RC 6474
Sustainability Report Looking to the future 2013 ‹
Oando PLC
2, Ajose Adeogun Street Victoria Island Lagos, Nigeria
Tel: +234 1 270 2400 E-mail: [email protected] Website: www.oandoplc.com
www.oandoplc.com Designed and produced by Westbrand Design Ltd www.westbrand.net I [email protected] I +234 (0)1 453 4616 Oando PLC is the largest integrated energy solutions group in sub-Saharan Africa with a primary and secondary listing on the Nigerian Stock Exchange and JSE Limited respectively.
What’s Inside About this report Our approach 06 Our sustainability strategy 10 Vision statement Reporting framework 13 Chairman’s statement To be the premier 14 Group Chief Executive’s statement 16 Awards & Recognitions company driven 20 by excellence Stakeholder engagement Our engagement approach 24 Key stakeholders 26 Principal stakeholder concerns 34 Governance 36 Mission statement Risk management 38 To be the leading
Creating value through inspirational leadership Creating value through inspirational leadership integrated energy 42 Protecting our environment 48 Investing in our people solutions provider 56 Safety is a priority 60 Promoting ethical conduct 64
Creating value through strategic partnerships Working together 70 Developing the industry 74 Building a strong foundation 76
Targets and data Targets and Data 82 GRI Content Index 89 Feedback 90
- Oando Sustainability Report 2013 Looking to the Future
03 Stakeholder engagement Creating value through Creating value through Targets and data Feedback About this report inspirational leadership strategic partnerships
Our approach 06 Our sustainability strategy About this report 10 Reporting framework 13 Chairman’s statement 14 Group Chief Executive’s statement 16 Awards & Recognitions 20
- Oando Sustainability Report 2013 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future
04 05 About this report Stakeholder engagement Creating value through Creating value through Targets and data Feedback About this report inspirational leadership strategic partnerships
Our approach We are mindful of the impact of our activities on our various stakeholders and on the environment. We work at identifying, understanding and proactively managing these impacts in a responsible manner.
As part of our sustainability process, Introduction Identifying material issues senior leadership within the Company This is our second sustainability report. Each year our operating entities hold are interviewed to determine their It explains the Company’s economic, numerous stakeholder engagement The Triple-Bottom Line perspective on sustainability as a social and environmental strategies activities which help us identify issues concept and how they have and highlights our performance in the of concern. Issues identified within the Economic incorporated sustainability principles reporting year January 1 to December current period or during previous years into their respective businesses and 31, 2013. It reports the activities of are reviewed by management who operations. This ensures that Oando PLC and the divisions over monitor our progress on corrective Social sustainability is considered at every which the Company has management actions aimed at addressing such level of management and also helps control: issues. We also ensure that feedback the Company identify key training Environmental from stakeholders are incorporated into opportunities for employees. Each of ‹ Exploration and Production our overarching sustainability strategy. these activities have helped us define ‹ Energy Services our priority material issues and the Oando ‹ Gas and Power appropriate content for this report. ‹ Marketing ‹ Supply and Trading ‹ Terminals and Logistics
This report concentrates primarily on Three Spheres in Sustainability our operations in Nigeria, although we develop even more robust approaches highlight aspects of our strategic plans Our material issues to better understand stakeholder During the year, senior management that affect our operations at locations concerns and material sustainability Our Material Issues in 2013 collated and analysed the results of outside Nigeria, where applicable. issues. There will be a review of our ‹ Creating value regular engagement with key stakeholder engagement processes ‹ Building partnerships stakeholders. Our material issues for Our report is aimed at our stakeholders and systems in 2014 looking at various 2013 were identified from these and it focuses on material issues, ‹ Access to technology options that enable stakeholders consultative interactions and developments and concerns that have contribute directly towards our Environmental ‹ Investing in our people collaborative activities as listed below. emerged during the year under review. sustainable development and provide We consider an issue material where it ‹ Workforce wellness an opportunity to get an external These issues have been organised has the potential to negatively impact perspective on our Sustainability ‹ Building our communities under the triple bottom line criteria for our business leadership position, strategy. commercial viability and social ‹ Promoting ethical conduct assessing organisational performance: Sustainability economic, social, environment which relevance to the communities and We aim to develop a Sustainability ‹ Protecting the environment have been addressed within this people we work with. At Oando, we are Panel comprising senior management, ‹ Water and air report. mindful of the impact of our activities independent experts and advisors on our various stakeholders and on the ‹ Waste management who will review the results from This process offers us the opportunity environment. We work at identifying, stakeholder engagement activities, Social Economic to improve on the Company’s services understanding and proactively monitor the Company’s performance in and reputation as we continuously managing this impact in a responsible relation to material issues identified, develop the appropriate strategies to manner. In making business decisions advise on risks and opportunities and navigate the social and political that push forward our corporate make recommendations to the Oando challenges present in our environment. strategy and objectives, we consider PLC Board for amendments to the We have further expatiated each of the three dimensions of sustainability – overal sustainability strategy of the these material issues within this report people, planet and profit. Group. Looking to the future, we intend to
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06 07 About this report Stakeholder engagement Creating value through Creating value through Targets and data Feedback About this report inspirational leadership strategic partnerships
Our approach Our people are an important company asset and stakeholder group. We continually review how best to ensure their wellness, reward them for loyalty and service, and compensate them for work done well.
Economic Social Environmental
Investing in our people Protecting the environment ICt isr eesasteinntiagl t hvaat wlue ecreate value for our Our people are an important company asset Many of our activities even when managed in various stakeholders and in particular for and stakeholder group. We aim to continually a responsible manner can have an adverse investors, who are entitled to a good return on ensure their wellness, reward them for their impact on the environment. We continually their investment. We also balance the loyalty and service, and compensate them for seek new ways by which we can continue to competing priorities of other key stakeholders work done well. We will not ignore the need to service the energy needs of modern society to ensure that all interests are catered for. focus on appropriate training and while protecting the environment that these professional development. Our succession resources are derived from. (pages 40 - 47) (pages 48 - 55) planning strategy should enhance sustainable organizational development and Building partnerships business continuity. Water and air quality We aim to further develop strong relationships (pages 56 - 59) Water is a natural resource and an important and partnerships with communities, one for our business. As a regulated business governments, our business peers and other we are subject to standards in relation to stakeholders so that we can understand our Workforce wellness water conservation and air pollution limits. respective needs better and identify, develop Healthy employees tend to be happier and Therefore we need to maintain efficient and deploy mutually beneficial solutions. We more productive employees. Therefore a safe systems that reduce any negative impact of also have a leadership role to play in and healthy workplace is a good investment our operations on these precious resources. for the long term growth of the Company. promoting positive developments within the (pages 52 - 53) industry. Workforce wellness programmes are an (pages 70 - 75) essential aspect of our workforce development strategy. Waste management (pages 62 - 63) Our operations generate a significant amount TAechcnoelosgsy ctaon itmepcrohven poerlfoorgmyance and of waste. We need to effectively manage this efficiency, minimise the environmental impact to prevent harm to the environment, and to of our activities, and provide new business Building our communities the health of people and animals. We opportunities. Therefore we continuously seek Our host communities are key stakeholders currently achieve this through the operation of to research and invest in technology that is and partners in our business. Community the 4Rs waste management technique – easily available and affordable which will acceptance has a major impact on the reduce, reuse, recycle and recover. success of our operations therefore we look create tangible benefits to all our (page 54) stakeholders. for mutually beneficial relationships for site locations and ensure we make a lasting (page 74) investment in the education, training and development of the community and its infrastructure. (pages 70 - 71)
SPursotaimnabolet isnucgc eesst hreiqcuairels c hoighn edthuiccalt standards, zero tolerance for corruption and a commitment to acting with integrity, fairness and transparency. We shall continue to develop and implement appropriate systems and business practices for employees and business partners with an annual review of ethical conduct-related issues. (pages 64 - 67)
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Our sustainability strategy We aim to evolve and transform ourselves into an organisation that continually creates pioneering business opportunities that deliver sustainable economic and social developments and brings increased investment into Africa.
