NJSC Naftogaz of Ukraine has joined the United Nations Global Compact (UN Global Compact) as a participant. This new commitment will see the company align with the 10 principles of the UN Global Compact, work towards achieving the Sustainable Development Goals and report on their execution.
Naftogaz will pursue its sustainable development strategy in six areas:
● Affordable and Clean Energy
● Clean Water and Sanitation
● Good Health and Well-Being
● Quality Education
● Sustainable Cities and Communities
● Partnership for the Goals.
In addition to its core business, combating climate change and improving the environment is an undisputed priority for any modern energy business in today’s world.
Naftogaz cannot be exempt from this trend, especially taking into account the commitments under the Paris Agreement on climate change, the Concept of State Climate Change Policy Implementation until 2030, and the Association Agreement between Ukraine and the EU, Euratom and their member states.
“Naftogaz Group is developing a green business model, and this is not only due to the global trend towards a steady reduction in the use of fossil fuels, but also by its own ambitious plans to implement low-carbon projects, in particular in the field of renewable and bio-energy, energy efficiency, and the hydrogen economy. Environmental and climate requirements regarding the operations of companies will increase each year. It is therefore important right now to start projects aimed at reducing emissions at all stages – from oil and gas production to their processing, storage and supply. Without appropriate ESG strategies, it is impossible to obtain investment and financing even for Naftogaz’s core activities,” commented Oleksiy Ryabchyn, Advisor to the Naftogaz CEO.
Naftogaz’s approach to corporate social responsibility focuses on the development of regions where it is present.
“Naftogaz Group has long operated according to principles which coincide with the guiding principles of UN Global Compact. For us, this is a matter of social responsibility and an example of what modern production can and should be. Accession to the Agreement is a logical development of Naftogaz corporate policy. It also serves as a demonstration that we strive to become a company chosen by our customers, a reliable employer for our employees, and a responsible partner not only for communities wherever hydrocarbons are produced, but for the whole of Ukraine,” said Sergii Pereloma, First Deputy Chairman of the Board of Naftogaz of Ukraine.
UN Global Compact Ukraine Chief Executive Director Tatiana Sakharuk also stressed the importance of Naftogaz joining the sustainable business community. “We are very pleased to have Naftogaz Group among our participants. Large business has a significant impact on the regions where it operates, on the environment, on its employees, consumers, and partners. When companies like Naftogaz take responsibility for the impact of their activities on the world we live in, we are moving closer to achieving our Sustainable Development Goals.”
Naftogaz Group is the largest vertically integrated oil and gas company in Ukraine, with operations spanning natural gas, oil and gas condensate exploration and production, gas and oil storage, oil transmission and transit, as well as supply of natural and liquefied gas to consumers. Naftogaz employs more than 52,000 people and is one of the largest taxpayers in the country. The company is actively involved in overcoming the most acute challenges faced at the national level, providing charitable aid to military units of the Armed Forces of Ukraine involved in the Joint Forces Operations, mitigating the impact of the COVID-19 pandemic, and implementing social infrastructure projects.
The United Nations Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to undertake partnerships in support of UN goals, stating ten principles in the areas of human rights, labour, the environment and anti-corruption. Participants included over 13,500 businesses and other organizations in over 162 countries as of July 2021.