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Sustainable Development Awareness Session By Dr. Yasmeen Al Lawati

Sustainable Development Awareness Session By Dr. Yasmeen Al Lawati. Objectives. What is Sustainable Development? Why does it matter? Why are we committed to contributing? What does it mean in practice & How are we embedding this commitment into our operations?.

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Sustainable Development Awareness Session By Dr. Yasmeen Al Lawati

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  1. Sustainable Development Awareness Session By Dr. Yasmeen Al Lawati

  2. Objectives • What is Sustainable Development? • Why does it matter? • Why are we committed to contributing? • What does it mean in practice & How are we embedding this commitment into our operations? PDO – SD Awareness

  3. Global issues - Population Growth • Fact • World population is expected to double by 2050 • Currently more than 80% of world’s population live in developing countries • World’s economic output has more than doubled in the past 25 years • Challenge • Enabling economic growth with minimal environmental and related impacts. • Implications for business • Adopt cleaner and affordable technologies • Develop renewable and recyclable goods PDO – SD Awareness

  4. Distribution of Opportunity 12 would produce half the income 2 would have a further college education 100 PEOPLE 44 would not have access to proper sanitation, electricity or modern cooking fuels 36 would lack basic political rights and civil liberties 20 would not have access to clean water 20 would suffer from malnutrition 23 over the age of 15 would be unable to read or write PDO – SD Awareness

  5. USA -10 acres to supply the average person’s basic needs. The Netherlands - 5 acres If the entire world lived on a footprint equivalent to the average person in the US it would take fiveplanet Earths to support the present world population. Ethiopia -1 acre Consumption Levels PDO – SD Awareness

  6. Sustainable Development Barometer ‘Heard of it but not really sure’ ‘Think I more or less get the concept, but not in words fit for the neighbours’ ‘Sustainable what?’ ‘Sure it is….’ Squirm in discomfort Blink in incomprehension? Stand ready for action Sit up and listen ‘Have lost their minds, their nerve or both’ ‘Spin to help their reputations’ ‘To live by their core corporate values’ ‘To use these values to create business value for their shareholders’ 1. Can you define ‘Sustainable Development’?(so your neighbours understand) 2. When you hear the term does it make you…. 3. Why have companies like Shell committed to contribute to SD? PDO – SD Awareness

  7. What is Sustainable Development? “ The development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs ” PDO – SD Awareness

  8. Components of SD-Conventional People • Respect & safeguard people • Work with stakeholders Planet Profit SD • Protect the environment • Manage resources efficiently • Generate Profitability • Benefit communities PDO – SD Awareness

  9. The Sustainable Development Lens PDO – SD Awareness

  10. PDO Mission Toexplore and develop oil & gas in a sustainable manner to the benefit of all stakeholders We • Incorporate SD in strategies, plans and decision-making processes • Contribute to SD in partnership with the Government’s authorities • Involve our employees and increase SD awareness among our staff and contractors • Report externally on our SD performance PDO – SD Awareness

  11. Move to an ‘engage me’ world “Help me understand” High Trend “Trust me” “Engage me” Trust “Tell me” “Show me” Low Transparency High Low As trust diminishes, the demand for partnering with stakeholders, for open reporting and external assurance increases PDO – SD Awareness

  12. Stakeholder Maps Government Employees Employees Government Company Customers Customers Society Company Share-holders Share-holders NGOs NGOs OLD NEW Society Maps are representational only- not comprehensive PDO – SD Awareness

  13. Stakeholder Engagement PDO – SD Awareness

  14. Public Expectation High Risk Business reality Low Time Managing Expectations Expectations PDO – SD Awareness

  15. Sustainable Development … Is not… • a new initiative • a cost or burden to our business • an “add-on “ • a trade off between economic and environmental/social issues • just a PR exercise • handing over decision-making responsibility to stakeholders Is… • enshrined in our Business Principles • a potential source of value and competitive edge • an integral part of our approach to business – a way of thinking • enables WIN-WIN solutions which generate value for both company and society • open dialogue with stakeholders • making better decisions by better understanding stakeholders’ needs PDO – SD Awareness

  16. SD in Action …. People • Health & Safety Programmes • Agricultural projects - Rahab Farms • Education and training • Omanisation (PDO currently at 80%) • Potable water supply to communities • Business and HSE training for LCCs PDO – SD Awareness

  17. SDin Action .…. Planet • ISO-14001 accreditation • 90% use of associated gas; Continuous Flaring out by 2008 • White Oryx Reserve (UNESCO World Heritage Site) • Phasing out of CFC / Halons ahead of Montreal Protocol • “Greening the Desert” - Reed Beds • 1st & 2nd generation Solar Car developed at SQU PDO – SD Awareness

  18. SD in Action …. Profit • E-business: savings • On-line bidding • Infrastructure improvement projects: roads, electricity, etc. • Local Community Contractors program (LCC) • EOR projects • Operating Model Review 2004 & beyond. PDO – SD Awareness