‹ ‹ Oando Supply At Oando, sustainability is embedded Oando PLC at a glance Exploration & Production: Supply & Trading: Our strategy throughout our corporate strategy and Oando is the leading integrated Oando’s exploration and and Trading is Africa’s largest Our sustainability strategy is to we have developed appropriate goals energy solutions provider in sub- production division has a portfolio independent and privately owned become the trusted investment and initiatives to push forward our Saharan Africa with a primary listing on of assets at different stages of oil trading company involved in the vehicle, employer and partner of strategic objectives which are regularly the Nigerian Stock Exchange, a exploration, development and large scale export and import of choice within the energy industry. We reviewed. In 2013, there was a major secondary listing on the JSE Limited, production. petroleum products and crude oil want our performance, our people and review of the strategic direction of the South Africa and a subsidiary listing of throughout Africa, Europe, Asia our partnerships to be our most Group and of each operating entity its exploration and production ‹ Oando and the Americas. outstanding assets. To achieve this we Energy Services: which culminated in a two-day strategy business – Oando Energy Resources – provides oilfield and drilling rig aim to evolve and transform ourselves session of the Oando PLC Board of on the Toronto Stock Exchange. Our services to major upstream ‹ Oando into an organisation that continually Terminals & Logistics: Directors in December 2013. Our vision is to be the premier company companies operating in Nigeria Terminals & Logistics, a subsidiary creates pioneering business sustainability objectives have been driven by excellence and our mission and operates the largest swamp of the Oando Group manages the opportunities that delivers sustainable updated to align them with our refined is to be the leading integrated energy rig fleet in the Niger Delta. development of petroleum economic and social developments corporate strategy. solutions provider. products reception terminals. and brings increased investment into ‹ Oando is a Africa. We want to continue to be the Gas & Power: We recognise that setting appropriate Our operations are currently focused developer of Nigeria’s natural gas foremost indigenous energy company objectives, having clear key on sub-Saharan Africa and include distribution network and captive and build a strong and sustainable performance indicators and being upstream, midstream and downstream power solutions. We pioneered the brand that will grow over several adaptable to changing socio- activities from exploration and construction of a private sector generations. economic conditions are key to production through gas and power pipeline network facilitating the addressing the complex global energy distribution to marketing and supply of distribution of natural gas to challenges faced today by our world. gas, crude and petroleum products. industrial and commercial With economic and technological The Oando business is organised into consumers. The Three Dimensions of Sustainability advances currently occurring at such six divisions – Exploration and a fast pace, yesterday’s solutions may Production, Energy Services, Gas and ‹ Oando is Nigeria’s Marketing: no longer be efficient or viable options Power and Marketing Supply & leading retailer of petroleum today and could well be catastrophic Trading and Terminals & Logistics. products and has a vast distribution network of over 470 for our tomorrow if they remain our retail service stations. We are also standard of excellence. We press involved in the large scale export forward to not only embrace but to and import of petroleum products define the challenges and and crude oil throughout Africa, opportunities of the future as we Europe, Asia and the Americas endeavour to implement our clear and we manage the development strategies and achieve our aspirations. Oando Group Structure of petroleum products and reception terminals. Oando PLC
Upstream Midstream Downstream ‹ ‹ People Planet Profit
Energy Energy Gas Terminals and Supply Resources Services & Power Logistics and Trading Marketing
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Our sustainability strategy Reporting framework
Our report falls under the GRI application Our Short/Medium-term goals ‹ Creating value through inspirational leadership level C, which requires us to self-declare ‹ Creating value through strategic partnerships on at least ten GRI performance indicators across the economic, social Short/medium-term goals Creating value through Our Long Term Goals and environment categories. (2013-2018) strategic partnerships (2018-2028 and beyond) We have established a five-year ‹ We aim to find mutually beneficial We have a long term perspective of our programme which will run from 2013- relationships with business future as competitive, innovative and 2018 to implement our strategic partners, governments, value-driven commercial enterprise. We structured our report around our GRI 3.1 Guidelines strategic objectives and the material objectives of creating value through communities and other will continue to develop our strong The Global Reporting Initiative (“GRI”) issues that have emerged from our inspirational leadership and strategic stakeholders that will lead to leadership platfor as the leading is a non-profit organisation that stakeholder engagement activities as partnerships. These goals have been superior returns and improve the indigenous energy solutions provider. produces one of the most widely used this approach allows us to focus on agreed by senior management and company’s goodwill and reputation. standards for sustainability reporting ‹ We aim to be at the forefront of a what we wish to achieve as an communicated to employees in order ‹ We aim to create partnerships with around the world and seeks to make fundamental change in the energy organisation. the 2013 annual report is to develop and embed the required external organisations and other such reporting as routine as financial sector in Nigeria and in other sub- available on the company's website - organisational objectives and interested parties for the promotion reporting. We have prepared this Saharan locations. Our participation www.oandoplc.com development plans that advance the of education and youth report in accordance with the GRI in the energy debate is on-going as (http://www.oandoplc.com/wp- realisation of our overall corporate employment in the areas of G3.1 Guidelines which include we continue to engage with content/uploads/oando-plc-2013- sustainability mission and vision. science, technology, engineering guidance on defining report content and mathematics (“STEM”) governments and other leaders to annual-report.pdf) serve the future of the energy and technical protocol for applying the education with the goal of report content principles. Creating value through generating better skills within the industry for future generations. inspirational leadership industry and improving the ‹ Feedback from stakeholders on GRI 4 Guidelines We continue to invest in our Our report falls under the GRI In May 2013, the GRI published the ‹ livelihood of people within our concerns and opportunities will be people, ensuring that we attract, application level C, which requires us latest version of its guidelines, G4. communities. central to our progress in this area, recruit and retain top talent, that we to self-declare on at least ten GRI However the GRI will continue to ‹ We aim to partner with and we are best poised through our develop our employees, business performance indicators across the recognise reports based on G3.1 intergovernmental bodies that understanding of the local and partners and people who work on economic, social and environment Guidelines for two reporting cycles promote ethical conduct, human regional context and through our our behalf to deliver on our categories. We also align our and any reports published after rights, business integrity, economic engagement strategy to realize this. promises commitments and reporting with the December 31, 2015 should be cooperation, fair competition and ‹ Our disciplined approach to capital We aim to ensure that the right ten principles of the United Nations prepared in accordance with the G4 ‹ environmental conservation structure and valuation in the people are placed in the right roles exploitation of new opportunities Global Compact. Guidelines. This gives companies like and that an effective succession and the operation of our existing Oando, who already report on plan is operational within the business will provide a solid This report should be read in sustainability, sufficient time to business, especially in relation to foundation for sustainable growth. conjunction with the Oando PLC 2013 transition to the new provisions. We are key roles. Annual Report and Accounts (“2013 currently reviewing the changes to ‹ We aim to ensure that we operate Annual Report”). We have provided an standard disclosures under G3.1 with safely, responsibly and in an ethical index on page 90 showing how and the intention of applying the new manner, treating people with Our participation in the energy where we addressed GRI disclosures guidelines from our 2014 sustainability dignity and respect and promoting within this report and within the 2013 report. inclusiveness and individuality. debate is on-going as we continue Annual Report. However we have to engage with governments and other leaders on the future of the energy industry.
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Chairman’s Statement
I am pleased to present Oando’s 2013 Sustainability Report. This is our second Some highlights of the year Areas of development Our business continued to perform well We recognise that there is still much to be year of reporting and as we continue to against targets achieving operational done to achieve our long term goals and grow as a business, embedding efficiency of over 90% at our three reach our full potential. In 2013, there were sustainability into our business practices operating rigs during the reporting ongoing security challenges at some of remains a priority, from the period. We completed several oil mining our operations, crude oil theft, sabotage conceptualisation of our products and lease (OML) capital projects including and disruptions to our gas supply to services, to their delivery and to the the work-over of the Abo 9 well that clients as a result of pipeline vandalism. development of the communities in started in 2012. Our downstream There are also political and regulatory which we operate. This year, Oando was operations delivered positive financial constraints that affect our operations and honoured with the 2013 Africa Oil and results with a turnover of over N221 our ability to conduct our business in the Gas Corporate Social Responsibility billion. Our aviation turbine kerosene most efficient manner. We have increased Initiative Award in recognition of our (ATK) sales grew by over 40% largely security at many of our operations and in sustainability endeavours in improving assisted by our business expansion into some cases developed alternative routes the learning environment of public Ghana. In our gas distribution business, for the evacuation of our crude oil. We schools within the Federal Republic of we successfully commissioned our have also put in place mitigants to Nigeria. second independent power plant (IPP) manage our social and political exposure. that commenced operations in Our priority is to protect the safety of our 2013 was a year of re-evaluation for the September 2013 and provides electric assets including our employees and thus Group. Changing global and national power to the Lagos State Government secure our financial sustainability. trends necessitated a major review of Secretariat and other government the Company’s strategic plans, an facilities in the Alausa area of Lagos We continue to develop mutually analysis of internal and external HRM Oba M. A. Gbadebo CFR State. beneficial relationships that strengthen our changes and an evaluation of the Chairman market position, give us access to performance of each operating entity. In relation to our people, we have innovation and technology, and promote Our sustainability strategy is to become maintained a good safety record with business growth. We want to share risks the trusted investment vehicle, employer zero lost time injury recorded at each rig and costs, create value, meet the and strategic partner of choice. We for 2013. We invested immensely in expectations of our stakeholders and stay have set ourselves the objectives of employee training programmes and ran in business. Our strategic objectives will creating value through inspirational various wellness initiatives, such as, free fortify Oando’s position as a key energy leadership and strategic partnerships to health check screenings during our market participant and long term ensure that we realise this strategy. The EHSSSQ week in July. In addition to contributor to the development of the Board will continue to monitor our welcoming applications for publicised industry. We hope to show you in this performance against targets over the vacancies, we run targeted recruitment report that we are making progress next few years to ensure that we remain programmes like our two year graduate against our targets and thank you all for adaptable and innovative. training programme and our active continuing on this journey with us. recruitment of Nigerians in the diaspora to bring new skills and innovation into the industry and back to Nigeria. We “Our sustainability strategy have succeeded in maintaining a voluntary attrition rate of 8% across the Group and we continue to work towards is to become the trusted ensuring that key knowledge is retained HRM Oba M. A. Gbadebo CFR within the business through effective Chairman investment vehicle, succession planning and leadership employer and strategic development programmes. partner of choice.”
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Group Chief Executive’s Statement Our approach to sustainability includes adherence to the principles and policies of national and international initiatives that promote ethical conduct and integrity.
As the largest integrated energy solutions group in sub-Saharan Africa Our long term perspective The Company has grown significantly it is our responsibility to develop a over the last ten years since the 2003 business model that protects our merger of Unipetrol Nigeria Plc and future and sustains our economic, Agip Nigeria Plc to form Oando. We social and environmental viability. We considered it appropriate to conduct a need to continue to deliver returns to major review of our businesses and our investors, provide employment strategic direction in 2013. Our long opportunities and partner with term perspective is transformational. stakeholders and others that share Our ambitions involve the autonomous our vision in mutually beneficial and self-sustaining ability of our six relationships. These factors are primary divisions. Discussions with critical to our business. At Oando, respective Chief Executive Officers sustainability is not incidental to the (CEOs) for each operating entity and way we do business, it is senior management within the Group fundamental to it. were held to agree on the future direction of the Company. Our approach to sustainability includes adherence to the principles We have already taken steps to divest and policies of national and assets that do not support this strategy international initiatives that promote and acquire assets that will help fund ethical conduct and integrity. This is our growth and align with our rooted in our vision and mission Mr J.A. Tinubu corporate objectives. There are a statements. I take this opportunity to Group Chief Executive number of challenges and risks to our reiterate our commitment to the ten strategies including reduced earnings, principles of the United Nations political impact and technological Global Compact (UNGC) and the limitations. We are subject to volatile oil values of the Convention on Business prices, exchange rate fluctuations, Integrity (CBi). high operating costs and underdeveloped infrastructure.
