Vision: Oil Search will be a leader in delivering sustainability, driven by integrity, innovation and partnership with governments and the communities with whom we work
Throughout nearly 85 years of operation, Oil Search has maintained a strong commitment to sustainable and ethical business practices. A long term approach to sustainable development and an ability to contribute positively and creatively to the growth and development of communities where we operate, differentiates Oil Search from our industry peers. A new phase of growth and change with the company’s stake in the PNG LNG Project is providing the opportunity to build on this history with a more rigorous and strategic approach to sustainable business practices. The ultimate goal is to embed sustainability within all business activities.
By building a strong sustainability platform and objectives, focusing on our key strengths and continually improving sustainability performance, Oil Search aims to:
The overall aim is to create shared value for all stakeholders with sustainable, mutually beneficial outcomes.
Five key principles shape Oil Search’s approach to sustainability:
These principles enable Oil Search to operate successfully as a business while upholding the company’s corporate values. They embody various aspects of social responsibility and development, environment and governance, recognising that these systems are interdependent and that each of them supports Oil Search’s ability to deliver continuous business operations.
The five principles are embodied in Oil Search’s Sustainability Policy, which the Board approved in March 2012.
Oil Search Sustainability Policy
Oil Search became a signatory to the United Nations Global Compact (UNGC) in October 2011. The UNGC asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption.
It provides a framework for integrating sustainability into Oil Search’s core business strategy and provides guidance on what constitutes leading practice in the target areas.
Oil Search is a member of the Local Area Network of the UNGC (UNGC Network Australia - UNGCNA) and is an active participant in UNGCNA leadership groups on anti-corruption, human rights and environment.
We became a signatory based on the belief that Oil Search’s business values are strongly aligned with the Ten Principles of the UNGC and because of a desire to pursue continuous performance improvement. Oil Search’s Sustainability Policy confirms our commitment to these principles and this commitment is integrated into the Sustainability Strategy.
As Oil Search’s ultimate goal is to embed sustainability within ‘business as usual’, having a shared understanding and agreement around the most material social, economic, and environmental value drivers (“material sustainability issues”) is fundamental. A number of agreed material sustainability issues inform the Sustainability Strategy and reporting processes as well as employee engagement activities.
Material sustainability issues are issues that are both important to or strongly influenced by stakeholders and impact on the success of the Company’s performance.
To achieve a consensus about Oil Search’s most material sustainability issues and to identify emerging issues, in October 2012 we conducted our first annual materiality workshop, which brought together Sustainability Steering Group members and other managers from across the business. The participants used the following matrix to inform their approach when considering and addressing all the issues:
As a result, they determined that the highest sustainability priority issues for Oil Search at the moment are:
Other issues that are considered to be of high importance to stakeholders include community health and climate change.
Oil Search has an inherently sustainable approach to business and a commitment to continuously improving sustainability performance. As part of the Strategic Review in 2010, the company identified a need to approach sustainability in a more strategic and robust manner. This resulted in the appointment of a Corporate Sustainability team, the subsequent Sustainability Review and the development of Oil Search’s first formal company-wide Sustainability Strategy.
Since the start of 2011, Oil Search has been working to build a solid framework around sustainability practices with a view to leverage the company’s capabilities in this area. Taking a more strategic approach will enable sustainability related matters to be prioritised, implemented and communicated more effectively.
The Sustainability Strategy comprises two key areas of focus:
This is a multi-year process.
2011 Analysed Oil Search’s current state and the performance of peers in a Strategic Review, identifying core sustainability priorities and creating a road map for future performance in the form of a Sustainability Strategy. Concurrently, Oil Search’s public health programme was expanded to establish the Oil Search Health Foundation in PNG. The sustainability governance structure was formalised.
2012 Commenced implementation of the Strategy, addressing core business fundamentals e.g. leadership, governance, resources, systems, structures and processes. Key areas of focus included: development and Board approval of the Sustainability Policy; the first formal sustainability materiality assessment; and establishing a baseline for employee sustainability awareness and culture.
2013 We are continuing to focus on getting the fundamentals right and building internal strategic alignment. Key objectives for 2013 are outlined below.
2014 The focus will be on transitioning to a position where Oil Search can effectively leverage strong sustainability foundations for higher levels of sustainability performance and to be ready for business growth beyond first gas from the PNG LNG project.
7. Develop position statements on material sustainability issues
For further information on any of Oil Search’s sustainable development programmes contact sustainability@oilsearch.com.