NATURE

OF DEVELOPMENT

INTEGRATED

ANNUAL REPORT

TABLE OF CONTENTS

About the Report

3

Significant topics and stakeholders

7

ABOUT THE COMPANY

10

About the Company

11

Our global reach

13

Business model

15

STRATEGIC REPORT

18

Address of the Chairman of the Board of Directors

19

Address of the General Director,

Managementthe Boardthe Chairman of

20

Sustainable Development Strategy

21

Integration of the Sustainable Development Goals

27

Significant events of the Company's sustainable development

39

Key Indicators

41

Macroeconomics

47

Investment Policy

52

Fund Raising

53

Innovative activities

55

Tax Policy

63

Government Relations

64

Supply Chain

65

Product Quality

72

CORPORATE GOVERNANCE

78

Corporate Governance System

79

Governance Structure

82

General Meeting of Shareholders

83

Board of Directors

84

Committees of the Board of Directors

97

Audit Committee

98

HR and Remuneration Committee

100

Sustainable Development

and Corporate Governance Committee

101

Corporate Secretary

103

Executive Bodies

104

Remuneration System for Members

the Company

of Governance and Management Bodies of

106

Shareholders' Equity

110

Dividend policy

114

Protection and Enforcement of Shareholder Rights

115

Interaction with Shareholders and Investors

117

Corporate Control and Business Ethics

119

Information Policy

128

Business Ethics

130

Anti-Corruption Policy

133

Antimonopoly Policy

135

System of Reporting Adverse Impacts

136

Corporate Cybersecurity Policy

137

I N T E G R A T E D A N N U A L R E P O R T 2 0 2 2

2

1

SUSTAINABLE DEVELOPMENT

140

Sustainable Development

141

Sustainable Development Management

142

Human Rights

146

Staff

147

Collective representation

158

Social security

160

Production Safety

162

The Environment

171

Decarbonization Strategy of the Company

174

Air emissions

183

Water intake and water consumption

192

Waste management

200

Responsible consumption

204

Biodiversity conservation

207

Resource efficiency

213

PROMOTION OF SOCIAL DEVELOPMENT

220

Management approach

221

Charitable Foundation

225

Social infrastructure development

228

Investment in future generations

232

Preservation of cultural heritage

240

Interaction with local indigenous people

living a traditional lifestyle

242

Healthy lifestyle

243

Support for development initiatives

248

Membership in Associations

249

Forward-looking statements

250

Public assurance of the report

251

limited liability independent Audit Report

252

T C F D

APPENDIX

Report on compliance with principles

255

I

and recommendations of Corporate Governance Code

R

Key Risks

277

G

Report on Major and Non-Arm's Length Transactions

Entered Into By Pjsc Tatneft Named After V.D. Shashin In 2022

284

Internal documents of the Company

288

GRI Index

289

TCFD index

297

List of abbreviations

298

Contact information

300

1 PLACE

IN 2022

ABOUT THE REPORT

I N T E G R A T E D A N N U A L R E P O R T 2 0 2 2

4

3

REPORTING SCOPE

GRI 2-2,2-3,2-5,2-14

The Report contains the results of the activities of PJSC TATNEFT n.a. V.D. Shashin and the organizations included in the TATNEFT Group. The TATNEFT Group is understood in accordance with the International Financial Reporting Standards (IFRS). As of 31.12.2022, the Tatneft Group incorporated 126 companies.

According to the Report text, the names and words "TATNEFT," "TATNEFT Group," "Company," "Group," and the pronoun "we" shall mean the aggregate of legal entities, including Public Joint Stock Company TATNEFT named after V.D. Shashin and the organizations controlled by it with direct and indirect participation in their authorized capital, forming the TATNEFT Group.

Integrated Annual Report of PJSC TATNEFT n.a. V.D. Shashin for 2022 (hereinafter, the "Report") is the 18th report which includes indicators that characterize sustainable development and responsible behavior towards stakeholders.

The reporting period is annual. The previous Report was disclosed on June 23, 2022. This Report was generated for the period from January 1 to December 31, 2022, and includes

The key communication objective of the Report is the formation among stakeholders of the most complete understanding of the Company's activities as a whole, strategic plans, and the potential for their implementation, the results achieved, as well as the measures taken to improve the efficiency of the business model, taking into account the aspects of sustainable development.

The main controlled organizations are listed in the consolidated financial statements under IFRS for 2022.

The financial indicators in the Report are disclosed based on the consolidated financial statements of the TATNEFT Group under IFRS for 2022, which were audited by JSC Technologies of Trust - Audit in accordance with international auditing standards.

The name and words "PJSC TATNEFT n.a. V.D. Shashin," "PJSC TATNEFT," "Company" in the Report text shall mean PJSC TATNEFT n.a. V.D. Shashin as a separate legal entity.

information on the TATNEFT Group as a whole. The Report also includes data on significant events after the reporting period. The financial reporting period is an annual period that coincides with the Report period.

