Slavneft’s 6+ Corporate Governance Rating Confirmed Again
The Russian Institute of Directors has confirmed 6+ corporate governance rating of OAO NGK Slavneft for 2015. Such rating means a developed corporate governance practice. In the opinion of Institute experts, the Company follows key recommendations of the Russian Code of Corporate Conduct and certain guidelines of the best international corporate governance practices, observes Russian legislation retirements and is characterized by acceptable risks of owners' losses associated with the corporate governance quality.
6+ score under the National Corporate Governance Rating (NCGR) scale has been assigned to Slavneft since 2010. Before 2007, the NCGR scale represented three rating score classes with alphabetic symbols. According to such scale, OAO NGK Slavneft was rated score B++ (the medium corporate governance level) from 2004 to 2006. The decision on shifting to the numerical scale was adopted in 2007 and was caused by the increased need of Russian companies and investors for a more precise instrument to assess corporate governance risks. Under the new scale, 10 is a maximum score; this scale has a greater number of levels and allows analyzing corporate governance practices of various companies in more detail.
In 2007-2009, the Company was assigned score 6 of the National Corporate Governance Rating. In 2010, Slavneft’s score was upgraded up to 6+. The decision to increase the score was made after the integrated health, safety and environment management system of OAO NGK Slavneft was successfully certified for compliance with international standards. The system applied by the Company for strategic planning and management of operations related to crude oil and gas exploration, production and refining, storage and transportation of hydrocarbons and petroleum products was recognized to meet requirements of ISO 14001:2004 (environmental safety) and OHSAS 18001:2007 (occupational health and safety) international standards.
The Russian Institute of Directors assesses the corporate governance status of major Russian companies. NCGR is assigned upon the independent expert analysis of observing internationally accepted key standards on protection of shareholders’ rights, activity of management and controlling bodies, information disclosure and consideration of other stakeholders’ interests. Company assessment is based on the analysis of public information sources, including materials on corporate websites, quarterly and annual reports, data of news agencies and other mass media.
For more detailed information on the rating procedure, please, visit http://www.rid.ru.