Management Approach
Since its foundation, NOVATEK has been committed to conducting business responsibly. As a sustainability leader in Russia, the Company aligns its goals with Russia’s National Development Goals and the UN Sustainable Development Goals.
Sustainability management is an integral part of NOVATEK’s corporate governance system. The Board of Directors and its committees actively engage in sustainability management. At the executive body level, all key aspects of sustainable development are supervised by respective deputies of the Chairman of the Board. Sustainability is integrated into the Company’s top management KPIs. This makes for proper management of both strategic and operational aspects of sustainability.
Sustainability Corporate Governance System
* Sustainability Management Structure as of 31 December 2021.
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Board of Directors
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- Defining the Company’s sustainability agenda and strategy
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Remuneration and Nomination Committee
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- Establishing effective and transparent remuneration of members of the Company’s governance bodies and building up their expertise
- Preparing recommendations to the Company’s Board of Directors on which focus areas to select in sustainability, industrial safety, environmental protection, climate change, corporate governance, and social activities
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Strategy Committee
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- Defining strategic goals and overseeing the implementation of the sustainability strategy
- Making recommendations on the dividend policy
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Audit Committee
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- Overseeing the internal audit function
- Overseeing the performance of the risk management, internal control, and corporate governance systems
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Subcommittee on Climate and Alternative Energy under the Strategy Committee
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- Recommendations to the Board of Directors on matters related to NOVATEK’s climate and decarbonization strategy, renewable energy development and low-carbon fuel production
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Risk Management and Internal Control System
Managing risks threatening NOVATEK’s sustainable development is a strategic goal of the Company. The Company regularly identifies and assesses risks and defines actions to manage risks at all levels of corporate governance. The Company describes risks with risk maps that classify the risks of all business processes and activities that may threaten the achievement of the Company’s objectives on a planning horizon from one to three years.
The list of key sustainability risks is given in the Company’s Sustainability Report.
The Company regularly conducts risk management activities, including stress testing, developing business continuity plans and taking out insurance.