The 2022 Integrated Annual Report of PJSC TATNEFT n.a. V.D. Shashin was preliminarily reviewed by the Board of Directors

dated 16.05.2023)(Minutes. No. 4-

The Report contains the main priorities, goals, objectives, key indicators and significant events, actions and plans of the Company in the field of sustainable development, corporate, social, and environmental responsibility.

The Report is addressed to a wide range of stakeholders: shareholders and investors, representatives of state authorities, local self-government authorities, workers, partners and clients, public and environmental organizations, scientific and educational institutions, a wide range of Russian and

The Company has various channels for providing feedback. Suggestions on the Report are accepted via telephone and e-mail specified in the Contacts section. All messages are considered and taken into account when preparing the Report for the next period of activity. To avoid duplication of information, this Report provides links to other publicly available documents. Abbreviations and definitions of the concepts used are presented in the List of Abbreviations.

The Company believes that independent verification of the disclosed information, as well as the public assurance of the Report, are the important conditions for the Report preparation. The audit firm's conclusion is published on p. 252. The conclusion on passing the Report public assurance with the RUIE Nonfinancial Reporting Council is published on p. 251 of this Report.

STANDARDS

In preparing this Report, we apply the following standards and

As a methodological basis, when preparing the Report, we

guidelines:

focus on:

◎

◎

Federal Law No. 208-FZ "On Joint Stock Companies" dated

UN Global Compact Principles

26.12.1995

◎

◎

Sustainable Development Goals Compass

Regulation "On Disclosing Information by Issuers of Issue-

◎

D

Grade Securities" approved by Bank of Russia Order No.

F

714-P dated 27.03.2020

Greenhouse Gas Protocol

T C

◎

◎

I

Code of Corporate Governance recommended by Bank of

IPIECA Guidelines for Voluntary Reporting on Sustainable

G R

Russia Letter No. 06-52/2463 dated 10.04.2014

Development in Oil and Gas Sector

international communities, and the local population.

◎

Bank of Russia Letter No. IN-06-28/102 "On Disclosure of Information on Compliance with the Corporate Governance Code Principles and Recommendations in Annual Reports of Public Joint Stock Companies" dated 27.12.2021

◎

Bank of Russia Information Letter No. IN-06-28/49 "On Recommendations for Disclosure by Public Joint Stock Companies of Nonfinancial Information Related Their Activities" dated 12.07.2021

◎

Listing rules of PJSC Moscow Exchange

◎

GRI 2021 standards, industry standard GRI 11: Oil and Gas Sector 2021

◎

Recommendations of the Task Force on Climate-Related Financial Disclosures, TCFD

◎

International Integrated Reporting Framework

◎

ISO 26000 Guidance on Social Responsibility

◎

  1. 1000 standards developed by the International Institute for Social and Ethical Reporting (Account Ability)

◎

Recommendations of the Russian Union of Industrialists and Entrepreneurs (RUIE) on maintaining and promoting the sustainable development agenda in modern Russian practice

◎

Baseline Performance Indicators. RUIE Recommendations for Use in Management Practice and Corporate Nonfinancial Reporting.

The Report contains forward-looking statements regarding indicators characterizing the Company's further development. The implementation of plans and intentions is connected with the changing political, economic, social, and legal situation in the Russian Federation and the world. Due to this, the actual results of operations may differ from those forecasted. For more information on forward-looking statements, please refer to the Forward-looking Statements section.

REPORTING PRINCIPLES

SUSTAINABLE DEVELOPMENT CONTEXT

COMPLETENESS

considersReport,the

When preparing the

CompanyThe strives to disclose information in

of sustainable

resultsthe of its activities in the

economic,the environmental, and social areas of its activity

Report outlines alldevelopmentsignificant issues,.The

set of issues reflected

fullesttoextentthe possible. The

eserving economic indicators, and initiativesReportin the to users of the

Reportin isthesufficient for the

sustainability, improving environmentalCompanysafety, asnda wholeperformanceand its assessof thethe

strengthening social stability in society. It also examinessustainable developmentcontributionof societyto the.

and analyzes aspects of human rights observance, ensuring

level of combating andcybprersecurityventing and the

TIMELINESS

corruption.

need for timely submissionCompanyof The understands the

ACCURACY

Report is carried publication of the

information, therefore, the

time limits established byoutcurrentannually, within the

ded

CompanyThe strives to ensure that the

publication of annuallegislatireponrtsfor. the

Reportin istheaccurate and detailed enough so that

stakeholders can use it to make decisions with a high degree

VERIFIABILITY

acceptable level ofoferrcornfidencein the . The

minimized. Data are presentReportdusingis confirmedthe

data containedreliabilityintheThe of the

international units andAuditcalculated using standard coefficientsCompany's.bytheRevision Commission. The

Report, includingcontent of the

Committee evaluates the

BALANCE

production part, social

financial indicators, indicators of the

investments, environmental protection costs, and carbon

inciple of balance, theAs part of observing the

Board of Directors preliminarilyfootprint reduction. The

reflects both favorableGeneraloperating results and the

Report andreviewssubmitstheit for approval to the

gree of attention toCompanyvariousthe issufaces. The

Meeting of Shareholders.

is proportional to their relative materiality.

