Petoro’s CSR presentation is based 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 comprises the responsibilities companies are expected to fulfil for people, society and the environment affected by their activities. Petoro’s funding for performing its management duties and operating the company is provided through appropriations from the state. Pursuant to its mandate, Petoro will not provide monetary support for public welfare purposes.
The owner’s expectations as regards CSR are expressed in Report No. 27 to the Storting (2013-2014), which references the UN Global Compact. The board’s presentation below, tailored to Petoro’s role and mandate, is based on the owner’s expectations and the company’s guidelines for CSR.
Petoro undertakes to pursue its business activities in an ethically prudent, sustainable and responsible manner. The board emphasises that the company’s CSR forms an integral part of its activities and strategies, and is reflected through its values. These include dynamic, responsible, inclusive and bold. The company’s guidelines on business ethics support these values.
Petoro exercises its activities in accordance with good corporate governance. This 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 governance requirements for 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 the company can make a difference. Follow-up of the state’s equity interests in all joint ventures is incorporated in Petoro’s management system.
Petoro exercises its activities in a sustainable manner which minimises negative impact on nature and the environment. Serious incidents are followed up in Petoro’s management system. Petoro participates every year in HSE management inspections on selected fields and installations.
Petoro recognises that climate challenges make it necessary to restrict anthropogenic climate impact, and the company adopted a climate policy in 2016. The company wants to contribute to ensuring that the oil and gas industry on the Norwegian Shelf leads the way in addressing climate challenges.
The company introduced a new KPI in 2016 for following up CO2 emissions from oil and gas production from a selection of fields with the greatest emissions. This will be continued in 2017.
Power from shore will be considered for new fields and major redevelopments, given that a technically feasible solution is available at an acceptable abatement cost. Petoro is a licensee in Martin Linge and phase 1 of Johan Sverdrup, which are both being developed with power from shore. This also forms part of the proposed solution for the next development phase of Johan Sverdrup. Total carbon emissions from these fields will thereby be minimised.
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 contributes to creating environmental awareness among all its employees through an incentive scheme to encourage increased use of public and environmentally friendly transport. Petoro emphasises efficient ICT solutions and good communication systems that can replace travel to meetings with videoconferencing.
Petoro does not tolerate any form of corruption or other improprieties, and employees are not permitted to accept 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 are addressed specifically. No breaches of these guidelines have been recorded.
Petoro’s employees shall not accept or offer unlawful monetary gifts or other benefits to secure an advantage for themselves, for Petoro or for others. Employee directorships and secondary employment must be approved by the CEO 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 conduct. Each year, all employees sign the company’s ethical guidelines, which cover matters such as the duty of confidentiality, possible conflicts of interest and issues related to receiving gifts and services. Senior employees (President and CEO and employees who report directly to the President and CEO) are prohibited from owning shares in licensee companies. Petoro has established requirements for information and ICT security in its activities.
Petoro’s employees discharge their duties with a high level of integrity and honesty, and show respect for other people, public authorities and business contacts, as well as health, safety and the environment.
Through its HSE declaration, the company has a shared objective regarding a sound psychological and physical work environment for all employees. The company’s guidelines on business ethics include an ethical conduct requirement for all employees. PetroAktiv organises a number of social, cultural and athletic 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 emphasises equal opportunities for professional and personal development, pay and promotion. The company facilitates flexible working hours. When determining wages and in wage 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 diverse cultural and ethnic backgrounds. The company customises working conditions so that people with disabilities can also work for Petoro.
The company has routines for reporting improprieties.
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.
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 from the company’s guidelines on business ethics is incorporated into all Petoro’s standard contracts as a normative standard. The management committee in each joint venture is responsible for considering and making decisions regarding issues related to the procurement and contract strategy.
