We are committed to transparency, anti-corruption, respect for human rights and labour standards, both in our own operations and in those parts of the value chain where we have significant influence. We aim to achieve a mutually beneficial and respectful relationship between our company and society.
It is StatoilHydro’s responsibility to create value for both our shareholders and host countries. This is not only an ethical imperative; living up to these responsibilities is required to support long-term profitability and consistency in complex environments.
We are committed to transparency, anti-corruption, respect for human rights and labour standards, both in our own operations and in those parts of the value chain where we have significant influence. We aim to achieve a mutually beneficial and respectful relationship between our company and society.It is StatoilHydro’s responsibility to create value for both our shareholders and host countries. This is not only an ethical imperative; living up to these responsibilities is required to support long-term profitability and consistency in complex environments.
We are therefore committed to contributing to sustainable development based on our core activities in the countries where we work, by:
- Making decisions based on how they affect our interests and the interests of the societies around us.
- Ensuring transparency, anti-corruption, and respect for human rights and labour standards.
- Generating positive spin-offs from our core activities to help meet the aspirations of the societies in which we operate.
Social Risk Management
In StatoilHydro we are committed to the zero harm philosophy. We make decisions based on how they affect our interests and the interests of the societies around us.
We therefore aim to understand and manage social risks by assessing needs and expectations, reducing and mitigating harmful impacts on the communities affected by our operations and on our own business, and identifying development opportunities relevant to our operations.
Transparency and anti-corruption
Transparency and anti-corruption are cornerstones of good governance and a productive business environment, on which effective markets and sustainable development depend. In such environments the benefits from our industry will also be more readily shared by society as a whole. Transparency and anti-corruption are important principles that we are committed to and on which we will not compromise.
StatoilHydro’s commitment to transparency and anti-corruption is solidly anchored in a number of international initiatives, including the OECD Guidelines for Multinational Enterprises and the United Nations tenth Global Compact principle on anti-corruption. StatoilHydro has further endorsed the Extractive Industries Transparency Initiative (EITI), and was the first major oil company to start disclosing all revenues and payments in the countries in which we operate. StatoilHydro is also an active participant - through the World Economic Forum’s Partnering Against Corruption Initiative (PACI) - in aligning the work of major international anti-corruption initiatives (Global Compact, International Chamber of Commerce, and Transparency International) in order to enhance their overall impact. StatoilHydro also supports the work of Transparency International Norway through a corporate agreement, with whom we collaborated on the development of the Business Principles for Countering Bribery (BPCP).
Human rights and labour standards
Respecting human rights and labour standards - both in our own operations and in those parts of our value-chain where we have significant influence - is a vital part of how we conduct our business to achieve a mutually beneficial and respectful relationship between our operations and society. No human rights violations are accepted in our operations, and would represent a breach of our policies and standards.
The Universal Declaration on Human Rights is a common ethical foundation. Our commitment is further rooted in our support of the OECD Guidelines for Multinational Enterprises and the United Nations Global Compact principles covering human rights and labour standards, in addition to the principles on the environment and anti-corruption.
We continue to be an active participant in the Business Leaders’ Initiative on Human Rights (BLIHR) and the Voluntary Principles on Security and Human Rights. StatoilHydro further supports the work of Amnesty International Norway, the Norwegian Centre for Human Rights at the University of Oslo, the Norwegian Refugee Council and the UNDP (Democratic Governance Thematic Trust Fund) through corporate agreements.
Generating Positive Spin-offs
The oil and gas industry has a big potential for stimulating economic growth. However, the requirement for highly specialised skills and technology could mean that the direct benefits are confined to a relatively small minority, leaving others potentially excluded.
StatoilHydro aims to make sustainable investments that create and maximise shared value - investments that benefit both our shareholders as well as the host countries where we operate. We aim to be a partner of choice by creating local content and generating positive spin-offs from our core business in support of the development ambitions of host countries. We proactively recruit locally, demonstrating that we are a good employer that offers a safe working environment, attractive training opportunities and builds on local competence.
We promote local sourcing and work with local businesses as suppliers and contractors where they exist, and invest in developing sustainable and competitive local enterprises. We support education and skills building in the local community and amongst our suppliers and contractors in order to build lasting capacity and to help them develop the skills, standards and certifications required for them to work in the oil and gas industry.
Social Investments
Our international business made social investments in the magnitude of USD 7.7 million in 2007. Social investments are part of our business and social responsibility plans for countries in which we operate. These investments are spread over different projects which all fall under our three priority areas: transparency and anti-corruption, human rights and labour standards, and local spin-offs. These investments support our core business by creating common interests with our stakeholders in the host countries in which we operate.
Social investments are based on commercial considerations and they aim to produce sustainable economic activity. We endeavour to avoid creating dependency and supporting unproductive projects.
Overall Results
In 2007 we made progress in all of these areas. The merger put performing with integrity and social responsibility at the core of our internationalisation agenda, and the integration process of the two companies reinforced our capacity to deliver on these objectives. In collaboration with partners, we developed a framework for measuring the impacts of our operations and improving dialogue with host countries and other stakeholders.
We also improved our integrity and due diligence procedures to screen investments and suppliers for possible integrity and human rights violations. Furthermore, a human rights risk assessment tool has been piloted in five countries where we have operations. Compulsory ethics and anti-corruption training was also introduced, and we have invested in local training and recruitment and local supplier development in key countries, such as Algeria, Brazil, Russia and Venezuela. Finally, we continue to work with partners and collaborate in multi-stakeholder initiatives to advance joint standards and approaches in the industry and business community.
In 2007, both Statoil and Hydro were ranked as the most sustainable companies in their respective sectors on the Dow Jones Sustainability World Index. Statoil received this ranking for the fourth year in a row in the oil and gas sector, whereas Hydro received the same accolade in the basic resources sector for the second year running.
| Statoil was informed on 26 September, 2007, of possible consultancy agreements and transactions associated with Hydro’s operations in Libya, which as of 1 October 2007 have been transferred to StatoilHydro as part of the merger between Statoil and Hydro’s petroleum business. Following a preliminary assessment by Statoil’s corporate audit function, Chief executive Helge Lund resolved in consultation with the Statoil board to initiate an external review of the relevant aspects. The U.S. law firm Sidley Austin LLP is in the process of carrying out the review together with the Norwegian law firm Simonsen Advokatfirma DA, supported by StatoilHydro’s corporate audit function. Other consultancy agreements relating to Hydro’s international petroleum operations are also under review. Both Hydro and StatoilHydro are cooperating on securing the documentation and information required to establish the facts of the matter. |
