Russian multinational energy corporation LUKOIL has entered the top five in the environmental openness rating among Eurasian oil and gas companies.
The report, published by the Russian branch of the World Wide Fund for Nature (WWF) and the CREON analytical group, assessed the potential environmental impact and information openness of the rating participants, including 20 Russian companies, 14 companies from Kazakhstan and two companies from Azerbaijan.
Environmental issues had already dominated the agenda of the Davos World Economic Forum that took place in January 2020. Forum participants discussed the future of global energy with the focus on possible ways for business to transform the industry. The basis for this transformation is a responsible implementation of the Environment-Social-Governance (ESG) factors that are steadily becoming the core of responsible investing.
Therefore, oil and gas companies were evaluated on three main criteria: environmental management quality in the company, environmental impact and environmental friendliness level, as well as readiness to disclose information on the environmental impact during production activities.
LUKOIL ranks fourth, behind Sakhalin Energy, Zarubezhneft Exxon Neftegas, but ahead of oil and gas giants Rosneft and Gazprom. It was one of the first Russian companies to adopt the Industrial Safety, Labor and Environment Protection Policy, while its 2018-2020 Environmental Safety Program includes over 900 environmental measures. The company shows positive dynamics in terms of associated petroleum gas (APG) utilisation, air emissions reduction, and efficient use of water resources.
Investing with account for ESG factors is not just a fleeting trend or a homage to public opinion, but rather a long-term strategy for future growth. However, corporate activities cannot be efficiently responsible and accountable without business transparency. Lukoil publishes its Sustainability Report annually and demonstrates maximum openness during its interaction with civil society, local communities, and indigenous peoples when discussing future and existing projects.