Period of implementation of the project: 

January 2021 – October 2021

Challenge: 

1. To extend the principles of responsible business and the Sustainable Development Goals (hereinafter referred to as the SDG), used as guidelines by Ukrgasvydobuvannya JSC, a part of the Naftogaz Group (hereinafter referred to as the Company) in its activities;
2. Establish sustainable and trusting partnerships with the communities in the Company’s production areas;
3. Define the best practices for interaction between the Company and a community, the best experience in regional development and corporate social responsibility projects (hereinafter referred to as CSR) and share the above with the participants;
4. Strengthen the Company’s cooperation with local self-government agencies (hereinafter referred to as the SGA), public organisations, and business entities in implementing promising territorial development projects and finding new areas of cooperation;
5. Integrate modern knowledge and practical skills of community representatives into their activities in the areas of sustainable development, project management, fundraising, financial management, public presentation of projects, and financial planning;
6. Spread knowledge on the efficient use of rent and tax deductions to the budgets of all levels, their efficient use for the success of the communities; 
7. Identify high-quality, ready-to-implement, and relevant projects for sustainable development of the territories and implement them;
8. Improve communities’ living standards in the territories of Company’s presence;
9. Promote increased investment in the soft sector;
10. Create a platform for communication between communities from all over Ukraine and activate social interaction between the participants and other stakeholders (grantees) to promote sustainable regional development;
11. Spread information about the value and significance of the budget-forming enterprise’s activities in common territories. 

Solution: 

1. Under the terms of the competition, all applications had to relate to one basic or several sustainable development goals, which are strategic for the company and defined in the Standard of corporate social responsibility in the scope of interaction with communities, charity and non-governmental organisations (hereinafter referred to as the CSR Standard);
2. Conduct an open selection of ideas for territorial development projects among all 240 communities, located on the territory of the company’s presence, with the participation of independent experts from educational partner, select the best 90 to continue participation in the competition and receive one of 50 grants for UAH 100 thousand;
3. Provide an opportunity to train all team members from the community and use materials of 8 online educational modules on an ongoing basis. Prepare grant applications in parallel with training and constant consultation with mentors, company representatives, public discussion during training and in groups;
4. Sign 50 cooperation agreements with territorial communities on implementation of local development projects and publicly present certificates for UAH 100 for their implementation;
5. Hold 8 online modules in the areas necessary for project managers and field managers for high-quality project implementation and awareness of the mutually beneficial Companies  in the territory, namely:

• Sustainable Community Development;
• project management and project approach to managing territorial communities;
• leadership and teamwork;
• project planning, project scheduling;
• project budgeting (estimate) ;
• operational management;
• risks management;
• fundraising, features of additional funding attracting for projects implementation.

6. Give examples of successful communities, hold meetings with the invited guests on the experience of implementing projects of various levels, preparing and implementing a strategy for sustainable community development;

7. Select top 50 grant applications for projects based on the following criteria:

• social significance of the project for the community;
• viability, actual potential of project implementation (provides for the idea assessment and justification, a need for its implementation for specific community, proposed implementation mechanisms);
• clarity, consistency of presented material (availability of mechanisms for social problems solving, problem description, SGA experience in solving such problems, plan for solving issues);
• availability of qualitative and quantitative criteria for assessing success of a relevant project (feasibility  of the planned budget, supporting documents for the cost of tangible and intangible assets, clarity of estimates for financial and economic indicators that should be achieved the project);
• project efficiency (detailed description of project implementation deliverables, an effect of its implementation, detailed findings).

8. Accept for consideration projects that resolve urgent problems, critical for communities;  

9. Encourage communities to implement “soft” projects, which include not only procurement of materials, but also a significant non-material part – trainings, courses, classes, distribution of materials, education, etc.;

10. Create open communication channels for all competition participants to communicate, share experience of successful communities, invite practitioners with experience in implementing cases in communities to mentor, and continue communication and meetings on an ongoing basis;

11. Spread information about rent payments and other taxes, such as investments in a community budget, value of social investments in a region, impact on sustainable economy development, and the social level of well-being of the population.

