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TBLI conference, London, 12 November 2010 Dr. Anupama Mohan Managing social risks and impacts: Statoil’s approach
Who we are <ul><li>Energy company present in  34  countries with  20,000  employees </li></ul><ul><li>Producing  1.95 mill...
Our business areas Exploration & Production Norway  International Exploration & Production Natural Gas Technology & New En...
Our business environment <ul><li>Competition for access to oil and gas resources is sharpening </li></ul><ul><li>Demand fo...
Harsh  environments Deep  water Heavy  oil Gas  value chains Building growth from a firm strategy Deliver  international g...
What we do – and how we do it <ul><li>A values based performance culture </li></ul><ul><li>Firm commitment to  health, saf...
Corporate social responsibility policy  <ul><li>Our approach </li></ul><ul><li>We contribute to sustainable development ba...
Social risk and impacts sources Company Contractors Community Society Risk can arise from impacts of  company activities ,...
Social risk and impacts framework Community HSE 0.1: HSE Risk Management WR2297: Indigenous & tribal peoples IFC Performan...
Integrating social risk management CSR in the Capital Value Process (CVP) <ul><li>Social risk review </li></ul><ul><li>Ear...
Integrating CSR across operations <ul><li>living our values </li></ul><ul><li>Training &competence </li></ul><ul><li>Staff...
Human rights <ul><li>Commitment to  global standards :  </li></ul><ul><ul><li>Universal Declaration on Human Rights </li><...
Labour standards <ul><li>Statoil and its suppliers shall comply with  international labour standards .  </li></ul><ul><li>...
Routines for managing Human Rights and Labour Standards in the supply chain   <ul><li>Standards in the procurement process...
Local opportunities: Canada <ul><li>Strategy </li></ul><ul><li>No local company excluded from bidding on and working for S...
Statoil is an international energy company with operations in 34 countries. Building on more than 35 years of experience f...
Thank you. Managing Social Risks and impacts : Statoil’s approach Anupama Mohan Lead Advisor, CSR www.statoil.com
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Anupama mohan

