Since 2009, NIS has invested over 4.9 billion dinars in various social responsibility projects
We spoke with Vadim Smirnov, Deputy CEO of the Petroleum Industry of Serbia (NIS), about sustainable development and socially responsible business.
When it comes to social responsibility among Serbian companies, NIS is at the very top. Is social responsibility a strategic commitment? Why is the company motivated to invest in such projects?
Imagine you want to plant a tree. It is not something you do only for yourself, but for your children, grandchildren, future generations who will know it was you who did it. Same works for NIS. We are recognized in the community for the social responsibility projects that we have been continuously implementing for years. We help renovate schools and kindergartens, equip classrooms, build playgrounds and sports fields, equip maternity hospitals and other healthcare facilities, implement environmental projects, provide scholarships to the best students in Serbia, support the popularization of science, culture, and art, and support professional and youth sport. Social responsibility, therefore, is our strategic determination, part of our business culture and a decision that we have translated into practice from which we do not deviate.
NIS is one of Serbia’s largest social investors. Since 2009, we have invested over 4.9 billion dinars in social responsibility projects. We are motivated by the long-term benefits for the society. As citizens of this country, we consider it a privilege. I would not call it investing in the local community, but rather nurturing it and growing together. Only such a partnership is sustainable and fair.
Sustainable development principles are part of all business processes in our company
What social responsibility projects is NIS working on and how do you contribute to the development of the community?
The two programs I would highlight are the “Common Cause Community” and the “Energy of Knowledge” and most of our social responsibility projects are part of them.
We have been implementing the “Common Cause Community” program for 14 years, in cooperation with partner cities and municipalities throughout Serbia. Together we build, renovate and equip schools, kindergartens, universities, playgrounds, sporting facilities, healthcare and social care facilities, and cultural institutions. So far, we have implemented over 1000 projects worth over 1.5 billion dinars. We pick projects that are crucial for the communities or that align with the national priorities. Last year’s cycle of the project was titled “For new hopes to be born”, as it was dedicated to the national goal of improving reproductive health and increasing birth rate.
The “Energy of Knowledge” program is ten years old now and is aimed at supporting young talents and cooperating with educational and scientific institutions in Serbia and abroad. By providing scholarships, we invest in the development of qualified employees for the company. We create the best conditions for young people to get an education and remain in Serbia to work. Until now, we have given scholarships to over 130 students, with over 60 of them already employed with NIS. Through this program and other donations and support programs, we have invested about 6.3 million euro in science and education since 2009.
How important is it for large companies to publicly report on social responsibility and communicate their CSR activities?
All these efforts are our contribution to the achievement of the UN sustainable development goals. Sustainability principles are integral to all business processes in the company. Our activities directly support 12 out of the 17 sustainable development goals, which we are happy to report publicly. We publish our Sustainable Development Report according to the standards of Global Reporting Initiative (GRI), world’s leading organization for sustainable reporting, and which is verified by an authorized auditor. I would like to point out that NIS is a pioneer in Serbia when it comes to sustainability reporting. We published the first report in 2011. This practice allows us to communicate to the stakeholders in a transparent manner, informing them about our business performance, investments in social responsibility projects, environmental protection, occupational health and safety, and employee development.
It is important for the public to have an accurate understanding of the social activities of large companies that must serve as the example for others. Our goal is not to dryly report on the company’s activities, including CSR, but to explain, what we do to improve the community we live and work in, help people develop and grow, and protect natural resources.
So far, we have awarded scholarships to more than 130 students from Serbia, of whom over 60 have started working for NIS
What is you biggest success in terms of corporate social responsibility?
Each year we do a corporate image study to get a clear picture of how stakeholders perceive us. This is one of the ways to understand the priority needs of the society so that we can direct our social responsibility efforts accordingly. It is important for us to know the society perceives us as a reliable partner and that humanity is one of the attributes people associate with NIS.
Our priority is supporting young people, as they are this country’s future. We also support socially vulnerable groups. We are particularly proud of the NIS Volunteer Club, which has been active since 2018 and now includes over 1900 members. They participate in many initiatives with a special focus on the environment and nature protection.
Our biggest success is seeing well-equipped clinics and schools, safe parks and playgrounds, the satisfaction of our employees and the happiness of people we managed to help, and knowing we did something good for the future generations. Serbia is our common home. Our “Future at work” is to watch it evolve.
Climate change is one of the biggest challenges businesses face nowadays, and petroleum companies are expected to act decisively to mitigate global warming. What does NIS do in that respect?
NIS has been supporting the green agenda for years. The three main avenues are implementing environmental protection projects, implementing business initiatives that have environmental benefits, and participating in environmental protection actions.
Since 2009, we have invested over 900 million euro in environmental projects and new greener technologies, with 120 million spent exclusively on environmental protection activities. One example is the deep processing unit in the Pančevo Oil Refinery. It cost us over 300 million euro and allowed to significantly reduce atmospheric emissions. We are working on new capital projects that will additionally improve the environmental conditions in Serbia. By 2030, we plan to have half of the electricity we consume come from renewable sources, and we are working towards that goal.
Numerous initiatives were implemented in cooperation with the community. Two years ago as part of the “Common Cause Community” program NIS implemented 29 projects to reduce air pollution, improve energy efficiency, develop solar energy, and equip parks with innovative elements.
Our employees actively participate in environmental initiatives. Our Volunteer Club organizes events where volunteers clean river and lake banks, public parks and recreation areas, plant trees, and educate children on the importance of environmental protection.
Your company has recently published a report on the 2022 results, which states you achieved the priority goals despite the global economic challenges. What are the plans for 2023?
In 2023, the plan is to invest twice as much as last year. Most of the investments will be done in the exploration and production of oil and gas. In the refining segment, our top priority will be to continue modernizing the Pančevo Oil Refinery, while increasing the processing efficiency. In the field of sales and distribution, we will continue growing and upgrading our filling station network. There is also a plan to reconstruct and modernize our tank farms. We will continue our efforts to develop electricity generation and trading. We will also work on projects in renewable energy, energy efficiency, and further digitization of the company.