Results: 

1. Within the framework of the project, the concept of sustainable development was spread and promoted; in particular, the educational module was devoted to the principles of the UN Global Compact Network and SDG priority in the CSR field. The participants got acquainted with the CSR Standard and 3 strategic SDGs that guide the company in its activities (as of May 2021, 6 strategic goals have been selected). Grant applications from 90 participants of the educational stage and implementation of 50 winning projects were executed within the SDG. According to the results of the training 79 grant applications have been received;
2. Representatives of the Company and its branches in the regions on an ongoing basis provided support, administrative and educational advice, in particular, on creating accounts, writing appeals and grant applications, holding hearings on the use of funds, holding tenders – they actually became personal community coaches, which was especially important for the newly formed local SGA teams;
3. A database of creative ideas for community development projects has been formed and a pool of top-10 projects that have not been previously implemented has been identified. These ideas are now being distributed in all communities on the territories of the Company’ presence. All applicants from 240 communities are allowed to listen to the modules. All educational materials are posted on the competition page for their continuous distribution and access by all representatives of communities;
4. In the framework of the competition, a module on fundraising and partnership was held, which provided knowledge on finding new sources of investment and partnership areas, and stimulating SGA participation in co-financing. (Under the terms of the competition, the partnership was a 10% participation in funding, which allowed establishing interaction between the compulsory health insurance institutions, community leaders, and business, and shared responsibility for project implementation guarantees). Within the announced period, according to the schedule, 50 contracts have been concluded and signed by the heads of the territorial communities and their funding has been made. There is a number of publications confirming transparency of the interaction and the competition on the official web pages of the communities in social media, on the web sites. Public awards were held with the participation of community leaders in parallel with discussions of the future partnerships within the company’s routine operations;
5. In the framework of writing the project grant applications (of which 79 have been received), participants were able to translate their knowledge into practice during their projects’ implementation. A number of the offers from the communities for partnership has increased, and their quality has improved. Now the vast majority of the offers includes a soft component;
6. Examples of the unique investment practices and cases in both social sphere and entrepreneurship are given. A list of reliable grantees that are currently active on the territory of Ukraine, including international ones, has been provided. After the first successful experience of interaction with the company, we received information about participation of the local teams in other competitions, attracting new investors for implementation of the community development projects;
7. 50 regional development projects have been implemented, due to which a level of education, medicine, and community improvement has been raised in the long term, and long-term development projects of territorial communities with a wide range of target territory coverage has been introduced, in particular the following projects:

• “Development of the Pereshcepynska community by arrangement of the population security system and prevention of the emergency situations on its territory” in  Pereshcepyno village, Dnipropetrovsk region. The goal of the project was to ensure development of the population security and protection system in emergencies, strengthening cooperation between local authorities, population, business and the Structural Division of the State Emergency Service in the territory of Persechino Urban Territorial Community.

Project coverage: 60,000 people.

• “Creating a space for medical and psychological rehabilitation of children with special needs’ ‘ for the Rozvadovska Territorial Community in the Lviv region. Rehabilitation is aimed at people of all ages, who have lost their ability to work after grave disease, injuries, surgical interventions, including restoring a function of the musculoskeletal system, reducing physical pain and suffering, and returning to active life, socialisation.

Project coverage: 150 people.

• “Creation of a sambo and judo wrestling section” for the residents of the Kolomak Territorial Community in the Poltava region. The project meets the needs of physical, psychological and mental development and upbringing, health promotion of children from villages that are part of this territorial community; Project coverage: 600 people.
• “Culture is a source of energy and development in a successful community” in Mala Pobarvanka village, Krasnolutsk Territorial Community in the Poltava region. The project provides for the arrangement of heating of the village House of Culture to complete its renovation. The deliverables included comfortable conditions for functioning of the Smerichka Women’s Ensemble and other cultural events to preserve and revive spiritual achievements of the community.

Project coverage: 700 people.

• “Installation of a clock on the Central Square and signs with streets names and main administrative buildings’ ‘ for the Magdalyniv Community in the Dnipropetrovsk region. Due to the lack of signs and decommunisation of the street names, residents, guests, law enforcement agencies and health care institutions (ambulances) had difficulties finding necessary locations. A large branched sign with an equipped clock in the centre of the village near the bus station will be useful for all residents of the city. 

Project coverage: 21,238 people.

