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, climate and the environment affected by their activities. The work on corporate social responsibility is an integral part of the board’s efforts. 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 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 it can make a difference. Follow-up of the state’s equity interests in all joint ventures is incorporated in Petoro’s management system.
By exercising its supervisory duty, Petoro will contribute to continuous improvement of HSE results for fields and facilities where Petoro is a licensee. The Petroleum Safety Authority Norway’s annual analysis of the risk level on the Norwegian shelf is used as a basis for Petoro’s prioritisations, and in 2017, the company therefore aimed particular focus on robustness in organisational and operational barriers in the prevention of major accidents. Petoro has emphasised learning from investigations of serious incidents across licenses, and carrying out major accident workshops as an important part of the licenses’ safety work. Petoro participates every year in HSE management inspections on selected fields and installations.
Petoro exercises its activities in a sustainable manner which minimises negative impact on nature and the environment. Petoro recognises that climate challenges make it necessary to restrict anthropogenic climate impact. The company wants to contribute to ensuring that the oil and gas industry on the Norwegian Shelf leads the way in addressing climate challenges. Climate is an integrated part of Petoro’s governance.
The company established and followed up a separate target for CO2 emissions from the production of oil and gas on selected fields in 2017. The target for 2017 has contributed to increased knowledge about the drivers of CO2 emissions and strengthened follow-up of CO2 emissions on the part of Petoro in the licenses.
Electrification will be able to provide considerable reductions in CO2 emissions, given a technically feasible solution within an acceptable cost framework. 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. Assessments are also under way as regards opportunities for electrification in the portfolio of fields in operation.
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. All employees sign the company’s ethical guidelines each year. These guidelines set requirements for the individual to exercise conduct that does not raise questions, based on the requirement to maintain high ethical standards. It follows from the guidelines that the individual is expected to contribute to an inclusive work environment. The individual has a shared responsibility to ensure a good environment in terms of health and safety. The guidelines also address matters such as the duty of confidentiality, potential conflicts of interest and questions linked to accepting 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 shall have a corporate structure that promotes good results within health, safety and the environment. Petoro shall actively encourage continuous HSE improvement and believes that all incidents can be prevented. 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 both genders as regards professional and personal development, pay and promotion. The company facilitates a flexible customising of working hours. When determining wages and in wage negotiations, Petoro is conscious of ensuring 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 employment of people with disabilities.
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 rules they encounter. The internal audit function is an independent whistleblowing channel with the right and duty to report to the board. The guidelines were adjusted in 2017 as a result of amendments to the Working Environment Act in that contracted employees are also entitled to report improprieties in the activities.
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 deciding issues related to the procurement and contract strategy.
