The Consortium of the Russian Institute of Directors and the Expert RA Rating Agency confirmed 6+ Corporate Governance Score of OAO NGK Slavneft in September 2011. This score means the Developed Corporate Governance Practices 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 corporate governance practices.
The Consortium experts mentioned creation of the English version of the OAO NGK Slavneft Internet site among new positive aspects of the Company’s corporate governance practices.
Until 2007, the scale of Corporate Governance 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 between 2004 and 2006. B++ score meant the medium level of corporate governance. The experts’ decision on transition 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 conducting a more detailed analysis of corporate governance practices of various companies.
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. In 2010, the Corporate Governance Score of OAO NGK Slavneft was increased up to “6+”. 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 strategic planning and activity management in the field of exploration, production, processing, 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 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 biggest Russian companies. The National Corporate Governance Score is assigned on the basis of the independent expert analysis. This analysis is aimed 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.
More detailed information on the rating procedure and its results can be found in the following websites: http://www.raexpert.ru and http://www.rid.ru.