• “Holding the Energy of Development military-patriotic competitions and training seminars in Sencha village in the Poltava region. Creating conditions for shooting training and providing the first aid in the military-patriotic education, holding competitions and training seminars.

Project coverage: 360 people.

• “Professional mobile boxing ring” for the residents of the Reshetylivka Urban Territorial Community in the Poltava region. Implementation of the project improves conditions for Physical Education, popular and professional sports, and creates proper conditions for the educational and training process in the Reshetylivka youth sports school. Now, it is one of the first professional boxing rings in the region.

Project coverage: 1,252 people.

• “Purchase of sewing equipment for a fibrous materials workshop” in the Chutove village, Poltava region. This project provides for the purchase of new modern sewing equipment to improve the workshop material base for processing fibrous materials and create conditions for development of creative abilities and co-working skills.

Project coverage: 1,500 people.

• “Go Rypyanka!” in the Rypyanka village, Ivano-Frankivsk region. It provides for placement of the multifunctional playgrounds at the school stadium, equipping the stadium with mini-football goalposts with a basketball hoop, a volleyball net.

Project coverage: 10,000 people.

• “Skate park” in the Donets village, Kharkiv region. A playground for people engaged in extreme sports: skateboard, street board, aggressive roller skates, BMX bicycles, scooters for leisure activities among the youth of the village.

Project coverage: 850 people.

• “Creating an Ecology and Forestry class” in the Tereshky village, Poltava region. The project provided for allocation of the premises in the Tereshky Lyceum for the Ecology and Forestry Class, which became the headquarters for children-conservationists of the Tereshky community and a base for the Small Academy of Sciences writing.

Project coverage: 1,000 people.

• “Children in the world of equal opportunities” in the Zmiyiv town, Kharkiv region. Providing an opportunity to receive high quality and complete correctional and developmental assistance by children with special educational needs from 2 to 18 years.

Project coverage: 500 people.

• “Tasty hub” in Ivanyvka village, Chkalovsky district, Kharkiv region. Creation of a convenient motivating space,facilities, and upgrade of the school canteen of the Ivanovo Lyceum in accordance with modern sanitary and hygienic requirements. 

Project coverage: 302 people.

8. Settlements and communities’ infrastructure in territories of the Company’s presence  has been improved, in particular, a standard of living in 50 villages, towns and cities in the area of medical and educational services, facilities and resources for culture, social and sports development;
9. Compared to the first stage of the competition, where 90% of the total weight of projects consisted of a hard component, in particular repairs to meet communities’ current needs, a part of the soft component has increased and accounted for a third of projects among all 50 winners. Communities have realised that it is necessary to implement not only social and infrastructure projects, but also those aimed at introducing education for children and adults, creating cultural centres, clubs, IT master classes, health, safety, patriotism, sports centres, etc.;
10. An open online platform for communication and exchange of experience, additional communication channels have been created, namely:

• project page on the web-site https://csr.ugv.com.ua/project/40;
• 4 Viber groups (by regions and for participants at its stage);
• closed Facebook group;
• permanent e-mail address of the competition er.grant@ugv.com.ua;
• three regional managers have been identified for continuous support and communication with participants;
• 12 Zoom meetings have been held with participants;
•  a reporting forum is planned, where participants will present the results of their projects;

Additional experts and guests have joined the training modules, shared their experience, and have been invited to participate in other investment and grant projects. Meetings are held online and offline regarding the progress and opening of the project. Some communities have adopted projects experience and ideas from each other, including a system for sorting garbage, solid fuel waste, installing complex children’s and sports grounds, using cultural centres premises to open clubs and education and sports centres, etc.;

11. The CSR web-site provides information on rent and other tax deductions of the company to the local budgets of all levels, including the regional, district (by 2020), territorial community where hydrocarbon production is performed, and information on responsible business in the territories of the Company’s presence, in particular social investments and charity projects.

Category: Prosperity

Company: Naftogaz Group

About the company: 

Naftogaz of Ukraine is a vertically integrated oil and gas company engaged in full cycle of operations in gas and oil field exploration and development, production and exploratory drilling, gas and oil transport and storage, supply of natural gas and LPG to consumers

Sustainable Development Goals