“At Oando, sustainability is not incidental to the way we do business, it is fundamental to it.”
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Group Chief Executive’s Statement We remain committed to our social responsibilities with our continued support of the Oando Foundation with funding and donations in kind from our corporate businesses.
Our downstream operations consist of Our strategies our terminals and logistics business The CEOs of each operating entity and the retailing of our refined have agreed their respective long term petroleum products. Oando Marketing strategies following a major review in PLC (OMP) manages this aspect of our 2013. Our upstream operations, Oando business with a distribution network of Energy Resources (OER) who operate over 470 retail service stations. The our exploration and production (E&P) OMP strategy is to become a retail business, and Oando Energy Services company that delivers a good return on (OES) who operate the largest swamp investment in the smartest possible drilling rig fleet in the Niger Delta, have way, using sustainable means and focused their strategies on their technology and relying on the best people, their partnerships and new people. technology. SMART objectives have been OER's business strategy is to deliver developed by senior management to organic and inorganic growth in push forward these strategies. We have production and reserves using safe, already begun to make progress and ethical and sustainable methods, we have identified areas of investment utilising OER valued assets including that will allow us to adapt, improve and employees and partnerships, while ultimately achieve our ambition to minimising the environmental impact of become the trusted investment, operations. employer and partner of choice. We remain committed to our social OES is positioned to be the preferred responsibilities with our continued upstream oilfield services provider in support of the Oando Foundation with Africa, delivering quality, safe and funding and donations in kind from our efficient services by leveraging on the corporate businesses. competency of our people, strategic partnerships and technology.
Oando Gas and Power is the largest private sector gas distributor and developer of captive power solutions in Nigeria and handle our midstream operations. OGP aims to fund sustainable business growth in a manner that maintains value, minimises Mr J.A. Tinubu Group Chief Executive costs and risks, creates successful stakeholder relationships and provides exciting growth and development opportunities for employees.
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Awards & Recognitions Oando PLC’s superior performance and outstanding leadership continues to attract local and international recognition, supporting our efforts to become Africa’s leading integrated energy solutions provider.
‹ 2013 Africa Oil & Gas Corporate Social Responsibility Initiative Award at the 2013 Africa Oil & Gas Awards Nigeria Content Development Best Independent (NCD) Oil & Gas Investment Company, Afri Company of the ‹ Best Independent Oil & Gas by the ca year 2013 Company, Africa by the World World Finance Award from Orient mag En Finance magazine azine ergy Review Magazine
‹ Nigeria Content Development (NCD) Investment Company of 2013 the year 2013 Award from Orient Energy Review Magazine Africa Oil & Gas Appreciation Award Corporate Social for Oando Marketing PLC’s participation ‹ Appreciation Award for Oando Responsibility and contribution to Marketing PLC’s participation the success of the Initiative Award 39 and contribution to the success at the th Ladies Open Golf Champions of the 39th Ladies Open Golf 2013 Afr hip Championship ica Oil & Gas Awards
‹ Intels Logistics Safety Awards Recognition on Overall Commitment to Health, Safety Intels Logistics and Environmental values within Safety Best Nigeria Content Awards Recognition Development (NCD) the workplace o Investment Company n Overall award at the annual Commitment to Shell Nigeria Exploration Health, Safety and & Production Company (SNEPCo) N Environmental val CD ‹ Best Nigeria Content ues Exhibition Development (NCD) Investment within the workplace Company award at the annual Shell Nigeria Exploration & Production Company (SNEPCo) NCD Exhibition
- Oando Sustainability Report 2018 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future
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Our engagement approach 24 Stakeholder engagement Key stakeholders 26 Principal stakeholder concerns 34 Governance 36 Risk management 36
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Our engagement approach Effective stakeholder engagement helps us manage risks, including reputational risk and identify opportunities, manage social expectations and influence developments within our industry.
Purpose Process of engagement Our primary purpose for stakeholder engagement is to create, build and preserve Understanding our stakeholders mutually beneficial relationships. We want to understand and respond to the ‹ interests and concerns of the people that are affected by or have an impact on our ‹ Identifying areas of collaboration businesses. Effective stakeholder engagement also helps us manage risks ‹ Consulting with stakeholders and receiving feedback, and including reputational risk and identify opportunities, manage social expectations and influence developments within our industry. As different stakeholders vary in ‹ Monitoring, evaluating and documenting our communication with stakeholders their expectations, we are constantly looking at new models of engagement that will allow us to be effective with each stakeholder group and improve the company's performance as a consequence.
Strategic model of engagement We believe that a strategic approach to stakeholder engagement is an essential component to improving our economic, social and environmental performance. We have developed a model of engagement that involves a six stage process where we: 1. Identify what we want to say Understanding 2. Identify who we want to talk to our Stakeholders 3. Identify the most effective medium to reach our potential audience 4. Determine the timing and order of the delivery of our communication 5. Develop a concise message that clearly states what we wish to say ‹ 6. Deliver the message according to plan 7. Obtain quality feedback ‹ 8. Review adequacy of communication in view of feedback received
9. Update communication focus Monitor, Evaluate Process of Identify Areas of
and Document Engagement Collaboration ‹ ‹
Identify the Identify Who do most effective When / Order Develop / Channel Quality Update what we we want to medium for of the Create message / Feedback Review Communication want to say talk to reach delivery message Execute focus Consultation
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24 25 Stakeholder Engagement About this report Creating value through Creating value through Targets and data Feedback Stakeholder engagement inspirational leadership strategic partnerships It is important to Oando that we identify and understand Key stakeholders our stakeholders. This allows us to gain a broader perspective of our businesses from all sectors giving a clearer picture of potential opportunities and challenges thus increasing the success of our businesses.
Identification In line with the Group’s strategic direction towards autonomous and Oando Key Stakeholders independent operation, each business entity has the responsibility of identifying their key stakeholder groups, developing appropriate stakeholder engagement activities and communicating any outcomes or issues to the Group. Investors and Our primary stakeholder groups are Shareholders our investors and shareholders, employees, business partners and vendors, governments and regulators, communities and customers. Other stakeholder groups that affect or are affected by our business include the media, our competitors and peers, Customers Employees intergovernmental bodies, funders and interest groups. These groups were identified using various tools including consultations, internal and external brainstorming sessions, responses to news and advertisements, feedback from the potential stakeholders, Oando Key discussions with members of the community and with government. Stakeholders
It is important to Oando that we identify and understand our strengthens our position as we create feedback through regular reports and Communities Business stakeholders. This allows us to gain a Partners and broader perspective of our business connections among a diverse group of management meetings to ensure that from all sectors giving a clearer picture people that might not otherwise any stakeholder concerns are Vendors of potential opportunities and interact with each other. recorded and expectations taken into challenges thus increasing the account when reviewing activities, targets and strategy. It should be success of our businesses. It also Engagement ensures buy-in by our stakeholders Our people are trained to listen, noted that our stakeholder who become an integral part of the engage and where possible, partner engagement activities are integrated into our business practices. There will Governments development, planning, with our stakeholders on our corporate and Regulators implementation and evaluation of the activities. We have set out the be a review of our stakeholder business. Effective stakeholder engagement activities for each engagement processes and systems engagement reduces the risk of being operating entity and key achievements in 2014 and we are looking at options blindsided by concerns that may as a result of such engagement that will enable stakeholders contribute become stumbling blocks in the activities in subsequent pages of this directly into our sustainability reporting development of projects and it further report. Senior management provides from 2015.
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Key stakeholders Employees gain access to company news in a timely manner and as a result can better and more confidently advise or discuss company business with external participants.
company business information. Our Employee stakeholder aim is to ensure that our internal engagement stakeholders are not the last to hear of Our employees are an important emerging company news. stakeholder group. We ensure that we gain feedback through surveys and Feedback on the new engagement several channels including an process has been very positive. independently managed ethics Employees gain access to company whistleblowing hotline. In 2013, there news in a timely manner and as a were over 12 surveys run on a variety result can better and more confidently of issues including catering, security, advise or discuss company business procurement, health and safety, the with external participants. There is results of which helped shape the reduced anxiety arising from the lack implementation of a number of of information and employee employee-related initiatives. During the expectations are better managed. year we also introduced a new Most importantly, employees have strategy for communicating company become more involved in the business information to all company’s business generally as stakeholders with a specific objective opposed to exclusively focusing on to improve employee access to timely their specific areas of responsibility.
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2013 Business Entity Engagement and Key Achievements
Oando Energy Resources (OER) Oando Energy Services (OES) Engagement through: Engagement through: ‹ Consultation and meetings with representatives of host communities, ‹ Collaboration with our clients, host communities and business ‹ Community committees made up of company, government and partners to agree key infrastructure requirements to be developed. community representatives to review local issues that may arise This provides us with an insight into the needs of the community and ‹ Setting up Community Trust Fund Boards (CTFB) that agree and reduces the need to conduct independent community assessments. approve various community development projects and peace ‹ Monthly face to face meetings with our clients through their respective committees that handle disputes Community liaison officers (CLOs) and the use of tradeshows to ‹ Town hall meetings or People’s Parliament that provide the opportunity showcase our activities and new initiatives. for any member of the community to express concerns or make ‹ Attendance at government organised stakeholder forums and recommendations for community projects meetings with government agencies. Submission to periodic audits to ‹ Attendance at important industry forums and conferences. ensure our ongoing compliance with relevant legislation.
