1 Lundin Petroleum Presentation Does CSR Make a Difference C. Batruch, VP Corporate Responsibility WF10909 The Graduate Institute, Geneva, 04.02.10
2 Introduction We have always known that heedless self-interest was bad morals. We know now it is bad economics. Franklin Delano Roosevelt (1937) CSR has been characterized in a variety of ways Self-regulatory mechanism…
3 Role of O&G companies The role of oil companies is to meet world energy demand Approximately 85% of energy supply comes from hydrocarbons (35% oil, 30% coal, 20% natural gas) For mature economies, oil resources can…
4 Role of CSR in O&G companies The role of CSR is to assist the company fulfill its role in a responsible and effective way, by assessing and managing all its risks, including environmental, social and governance (ESG)…
5 CSR in O&G Companies ESG risk, EIRIS has established the resource sector as the best performer The importance of CSR in the oil and gas sector is in part due the result of costly crises: Exxon Valdez Niger Delta Yadana…
6 CSR internal framework What are CSR tools used by O&G companies Documents: Code / Business Principles Policies Management System Procedures Processes: Risk analyses Stakeholder consultations Community projects…
7 CSR external framework Documents: Host country laws Home country laws Industry practice International initiatives 1 Processes: Consultations Shareholders Stakeholders Governments Communities NGOs Academics Reporting…
8 Effects of CSR Alignment with societal values (social license to operate) McKinsey survey: 95% CEOs said society now has higher expectations of business taking on public responsibility than it did 5 years ago. Risk…
10 Lundin Petroleums Experience Coparex (2002): Assessing social and environmental risks Nigeria (2003): Demonstrating Operating capability Norway (2004): Demonstrating HSE culture & management New Ventures (2005):…
11 Lessons Learnt What has been the effect of CSR on Lundin Petroleums strategy CSR introduced a process whereby risks are pro-actively assessed and mitigated throughout the business cycle, i.e. from pre-acquisition to sale…
12 Conclusion CSRs primary purpose is to contribute to a companys success CSRs primary effect is that it enhances companys understanding and acceptance by stakeholders and support from shareholders An ancillary effect is…