We also endeavour to ensure that our integrity and social responsibility (ISR) principles are integrated into our supply chain.
We also endeavour to ensure that our integrity and social responsibility (ISR) principles - including those relating to ethics and conflict of interests, anti-corruption, human rights and labour standards - are integrated into our supply chain.
"StatoilHydro's strategy is to cultivate corporate integrity and social responsibility throughout the procurement process, from the pre-qualification of bidders, to entering into contracts and final delivery of goods and services," says chief procurement officer Anders Opedal.
ISR requirements for suppliers were developed throughout 2006 and 2007, and they have now been firmly grounded in the company's highest governing document, the StatoilHydro Book, as well as in other policy documents that govern our procurement process. In addition, our integrity due diligence procedures were also revised in 2007 to ensure integrity and social responsibility screening of all potential suppliers from 2008 onwards.
The main tool for ensuring ISR implementation in the supply chain is the StatoilHydro "supplier declaration", which was launched towards the end of 2007. It requests suppliers to sign and declare their support for our ISR standards. The declaration also requires suppliers to apply these principles in their own supply chain.
Stepwise implementation of the supplier declaration process has already begun. Step one entails including the declaration in all new framework agreements and separate agreements/contracts for more than NOK 7 million that are part of the strategic procurement process. Training sessions are being conducted to ensure proper implementation.
We are also an active supporter of the Achilles Joint Qualification System (JQS), which provides an integrated solution for prequalifying suppliers to the oil and gas industry operating on the Norwegian and Danish continental shelves.
A pilot project is currently underway to integrate ISR requirements as part of the prequalification system. ISR data registered in Achilles will supplement StatoilHydro's use of the supplier declaration.