Key achievements: Key achievements: ‹ Memorandum of understanding (MOU) signed with each community ‹ Our infrastructure projects have provided employment and training of that sets out the expectations and responsibilities of the Company indigenes within host communities, providing a positive impact on the and the community. We currently have signed MOUs with the economic future of those communities. communities in oil mining lease (OML) 13, 56 and 90. ‹ We introduced a client interface system at our operations in Elekahia ‹ The CTFB at OML 56 reviewed projects worth more than $1.8m in and Abuloma which allows clients to communicate directly with us as 2013. Infrastructure projects concluded in 2013 include the needed. construction of a 2.8km asphalt road for Ebendo, a water borehole ‹ During the year OES held a customer interactive session at the offices project for Umusadege and electrification projects for Isumpe, of the Nigeria Agip Oil Company (NAOC) where NAOC Umusam and Umusadege communities. communicated their future strategic direction. ‹ We held several town hall sessions during the year and this was ‹ We hosted 3 trade shows in 2013. attended by the paramount rulers, men, women and youth. Matters ‹ OES representatives attended the Nigerian Content Consultative discussed included employment opportunities, community Forum (NCCF) during the year and met with the Department of development projects and economic empowerment initiatives. Petroleum Resources (DPR) to discuss requirements of the Nigerian ‹ OER representatives attended the Nigeria Oil and Gas Conference Petroleum Industry Offshore Safety Permit (OSP) certificate and its that took place in February 2013 giving us the opportunity to engage impact on the finances of companies like OES. with government agencies and our competitors and to contribute to the energy sector debates and strategies.
- Oando Sustainability Report 2013 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future
30 31 Stakeholder Engagement About this report Creating value through Creating value through Targets and data Feedback Stakeholder engagement inspirational leadership strategic partnerships
2013 Business Entity Engagement and Key Achievements
Oando Gas and Power (OGP) Oando Marketing (OMP) Engagement through: Engagement through: ‹ Weekly and monthly customer site visits by our technical and contract ‹ Roadshows and seminars to present company products and solicit performance teams to ensure they have sufficient support and feedback from customers. Regular engagement with customers information. through purchase of products, SMS texting and the OMP quarterly ‹ Publication of a monthly newsletter called “Gas Connect” that surveys provides industry information, information on new products, technical ‹ Meeting and discussions with various stakeholders including members advice and safety guidance. of host communities, youth councils and the Petroleum Tankers Drivers ‹ A dedicated business development team who have general oversight (PTD) of the stakeholder engagement process and ensure sufficient ‹ Written and verbal communication with government agencies to engagement with business partners, suppliers and the creation of discuss any requirements that have implications for our business strategic alliances. operations ‹ Participation at industry forums, attendance at workshops or seminars and engagement with governmental agencies Key achievements: ‹ During the year, OMP representatives met with HRM Oba F.O Aremu Key achievements: Aromire, the Ojora of Ijora Land, Lagos State to introduce the LPG ‹ During periods of project expansion, we increase the frequency of lamp and barbeque grill at his palace communication and engagement with our government contacts. ‹ In 2013, the OMP team held community meetings with the youth in During the year, we conducted an environmental impact assessment Marine Beach, Apapa Lagos and the vehicle inspection officers arm of study for the gas distribution pipeline expansion project in Lagos the PTD. which involved extensive engagement with the Ministry of ‹ There was a stakeholder meeting held with the Elekahia Youth Council Environment including site visits, meetings and stakeholder to resolve staff re-alignment. workshops. ‹ During the year OMP had discussions with the Ministry of Commerce on new charges that might apply to LPG plant owners
Positional Image OMP held an extended sales team (company dealers and secondary distribution point staff)training organized by Business Innovation Facility in June 2013 as part of DFID project to support our initiatives to reach out to the BOP (Base-Of-the-Pyramid) sections of the society.
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32 33 Stakeholder Engagement Creating value through Creating value through Targets and data Feedback About this report Stakeholder engagement inspirational leadership strategic partnerships
Principal stakeholder concerns
Responding to stakeholder feedback
Stakeholder Basis of identification Engagement methods Principal issues group and concerns Investors and ‹ Ownership of significant shares ‹ Annual General Meeting (AGM) & ‹ Prompt shareholders can influence key decisions like Extra-Ordinary General Meeting (EGM communication on the selection of Board ‹ Roadshows company business members ‹ Website information ‹ Dividends ‹ Profits of the Company affects ‹ Media announcements ‹ Diversification of dividend payout ‹ Communications with executive asset portfolio ‹ Investor expectation can members of shareholder associations ‹ Growth opportunities influence share value and ‹ Investor calls ‹ Company reputation ability to raise finance
Employees ‹ We depend on employees to ‹ Employee surveys ‹ Salary and benefits deliver on our promise of good ‹ Presentations and seminars ‹ Working conditions products and services ‹ Talent review and calibration ‹ Career growth ‹ Employee wellness and sessions opportunities capability affects our ‹ Communication with union ‹ Health and safety operational performance. A representatives motivated workforce leads to ‹ Newsletter, intranet and email growth of the company
Business ‹ Impact on the Company’s ‹ Due diligence and Know Your ‹ Terms and conditions partners and reputation Customer (KYC) procedures ‹ Procurement vendors ‹ Important source of business ‹ Communication of policies like procedures resources the business code of conduct ‹ Health and safety ‹ Value creation through ‹ Supplier trainings payment for goods and ‹ Supplier performance services evaluations ‹ Attendance at conferences and trade shows
Government and ‹ Political decisions can influence ‹ Face to face meetings ‹ Compliance with regulators business significantly ‹ Attendance at conferences regulatory ‹ Good relationship can lead to ‹ Attendance at forums requirements influence on policy and ‹ Participating in government ‹ Participation in initiatives within the energy consultations and discussions national and sector ‹ Submission of statutory returns international initiatives ‹ Compliance with industry ‹ Audits in relation to Regulations raises the reputation education and job and profile of the Company creation
Communities ‹ Local and sustainable ‹ Surveys ‹ Creation of employment pool ‹ Committees and town hall sustainable ‹ Information resource sessions community ‹ Community acceptance can ‹ Memorandum of understanding development projects impact success of operations with community leaders ‹ Safety, environment, social and economic impact on the community ‹ Transparency and accountability ‹ Access to jobs and vendor opportunities ‹ Skills development and education
Customers ‹ Business success depends on ‹ Letters, emails and meetings ‹ Operational loyal and satisfied customers ‹ Information presentations, effectiveness ‹ Understanding customer seminars and newsletters ‹ Reliability of service needs leads to development of ‹ Invitation to forums and ‹ Innovative products the right products and services conferences ‹ Value for money ‹ Potential to damage reputation ‹ Feedback questionnaires and if customer’s needs are not met surveys and a source of free advertising if customers are satisfied
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34 35 Stakeholder Engagement About this report Creating value through Creating value through Targets and data Feedback Stakeholder engagement inspirational leadership strategic partnerships
Governance
non-Nigerian female Board Board 18 % members 27% members Governance is about ensuring that the The Board ensures that there is an right structures, processes, standards appropriate balance of power and Board Responsibilities Board Committee structure Governance initiatives The Board has ultimate responsibility There are four Committees of the As we continue to expand our and people are in place across the authority so that no one individual can for governance, risk management and Board: the Audit Committee, the operations, we are looking to develop Oando Governance Policies organisation. We believe that strong dominate the Board’s decision making the strategic direction of the Group. Governance and Nominations higher standards of corporate ‹ Code of Business Conduct and corporate governance is essential for process. During the year the Board The Board is accountable to Committee, the Risk, Environmental, governance, accountability and the achievement of sustainability and was strengthened by the appointment Ethics shareholders for the performance of Health, Safety, Security and Quality disclosure intended to build trust with the promotion of stakeholder interests. of Mr Francesco Cuzzocrea, a Swiss the Group and are required to act in Committee and the Strategic Planning our stakeholders. Our communications ‹ Insider Trading Policy Oando has formulated clear positions national with over 30 years’ experience good faith, with due care and in the and Finance Committee. strategies are constantly being on key sustainability issues like in private and investment banking, ‹ Dividend Policy best interests of the Group and all its reviewed to ensure that we inform our transparency and acceptable finance and portfolio management. stakeholders. Each committee of the Board has various stakeholders of important ‹ Related Party Transaction standards of conduct. Our policies terms of reference that guide the corporate news, including any difficult Policies and procedures are aimed at The Board are invited to regularly The Board meets at least once every execution of their duties, copies of or controversial news regarding the strengthening governance within the update their skills through the Board ‹ Whistle Blowing Policy quarter, with additional meetings which can be found on the Company’s Group and its operations. Group and are reviewed periodically to training programme to ensure that scheduled whenever matters arise that website or requested from the ‹ Board Appointment Process ensure continued relevance and there is an appropriate balance of require the attention of the Board. Company Secretary’s office. In adherence to global practices. We