SOCIAL PROGRAMMES AND CHARITY · In addition to business objectives, Transneft Group is implementing a wide range of social and charity projects and initiatives focused on improvement

In addition to business objectives, Transneft Group is implementing a wide range of social and charity projects and initiatives focused on improvement of the quality of life, social infrastructure development in the regions of operation, and support of science, education, culture, and sports. The Group adheres to the following priorities in its charity activities:

■ donating to social infrastructure facilities (schools, nursery schools, outpatient clinics and other social institutions) in areas where the Group operates;

■ support of popular sports (including sponsorship of sports schools);

■ cooperation with research institutions and nongovernmental environmental agencies on matters related to adoption of green technologies, sustainable use of natural resources, and soil, water, and air pollution control;

■ refining the infrastructure at higher education institutions, getting undergraduate and postgraduate students involved in scientific research, sponsoring of academic departments and laboratories engaged in research activities essential for the pipeline industry;

■ sponsorship of projects of restoration and revival of historical monuments, financial aid to theatres, museums, cultural and educational institutions, and support of other campaigns facilitating development of culture and preservation and redounding of the moral values of the numerous peoples of Russia;

■ funding construction, revamping, and renovation of monasteries, convents, and temples; assistance in publishing activities;

■ social support and protection of citizens, resocialisation of persons with disabilities and children left without parental care;

■ implementing joint targeted programmes with charity organisations.

SOCIAL PROGRAMMES AND CHARITY

36. Charity 37. Corporate culture and development of the volunteering movement

Charity and sponsorship are very important to the Group. These are the areas of activity in the field of sustainable development that contribute to a favourable social environment.

WHY THESE TOPICS MATTER

MANAGEMENT APPROACH

GRI 103-1

GRI 103-2

TOPICS

Documentation

■ Cooperation agreements between Transneft and the constituent entities of the Russian Federation;

■ Regulations on the Corporate Volunteering Programme for the Employees of Transneft and Transneft Subsidiaries;

■ Regulations on the Procedure for Provision of Charitable Assistance;

■ Charitable Assistance Policy.

159

CHARITY AND SPONSORSHIP

CHARITABLE PROJECTS

RUB 9.9 billion Transneft Group’s charity expenses in 2018

RUB 203.07 million sponsorship expenditures in 2018

Transneft Group’s sponsorship, RUB million

Expenditure on charitable activities, RUB billion

2017 2018

673.9 203.07

2015 2016 2017 2018

8.1 14.9 4.9 9.9

New Classrooms for Future Engineers and Scientists

One of Transneft’s most significant social projects in 2018 was further implementation of the Corporate School Programme. The geography of this project embraces 169 towns and settlements located in the regions of operation of the Group and belonging to eight federal districts. Support of 241 schools is planned within the scope of the programme.

In 2018, renovation of physics, chemistry, and mathematics classrooms took place in 24 regions of Russia, and 46 schools got new laboratory and demonstration equipment installed. The volume of funding made 262.65 RUB million.

The school sponsorship programme takes into account all the current requirements to the educational process, and receives positive feedback from teachers and students.

The main funding is scheduled for 2019. Transneft Group will allocate 1.084 billion rubles for the development of education (including 665.9 million for new equipment and 418.9 million for building renovation). Thus, the total funding of schools in 2017 – 2019 will amount to approximately 1.5 billion rubles. More than 170 schools will receive assistance in 2019.

Energy of Life Campaign

In August 2018, the Energy of Life voluntary blood donation campaign was held at the premises of the executive office of Transneft Upper Volga. With the help of a mobile blood banking complex, 57 people participated in the donation programme.

In Nizhny Novgorod Region, there are only a few regular blood donors per thousand inhabitants, therefore donor blood is in short supply. Due to the campaign, the regional blood transfusion center added new permanent blood donors to its database.

