SIBUR secures international verification of certified emission reductions (CERs) earned by its climate project at ZapSibNeftekhim

ХХ February 2023. Tobolsk, Tyumen Region. SIBUR has secured
international verification of a climate project completed at ZapSibNeftekhim,
Russia’s largest petrochemical facility.

Verico SCE, Europe’s leading validation and verification body, has confirmed
that SIBUR’s climate project meets ISO 14064-2:2019. This helped SIBUR
earn certified emission reductions (CERs) totalling some 3 million tonnes of
CO 2 -eq. by 2022.

Under the climate project, by-products of ZapSibNeftekhim will be recycled for
heat and power generation. Feedstock residues that cannot be brought back
into the core production cycle are fed to HPPs’ power boilers rather than
flared, thus significantly reducing greenhouse gas emissions. As part of the
project, SIBUR has built a gas-mixing unit for making a fuel mixture.

This is Russia's first GHG emission reduction project verified by an
international body for compliance with ISO 14064-2:2019 and requirements
pertaining to quantification, monitoring, and reporting. The climate project
development and validation process was supported by Kept, an audit and
advisory firm.

Mikhail Karisalov, Chairman of the Management Board and CEO of
SIBUR: “Decarbonisation is a priority area of SIBUR's Sustainable
Development Strategy, which sets out the Company's targets to reduce
GHG emissions and achieve carbon neutrality of at least one of our facilities
by 2025. For some years now, we have been assessing the impact of our
investment projects on GHG emissions of each facility and the Company as a
whole. We expect the implementation of this internationally validated climate
project in Tobolsk to help our Group facilities intensify their decarbonisation
efforts, and make a major contribution to solidifying SIBUR’s position among
leaders of the national climate agenda.”

Vladimir Lukin, Partner, Operational Risks and Sustainability, Kept: “The
validation of the ZapSibNeftekhim project for compliance with ISO 14064-
2:2019 is a milestone for the national carbon market development as it
basically recognises the quality of Russian climate projects. This opens up
opportunities for further integration of Russia’s climate policy into the global
climate action. The validation process confirmed the project’s compliance with
international requirements and also, importantly, with the practical criteria
applied to climate projects by verifying and validating bodies, including
additionality, baseline justification, and monitoring approaches.”

Vyacheslav Vekovtsev, Representative of Verico SCE in Russia: “Despite
the current situation, we continue to work on the Russian market and
contribute to improving the quality of the verification institution in the Russian
Federation, as well as the recognition of Russian climate projects and carbon
credits at the international level. We are very pleased to take part in the
examination and certification of the first greenhouse gas emission reduction
project in Russia, in accordance with the ISO 14064-2:2019 standard.
Congratulations to the SIBUR and ZapSibNeftekhim team on the successful
positive verification!”