skills, experience and knowledge of ‹ Know Your Customer Policy There is a schedule of matters exercising their duties, each have provided within this report a the Company to enable them reserved for the Board and a committee is required to consider the ‹ Remuneration Policy highlight of our Corporate Governance discharge their duties and delegated authority framework that economic, social and environmental principles and practise. responsibilities effectively. ‹ Anti-Corruption Policy specifies the approval limits for impact of their decisions and financial, operational and corporate recommendations. More information ‹ Gifts and Benefits Policy The non-executive directors have the decisions throughout the Groups’ on Board committees can be found on ‹ Blacklisting Policy Meet our Board responsibility of ensuring that the The Oando PLC Board is the highest hierarchy. Our governance structures pages 71 – 73 of the 2013 Annual Chairman encourages proper ‹ Records Management Policy governing authority within the Group. provide clear lines of authority and Report which is available at deliberation of all matters requiring the The Group has a unitary Board that accountability from the Oando PLC www.oandoplc.com. ‹ Information Disclosure Policy Board’s attention. All directors have comprises seven non-executive Board through to operating entities. access to the advice and services of ‹ Environment, Health, Safety and directors (four of whom are The Board retains full and effective the Company Secretary and may Security Policy independent with no material control over the Group and monitors obtain independent professional relationship with the Company except executive management advice at the Company’s expense, if as directors) and four executive implementation of plans and strategies they deem this necessary. directors. The Board is headed by our and any exercise of delegated Chairman, HRM Oba Michael authority is reported to the Board. Adedotun Gbadebo, CFR, the Alake of A Board evaluation exercise was undertaken during the year to evaluate Egbaland, who is an independent non- Our governance structure is in the effectiveness of the Board and the executive director. At Oando, the compliance with the Company’s Governance Framework of the Group. position of Chairman and Group Chief Articles of Association, the Companies The process also assisted in The Company’s board committee structure is as follows: Executive are vested in different and Allied Matters Act, Cap C20, Laws identifying measures that would further individuals in accordance with of the Federation of Nigeria, 2004 strengthen the Board. The exercise Corporate Governance best practice. (“CAMA”) and the Securities and was carried out by KPMG Advisory Exchange Commission’s Code of Services and their recommendations The Chairman is supported on the Corporate Governance for Public Board of Directors have been reviewed by the Board. Board by a group of individuals from Companies in Nigeria. We also review Further information on each Board diverse academic, professional and our governance structure against member can be found on the ethnic backgrounds. There is a clear leading governance codes, including Company’s website or on pages 64 – board appointment process for all new the King III Code of Corporate 65 of the 2013 Annual Report which is directors joining the Board who Governance (South Africa) and the UK Risk, Environmental, undergo appropriate induction and available at www.oandoplc.com . Audit Committee Governance and Strategic Planning and Corporate Governance Code. There Nominations Committee Health, Safety, Security Finance Committee training on their fiduciary duties and are clear lines of communication and and Quality Committee responsibilities to the Company. accountability at all levels within the Group, from the Board of Directors through to each operating entity and any issues encountered at the
- Oando Sustainability Report 2013 operational levels are fed back up to - Oando Sustainability Report 2013 Looking to the Future the Board through management. Looking to the Future 36 37 Stakeholder Engagement About this report Creating value through Creating value through Targets and data Feedback Stakeholder engagement inspirational leadership strategic partnerships
Risk Management
Risk management Risk Management process Significant updates to the Key sustainability risks and corresponding mitigants The Group Risk Management and The Enterprise Risk Management In 2013, risk assessment workshops were held to review our key sustainability risks, particularly in relation to business GRMC systems Controls (GRMC) team has (ERM) framework sets out a top-level In 2013, we made significant updates profitability and long term business continuity. Some of the risks identified at the workshops and mitigating controls responsibility for identifying and risk management process for the to our GRMC systems including the identified and verified are listed below. assessing risks and opportunities for identification, assessment, development of a reporting tool to the Group. We have developed an management, and reporting of risks to facilitate the monitoring and reporting integrated risk management, internal the Oando PLC Board of Directors. of risks. A risk dashboard was created Risk Event Control Activity audit and assurance service. The The GRMC team collates identified which shows the company's risks There could be a substantial spill from a well or leak ‹ An emergency response plan is in place which is updated periodically. In Audit Committee reviews and monitors risks into a risk register noting risk ranked in order of magnitude and from a pipe carrying crude oil or the FPSO which addition to standard industry controls, we have a number of other control the effectiveness of the Group’s impact, likelihood, rating, importance and provides easier could have an adverse effect on the environment and activities including monitoring and surveillance of the pipelines. Assets that we internal controls and risk management characteristics, risk owner and risk could lead to penalties and fines from the regulatory do not control have optic cables that detect vibration and alert personnel to a hot access to a snapshot of the Group’s authorities resulting in adverse effects on the financial tap on the line. There is also an insurance policy in place wich covers oil spills. system, which has a direct impact on controls. Key risk indicators are also risks. and operational target of the Company. how we identify and manage indentified for each risk and these sustainability issues. Audit reports indicators are monitored periodically We also conducted a thorough review There could be an uncontrollable fire (Tier 3) at a well ‹ There is an emergency response and contingency plan in place which has been identify best practice and areas of for changes. The risk register and of our internal control activities in order site or production facility. communicated to all members of staff. improvement which were controls in place designed to mitigate to identify the existence of any ‹ Dedicated EHSSQ officers are present at OER offices and on sites. communicated to senior leadership. the risks are assessed as part of the ineffective controls and correct them. ‹ All staff have undergone EHSSQ training. In addition to these internal audits, internal and external audit periodic This will lead to increased accuracy ‹ We have invested in personnel safety equipment. third party audits were conducted at review. and completeness of the Company’s different operations for the ISO 14001 financial reports. There is a risk of injury or loss of personnel due to ‹ There are defined Security Operating Levels (SOL) that determine the certification process. All risks, including sustainability risks, community insurgency, kidnapping, terrorism and deployment of security militancy. are reviewed by the Group Risk Following the annual audit of controls ‹ A Security Control Room has been established that collaborates with Security Agencies and our peers in the oil and gas sector for intelligence gathering and There are tangible risks and Management Committee who carried out by internal and external monitoring, communication and the provision of security alerts and advisory to opportunities within the energy sector comprise of senior leadership auditors, the GRMC team personnel and specifically within the oil and gas representation from all divisions. The implemented appropriate solutions to ‹ A journey management plan is developed for each journey that would alert a industry. Due to ineffective Committee is chaired by the Chief Risk correct any identified weaknesses response team in the event of a missing member of staff. management by the industry in the Officer who is the Group Chief ‹ Situational Awareness Trainings and Town Hall meetings on security issues are highlighted by the audit reports. held to prepare personnel to manage security incidents adequately in the event past, there is a negative perception of Financial Officer. Following their that a security risk materializes oil and gas companies and substantial quarterly management meetings, the ‹ We require strict adherence to camp rules (No un-authorized movement in & out regulation of such businesses by Committee approves the risk report, of the rig). governments all over the world. Our which is then presented to the EHSSQ focus is on embedding risk Committee of the Board who have There could be a substantial loss of assets as a result ‹ All assets are insured through the Group insurance policy management within our existing delegated authority to oversee of malicious acts or natural disasters processes throughout the Group and Enterprise Risk. highlighting key sustainability issues There is a risk that due to the increased security issues ‹ There is a dedicated community relations person within each entity who acts are in Nigeria as a result of terrorist organisations there as an integral way we do business, primary liaison for concerns in this area. could be an unfavourable working environment for ‹ Additional security has been arranged for staff who feel threatened thereby improving our effectiveness members of staff. ‹ All necessary insurance policies have been taken eg war risk policy, oilfield and efficiency. energy package policy, protection and indemnity policy ‹ New initiatives like the adopt a community initiative where we employ members of the community ensures we maintain cordial relationships.
There is a risk that militants may block waterways and ‹ There is increased security available at our operations. stop operations ‹ We use security escorts for all vessel movements ‹ We work to maintain good relationships with members of the community
There is a risk that substitute or alternative energy ‹ We actively participate in the development of new/cheaper sources of energy. forms may become available and impact our ‹ We actively scan for alternative technologies available to make our services more business. efficient, effective and affordable.
