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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Page 1: Anupama mohan

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

Page 2: Anupama mohan

Copyright©Statoil 2010.10.01 corporate presentation – short version: Standing at a new frontier /2

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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Copyright©Statoil 2010.10.01 corporate presentation – short version: Standing at a new frontier /3

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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8

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

Page 9: Anupama mohan

Copyright©Statoil 2010.10.01 corporate presentation – short version: Standing at a new frontier /9

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

Page 17: Anupama mohan

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Thank you.

Managing Social Risks and impacts : Statoil’s approach

Anupama Mohan

Lead Advisor, CSR

www.statoil.com