Company’s position on sustainability
Naftogaz is doing responsible business and takes into account all current trends in the governance of modern oil and gas companies. We respond to the pressing challenges and needs of the Ukrainian society, while acting out of concern for future generations. We create value for our consumers in a sustainable fashion, with due regard to environmental protection, social policy, as well as financial resilience, and in compliance with the corporate governance standards.
The company places special focus on the climate change issue. These challenges require changes in the economic system and will determine the course of development for countries and companies during the current century. Therefore, achieving zero emissions is a key goal set in the Naftogaz’s strategy. We are currently developing a plan for the long-term sustainable transformation of the oil and gas company, which ensures energy independence through increased production and diversified demand for gas transit, into a sustainable energy supplier with minimal impact on the environment and climate.
Naftogaz is planning to become a consumer and supplier of green energy in the Ukrainian market, by installing at least 1 GW RES capacities by 2030. Also, our long-term goal is to produce up to 1 million tons of biofuels and up to 5 billion cubic meters of biomethane and hydrogen annually. We strive to meet our customers’ needs for greener energy solutions by reducing their carbon intensity.
An integral part of the climate action plan is to mitigate the direct impact of the company’s operations. Naftogaz aims to achieve zero direct emissions by 2040. To this end, we will invest in energy efficiency measures, cut on commodity gas losses and reduce methane leaks.
Naftogaz is the largest donor to the economy of Ukraine. The funds we paid to the national and local budgets in 2020 amounted to UAH 141 billion, which was 13% of the total public revenue. At the same time, we acknowledge our corporate social responsibility and therefore our business has not been limited to providing stable financial income. We are a partner to over 240 communities in eleven regions of Ukraine. Over the last 5 years, 181 social and infrastructure projects worth a total of UAH 250 million have been implemented in the regions of our presence. Since the beginning of the pandemic, the company has allocated UAH 720 million to fight COVID-19. For seven consecutive years, Naftogaz employees have been donating for the needs of the Ukrainian army, the total amount of the assistance has exceeded UAH 65 million.
We adhere to the principles of gender equality. The share of women among the company’s employees is 24%, which is higher than the industry’s average around the globe (22%).
Over a third of the company’s top management (executive board members, heads of functions and areas, as well as businesses) are women.
We are convinced that successful implementation of any change requires a properly functioning corporate governance system. That is why Naftogaz continues to implement the relevant OECD recommendations for state-owned companies.
In the course of our business, we ensure strict compliance with the provisions of the Ukrainian and international laws, the requirements of corporate ethics, as well as anti-corruption standards.
Our defining goal is to ensure profitability and financial predictability. At the same time, the national company Naftogaz should drive the corporate governance reform, be a corporate social responsibility leader and an example of successful mitigation of environmental impact.
We strive to become a national leader in terms of sustainability. The company is a member of UN Global Compact that shares its principles and prioritises the following sustainability goals in its course of business.