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38 39 About this report Stakeholder engagement Creating value through Targets and data Feedback Creating value through strategic partnerships inspirational leadership
Creating value through inspirational leadership 42 Creating value through inspirational leadership Protecting our environment 48 Investing in our people 56 Safety is a priority 60 Promoting ethical conduct 64
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40 41 Creating value through inspirational leadership About this report Stakeholder engagement Creating value through Targets and data Feedback Creating value through strategic partnerships inspirational leadership
Creating value through inspirational leadership
returned to shareholders as N2.6billion dividends in 2013 Oando generates economic value Creating value for all through the payment of dividends to 2013 Awards and Recognition stakeholders shareholders, interest and taxes, Value can no longer be considered providers of capital and governments Our History 1956 Business operations commenced as a petroleum marketing ‹ Orlean Invest Appreciation simply in terms of maximising the respectively. We also add value Awards for Oando Marketing financial performance of the Company. company in Nigeria under the name ESSO West Africa through the provision of employment Incorporated, a subsidiary of Exxon Corporation, USA PLC’s patronage and support Creating value for all stakeholders is opportunities to members of the an ongoing challenge as the interests community. and priorities of different stakeholder 1976 The Government bought ESSO’s interests and became sole ‹ Appreciation Award for OMP’s owners. The Company was renamed Unipetrol Nigeria Limited. participation and contribution to groups are not always aligned. As a In 2013, the Company returned N2.6 commercial entity, a priority focus for the success of the 39th Ladies billion to shareholders in the form of 1991 The Company became a public limited company - Unipetrol the Group is ensuring that we make dividends. We have put measures in Open Golf Championships adequate returns on our business Nigeria Plc – and 60% of the Company’s shareholding was sold to place to ensure that we generate free the public under the first phase of privatisation. endeavours. At the same time we cash flow to pay a substantial amount ‹ ASP Advertising Best Practice need to ensure that we create benefits Award to OMP for the most of the Company’s earnings as 1992 The Company was listed on the Nigerian Stock Exchange for society and the environment and dividends to shareholders based on compliant Advertiser in Oil and February 1992. curb or reduce the possible negative our dividend policy. As noted by the Gas category consequences of our business Group Chief Executive, Mr Jubril 1994 Ocean and Oil Services Limited was founded to supply and trade activities. We consider non-financial Adewale Tinubu, in a press petroleum products within Nigeria and worldwide ‹ Africa Oil and Gas CSR Initiative factors in all business decisions as an conference in February 2013, the act Award to Oando Foundation in integral part of sustainability of not paying a dividend in 2012 sent 1999 Unipetrol acquired 40% in Gaslink Nigeria Limited (which was recognition of work done to evaluation. the wrong signal to the market, increased to 51% in 2001) improve the learning impacted the Oando share value and environment in public schools in It is an ongoing challenge to provide is not a mistake we are likely to repeat. 2000 Ocean & Oil, a private investment company acquired 30% Nigeria value to various stakeholders in an In total, the value distributed by the controlling interest in Unipetrol Plc increasingly resource-constrained and Company in 2013 amounted to over heavily regulated industry in which we US$305 million. The Board continues 2002 Unipetrol acquired 60% equity in Agip Nigeria Plc ‹ World Finance Magazine’s Best operate. However our investors are Independent Oil and Gas to work on initiatives that will boost the entitled to receive a good return on Company’s financial performance for 2003 Unipetrol Nigeria Plc merged with Agip Nigeria Plc and was Company, Africa Award renamed Oando Plc their investment, our host communities the benefit of all stakeholders. should benefit from infrastructure ‹ Best Nigeria Content developments, our customers want 2005 Oando Plc became the first African company to accomplish a cross- Development Investment value for money and quality in respect border inward listing on the Johannesburg Stock Exchange (JSE). Company awarded to OES of our products and services and our employees deserve to have a fair and 2007 Oando Energy Services acquired two oil drilling rigs for approximately $100 million for use in the Niger Delta ‹ Orient Energy Review competitive compensation package Magazine’s Nigeria Content for their work. 2008 Oando acquired 15% equity in OML 125 and 135, emerging as Development Investment Nigeria’s first indigenous oil company with interests in producing Company of the Year awarded deepwater assets. The Company also acquired an additional oil to OES Economic value distribution (N51,279,547,000) drilling rig. Employees 9,499,057 19% British Safety Council Award to 2009 Oando acquired two additional oil drilling rigs. ‹ Government 4,840,505 9% OMP Providers of Capital 21,637,777 42% 2010 Oando completed a N20 billion rights issue which was 128% Others 15,302,208 30% subscribed. Oando also launched its first Independent Power Plant for the Lagos State Water Corporation. Total 51,279,547 100% 2012 OER listed on the Toronto Stock Exchange
The detailed Value Added Statement can be found on page 176 of the 2013 Annual Report. 2013 Oando completed aN54.6 billion rights issue exercise which was 101% subscribed
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42 43 Creating value through inspirational leadership About this report Stakeholder engagement Creating value through Targets and data Feedback Creating value through strategic partnerships inspirational leadership
Creating value through inspirational leadership
rights issue N5 4.6 billion exercise in 2013 In February 2013, Oando hosted a In 2013 we continued the expansion of team and advised on the reasons for Communication is key ‘Facts behind the Figures’ session at our business with the signing of sale the delays which were published We have worked hard to improve our the Nigerian Stock Exchange aimed at and purchase agreements to acquire through media and our website. communication with different giving stockbrokers an opportunity to the Nigerian assets of ConocoPhillips. stakeholders, particularly with our interact with the Company and ask The conclusion of this transaction will We continue to work diligently towards investors and employees. Our primary questions about the Company’s consolidate our business growth in the building what has become known as form of communication with performance and activities. upstream oil and gas exploration and the African success story in the oil and shareholders is through general production markets as we continue to gas industry. It was therefore a very meetings such as the Company’s During the year, a new communication promote our transformation into the proud moment for us when Oando Plc Annual General Meeting (AGM) where strategy was implemented by the foremost indigenous energy company, was awarded the prestigious World shareholders have the opportunity to Group Corporate Communications to delivering better value to shareholders. Finance Oil and Gas Award for the for communicate directly with the Oando improve access to information by all Stakeholders who expressed concerns the Best Independent Oil and Gas PLC Board. The AGM is held once a stakeholders (please see pages 26 - over the delayed completion of the Company, Africa 2013. World Finance year. The notice of meeting is sent to 28) with a particular focus on internal ConocoPhillips acquisition were is a leading financial magazine shareholders at least 21 working days stakeholders. We also held several contacted by our investor relations produced by London based World before the AGM meeting date and town hall meetings where senior News Media and their annual awards includes any resolutions requiring management updated employees on are judged by an experienced and shareholder approval, given with company business and provided them independent panel. It is an honour to proper notice in accordance with the with the opportunity to ask questions. be recognised with this award and we provisions under CAMA. look forward to many more successes. The 36th AGM was held on July 25, A focus on business growth 2013 at the Incubator, 7/8 Chief Yusuf Since Ocean and Oil’s acquisition of Asset management Abiodun Road, Oniru, Victoria Island, controlling interest in Unipetrol Plc in We conduct a Management Facility Lagos, Nigeria. It was attended by 2000 and the subsequent merger with Inspection each year to ascertain the over 590 shareholders who took part in Agip Nigeria Plc in 2003, Oando has health of our assets and to ensure their company business and expressed steadily grown to become one of operational efficiency. Senior their opinions on the Company’s Africa’s largest integrated energy management are responsible for the strategic direction. solutions providers with the addition of activities and are accountable for gas and power distribution, asset management within the Group in We also communicate with international supply, trading and their respective locations. All results shareholders through our roadshows, energy services to our petroleum are fed back to executive the media, our website, stock marketing business. management who retain control and exchange announcements and oversight over the process. Protecting through investor calls. Oando employs over 1,000 personnel our assets is a core objective in our and we have continued to expand our sustainability endeavours to manage operations across Sub-Saharan Africa our resources in a manner that will to the Republic of Benin, Togo and provide the best long term outcome. Ghana. OMP, our downstream subsidiary, owns Nigeria’s largest petroleum retail network with over 470 petrol stations. We are also the largest independent importer of PMS. personel In 2012 the Group acquired the Canada based venture company, Exile employed Resources Incorporated, now known + by Oando as Oando Energy Resources (OER) and listed the Company’s shares on 1,000 the main board of the Toronto Stock Exchange.
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44 45 Creating value through inspirational leadership About this report Stakeholder engagement Creating value through Targets and data Feedback Creating value through strategic partnerships inspirational leadership
Creating value through inspirational leadership The Apapa Single Mooring Point (ASPM) jetty will have the capacity to receive larger vessels of up to 45k DWT (dead weight tonne) in one lot, reducing the need to lighter vessels in several lots.
(CNG) project. This involves the up to 45k DWT (dead weight tonne) in New product lines development of a natural gas one lot, reducing the need to lighter During the period under review, we compression facility in Lagos, vessels in several lots. It will also be have continued to grow our business. conceived in response to the needs of able to discharge up to 800 m3 (cubic We commenced work on the Energy customers located in areas meters) of petroleum products per Quadrant Project (EQ Project), an inaccessible to the pipeline grid or hour, 24 hours a day, 7 days a week. initiative to develop systems that use where it is not economically feasible to This will therefore lead to substantial gas for the generation of electric connect that area to the pipeline cost savings on mports incurred in the energy as an alternative to diesel. network. This project will operate as a form of demurrage. This project is Natural gas is a cleaner source of test case in a feasibility study expected to be completed in 2014. energy as it emits less CO2 compared commissioned by the United States to diesel and therefore reduces the Trade Development Agency (USTDA) production of greenhouse gases. Operational efficiency for a possible nationwide rollout of Our business has continued to CNG installations for vehicular use. We plan to pipe natural gas to our perform well against targets. Our three Results are expected to be available Apapa terminal in Lagos for the operating rigs each recorded from 2014. generation of electric power as part of operational efficiency of over 90% our 'EQ Project'. This project is within the reporting period and we are We have continued work on the expected to eliminate the use of diesel delivering the products that our construction of the Apapa Single & petrol generators in that area. The customers need. We have developed Mooring Point (ASPM) jetty berthing EQ Project is also expected to result in standardised processes that improve platform which will address problems savings of over N100 million per year our efficiencies. However, as a of congestion, bottleneck and for the Company. It is part of our larger multinational organisation with environmental hazards experienced environmental sustainability plan and operations across Africa and due to increasing numbers of concurs with our gas flaring internationally, we face a number of petroleum tank depots at the existing objectives. For more information on challenges in applying such Apapa Major Oil Marketers gas flaring please see page 52 - 53. processes to all our operations due to Association of Nigeria (MOMAN) Jetty diverse cultures and regulatory in Lagos.In comparison to the other Our midstream division, Oando Gas requirements. We shall continue the jetties, the ASPM jetty will have the and Power Limited, commenced work measures currently being taken to capacity to receive larger vessels of on the Compressed Natural Gas improve our productivity and quality. In addition, we continue to research new ways of delivering greater value to our customers.
We have reviewed our operational efficiency at our customer facing ADs poartn of ’thte EFQ lParojrecet w ei atre. pUromSotinEg th eIT! departments as well as our corporate offices to determine where increased domestic and industrial use of gas as a improvements can be made to deliver source of cleaner and renewable energy. This will better standards of service to our help us to be more efficient and eco-friendly. existing and potential customers. Robust governance and risk management frameworks are essential elements to improving our services. We make regular assessments of risk and opportunities relating to our customer base as part of our risk management process and we intend to utilise technology to become a leader in customer satisfaction and quality.
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46 47 Creating value through inspirational leadership About this report Stakeholder engagement Creating value through Targets and data Feedback Creating value through strategic partnerships inspirational leadership
Protecting our environment Our environmental minimum standards, targets and goals are set out in our Environmental Health and Safety (EHS) Policy. Our aim is to achieve zero spills, zero gas leakages and zero fire incidents.
