Glossary

Acute risks are risks that result from extreme weather events, such as cyclones, hurricanes, floods, thunderstorms, etc.

Best available technologies (BAT) are technologies ensuring the production of goods, performance of work and provision of services based on modern advances in science and technology and the best combination of criteria for achieving the goals of environmental protection, subject to the technical feasibility of their application.

Carbon footprint of a product is the total of all greenhouse gas emissions caused directly and indirectly for a product over a given period of time.

Carbon neutrality means achievement of zero carbon dioxide and similar emissions either by zeroing emissions from production activities or by implementing carbon-offset projects.

Climate is the statistical description of the entirety of meteorological quantities characterising the state of various climate system components (atmosphere, hydrosphere, lithosphere, biosphere, and cryosphere) over a certain period of time, which can range from a few months to thousands or millions of years. The World Meteorological Organisation (WMO) recommends using a 30-year reference period as a baseline for climate analysis. In a narrower sense, climate refers to the average weather conditions of a specific location or region.

Climate anomalies refer to deviations from normal climatic conditions typical of a specific region.

Climate change adaptation (adaptation) is the process of adjusting to the existing or expected climate and its impacts, with a view to reducing potential damage or benefitting from opportunities associated with climate change.

Climate factor refers to a characteristic of the climate system that experiences variations as a result of the internal dynamics of the climate system and/or external factors impacting the system (such as fluctuations in solar radiation, changes in the chemical composition of the atmosphere, modifications in the radiative properties of the Earth’s surface, etc.).

Climate model is a numerical representation of the climate system based on the physical, chemical, and biological properties of its components, their interactions, and feedback processes, and accounting for all or some of its known properties. A climate system can be represented by models of varying complexity. Coupled atmosphere-ocean general circulation models provide a comprehensive representation of the climate system. Climate models are applied, as a research tool, to study and simulate the climate.

Chronic risks are risks associated with long-term transformations of climatic conditions (e.g. increase in average air temperature, rise in annual precipitation, etc.).

Climate-related risks refers to the potential damage related to the impact of climate change, as well as measures aimed at preventing adverse human impact on the climate, adaptation to climate change, including those undertaken by governments and regulators in the countries that signed the Paris Agreement. Climate-related risks include physical and transition risks.

Climate-related risk factor is a climate-related factor considered within the risk management process.

Climate scenario is a plausible and simplified representation of future climate based on global climate models. Climate scenarios make use of assumed greenhouse gas and aerosol emissions and changes in natural resource use driven by global social and economic development and produce projections for changes in temperature, precipitation, frequency and intensity of climate extremes, sea level rise, and more.

CO₂ equivalent is a measure used to compare the warming potential of a greenhouse gas relative to carbon dioxide.

Decarbonisation is the process of transitioning to a low-carbon economy.

Downstream Scope 3 emissions are indirect greenhouse gas emissions related to sold goods and services.

Energy intensity is the amount of energy required per unit of output or activity.

Global Warming Potential (GWP) is a coefficient that quantifies the relative impact of a specific greenhouse gas, in terms of its radiative forcing, compared to carbon dioxide over a specified time period.

Goal of the Paris Agreement is the goal of keeping the global average temperature increase well below 2 °C above pre-industrial levels and continuing efforts to limit the temperature increase to 1.5 °C above pre-industrial levels.

Greenhouse gases (GHGs) are gases that absorb and emit radiant energy within the thermal infrared range, causing the greenhouse effect. The main greenhouse gases are carbon dioxide (CO₂), water vapour (H₂O), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF₆).

Intergovernmental Panel on Climate Change (IPCC) is an international organisation established under the auspices of the United Nations and the World Meteorological Organisation in 1988.

Internal carbon pricing is a mechanism by which companies can manage decision-making processes concerning the impacts, risks, and opportunities related to climate change.

Low-carbon economy is an economy which is based on low-carbon power sources and has a minimal output of greenhouse gas emissions into the air, specifically carbon dioxide.

Man-made impact refers to the destruction of structures or technical equipment used at production facilities or uncontrolled explosion and release of hazardous substances.

Mitigation refers to the reduction of the probability of a risk event occurring and the minimisation of its potential impacts.

Nature-based solutions refer to a set of intitatives aimed at reducing (preventing) greenhouse gas emissions or increasing the absorption of greenhouse gases.

Paris Agreement is an international treaty adopted under the United Nations Framework Convention on Climate Change (UNFCCC) that aims to enhance efforts to combat climate change, adapt to its impacts, and provide increased climate-related support to developing countries.

Permafrost is soil which continuously remains below 0 °C (32 °F) for three years or more.

Permafrost condition refers to a combination of properties of perennially frozen soils.

Permafrost degradation is a process of periodic thawing associated with a gradually increasing average annual permafrost temperature, resulting in the lowering of the upper top of permafrost and the raising of its lower bottom.

Physical risks refers to the potential damage associated with natural phenomena arising from climate change. Physical risks are divided into acute risks related to sudden events and chronic risks associated with long-term changes in climatic characteristics and conditions.

Risk is the potential impact of uncertainty on the achievement of set goals.

Risk appetite is the amount and type of risk the Company’s and its business units’ are willing to accept in pursuit of their set goals.

Stakeholders are individuals and legal entities or their groups having certain expectations about the Company or affected by its operations, influencing its managerial decisions while being themselves influenced by such decisions. Stakeholders include the Company’s shareholders, investors, employees, suppliers, contractors, consumers, trade unions and other public organisations, federal and local authorities, mass media, residents of areas where the Company operates, and others.

Scope 1 emissions are direct greenhouse gas emissions from company-owned and/or controlled resources.

Scope 2 emissions are indirect greenhouse gas emissions from purchased or acquired electricity, steam, heat and cooling.

Soil thawing is a process whereby soil receives heat in a quantity sufficient for its natural negative temperature to increase to 0 °С and also for its disseminated ice to turn to liquid.

Transition risks refers to the potential damage arising from the transition to a low-GHG economy, including steps taken by governments and regulators in the countries that signed the Paris Agreement set to prevent and adapt to climate change, which are categorised into political, legal, technological, market, and reputational risks.

Upstream Scope 3 emissions are indirect greenhouse gas emissions related to purchased or acquired goods and services.