In January 2014, The Russian Institute of Directors one more time confirmed 6+ corporate governance rating of OAO NGK Slavneft. Such score means developed corporate governance practices under National Corporate Governance Rating (NCGR) scale. Such score has been assigned to OAO NGK Slavneft since 2010 and it certifies that the Company observes the key recommendations of the Russian Corporate Governance Code and certain guidelines of the best international management practices, follows Russian legislation requirements and has acceptable level of corporate governance risks.
Until 2007, NCGR scale reflected three rating score classes and had letter reference. According to such scale, OAO NGK Slavneft was rated score B++ between 2004 and 2006, meaning medium corporate governance level. The experts’ decision to shift to the digital scale adopted in 2007 was caused by the increased need of Russian companies and investors for a more precise tool for corporate governance risks assessment. According to the new scale, the maximum score is 10; this scale has a greater number of levels and allows conducting more detailed corporate governance practices analysis at various companies.
In 2007-2009, OAO NGK Slavneft was awarded score “6” of the National Corporate Governance Rating. In 2010, the Corporate Governance Rating 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 compliance with 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 Russian Institute of Directors evaluates corporate governance status of the major Russian companies. NCGR is assigned on the basis of the independent expert analysis of compliance with internationally-accepted key standards on shareholders’ rights protection, management and control bodies’ activities, information disclosure and observing all Stakeholders interests. Companies are assessed based on the analysis of public information sources, including corporate websites materials, quarterly and annual reports, news agencies and other mass media data.
For more detailed information on the rating procedures and results, please, visit http://www.rid.ru.