Managing our impact Impact assessments In our pursuit to provide sufficient oil, The Company has an Environmental Some Oando Environmental gas and other energy resources to Assessment Policy that provides Policies support the increasing requirements of guidance to employees on procedure ‹ Environmental Assessment modern society, we recognise that our in this area. Prior to the Policy operations have the potential to commencement of any project, an adversely impact the environment in environmental impact assessment ‹ Environmental Health and Safety which we operate. Many of our (EIA) is taken to evaluate the potential Policy activities, even when managed in a environmental and socio-economic responsible manner may have impacts influences within the proposed location ‹ Waste Management Policy on the environment. The Board, of activities and how our operations ‹ Spill Control Policy through the Risk, Environmental, could affect them. Health, Safety, Security and Quality ‹ Emergency Response Policy (R,EHSSQ) Committee, have oversight During the lifespan of our projects, ‹ Paperless Policy over our environmental practices. many of which last for several years, Senior leadership are aware that we carry out regular EIAs and take responsible environmental practices action to avoid, minimise and are critical to the long-term viability of compensate for any impacts identified. our operations. Our Risk, EHSSQ and All actions are reported to Legal teams all work together to management and recorded. There is ensure that we remain compliant to an Oando Incident Review Panel that local environmental legislation such as reviews all EHSSQ incidents and the Environmental Impact Assessment provides quarterly reports to the Decree. R,EHSSQ committee who report as appropriate to the Board. Among the The minimum enviromental standards, assessments concluded in 2013, we targets and goals are set out in our conducted an EIA of our terminals Environmental Health and Safety (EHS) through an approved Department of Policy which was approved by the Petroleum Resources (DPR) Oando PLC Board in 2012 and is consultant. We also conducted an available on the Company’s website. Environmental Evaluation and Our aim is to achieve zero spills, zero Management Review of the facilities at gas leakages and zero fire incidents. the Oando terminals during the year. The EHS policy is supported by a number of other environmental policies, some of which are mentioned within this report. Our environmental policies have been communicated to all employees and business partners as a first step to managing our impact and are available on an internal shared portal. Senior leadership are aware of the importance of responsible environmental behaviour around air quality, biodiversity, water and waste management towards the long-term viability of our operations.
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48 49 Creating value through inspirational leadership About this report Stakeholder engagement Creating value through Targets and data Feedback Creating value through strategic partnerships inspirational leadership
Protecting our environment
employees used the free bus shuttle 168 service in 2013 our natural resources and our A road map to achieving the ISO monoxide impact from the daily use of Our environmental environment as a whole are the core 14001 certification has been personal cars and the implementation LPG is a cleaner and more performance focus of our approach. UN Rio Declaration on developed. The review process and use of video conferencing Each operating entity has the commenced during the year with facilities reducing the need to travel for environmentally friendly cooking fuel responsibility for reviewing their Environment and compared to kerosene or firewood. Oando is an active participant in the some EMS being assessed for meetings. environmental performance each year African Carbon Asset Development Development (Principle 4) alignment with the requirements of the We have the opportunity to switch 5 and setting appropriate targets for million homes to LPG over the next 5 (ACAD) programme through the In order to achieve sustainable standard. Awareness training on the We also introduced a smart print improvement. These targets are Oando Low-Cost LPG Rollout O-Gas EMS was also conducted for initiative that helps reduce paper years. This will reduce the carbon incorporated into their annual business development, environmental Project. The O-Gas Project promotes protection shall constitute an integral employees and business partners waste from erroneous prints, ensure footprints of the Nigerian households plans and budgets and reviewed by the sale of low-cost, portable LPG during the year. The benefits of the confidential information is more secure that switch to the cleaner LPG. the Oando Plc Board. Targets vary as part of the development process and cylinders for household cooking as a cannot be considered in isolation new systems are already apparent; as and also improves our monitoring of a result of the diverse nature of our replacement for non-renewable it will provide additional assurance to how much paper is utilised in our from it. businesses and priorities will depend sources like kerosene, charcoal and our stakeholders that our business. The introduction of smart on community specific sensitivities. firewood. There are other associated environmental impact is being printing has also led to substantial However our broad environmental benefits including reduced indoor appropriately measured, improved savings for the Company. The removal performance targets are set out on smoke inhalation and less and will enable us reduce the cost of of hardware purchase, insurance and page 86 of this report. In setting out deforestation due to the reduced used waste management, make savings in maintenance costs resulted in savings these performance targets we of wood fuel. The O-Gas Project the consumption of energy and of N17 million (38%). Uninterruptible reviewed internationally recognised supports local entrepreneurship and materials and further improve our power supply remains a challenge for best practice standards like the 1992 breaks down barriers to accessing corporate image and reputation. Nigerian businesses. However going United Nations Rio Declaration on clean cooking fuel by low income green means that we need to review Environment and Development. households. our energy needs and utilise Our green objectives The Company piloted a number of renewable natural sources. We In managing the impact of our operate a 10pm generator shutdown activities, our wish to actively protect Environmental Management green schemes at our corporate offices during the year that have policy at our head office on weekdays systems (EMS) and we are currently reviewing options All our major operations have the ISO helped reduce our collective carbon for a solar-powered uninterrupted 9001:2008 certification, which sets out footprint. These include a free power supply (UPS) system for our the requirements for a quality home/office shuttle bus service for power back up. management system standard that employees reducing the carbon covers all areas of business including people, training, services, equipment and facilities. We conducted an Environmental Evaluation Assessment of our environmental management systems (EMS) during the year to assess opportunities for improvement. The ISO 14001 approach The Board has set a target for all our major operations to gain the ISO 14001:2004 certification by 2014. The ISO 14001:2004 is an internationally recognised standard that provides a framework for the development of a Plan Check Do Review Improve comprehensive, systematic, effective and well documented EMS by which our environmental performance can be measured, managed and improved. The certification process is performed by an independent third party organisation.
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Protecting our environment
of water used 3 by operations 813. 8m in 2013 The CDP Global Water Report Spill control published in October 2013 received We take spill prevention very seriously over 500 responses to its water Spill incidents and have in place robust preventative Biodiversity risks and mitigants disclosure survey, compared to measures to reduce the risk of spills as 68,411 approximately 150 companies four much as practicable. In 2013, there Risks Mitigating Controls years ago, showing that this is a matter was a reduction in volume and number Increased noise levels ranging from ‹ Additional sound barrier wall installed of growing interest around the world of environmental spills and there were 66.0dB(A) in office areas and ‹ Reduced access of employees or the public to and requires us to pay closer attention 89.3dB near generators affecting noisy areas no major incidents. The volume of spills to water risk management for our employees, business partners and ‹ Use of ear muffs/ear plugs 44,185 from all plants, terminals and depots the public. businesses. was 13,255 litres representing a 70% reduction (2012: 44,186). We attribute Soil exposure to direct sunlight for ‹ Backfilling with topsoil and subsoil this improvement to the ongoing Air, Biodiversity and Gas long periods as a result of ‹ Adequate cleaning and site restoration procedures communication and training of our Spill excavation activities which leads to ‹ Natural attenuation flaring excessive loss of moisture affecting Control Policy and Emergency We are subject to laws, regulations and organisms dwelling in the soil. 13,255 Response Policy and our highly limitations on air pollution and quality efficient Spill and Emergency from various government institutions Failure to contain oil spills, run-off or ‹ Routine maintenance to prevent spills 2011 2012 2013 Response Plans. We review our including the Department of Petroleum drainage water containment which ‹ Training and refresher courses for all operators and response capabilities and efficiencies Resources (DPR). We review our could lead to contamination of technicians on environmental protection with regular emergency response drills operations on a regular basis to ensure surrounding vegetation, streams and rivers. at our facilities facilitated by our that we remain within legal limits. EHSSQ team. Degradation of sites due to land ‹ Site restoration through backfilling, vegetation and There is growing concern within the acquisition, movement of planting of trees. energy industry in Nigeria and around equipment and road construction Utilising common roads as an alternative to creating Water ‹ We are currently reviewing several the world over the amount of gas flared new access options for a robust system to enable and options for more accurately us monitor and measure our impact on measuring and cutting down on these water usage in our areas of operation, emissions. Gas flaring is a standard We are working to reduce our carbon the EQ Project. Further information on increase the use of recycled water and, way within the oil and gas industry of emissions from gas flaring to below the EQ report is on page 16 and water quality treatment systems. Water safely disposing of gases that cannot 10% at our operations. This would information on how we are working management is a priority agenda for be commercially used or stored. The improve our energy efficiency and with government in this area is on organisations like WaterAid and the World Resources Institute published a provide substantial economic benefits page 75 of this report. Carbon Disclosure Project (CDP), who paper in April 2013 titled “Clearing the as we would prefer to capture and sell work to bring these issues to the Air: Reducing Upstream Greenhouse these production by-products than flare It is unavoidable that our business attention of the largest shareholders Gas Emissions from US Natural Gas it. activities will have an impact on the and corporations in the world. Systems” which we have reviewed with habitats and ecosystems due to our interest. Our independent power plants in heavy operations. Biodiversity risk Akute and the Alausa Power Project assessment and management is with a capacity of 12.15MW and therefore an essential requirement for 10.4MW respectively have replaced our business. Biodiversity conservation over 120 generators resulting in issues are addressed as part of the reduced CO emissions by over 567 environmental impact assessments we million lbs. There is more to be done perform on all projects and operations. and there are a number of challenges to achieving our aims including the We are in the process of reviewing a lack of adequate gas transmission, Biodiversity Policy for the Group as of water recycled distribution and storage infrastructure. we work with the Nigerian 3 We also need to promote more Conservative Foundation on the or reused by domestic and industrial use of gas as implementation of appropriate operations in 2013 a source of energy and we are proud strategies on Biodiversity risks. 18 7.92 3m of our endeavours in this area through - Oando Sustainability Report 2013 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future
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Protecting our environment Our paperless policy is well communicated throughout the organisation and supported by the installation of the smart printers.
