
T:+7 (812) 777 00 05
- #49 Global 2000 (2022)
- CDP – B
- Refinitiv – B
- MSCI – BB
- Bloomberg – 61
- Responsibility and Transparency index (RUIE) – A (leader group)
- Sustainable Development Vector index (RUIE) – A (leader group)
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.
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
- 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
|No quantitative and clear target set