CompanyThe believes that independent verification of

CLARITY

public assurance

disclosedthe information, as well as the

Report

important conditionsReport,offorthearthe

CompanyThe makes every effort to ensure that

preparation.

clear,

informationthe presented in the

understandable, and useful for various stakeholders.

auditThefirm's conclusion is published on p. 252.

ReportThecontains a list of abbreviations explainingReportpublic assurance withconclusionThe

on passing the

industry,the scientific, and technical special terms and

RUIEtheNonfinancial Reporting Council is published on p.

abbreviations.

251 of this Report.

COMPARABILITY

omparability of theReportTheensures the

An

Company'softhe activities over the

explanation is provided for each material change in terms

boundaries,ofthe scope, or reporting period. To ensure a

Company's performancecomparisonwith theof the

other companies, when preparing the GRI guidelinesincludedandtechnicalin theprotocols were

used.

I N T E G R A T E D A N N U A L R E P O R T 2 0 2 2

6

5

G R IT C F D

SIGNIFICANT TOPICS

AND STAKEHOLDERS

GRI 2-14,2-29,3-1,3-2

I N T E G R A T E D A N N U A L R E P O R T 2 0 2 2

8

7

GHG

Innovations

Emissions

infrastructural

Economic

Security in

consequences

foreign assets

transformations

Digitalization

Occupational

and cybersecurity

and labor safety

Conflicts

Energy

and security

Air emissions

We strive to present information in a balanced manner in accordance with the interests of each group. The Company uses various forms and mechanisms of interaction with stakeholders to achieve sustainable development goals effectively. The procedure for interaction with key stakeholders is defined in the corporate standards, rules, and regulations of the TATNEFT Group.

To determine the material topics of the report, the Company analyzes and takes into account the aspects that affect the interests of the Company itself and its stakeholders as well as the aspects that affect the industry, social, environmental, and corporate factors in the reporting period.

The Company uses a reasonable approach to select the topics of the Report content. This approach is based on interaction with various stakeholder groups and their representatives, which allows for identifying the relevance of the topics concerning the Company's activities and taking into account their opinions and recommendations for analyzing opportunities to improve the effectiveness of socially oriented programs and investments in sustainable development.

In the course of analyzing the Company's interaction with stakeholders and identifying significant topics of the Report, the recommendations of the GRI standard were analyzed, interviews with managers and specialists of the Company and group and individual meetings were conducted, including within the framework of investment conferences.

33 potentially material topics were identified, which were considered at the meeting of the Company's Management Board for Sustainable Development, stakeholders were identified in accordance with the GRI recommendations followed by the assessment of each topic's impact on stakeholders according to four criteria. A survey of eight groups of stakeholders and experts was conducted. The scores for all criteria were summed up. Based on the obtained data array, a frequency diagram (histogram) was made in accordance with the Gaussian normal distribution function. Topics with a score of 273 or more points became the threshold for inclusion in the list of material ones.

When preparing the integrated annual report for 2021, the methodology for selecting material topics significantly differed from that used in this Report and was also carried out according to the GRI standards introduced before 2022, wherefore the Company considers it inappropriate to compare the year-to-year changes in material topics.

Rights of

Medical and healthcare

indigenous

services

peoples

Education,

Nondiscrimination

Critical Incident

professional

development

Conservation and

Management

and equal

restoration of

opportunities

production facilities

Waste

Employment

practice

Local

Payments to

Biodiversity

communities

governments

Water and

wastewater

Cultural and social

Ethics

projects

Anticompetitive

and good faith

behavior

Youth policy

Forced labor

and modern

Charity

slavery

State policy

Land and

D

Climate change

Anti-corruption

C F

resource

rights

Freedom of

T

association and

collective bargaining

agreements

I

G R

PROCEDURE FOR

DETERMINING

I

Identification

II

Survey

MATERIAL TOPICS

and approval

of stakeholders

of stakeholders

and experts

Stakeholders:

◎ shareholders and investors

◎ counterparties

◎ workers and trade unions

◎ clients

◎ population and local communities

◎ educational institutions

◎ new generations

◎ external organizations

(preschoolers and students)

(NPOs, sports organizations)

Topics not recognized

the topic was recognized

Material Topics

as material,

as material by the decision

based on the results

of the expert group

of the analysis

Analysis

Identification of material

and assessment

topics required to be

III of materiality

IV disclosed in the Report

The assessment of material topics revealed 18 categories that fall under the criteria of materiality. Also, the expert group of the Governing Council for Sustainable Development recommended that the Report "Biodiversity" be additionally put on the list of material topics. (note: red in the table)

GRI 11 Oil&Gas 2021 standard contains a list of possible material topics to be considered by industry companies. Therewith, it was revealed during the analysis that stakeholders did not recognize some of the topics of the standard as material. The Company believes that these topics are regulated in detail by national legislation and do not need additional regulation by internal standards. At the same time, approaches to these topics are partially disclosed in this Report.

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OAO Tatneft published this content on 13 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 June 2023 12:16:27 UTC.