Corporate Social Responsibility

1. Corporate Social Responsibility NPA1362 Supply Chain ….from Fine Practice to Competitive Advantage Opportunity: Social Impact Plans and National / Local Content Milano 30 Maggio 2013 - P. Di Rubbo

2. TP proposes a key for reading CSR based on a wide-ranging strategy, improving its “Stakeholders involvement” process on the base of Sustainability principles • Method: starting from an interior marking of vision, mission and objectives, to go on reading the CSR throughSustainability Triple Bottom line promoting innovation and change • Development: moving tacticallystep-by-step toward a StrategicApproach to CSR. From the short-term plan to the long-term plan.

3. “Tactical” “Strategic” All Stakeholders Business Business Business All Stakeholders Plans Plans Plans Objectives Activity Objectives Activity Objectives Activity Traditional approach: • To safeguard Business • Tactical policy New approach: • All Stakeholders are integral parts of the System • Common Strategy and Team Transition: • To continue with tactical policy • To search for interrelations

4. AUTORITIES • Legislator • Public Bodies • Public Autorities • SOCIAL BACKGROUND • Community • Local people • Media • NGO • Future generation • CLIENTS • Direct • Final COMPANY • WORKERS • On payroll • Relatives • Consultants • Retired Person • PARTIES PROFIS • Suppliers • Sub Contractors • Joint Venture • Partners • Competitors • ENVIRONMENT • Global • Local

5. TECHNIP SUBCONTRACTORS SUBCONTRACTORS Example of Local Supply Chain Involvement: TPIT Communities CSR REPRESENTATIVES CAMP COMMITTEE REPRESENTATIVES • SUGGESTION PROCEDURE • SUGGESTION BOX • LOG BOOK

6. TPIT Projects Initiatives: CSR staff Representatives and SubcontractorsCamp Committee at Site: • The election of five CSR representatives( of TP staff people) has been promoted by TP at JER Site. The representatives hold routine meetings with TP Management to discuss and resolve sundry problems, with full collaboration and mutual understanding, facilitating a more serene corporate atmosphere and greater effectiveness in our work commitment. • The assignment of various ethnic groups representatives has been promoted by TP among the Subcontractors workers. They are acting as a unifying factor among the workers, channelling requests and needs to the Company Management through a “camp committee” meeting on a routine basis. •  These are important tools fora more serene Company atmosphere and greater effectiveness to work commitment.

7. CSR staff Representatives and Subcontractors Camp Committeeat Site: important tools for a more serene Company atmosphere and greater effectiveness to work commitment.

8. TPIT Projects: A Grievance Plan has been issued by TPIT (as part of Site Management Procedures): • -To comply with Client contractual requirements: to define the method, that has to be to implement by each contractor, the control the grievance status and the management of the observed issues. • -To comply with Client specific indication: to detail the element of the grievance mechanism on how to identify ,investigate and if necessary rectifying complains from site workers and staff •  This is a political big signal that show how there is a growing sensitivity to human rights and social expectation.

9. A Suggestion/Improvement Plan has been issued by TPIT (as part of Site Management Procedures): a political big signal that show how there is a growing sensitivity to human rights and social expectation.

10. Investors / Local Legislation & Regulation Client Contractor

11.  TPIT Projects Initiatives: Social Impact Plan • Developed in cooperation with local Authority and focused on local context • Based on the logic win – win. Both the subjects (TPIT/ Customer/Local Community and Contractor will be the winners at the same time) • to promote the public opinion knowledge on the investment • To manage the problems associated with area congestion • To promote a good climate between the local people / authority and the Project (Customer included)

12. to promote the public opinion knowledge on the investment spreading adequate information on the new industrial plant, first of all : safeguard of the environment and safeguard of Health for construction people and local community .. • To hold open meetings with local Authorities and Organization. • To promote a formal Committee (citizens, authorities, project, customer and contractor representatives)committed toconsider / analyze suggestions and specific complains • Information on the activities and on said initiatives will be maximized .The participation of all will be strongly encouraged.

13. To promote a good climate between the local people / authority and the Project (Customer/Subcontractor included) • To develop specific initiatives and campaign to address the preservation of region historical and cultural heritage. • For instance Seminar, local exhibitions sponsorshipswhose incomes will be devolved to the restoration and preservation projects of region historical heritage . • These initiatives and campaigns will be widely spread among the localcommunity .

14. To manage the problems associated with area congestion • To study a Plan to optimise the traffic on all the area ( job site included ). The impact will built-up areas will be minimised. Local Authorities & Subcontractor will be involved and the plan will be presented to the community ; • To launch training session on the Plan for all drivers involved in the project ( private car drives included ); • To launch safe driving practices; • collective transport will be encouraged;

17. Tools & Approaches: Local Content Is the Local Content only a constrain? • Employing materials and manufacture • Hiring local personnel • Levers: Local Social, Economic, Labour legislation (for licences, duties, local salaries cost etc…). Effectives Local Agencies (for local support, resources) …or it is also an opportunity! • Establish a “real Plan“ customized on the country considered as “a System” with all its aspects: Social, economical, political and cultural. • Lasting imprint while supporting the business choices exchanging common values with Clients, Partners and Population related to the mutual Organizations, history and culture

18. Tools & Approaches: Local Content • Transfer technology/know-how (to own local personnel and/or Client’s and contractors’ personnel, also according to contractual requirements); • Develop the skills of Local Personnel (Client, Technip, Suppliers and Partners); • Promote local / national Stakeholders involvement, with “ad hoc” initiatives (Communities, NGOs, Institutions, Municipalities, Clients, Manufacturers etc…) together, but also beyond the Project

19. Example of Supply Chain Involvement: Local People Communities СЪДЪРЖАНИЕ И ПРОДЪЛЖИТЕЛНОСТ • Продължителността на заваръчното училище е 2 месеца (от април / май) за общо 300 часа дейност и с редуване на теория (третия) и практика (2/3). • ПРОВЕЖДАНЕ • Теория (в техническият институт): • Организация на работата в областта на дейността на заводите и предтавяне на проекта на Лукойл; • Защита на здравето и безопасността • Тълкуване на техническо чертане • Основи на металургията • Видове заваряване и функции • Качество при заваряване: WPS, PQR и WPQ дефекти в материалите и заваръчни тестове , инспекции и контрол на заварки. • ПРАКТИКА (оборудвани лаборатории и / или цеховете Бургас): • Практически упражнения за ръчно заваряване (Електроди, ТIG, финно заваряване) • В края на курса обучаваните ще получат лиценз от сертифициран институт. CONTENTS AND DURATION • Welding Campus project will last 2 months (april/may) and willconsist of 300 hours of activities, with an alternationbetweentheory (1/3) and practice (2/3). • DEVELOPMENT • THEORY (in a technicalschool): • Work organization in plantconstruction and illustrationof the H-OIL project; • Health and safetyprotection • Understandingtechnicaldrawings • Basicsofmetallurgy • Weldingmethods and theircharacteristics • Quality in welding: WPS, PQR and WPQ; materials and weldingdefects; tests and examinations on welds. • PRACTICE (in wellequippedlabs and/or in Burgas workshop): • Practical training in manualwelding (Electrode, TIG, wirewelding) • At the end of the training course, a certificate willbeissuedby the authorizedInstitute

20. Example of Supply Chain Involvement: Local People Communities

21. Example of Supply Chain Involvement: Local People Communities

22. Thank you Pasquale Di Rubbo pdirubbo@technip.com www.technip.com