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Rosneft Presents Its Environmental Development Concept

26 February 2021

Rosneft presented the Company’s environmental development concept. As a responsible producer and a participant of the UN Global Compact, the Company is committed to sustainable development of natural resources and minimizing its environmental impact.

The Company’s environmental agenda is based on the Carbon Management Plan 2035 and main directions of the Company’s environmental development. These documents define Rosneft’s key sustainability, emission reduction and low-carbon projects goals, and regulate the Company’s activities in the area of water and waste management, land reclamation, and implementation of a large-scale biodiversity conservation program.

Unlocking the potential of the absorbing capacity of forests and implementing programs to offset greenhouse gas emissions are among the important Rosneft’s activities. The Company and its subsidiaries planted more than 1.5 million trees in 2020 and more than 3.5 million saplings in the past three years.

The Carbon Management Plan, one of the key documents on Rosneft’s environmental agenda, envisages Company’s long-term climate goals to 2035, including reducing upstream emission intensity by 30% by 2035 and prevention of 20 mln tons of CO2 equivalent of greenhouse gas emissions. Rosneft will also continue to implement its energy saving and associated petroleum gas utilization program. At that, Rosneft is planning to increase the gas share up to more than 25% in its total portfolio.

Rosneft’s Energy Saving Program makes a significant contribution to reducing its carbon footprint. Since 2014, the economic effect of its implementation amounted to 39 billion roubles. Over six years the Company managed to save over 6.4 million tons of fuel equivalent. The energy saving program for 2021-2025 involves saving 2.6 million tons of fuel equivalent, or up to 37.4 billion roubles in monetary terms.

Comprehensive cooperation with relevant organizations and leading market players is one of the key factors in achieving greenhouse gas emission reduction goals. Cooperation with the first partner of Rosneft, bp, will focus on assessing the prospects for new projects involving the use of renewable energy sources, the use of technologies for capturing, utilizing and storing CO2. In addition, the companies intend to join forces to develop industry methodologies and standards for carbon management, including initiatives to reduce and prevent methane emissions, as well as the application of energy efficiency technologies.

Rosneft is systematically expanding production of Euro 6 fuel with enhanced environmental characteristics. By the end of 2020, its production volume rose to 1.3 million tons, twice as much as the previous year. Euro-6 motor gasoline contains less sulphur, benzene and aromatic hydrocarbons than conventional fuels. This contributes to reduction of corrosive activity and leads to reduction of toxicity of exhaust gases. By the end of 2020, Euro 6 gasoline was sold at more than 750 Rosneft gas stations in 11 regions of Russia.

Implementation of the Company’s sustainability projects allowed Rosneft to strengthen its position in international ESG ratings. This indicates the Company’s sustainable business model and its ability to maintain its competitive and fundamental indicators. Rosneft has been recognised as the leading oil and gas company in Russia by several international ESG ratings, such as Refinitiv, Bloomberg, Corporate Human Rights Benchmark, and has been ranked among leaders in the Climate and Water Resources international ratings of CDP. At the end of 2020, Rosneft’s FTSE Russell rating was upgraded to 3.9 on a five-point scale. In terms of its indicators, the Company has outperformed 84% of the international oil and gas industry rating (ICB supersector) participants. These ratings reflect the transparency and correctness of information, primarily on environmental protection and combating climate change. A great deal of attention is paid to the social sphere. The company has been issuing sustainability reports in accordance with international standards for fifteen years.

Information Division
February 26, 2021

Keywords: Environmental News 2021