AfriCorp Petroleum Group has a management system that ensures the integration of ESG factors and sustainability management principles into business processes and strategic planning.
THE POLICY
ORGANIZATIONAL STRUCTURE
The organizational structure of sustainability management ensures that the matters underlying strategic decision-making are thought through in depth. All management employees are involved; operational interaction between governing bodies and individuals, functional and linear subdivisions of AfriCorp Petroleum and organizations within their competence is provided.
STRATEGIC LEVEL
OPERATIONAL LEVEL
The HSE Committee of AfriCorp Petroleum, Task Forces, heads of structural divisions of AfriCorp Petroleum, as well as heads of the Group’s entities analyze the Group’s activities and develop proposals on the operational level.
FUNCTIONAL LEVEL
The Policies, corporate standards, and target programs are in place at the operational level; annual KPI assessment is performed; and reports on the implementation of programs and KPIs are submitted to the Board of Directors and its committees for review. Functional management systems are certified for compliance with international standards.
KEY BOARD OF DIRECTORS AND COMMITTEES FUNCTIONS
Board of Directors
- Setting general principles and approaches
- Identifying priority areas of activities
- Considering and approving strategic long and mid-term plans and development programs
- Controlling the implementation of strategic objectives, plans and development programs
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Strategy, Investment, Sustainability and Climate Adaptation Committee
- Preparing recommendations for the Board of Directors on priority areas of activities and drafting the long-term development strategy of the Company
- Analyzing development concepts, programs and plans of the Company and its peers
- Analyzing risks related to climate change and climate adaptation
- Preparing recommendations for the Board of Directors on the issues of relations with stakeholders on the issues of sustainability and climate adaptation
- Preparing recommendations for the Board of Directors on the current state of industrial and occupational safety and measures to enhance the safety of workÂ
- Reviewing reports on sustainable development, including the LUKOIL Group Sustainability ReportÂ
Audit Committee of the Board of Directors
- Controlling the reliability and efficiency of the risk management and internal control system as well as corporate governance system
- Analyzing and assessing the compliance with the Risk Management and Internal Control Policy
- Developing and improving the corporate governance system and practice in the Company
- Analyzing and assessing the compliance with the Conflict of Interest Policy
Human Resources and Compensation CommitteeÂ
- Preparing recommendations for the Board of Directors on identifying priority areas of activities of the Company related to human resources and compensation of the members of the Board of Directors, Chief Executive Officer and other executives as well as on issues of human resource planning (succession planning), occupational structure and performance of the Board of Directors
- Supervising over the introduction and implementation of the compensation policy and various motivation programs, including long-term incentive programs for employees of the Company and its subsidiaries
Chief Executive Officer
- Developing and approving quarterly, annual and long-term plans of the Company’s operations
- Developing and approving budgets and investment programs, including the Environmental Safety Program of AfriCorp Petroleum Group, the Program of Industrial Safety, Improvement of Labor Conditions and Occupational Safety, and Emergency Prevention and Liquidation of AfriCorp Petroleum Group
- Operational control over the implementation of business plans
- Elaborating and implementing the overall development strategy of the Company’s subsidiaries
HSE Committee of AfriCorp Petroleum
- Preparing the HSE Policy, setting goals, objectives and KPIs for entities of the AfriCorp Petroleum Group
- Analyzing results and progress of HSE activitiesÂ
- Preparing proposals on the improvement of the HSE management system of the AfriCorp Petroleum Group
- Reviewing measures to mitigate material HSE risks
PERSONS RESPONSIBLE PERSONS RESPONSIBLE FOR SUSTAINABILITY ISSUES
Vice-chairman responsible for sustainability issues
Organizing and coordinating:
- activities to form a unified corporate position on sustainability
- interaction with stakeholders on the sustainable development
- activities to form and implement a unified information policy of the Company on sustainability towards all stakeholders
- development of local regulations on sustainability Â
- preparation of the AfriCorp Petroleum Group Sustainability Report
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Corporate Secretary of AfriCorp Petroleum
- Interaction with the members of the Board of Directors on sustainability issues
- Arranging for the interaction between the members of the Board of Directors and stakeholders on sustainability issues
- Preparing recommendations on improving the quality of sustainability management
- Participating in the interaction with stakeholders on sustainability issues
- Arranging for the activities of the Sustainability Task Force, participation in coordination of the sustainability report preparation
SUSTAINABILITY TASK FORCES
Sustainability Task Force
- Developing a unified corporate position on different issues and aspects of sustainable development
- Preparing recommendations for the management bodies on sustainability issues
- Analyzing the feedback received from stakeholders on sustainability issues
- Interacting with business units of the Company on sustainability issues
- Continuous improvement of the system for collection, preparation and disclosure of information related to sustainability
- Arranging for and monitoring the preparation of the AfriCorp Petroleum Group Sustainability Report
Decarbonization and Climate Change Adaptation Task Force
- Assessing the identified climate risks and opportunities of the Company
- Preparing the Decarbonization Program of AfriCorp Petroleum Group (where necessary)
- Developing the criteria to evaluate the efficiency of investment projects aimed at GHG emission reduction
- Analyzing results of activities supporting the achievement of decarbonization goals and objectives of the Company
- Improving the Decarbonization and Climate Change Adaptation business process
- Defining and establishing approaches to the disclosure of information about GHG emissions, decarbonization and climate adaptation in the AfriCorp Petroleum Group