> RUB 262 million funding of the SchoolAssistance Programme in 2018

Sustainable Development Report for 2018

160

We have launched the Helping with Good Deeds charity project. This is not just a donation of a certain amount. This is real work with people. Our employees would read letters from children living at care homes, then they would drive and purchase those things, gifts, toys which the kids had asked for in their letters, and take them to the children. The employees participated in providing care to nursing home patients, senior citizens in need, and in other significant charity events. All this has been and is being done with great enthusiasm, and the number of people willing to help, ready to dedicate their time and effort to good deeds, is growing steadily.

Nikolay Tokarev, Chairman of the Management Board, President of Transneft

Helping with Good Deeds Campaign

The year 2018 was declared the Year of Volunteer in the Russian Federation, in the context of which Transneft Group launched a corporate volunteering programme, Helping with Good Deeds, which involved the employees of Transneft and its subsidiaries.

Socially active employees at all Transneft subsidiaries offer their personal help to orphans, lonely elderly people, children and adults struggling with diseases, and families with low income facing hardships.

>40,000 – Transneft Group employees are participants of the volunteer movement

>850 volunteer projects

> RUB 20 million

>54,000 people

135 locations

personal donations by the volunteers for charity purposes

aided by volunteers

in the Russian Federation hosted our charity events

2018 VOLUNTEERING RESULTS

“ “

161

Volunteer Gifts for the New Year

Every December, a New Year tree is set up in Transneft’s office as well as in all regional business units of Transneft Group, with children’s letters to Ded Moroz (“Grandfather Frost”, a figure akin to Santa Claus) placed on the tree. Any employee of the Company can play Ded Moroz. One can buy gifts, or go to a kids’ care home as a volunteer animator.

Yevgenia Parfenova, Lead Engineer of the Planning and Project Design Section of Chernomortransneft, participates in the corporate tradition every year:

In the 1990s, I experienced first hand what it was like to live in need. But we were helped by friends of the family, and this feeling of support remained forever in my heart. Therefore, whenever there is an opportunity to help someone, I just do it. It has become a habit. And isn’t it quite a great habit to do good!

A Hike for Children from the Care Home

Head of the Social Development Section at Transneft Far East Andrey Afanasyev is an experienced tourist, fisherman, and hunter. Andrey Afanasyev, together with his colleagues, held a survival course in the taiga for children residing in Khabarovsk care home No. 4. Some twenty children aged 9 to 14 y.o. supervised by adults went to Bolshekhekhtsirsky Reserve by bus provided by the Company.

I have three children, I feel their needs and expectations, and I try to teach them some everyday skills that will be useful to them in their future life. At the same time, I realise that there are children who lack this. For example, kids staying at care homes, who could benefit from communicating with adults and pick up some worldly experience from them. Their trouble is that they leave the care home poorly adapted to living on their own. Who will take care of them then, if we don’t?

“

“

“

“

The exhibition at the Jewish Museum and the Centre for Tolerance

Transneft became a partner of the Isaac Levitan and Auteurism exhibition held at the Jewish Museum and Centre for Tolerance. Selected works by Levitan embedded in the context of auteur cinematography inspired by the artist’s landscape lyrics were displayed at the exhibition.

We attempt to bring something new into any exhibition, so that the people would not only look at the pictures, but also receive additional information in an accessible, open, and interesting manner. Our cooperation with Transneft helps us to bring the museum’s exhibition activities to a new level.

Alexander Boroda, Director General of the Jewish Museum and Centre for Tolerance

“

“

SPONSORSHIP PROJECTSKey sponsorship areas:

■ science and higher professional education, popular research projects; ■ development of mass athletics; ■ historical and cultural projects, support of arts; ■ environmental projects.

Corporate Partner of the Tretyakov Gallery

Transneft is a Corporate Partner of the Tretyakov Gallery. In 2018, the Company was the general sponsor of the exposition organised to commemorate the 175th anniversary of Arkhip Kuindzhi. 186 masterworks of the great artist, including both famous canvases and sketches from museum vaults as well as works from private collections were exhibited at the gallery.

Sustainable Development Report for 2018

162