anupama mohan
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Copyright©Statoil 2010.10.01 corporate presentation – short version: Standing at a new frontier
TBLI conference, London, 12 November 2010
Dr. Anupama Mohan
Managing social risks and impacts: Statoil’s approach
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Who we are
• Energy company present in 34 countries with 20,000 employees
• Producing 1.95 million barrel of oil equivalent (boe) pr day
• About 22 billion boe in proven resources (5.6 billion as booked reserves)
• One of the world’s largest net sellers of crude oil
• The world's largest operator in waters deeper than 100 metres
• World leader in carbon capture and storage
• The second largest exporter of gas to Europe
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Our business areas
Exploration & Production Norway
International Exploration & Production
Natural Gas Technology &New Energy
Projects & Procurement
Manufacturing & Marketing
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Our business environment
• Competition for access to oil and gas resources is sharpening
• Demand for energy increasing due to population growth and higher standards of living
• The climate change and the need for reduced emissions
• Oil and gas industry impacted by the economic turbulence
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Harsh environments
Deep water
Heavy oil
Gas value chains
Building growth from a firm strategy
Deliver international growth
Build
energynew
Maximisethe NCS
values
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What we do – and how we do it
• A values based performance culture
• Firm commitment to health, safety and environment (HSE)
• Stringent ethical requirements and a code of conduct which promotes personal integrity
• Firm commitment to corporate social responsibility
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Corporate social responsibility policy
Our approach
• We contribute to sustainable development based on our core activities in the countries where we work
We are committed to
• Making decisions based on the way they affect our interests and the interests of the societies in which we operate
• Ensuring transparency, anti-corruption, and respect for human rights and labour standards
• Contributing to local content in our projects by developing skills and opportunities in the societies in which we operate
CSR policy
FR: CSR
Several WRs/GLs
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Social risk and impacts sources
Company Contractors Community Society
Risk can arise from impacts of company
activities, and company
relationships
Risks can arise from impacts of other actors,
their perceptions and their expectations
Risks can arise from indirect business impacts
Country or
Region specific
risks
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Community
HSE 0.1: HSE Risk Management
WR2297: Indigenous & tribal peoples
IFC Performance Standard 5 (etc)
Impact Assessment Guidelines
Extractive Ind Transparency Initiative (EITI)
HSE APOS: Security Management
Voluntary Principles on Security and Human Rights (FR11)
VP Implementation Program
FR11: Core ILO principles, national law
Supply chain risk project
Social risk and impacts framework
Political, legal, institutional contextHuman rights situation
Economy Infrastructure & services
Stakeholder expectationsPoverty and social issues
Labour quality and availabilityLaw and order
Core labour standards
• Child labour
• Forced labour
• Right to organize
• Discrimination
Poor working conditions and pay
Migrant labour abuse
Workplace health and safety
Armed security: public or private
Use of Statoil assets by armed groups (police, military, armed guards)
Other collaboration with armed groups
Violent conflict in area / on site / among workers
Labour Security
Co
nte
xt
Fo
cu
sIs
sues
Go
v.
Do
cs
/ In
itia
tiv
es
Land acquisition
Involuntary resettlement
Indigenous and tribal peoples’s rights
Prior and informed consultations
Impacts on livelihoods, social organisation, culture
Emissions/discharges/waste/Oil spill
Use of resources (e.g. water)
Local content
Lack of transparency, corruption
Royalty sharing, wealth distribution
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Integrating social risk management
CSR in the Capital Value Process (CVP)
CSR DG requirements and involvement
• Social risk review• Early Phase Risk
Assessment • Impact assessment• Stakeholder
engagement• CSR plans & Social
investments• Monitoring & reporting• Ongoing dynamic risk
mapping
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Integrating CSR across operations
Business enabler
Working with
partners
Stakeholder
engagement
Risk managemen
t
Awareness/
Competence
Integrating CSR
- living our values- Training &competence- Staff appraisal & incentives- Ethics Committees
- Stakeholder start-up meetings- Risk and impact assessments - Monitoring & follow-up- CSR and HSE plans/programmes- Arena: Independent reviews in
CVP
- Dialogue and follow-up with key stakeholders
- Annual and Sustainability Report
- Ethics Helpline
- Industry fora and partner meetings- Screenings & prequalification - Contract clauses- Dialogue and follow-up
- Driving efficiency and cost-reductions
- Access to new resources- Improved project execution- Long-term growth and
sustainability
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Human rights• Commitment to global standards:
− Universal Declaration on Human Rights
− ILO Declaration on Fundamental Principles and Rights at Work
− UN Global Compact Principles
− Voluntary Principles on Security and Human Rights
− OECD Guidelines for Multinational Enterprises
• Respect the rights of the Indigenous Peoples
• Human rights risk assessment to be conducted in countries with high human rights risk
• Suppliers and partners to share the same principles
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Labour standards
• Statoil and its suppliers shall comply with international labour standards.
• Specific reference to ILO Declaration on Fundamental Principles and Rights at Work:
− Freedom from discrimination in employment − Freedom of association and the right to collective
bargaining− Prohibition on forced or compulsory labour− Prohibition on child labour
• Minimum age of employment (15 years, or 18 years for hazardous work)
• Comply with all applicable laws and regulations for terms and conditions of employment
• Statoil and its suppliers shall not have any involvement in human trafficking.
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Routines for managing Human Rights and Labour Standards in the supply chain Standards in the procurement process: in pre-qualification & evaluation
phase prior to contract award, & through out contract administration
Integrity Due Diligence: a pre-qualification requirement for all prospective business relationships
Achilles Joint Qualification System: for all suppliers based within or supplying to Norwegian and Danish continental shelves
Voluntary Principles for Security and Human Rights: strict requirements for security contractors’ selection; implementing VPs & reporting on this implementation
Sustainability screening & audits of suppliers and producers of biofuels for trading.
Supplier Declaration: required to be signed in pre-qualification phase by all potential suppliers with contract value above 7 MNOK
Company Representative responsible for contract management & follow-up & monitoring of Supplier Declaration
Risk based follow-up and monitoring of suppliers/contracts.
Procurement 2009: over NOK 100 billion
Total number of suppliers (2009):
around 26000
Ongoing investment in
supplier development &
training
Example 1
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Local opportunities: Canada
Strategy
• No local company excluded from bidding on and working for Statoil
• Standard of excellence would not be watered down (same expectations) whether they are a multi-national company or a one person operation
• Where needed we support training and capacity building
Local Opportunity Centre
• Operational since September 2009
• Systematic and integrated approach to procurement and stakeholder engagement
• Local residents, businesses and government agencies access to information on operations
• Local contractors access to the proper information, knowledge and training
• Other industry interested in joining LOC, supports our goal of being the “operator of choice” in the Athabasca oil sands region
• Provides a central neutral location and required resources for internal and external stakeholders
• Employee & Employer resources offered through the Government of Alberta – Department of Employment and Immigration
• Independent Business Development & Consulting services provide by The Business Link
Example 2
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Statoil is an international energy company with operations in 34 countries. Building on more than 35 years of experience from oil and gas production on the Norwegian continental shelf, Statoil is committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions.
Statoil is headquartered in Norway with 20,000 employees worldwide, and is listed on the New York and Oslo Stock Exchange. For more information, please visit www.statoil.com
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Thank you.
Managing Social Risks and impacts : Statoil’s approach
Anupama Mohan
Lead Advisor, CSR
www.statoil.com