The Consortium of the Russian Institute of Directors and the Expert RA Rating Agency again confirmed 6+ Corporate Governance Score of OAO NGK Slavneft in August, 2012.
This score means the Developed Corporate Governance Practices according to the scale of the National Corporate Governance Score. This score is assigned to OAO NGK Slavneft for the third time and evidences 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 the work for improvement of the Slavneft’s Internet site structure carried out over the reporting period among the new positive aspects of the Company’s corporate governance practices. In particular, the information on the members of the Board of Directors and executive bodies represented on the corporate site became more detailed.
Until 2007, the scale of the National 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 adopted in 2007 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, OAO NGK Slavneft was awarded score “6” 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.