Rosneft published Sustainability Report following the results of 2018. The Report was prepared in accordance with the sustainable development reporting standards of the Global Reporting Initiative (GRI standards) to be able to focus on the most significant areas of sustainable development as seen by the stakeholders. The report contains a number of topics related to industrial safety, health and environment, climate change, corporate governance and risk management, digital transformation, innovations, HR development and social security, as well as social and economic development of the regions of Company operations. The document also outlines the Company's contribution to achieving the 17 UN Sustainable Development Goals.

In its operations Rosneft prioritizes actions to combat climate change and reduce greenhouse gas emissions with significant part of the 2018 Sustainable Development Report dedicated to these matters.

Rosneft reduced methane emissions by 46% in 2018 compared to previous year. This result was achieved thanks to the technology of reducing the volume of gas dispersion during gas-lift production. It is fully in line with the initiative of the leading international oil and gas companies with Rosneft joining it by signing the Guiding Principles on reducing methane emissions across the natural gas value chain.

In addition, the Company has achieved an 11% reduction in greenhouse gas emissions in Refining, Petrochemicals and Product Sales through implementation of measures to increase energy efficiency including a switch of fixed combustion sources to a greener fuel

Company Strategy approved by the Board of Directors defines "Combating climate change" as one of the five priority goals as part of its commitment to the UN 17 Sustainable development goals. Being a member of the UN Global Compact since 2010, Rosneft has been developing its existing refineries and creating new products to reduce consumer emissions and enhance fuel efficiency.

Amongst the Company's 2018 achievements the Report specifically mentions the completion of major water treatment projects in Bashneft-Ufaneftekhim and Novokuibyshevsk refineries, increase of associated petroleum gas utilization volumes, improvement of energy efficiency across all operations, production of new environmentally friendly fuels, opening a chain of natural gas fuel stations, reducing per unit pipeline failures, and construction of socially important facilities.

The Report highlights the significant role Rosneft plays in developing the regions of its operations – it contributes to improving people's welfare by investing in healthcare and education, fitness and sports promotion, creating comfortable environments in dozens of settlements across Russia. Over the past year, the Company allocated over 9 billion rubles to finance the social sphere of the regions.

The Report also presents the results of work to improve employees’ motivation and social security arrangements. The Rosneft-2022 Strategy includes social initiatives that cover healthcare, support for retired employees and increase in housing affordability. Implementation of these programs makes it possible for Rosneft to provide a significant input into addressing social issues outlined in Russian national projects and in the Decree of the President of the Russian Federation "On national goals and strategic objectives of the Russian Federation till 2024".

Rosneft's Sustainable Development Report is issued for shareholders, investors, representatives of state and municipal authorities, employees, partners and customers, public and environmental organizations, research and educational institutions, as well as the wider Russian and international public.

The completeness and accuracy of the Report data, as well as its compliance with the principles and requirements of the GRI standards, are confirmed by an independent assurance provided by EY – a leading international auditing company.

Sustainability Report 2018

Rosneft
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July 4, 2019