Petoro - a driving force on the Norwegian continental shelf

SDFI and Petoro annual report 2014

Presentation of corporate social responsibility

Petoro’s presentation of its CSR builds on guidelines for exercising CSR adopted by the company, and is tailored to its activities as a licensee on the Norwegian continental shelf (NCS). CSR embraces the responsibilities which companies are expected to fulfil for people, societies and the environment affected by their operations. Petoro’s funding for performing its management duties and for running the company is provided through appropriations from the government. Pursuant to its mandate, Petoro has no opportunity to provide monetary support for social purposes.

The owner’s expectations on CSR are expressed in Report no 27 (2013-2014) to the Storting, which refers to the UN’s Global Compact. The board’s presentation below, tailored to Petoro’s role and mandate, is rooted in the owner’s expectations and the company’s guidelines for CSR.

Petoro undertakes to pursue its business activities in an ethically acceptable, sustainable and responsible manner. The board emphasises that the company’s CSR forms an integral part of its activities and strategies, and is reflected in part through its values. These include vigorous, responsible, inclusive and bold. The company’s guidelines on business ethics support these values.

Petoro pursues its business in accordance with good corporate governance. That applies to its participation in the individual production licences and as a partner in the joint ventures.
The joint venture agreements for the production licences include requirements on governance by the operators. Petoro exercises its role through active participation in management committees and sub-committees on the basis of a prioritisation of available resources and where it can make a difference. Follow-up of the state’s equity interests in all joint ventures is incorporated in Petoro’s governance system.

Petoro pursues its business in a sustainable manner which minimises negative impacts on nature and the environment. Serious incidents are followed up as a critical success factor in Petoro’s governance system. Health, safety and environmental results in the portfolio have improved over a number of years. Petoro participates every year in HSE management inspections on selected fields and installations.

Power from shore will be assessed for new fields and major conversions, providing a technically feasible solution is available at an acceptable abatement cost. Petoro is a licensee in Martin Linge, which is being developed with power from shore, and in Johan Sverdrup where the partners have chosen this approach for the field’s first development phase. Total carbon emissions from these fields will thereby be reduced.

The company contributes to creating environmentally conscious attitudes among all its employees through waste sorting and an incentive scheme to encourage increased use of public and environment-friendly transport. Petoro give emphasis to efficient ICT solutions and good communication systems which can replace travel to meetings with videoconferencing.

Petoro reports emissions to the air and discharges to water from the portfolio in a separate chapter of its annual report on the environment, based on figures obtained from the operators. The company is concerned that the industry takes account of the environment and would note, in this context, that emissions/discharges on the NCS have been low by international standards for many years. No significant emissions to the air or discharges to the sea occurred from the SDFI portfolio during 2014. The figures will be reported in the external annual report as soon as they are available.
Petoro does not accept any form of corruption or other malpractice and employees are not permitted to receive remuneration from others in their work for the company. Guidelines on business ethics define what is regarded as corruption, and the consequences of breaching these guidelines receive special mention. No breaches of these guidelines have been recorded.

Petoro’s employees do not accept unlawful money gifts or other benefits, or offer these in order to secure an advantage for themselves, for Petoro or for others.  Employee directorships and jobs on the side must be approved by the president in order to avoid possible conflicts of interest. Guidelines on business ethics detail the consequences of breaches. No breaches of the guidelines have so far been recorded.

Petoro’s employees comply with the company’s business ethics guidelines.
The company’s guidelines on business ethics are publicly available. Their purpose is to clarify principles which will govern the company’s commercial operations and employee behaviour. Employees annually sign the company’s ethical guidelines, which cover such considerations as the duty of confidentiality, possible conflicts of interest and issues related to the receipt of gifts and services. Petoro has established security requirements for data and for information and communication technology (ICT) in its operations.
Petoro’s employees discharge their duties with a high level of integrity and honesty, and show respect for other people, the public authorities and business contacts, as well as health, safety and the environment.
The company’s guidelines on business ethics include requirements on ethical behaviour by all employees. Petoro’s goal is a good mental and physical working environment for all personnel. PetroAktiv organises a number of social, cultural and sporting activities for employees, and participation in the various events is good.
Petoro does not discriminate on the basis of gender, religion, national or ethnic affiliation, social group or political views. 
Petoro gives weight to equality between the genders in terms of opportunities for professional and personal development, pay and promotion. The company facilitates a flexible customising of working hours. When determining pay and in pay negotiations, Petoro is conscious that men and women must be treated equally. No systematic or significant differences exist between male and female pay in the company. The company has a number of employees with differing cultural and ethnic backgrounds. Working conditions at Petoro are customised to allow people with disabilities to work for it.

The company has routines for reporting conditions open to criticism.
The board encourages the company’s employees to raise ethical issues and to report any breaches of the regulations they encounter. The internal audit function is an independent whistleblowing channel with the right and duty to report to the board. No cases of whistleblowing were recorded in 2014.

Petoro expects its partners and contractors/suppliers to maintain the same ethical standards set for its own business operations.
Petoro’s standard contractual terms incorporate requirements that contractors/suppliers must execute the assignment with a high level of professionalism and in accordance with high ethical standards. An extract of the company’s guidelines on business ethics is incorporated in all Petoro’s standard contracts as the norm to be met. The management committee in each joint venture is responsible for considering and deciding issues related to the procurement and contract strategy.