  19. Sustainable Development is... • Balancelong term & short term • IntegrationProfits, Planet & People • Engagementwith stakeholders • & • BuildingPartnership PDO – SD Awareness

  20. Integrated Impact Assessment (IIA) Guidelines – GU 447 Assessing environmental, social and health potential impacts IIA Process linked to VAR and Project Cycle Currently, it is standardised for all projects Examples are Gas projects, EOR projects PDO – SD Awareness

  21. Why IIA Guideline? • Measures to mitigate projects impacts • License to operate • Means to reduce the overall business cost • Complimenting the legislative role of government • Means to contribute to SD of Oil & Gas in Oman • Meets international standards PDO – SD Awareness

  22. Initial Screening Checklist (IIIC) VAR 1 Initial Impact Evaluation Report VAR 2 Preliminary Impact Assessment Report VAR 3 Final IIA Report/ SD/SP Program Report VAR 4 Impact Management & Monitoring Plan IMMP/SD/SP VAR 5 IIA Process Flowchart/Deliverables PDO – SD Awareness

  23. Working Example SD/Social Performance Project PDO – SD Awareness

  24. 48” Gas Loop Line Construction of a 48” pipeline parallel to the existing pipeline starting Saih Nihayda to Al-Kamil; total distance of 264 km The pipeline crosses five Wilayats; Adam, Mudhaibi, Al-Qabil, Bidiyah and Al-Kamil. (Excluding Adam, all Wilayats are outside PDO concession area) 12 communities located within a 1-2 km from the RoW; approximately 500 people; livestock camps in Wadis throughout the project area No basic infrastructure and/or services (education, health, community resources) in the communities PDO – SD Awareness

  25. Opportunity Realisation Framework Operate Identify & Assess Select Define Execute Opportunities (rank) (Baseline data collection) (Project Complete) (Develop business plans) (Implementation) The identification, selection and implementation process for strategic social investment (SSI) projects follows PDO’s opportunity realisation framework PDO – SD Awareness

  26. Select Phase: 1st Stage Ranking The ranking exercise follows PDO Guideline “Social Performance Project Evaluation Guide” (GU – 468) • Project Ranking Criteria: • Project serves wide population • Project self-sustaining • Project does not create long-term dependency; clear PDO exit strategy PDO – SD Awareness

  27. Select Phase: Ranking Exercise Results 27 potential social project proposals ranked • 4 Quick wins; • 7 proceeded to 2nd stage ranking; (3 potential projects selected); • 3 for later implementation; • 11 rejected; and • 2 not ranked Focus Areas: Health, Quality of Life, Sustainable Livelihoods, Local Capacity Building PDO – SD Awareness

  28. Basic Infrastructure Support–al Qabil Objective:Support basic infrastructure requirements to improve living standards of households in project-effected communities Description:One-time monetary donation to the Wali to (partially) fund an infrastructure project for identified households Beneficiaries:Households in Al Khorais, Al Sarhat, Hailat Raei Shajarah – Al Qabil Community Benefits: Improved quality of life Business Benefits: Social licence to operate, enhanced reputation, improved social performance, work in partnership with provincial governments and alignment with government development plans Exit Date: Q 2 2005 Cost:$ 260 000 PDO – SD Awareness

  29. SD Structure in PDO Work together on common projects PDO + Gov. Network Aim to enhance trust MDC Steering Committee Develop strategy & define what is required Communicate strategy And requirements Assess Assets / Project Teams Social Project selection Select, define & rank the SP Projects Communicate required Actions / activities Benchmarking Feedback Results Assets/Project Teams Execute actions PDO + SD Peers Network (Shell EP, OLNG, SQU, OPAL) Learn on best practices PDO – SD Awareness

  30. SD Self Assessment Workshop SAQ SAQ 4.0 3.9 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1 3.0 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2.0 1.9 4.0 3.9 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1 3.0 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2.0 1.9 Full SD integration into all aspects of the PDO business (Infuse / SD in the Heart) Full SD integration into all aspects of the PDO business (Infuse / SD in the Heart) Leading Indicator: SAQ Leading Indicator: SAQ SD is considered in some PDO business (Weave / Head to Heart) SD is considered in some PDO business (Weave / Head to Heart) 2006 2004 SD perceived as additional and sometimes requiring duplicating efforts (Bolt On / SD in the Head) SD perceived as additional and sometimes requiring duplicating efforts (Bolt On / SD in the Head) 2003 2003 SD General Awareness among Staff (SD on Paper) SD General Awareness among Staff (SD on Paper) 2001/ 2002 2001/ 2002 PDO – SD Awareness

  31. SD team 2005 Plan • Social GIS for the concession area • SD Awareness & Knowledge Campaign across PDO - Ongoing • A common SD pot for all SP projects • Develop Framework to extend IIAs from Projects to clusters • SD workshop involving key project staff PDO – SD Awareness

  32. Needmoreinfo… Visit PDO SD Web Site OR Contact MSE6 Team PDO – SD Awareness

  33. ……..& the journey continues PDO – SD Awareness

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