IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY IN STATOIL

1. IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY IN STATOIL Næringslivets samfunnsansvar – fra ord til handling? ECON conference, October 23, 2001 Natalja Altermark, Statoil

2. Corporate Social Responsibility in Statoil • We will conduct our business in an ethically acceptable, sustainable and socially responsible manner. • We will contribute to value creation, expertise development and transfer of experience in the countries in which we operate. • We will observe and promote fundamental standards for human rights, labour rights and the environment. We in Statoil stretch ourselves a little further...

3. Corporate Social Responsibility in practice - Think globally, act locally Employees Partners Society • Health and safety • Industrial relations • Spin-offs • Impact assessments • Stakeholder dialogue and engagement • Social investments • Supply chain management • “Guilt by association” • CREATING VALUE AND CONVEYING VALUES

4. ”Statoil’s operations will be managed and their results measured and reported along the three dimensions of finance, the environment and society. Management and measurement of results must also embrace indicators relating to environmental and social factors.” - Statoil’s annual report 1999 AMBITION – Integration of social responsibility in Statoil’s internal management and reporting system

5. ESTABLISHED ESTABLISHED • DEVELOPING • Ethics/social responsibility in supply chain • Human rights; corporate social responsibility • Engaging external stakeholders • PARTLY ESTABLISHED • Employee satisfaction • Working conditions STATUS Economy/finance TRIPLE BOTTOM LINE HSE Organisation Society

6. Developing third bottom line indicators – What to measure and how? • Quantitative versus qualitative? • Uniform versus differentiated? • Input versus output? • Manage versus report? • The limits of CSR?

7. Quantitative versus qualitative? THIRD BOTTOM LINE INDICATORS QUANTITATIVE • % • # • $ • scaled QUALITATIVE BINARY: yes/no

8. Uniform versus differentiated? • Integrated company: different challenges, different contributions to the third bottom line * - E&P Norway, International E&P, Manufacturing and Marketing, European Gas, Technology

9. Input versus output? INPUT (LEAD) OUTPUT (LAG) Human rights awareness raising among own HR awareness among employees measured employees through training in Work Environment and Organisation Survey Local guidelines for use of security No. of breaches by security personnel personnel in place Business ethics guidelines in place and No. of corruption/insider trading cases translated No. of employees having received training in No. of bribery/fraud/theft cases business ethics 'No child labour' contractual obligation No. of child labour cases in supply chain Resources spent on competence and career Employee satisfaction measured in Work development Environment and Organisation Survey Non-discrimination and equal pay No. of women in management positions guidelines Training of young local professionals Share of local employees Grievance procedures in place No. of mgm.-employee conflicts

10. Manage versus report? Management evaluation score MANAGE REPORT • Share of local employees Taxes

11. The limits of CSR?

12. Beyond indicators KPIs Assurance letters OPERATIONALISATION AND IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY Ethical audits Benchmarking Certification