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Anupama mohan

  1. 1. TBLI conference, London, 12 November 2010 Dr. Anupama Mohan Managing social risks and impacts: Statoil’s approach
  2. 2. Who we are <ul><li>Energy company present in 34 countries with 20,000 employees </li></ul><ul><li>Producing 1.95 million barrel of oil equivalent (boe) pr day </li></ul><ul><li>About 22 billion boe in proven resources (5.6 billion as booked reserves) </li></ul><ul><li>One of the world’s largest net sellers of crude oil </li></ul><ul><li>The world's largest operator in waters deeper than 100 metres </li></ul><ul><li>World leader in carbon capture and storage </li></ul><ul><li>The second largest exporter of gas to Europe </li></ul>
  3. 3. Our business areas Exploration & Production Norway International Exploration & Production Natural Gas Technology & New Energy Projects & Procurement Manufacturing & Marketing
  4. 4. Our business environment <ul><li>Competition for access to oil and gas resources is sharpening </li></ul><ul><li>Demand for energy increasing due to population growth and higher standards of living </li></ul><ul><li>The climate change and the need for reduced emissions </li></ul><ul><li>Oil and gas industry impacted by the economic turbulence </li></ul>
  5. 5. Harsh environments Deep water Heavy oil Gas value chains Building growth from a firm strategy Deliver international growth Build energy new Maximise the NCS values
  6. 6. What we do – and how we do it <ul><li>A values based performance culture </li></ul><ul><li>Firm commitment to health, safety and environment ( HSE) </li></ul><ul><li>Stringent ethical requirements and a code of conduct which promotes personal integrity </li></ul><ul><li>Firm commitment to corporate social responsibility </li></ul>
  7. 7. Corporate social responsibility policy <ul><li>Our approach </li></ul><ul><li>We contribute to sustainable development based on our core activities in the countries where we work </li></ul><ul><li>We are committed to </li></ul><ul><li>Making decisions based on the way they affect our interests and the interests of the societies in which we operate </li></ul><ul><li>Ensuring transparency, anti-corruption , and respect for human rights and labour standards </li></ul><ul><li>Contributing to local content in our projects by developing skills and opportunities in the societies in which we operate </li></ul>CSR policy FR: CSR Several WRs/GLs
  8. 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
  9. 9. Social risk and impacts framework 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 <ul><li>Core labour standards </li></ul><ul><li>Child labour </li></ul><ul><li>Forced labour </li></ul><ul><li>Right to organize </li></ul><ul><li>Discrimination </li></ul><ul><li>Poor working conditions and pay </li></ul><ul><li>Migrant labour abuse </li></ul><ul><li>Workplace health and safety </li></ul>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 Context Focus Issues Gov. Docs/ Initiatives 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 Political, legal, institutional context Human rights situation Economy Infrastructure & services Stakeholder expectations Poverty and social issues Labour quality and availability Law and order
  10. 10. Integrating social risk management CSR in the Capital Value Process (CVP) <ul><li>Social risk review </li></ul><ul><li>Early Phase Risk Assessment </li></ul><ul><li>Impact assessment </li></ul><ul><li>Stakeholder engagement </li></ul><ul><li>CSR plans & Social investments </li></ul><ul><li>Monitoring & reporting </li></ul><ul><li>Ongoing dynamic risk mapping </li></ul>CSR DG requirements and involvement
  11. 11. Integrating CSR across operations <ul><li>living our values </li></ul><ul><li>Training &competence </li></ul><ul><li>Staff appraisal & incentives </li></ul><ul><li>Ethics Committees </li></ul><ul><li>Stakeholder start-up meetings </li></ul><ul><li>Risk and impact assessments </li></ul><ul><li>Monitoring & follow-up </li></ul><ul><li>CSR and HSE plans/programmes </li></ul><ul><li>Arena: Independent reviews in CVP </li></ul><ul><li>Dialogue and follow-up with key stakeholders </li></ul><ul><li>Annual and Sustainability Report </li></ul><ul><li>Ethics Helpline </li></ul><ul><li>Industry fora and partner meetings </li></ul><ul><li>Screenings & prequalification </li></ul><ul><li>Contract clauses </li></ul><ul><li>Dialogue and follow-up </li></ul><ul><li>Driving efficiency and cost-reductions </li></ul><ul><li>Access to new resources </li></ul><ul><li>Improved project execution </li></ul><ul><li>Long-term growth and sustainability </li></ul>Business enabler Working with partners Stakeholder engagement Risk management Awareness / Competence Integrating CSR
  12. 12. Human rights <ul><li>Commitment to global standards : </li></ul><ul><ul><li>Universal Declaration on Human Rights </li></ul></ul><ul><ul><li>ILO Declaration on Fundamental Principles and Rights at Work </li></ul></ul><ul><ul><li>UN Global Compact Principles </li></ul></ul><ul><ul><li>Voluntary Principles on Security and Human Rights </li></ul></ul><ul><ul><li>OECD Guidelines for Multinational Enterprises </li></ul></ul><ul><li>Respect the rights of the Indigenous Peoples </li></ul><ul><li>Human rights risk assessment to be conducted in countries with high human rights risk </li></ul><ul><li>Suppliers and partners to share the same principles </li></ul>
  13. 13. Labour standards <ul><li>Statoil and its suppliers shall comply with international labour standards . </li></ul><ul><li>Specific reference to ILO Declaration on Fundamental Principles and Rights at Work: </li></ul><ul><ul><li>Freedom from discrimination in employment </li></ul></ul><ul><ul><li>Freedom of association and the right to collective bargaining </li></ul></ul><ul><ul><li>Prohibition on forced or compulsory labour </li></ul></ul><ul><ul><li>Prohibition on child labour </li></ul></ul><ul><li>Minimum age of employment (15 years, or 18 years for hazardous work) </li></ul><ul><li>Comply with all applicable laws and regulations for terms and conditions of employment </li></ul><ul><li>Statoil and its suppliers shall not have any involvement in human trafficking . </li></ul>
  14. 14. Routines for managing Human Rights and Labour Standards in the supply chain <ul><li>Standards in the procurement process: in pre-qualification & evaluation phase prior to contract award, & through out contract administration </li></ul><ul><li>Integrity Due Diligence: a pre-qualification requirement for all prospective business relationships </li></ul><ul><li>Achilles Joint Qualification System: for all suppliers based within or supplying to Norwegian and Danish continental shelves </li></ul><ul><li>Voluntary Principles for Security and Human Rights: strict requirements for security contractors’ selection; implementing VPs & reporting on this implementation </li></ul><ul><li>Sustainability screening & audits of suppliers and producers of biofuels for trading. </li></ul><ul><li>Supplier Declaration: required to be signed in pre-qualification phase by all potential suppliers with contract value above 7 MNOK </li></ul><ul><li>Company Representative responsible for contract management & follow-up & monitoring of Supplier Declaration </li></ul><ul><li>Risk based follow-up and monitoring of suppliers/contracts. </li></ul>Procurement 2009: over NOK 100 billion Total number of suppliers (2009): around 26000 Ongoing investment in supplier development & training Example 1
  15. 15. Local opportunities: Canada <ul><li>Strategy </li></ul><ul><li>No local company excluded from bidding on and working for Statoil </li></ul><ul><li>Standard of excellence would not be watered down (same expectations) whether they are a multi-national company or a one person operation </li></ul><ul><li>Where needed we support training and capacity building </li></ul><ul><li>Local Opportunity Centre </li></ul><ul><li>Operational since September 2009 </li></ul><ul><li>Systematic and integrated approach to procurement and stakeholder engagement </li></ul><ul><li>Local residents, businesses and government agencies access to information on operations </li></ul><ul><li>Local contractors access to the proper information, knowledge and training </li></ul><ul><li>Other industry interested in joining LOC, supports our goal of being the “operator of choice” in the Athabasca oil sands region </li></ul><ul><li>Provides a central neutral location and required resources for internal and external stakeholders </li></ul><ul><li>Employee & Employer resources offered through the Government of Alberta – Department of Employment and Immigration </li></ul><ul><li>Independent Business Development & Consulting services provide by The Business Link </li></ul>Example 2
  16. 16. 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
  17. 17. Thank you. Managing Social Risks and impacts : Statoil’s approach Anupama Mohan Lead Advisor, CSR www.statoil.com

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