Global Compact , Vilnius 15 Nov. 2005

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Global Compact , Vilnius 15 Nov. 2005

• From Strategy to action
• Integrating CSR in business

Sebastian Bringsværd Senior Coordinator CSR
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The simple version

• The business of business is business
• Companies role is to make money
• Your company contributes to the development of
  your local community and that of your country by
  running a profitable business large or small
• Your company creates employment, pay taxes and
  generate wealth
• CSR is about creating economic activity and
  making profits

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The advanced version

• CSR is about how companies make profits
• CSR means the company will make profits in an
  accountable and sustainable way, building its
  operations on universally accepted business
  ethics
• you respect basic human rights
• you treat your workforce well
• you dont pollute
• you dont engage in corruptive practices
• In fact, this is the platform on which
• the Global Compact is built!

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STATUS
Economy/finance
Statoils management and reporting system
Environment
Society
Organisation
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Statoils system today

• CSR Strategy in place
• Management system in Statoil (MiS)
• Business strategies and Key Performance
  Indicators
• Country specific CSR plans
• Sustainability report
• Ethics committee

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Corporate social responsibility in several arenas
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Strengthened our licence to operate
Bonus related
Risk mitigation
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Making the CSR strategy operational
Strengthened

• Three focus areas main challenges, greatest
  impact potential
• We will be recognised for respecting labour and
  human rights
• We will be recognised as a transparent company
• We will be recognised for creating local
  spin-offs from our activities

Core commitments
licence
to operate
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• Human/labour rights
• Ensure that the life and health of employees is
  not jeopardised and that employees have influence
  over their situation
• Ensure that suppliers comply with applicable
  national laws and meet expectations to suppliers
  in the areas HSE, labour rights and business
  ethics stated in Statoil guidelines
• Select suppliers based on commitment and
  performance, and support suppliers efforts to
  close gaps to Statoils standards
• Respect the rights of indigenous peoples and
  protect affected environment
• Transparency
• Undertake active dialogue with stakeholders
  affected by our operations
• Perform integrity due diligence of potential
  partners and promote transparency in POLs
• Be transparent about income, expenditure, taxes
  and value creation
• Local content
• Actively hire and develop local employees
• Promote local sourcing and job creation by
  identifying potential and shortcomings in local
  industry

Core commitments
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• Human/labour rights
• Engage in sustainable social investment projects
  in host communities
• Engage in human rights projects on national level
  in cooperation with other organizations
• Transparency
• Engage in good governance/anti-corruption
  projects on national level in cooperation with
  other organizations
• Local content
• Increase competence in local oil and gas-related
  industry
• Help establish viable local enterprises that
  contribute to local employment
• Transfer experience to local and national
  partners
• Contribute to local/national energy solutions
• Support education in oil and gas related
  disciplines and cooperate with national research
  institutions

Strengthened
licence

to operate
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A strategic approach to corporate social
responsibility

• Three focus areas
• Labour and human rights
• Transparency
• Local content

Licence to operate
Mitigation CSR activities
Business goals
Risk assesment
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CSR Plan
Statoils CSR Strategy
Re LOS
Corporate
Brainstorm over activities Selection
Agree about risks
Draft,review agree plan
B.goals
Folllow up
Implement
Country specific

Country Manager, Support from LOS Involvement of
Business
Re Business, CMGPA Support from LOS
Re Business
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Corporate CSR strategy
Mitigation Through
Added value For Statoil local spin- offs
CSR activities Mitigating the actual risks
identified
Business goals/ ambition
Cost xxxx
Risks / LTO
XXX - - -
XXX - - -
xxx
xxx
xxx
Statoils reputation and Licence to operate
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National activities
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To the Nordic Network, CSR is based on

• National legislation as the platform
• Going beyond legislation on a voluntary basis
• The universal principles on human rights (UN
  Declaration)
• ILO conventions on treatment of workers
• Environmental concerns
• OECD Guidelines
• Respect for trade unions and NGOs
• Cooperation with stakeholders
• and indeed The Global Compact!

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How do we work? (2)

• We do not make decisions we listen and learn
• Active internal communication between meetings
  Focal Point receives and forwards all relevant NY
  information, coordinates meetings, gives advise
  to members etc.
• External communication Focal Point represents
  Network (like today..)
• Open to contacts with other networks - but
  limited resources