Corporate Governance Score of OAO NGK Slavneft increased up to “6+”
The Consortium of the Russian Institute of Directors and the Expert RA Rating Agency increased Corporate Governance Score of OAO NGK Slavneft up to “6+”. This score means the Developed Corporate Governance Practice according to the scale of the National Corporate Governance Score. This score shows that the Company has low corporate governance risks, meets the requirements of the Russian legislation applied to corporate governance and follows most recommendations of the Russian Code of Corporate Conduct and certain recommendations of the advanced international practices of corporate governance.
The decision to increase the score was made after the integrated health, safety and environmental management system of OAO NGK Slavneft was successfully certified for its compliance to the international standards. The system currently applied by the Company for strategical planning and activity management in the field of exploration, production, refining, storage and transportation of hydrocarbons and petroleum products was recognized to comply with ISO 14001:2004 (environmental safety) and OHSAS 18001:2007 (occupational health and safety) international standards.
The Consortium experts mentioned approval of the Business Ethics Regulations, the Corporate Conduct Code and improvement of the Company’s website structure as the positive aspects of OAO NGK Slavneft corporate governance practice.
In 2007-2009, the Consortium of the Russian Institute of Directors and the Expert RA Rating Agency awarded score “6” to OAO NGK Slavneft according to the scale of the National Corporate Governance Score. Until 2007, the scale of the Score reflected three classes of the rating scores and had the letter value. According to that scale OAO NGK Slavneft was rated with B++ score from 2004 to 2006. B++ score meant the medium level of corporate governance. The experts’ decision on shifting to the digital scale was caused by the increased need of Russian companies and investors to have a more precise tool for assessment of corporate governance risks. According to the new scale, the maximum score is 10; this scale has a greater number of levels and allows performing a more detailed analysis of corporate governance practices of various companies.
The Consortium of the Russian Institute of Directors and the Expert RA Rating Agency carries out the assessment of the corporate governance status of more than 150 large Russian companies. The National Corporate Governance Score is given on the basis of the independent expert analysis. The aim of this analysis is to review how Russian companies observe the internationally-accepted key standards applied to the protection of shareholders’ rights, activity of management and control bodies, information disclosure, and consideration for the interests of other related parties. Companies are assessed following the results of the analysis of information public sources, including materials of corporate websites, quarterly and annual reports, data of news agencies and other mass media.