BG Group Corporate Responsibility Stuart Fysh Executive Vice President & Managing Director, Mediterranean Basin and Africa London 22 May 2006
Corporate responsibility Legal notice The following presentation does not constitute or contain, and shall not be taken to constitute or contain, an invitation or inducement to any person to underwrite, subscribe for, otherwise acquire,…
Corporate responsibility Introduction Brief introduction to BG Group How we talk about Corporate Responsibility in the company 2005 performance Challenges 3
Corporate responsibility Integrated Gas Major Integrated Gas Major Connect gas to Secure competitively high value markets priced resources Build and access markets Equity reserves Serve customers Contracted resources Skills…
Corporate responsibility Strategy: gas market focus UK / Europe Middle Focus East / North America Caspian Focus Atlantic India supply focus Long term growth Bolivia/ Long term Brazil growth Developed Market Developing…
Corporate responsibility Countries of current operation Norway Canada UK Kazakhstan Italy Spain Israel / PA USA Oman India Tunisia Thailand Trinidad & Libya Philippines Tobago Mauritania Malaysia Egypt Nigeria Bolivia…
Corporate responsibility Adding value to economies 2005 2004 Total operating profit 2 344 m 1 522 m Taxes 941 m 582 m Capital investment excl. 1 516 m 1 373 m acquisitions Employees 5 363 5 175 FTE-employees, Joint Ventures 40…
Corporate responsibility CR our Business Principles in action Operating responsibly and adding shareholder value 8
Corporate responsibility Responsible conduct Business Principles Revision in 2005 Anti-corruption Good Corporation review of BG Egypt Country entry process Nigeria Libya Governance Conducting business responsibly 9
Corporate responsibility Responsible conduct Adding value to economies Idku residents make up 34% of the Egyptian LNG workforce Local sub-contractors employed during the construction of Egyptian LNG Revenue transparency Nigerian…
Corporate responsibility Responsible to our people: Safety LTIF HSE Management System & Directives 1997 8 Industry Climate Survey Tools 7 14 Point Profile Tool 6 5 Chairmans Awards 4 LTIF & 14 Point KPIs in performance…
Corporate responsibility Responsible to our people: working culture Diversity amongst senior managers: 27% non UK/US nationals 11% women 40% of country management teams are locals Development: 168 people participated in…
Corporate responsibility Responsible to society Community relations Baseline survey Hasdrubal brings focus on community relations management in Tunisia Mauritania: Chinguetti SIA published February 2006 Nigeria: OKLNG brings…
Corporate responsibility Responsible to society Human rights Support the UN Global Compact Approach to implementing the Voluntary Principles in Nigeria UN Special Advisor consultation Social investment Devolved to country…
Corporate responsibility Environmentally responsible Gas focused (73% in 2005) Lower emissions than other fossil fuels Fuel substitution Cogeneration Investing in LNG assets Use of associated gas which might have been flared Net…
Corporate responsibility Environmentally responsible: Performance 60% of assets certified to revised ISO 14001 standard BG Group operated assets 40.00 Greenhouse gas emissions/production emitted 6.5m tonnes CO2e in 35.00 2005…
Corporate responsibility Conclusion Operating and investing responsibly to deliver shareholder value CR core to business throughout company Evidence of progress but challenges remain 3rd out of 31 in Goldman Sachs index…
Corporate responsibility 2006 volumes Previous New E&P (000 boed) 580 600 up 3.4% LNG (mtpa) 6.9 7.1 up 2.9% T&D (bcma) 11.7 11.7 restated* Power capacity (GW) 2.8 2.8 unchanged At 2006 reference conditions (see appendix) *…
Corporate responsibility Road safety in Egypt In 2003, the Idku Gas Hub companies road safety campaign reduced the road traffic accident rate by 73% over 100 000km driven by company vehicles In 2004, BG Egypt and Egyptian LNG…
Corporate responsibility Providing potable water in Egypt Egyptian LNG installed a water pipeline larger than its operational requirements to release trapped water capacity for the Idku community 405 200 people now have access to…
Corporate responsibility 14 point assurance tool: overview Asset General Manager Asset Management (e.g. Drilling, Exploration, Production etc.) Required fit for Management System Gap purpose HSSE Analysis controls…