Our Waste Management Policy Our paperless policy is well Waste Management incorporates the 4Rs in setting our communicated throughout the It is a well established fact that standards. Employees are encouraged organisation and supported by the effective waste prevention cuts costs to make waste reduction their preferred installation of smart printers. We were and increases profits. Waste option. Where waste is produced, every active participants in the World prevention or reduction, as opposed to effort should be made to reuse it if Environment Day organised by the waste treatment, has become a priority practicable. Recycling is the third Rivers State Sustainability objective to most commercial option in our waste hierarchy and is Development Agency on June 5, 2013 organisations as a result of regulation, done where waste cannot be reduced where we presented a paper on the landfill shortages and public pressure. or reused due to cost and reduction of food waste using the 4Rs Our waste management data can be environmental implications. Resource approach. found on pages 82 of this report. recovery is the removal of waste to During the year we held waste landfill sites or incinerators. management presentations for our Responsible communication employees and contractors to raise Apart from external communication on We have an asset disposal procedure awareness and inspire them to operate company business, we encourage for our IT assets following a health the 4Rs waste prevention technique: appropriate communication on check to determine if items are viable reduce, reuse, recycle and recover. environmental and sustainability for reuse. issues. Our communication channels and procedures for reporting concerns or seeking advice regarding environmental issues are well Waste Hierarchy documented. They often take the form ‹ We reduce waste from leaks on the lubricant filling line by installing a of letters from external sources and leak tester requires the completion of our incident report form by internal sources mainly ‹ Water used in the calibration of trucks is reused employees. All environmental incident report forms are submitted to the ‹ Leaking cans from our lubricant filling plants are sent back to the Environmental, Health and Safety manufacturers for recycling (“EHS”) Supervisors who investigate, follow up and provide recommendations for prevention.
In 2013, all health and safety incidents reported were dealt with in Reduce accordance with our procedures. All incidents are discussed at Executive Committee level and reviewed during d Reuse e
r the monthly EHS meetings. The Action r e
f tracking system (“ATS”) is employed to e r track the close-out actions required. It p
Recycle t is our policy that all high risk incident s o investigations be led by a manager M Recover that does not have responsibility for that area of business. The investigation report for High Risk incidents are presented to the Oando Incident Review Panel (“OIRP”) within 28 days of the incident occurring.
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Investing in our people
The percentage of expatriate Oando 1.58 % employees offered permanent employment. In November 2013, we held a well- attended career fair in Lagos for senior-level professionals. We also actively recruit Nigerians in the diaspora, bringing new skills and innovation into the industry and into Nigeria.
We ensure that our compensation package for employees, including their pension benefits, is competitive and attractive and that there is opportunity for career growth. Periodic employee surveys are conducted to determine the level of employee satisfaction of working conditions and facilities and to identify issues of concern. We also ensure that employees are aware of our grievance procedures. 13 surveys were conducted in 2013. The feedback from one such survey led to our management team and other high The key to our success changes to the official working hours Personal development potential individuals with the skills, We want to attract, recruit, develop The personal development of our at our Apapa office and decreased the strategies and behaviours essential for and retain people who will become the Competency-based training employees is an integral part of commuting time for over 98% of the leadership positions with the aim of key drivers to our success and one of employee supervision and appraisals. employees based there. programme rolling out a programme by 2015. This our biggest assets. Our recruitment In addition to internal training and We run competency-based training. will strengthen our succession and selection policy sets out a clear awareness sessions arranged by the Our voluntary attrition rate in 2013 was Employees are provided a list of planning process and improve process and eliminates discrimination Company, employees, consultants and approximately 9% across the Group, skills required for the performance of retention of key knowledge, skills and on the basis of gender, age, race or contractors are encouraged to seek down 21% from the previous year with individuals within the Company. The ethnicity. Appointments are made on their duties and asked to identify any appropriate courses on a broad range a total of 94 individuals leaving the Human Capital Management merit against objective criteria with gaps in knowledge or skills. At the of subjects that will better enable them Every little helps! organisation (2012: 114). However we department perform regular risk due regard for the benefits of diversity conclusion of each assessment, a provide value in their roles. In 2013, munications recognise that we can do better and assessments in compliance with our The Corporate Com including gender diversity. We three year training and development there was a particular focus on safety have set ourselves a target of Enterprise Risk Management team’s new initiative of sending each welcome solicited and unsolicited job plan is set for the employee and a with the EHSSQ department achieving a maximum 5% voluntary framework, identifying and assessing employee a goodwill message on applications in our drive to consider a clear career progression strategy conducting 53 health and safety attrition rate by 2017. We want Oando the Company’s labour-related risks their birthday since July 2013 has wider pool of candidates. Our two-year established. seminars for employees in Nigeria, to be the preferred and trusted and ensuring that adequate staffing been well received. graduate training programme attracts Ghana and Togo. The sessions were employer of choice within the energy levels are maintained at all our bright university graduates at the end interactive and focused on reminding industry. operations. of which successful candidates are employees of the impact of their activities on others, teaching them to minimise and control harm to health, safety and the environment.
During the year we invested over US$967 million in employee training, including travel costs. In 2014, we will Oando employees review options for a leadership in Nigeria as at 31 development programme to provide December 2013
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Investing in our people
of our employees are locally 98.4% employed that any less than favourable issues Trade unions are redressed promptly and that Our employees are entitled to join employee concerns are discussed trade unions without fear of reprisal, within the organisation before they intimidation and harassment. A become the subject of dispute. We substantial portion of our permanent work to maintain a positive relationship workforce are represented by trade with our employee trade union through unions and covered by collective a culture of engagement and bargaining agreements (CBAs). As at communication and adherence to the December 2013, there were 311 terms of the CBAs with PENGASSAN. employee members of the trade union PENGASSAN. The 2013/14 CBA was signed off by all parties in December 2013 after PENGASSAN representatives deal with extensive negotiations. The new labour disputes and grievances on agreement includes a salary increase their member’s behalf with the of 22% covering the period January Company. We review the working 2013 to December 2014. , conditions of our locations to ensure
We support initiatives that encourage a Inclusion and Diversity diverse group of individuals, and in Workplace diversity fosters mutual particular women, to pursue careers in respect. We can learn a lot from engineering and science. There is people who have different cultures, substantial female leadership perspectives, strengths, opinions and representation within the Group from ways of working. Employees from the Board of Directors to management different generations can also support level. We have three female board each other, to learn new technology % members, representing 27% of the and to learn from experience. Although Board and approximately 28% of 28female management conflict may inevitably occur amongst management is female. The Board employees, people who work in recognise that diversity is important for diverse environments learn to resolve introducing different perspectives into such conflicts more amicably as they debates and for better anticipation of acknowledge each other’s differences. risks and opportunities. Ethnic Therefore we incorporate diversity into diversity is also an important element our employment practices always of our inclusion and diversity ensuring that we remain compliant to programme. As a proudly indigenous relevant employment regulations. company, 98.4% of our employees are locally employed.
new employees recruited in 2013: 39 29 men, 10 women - Oando Sustainability Report 2013 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future
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Safety is a priority Throughout the year we educated employees on health hazards associated with our business as this reduces potential occupational illness.
EHSSQ training EHS Reporting Emloyees are trained to recognise All EHS incidents are reported in Our Health and Safety hazards and develop a positive work accordance with our procedures and initiatives environment, health and safety (EHS) discussed by senior leadership at the ‹ Safety training leadership culture. Throughout the monthly EHS meetings. We use an year we educated employees on Action Tracking System (ATS) to ‹ Safety procedures health hazards associated with the monitor and track the close-out actions ‹ 14 life-saving rules business to help reduce occupational required. All high risk incident illness. Safety equipment is provided investigations are led by a manager EHSSQ induction for all ‹ to employees wherever needed that does not have responsibility for employees including personal protection that area of business. During the year, ‹ Personal protective equipment equipment (PPE) and they are trained the EHSSQ Information Management (PPE) to use them appropriately. Other System (IMS) was approved and the training programmes include regular first Module of the system, the Oando ‹ Material safety data sheets safety briefings, toolbox meetings and Incident Reporting Module, was rolled (MSDS) EHSSQ monthly and quarterly town out in December 2013. This will help hall meetings where specific safety organise and centralise our incident ‹ Safe handling of chemicals topics are addressed. reporting, investigation and data (SHOC) procedures management. Further modules from During the year, we held a safety week the IMS including a KPI Reporting ‹ Routine maintenance of all themed ‘walk the talk’ at all our module are due to be rolled out in equipment operational locations in Nigeria, Togo 2014. and Ghana. This was aimed at ‹ Wellness campaigns assisting promoting employee responsibility and employees develop healthy accountability for EHS matters and lifestyles reinforcing the belief that leadership by example and personal accountability ‹ Defensive driving training Logistics Safety Awards to OMP for are the cornerstones for achieving Safety commitments to health, safety and sessions Our priority objective is to prevent the superior EHSSQ performance. We are environmental values within the loss of life and injury to our employees, working to better communicate the workplace. OMP became a corporate ‹ Health week contractors, business partners and the importance of EHSSQ considerations member of the British Safety Council in Commemoration of World Aids general public at large. We in strategic decision-making to ensure ‹ April 2013 and received the continuously work to ensure that we that they are high on the agenda at all Day International Safety Award by the have a safe and healthy workforce as levels of the Company from the Oando British Safety Council during the year this leads to greater efficiency and Plc Board to the field operatives. for commitment to high safety productivity. We are pleased with our standards and adherence to safety performance in 2013 as there international best practices in were no work related fatalities and all occupational health and safety. our operational rigs recorded zero lost time injuries (LTIs) with the OES Integrity rig celebrating four years without an LTI incident in August 2013.
We will continue to ensure that we do not become complacent about the inherent risks in our industry. We welcome the recognition of our efforts work related years of maintaining in ensuring safety in all our operations fatalities at zero LTI at the OES such as the award of the 2013 Intels Oando in 2013 Integrity rig
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Safety is a priority We instituted the Oando Health Care Scheme which is a programme through which the Company provides access to quality healthcare facilities for staff and their immediate family members.
Company trucks conveying petroleum Employee wellness products to various destinations Our 14 life-saving rules At Oando, we encourage our We introduced the Oando 14 life- across the country. Policies and procedures employees to adopt healthier lifestyles saving rules in 2012 and provided a through our wellness programmes. We re-launch in 2013. There is a visible that promote better health These challenges are not restricted to provide training on healthy eating and display of the life-saving rules at our and safety our operations in the Niger Delta, ways to combat obesity which is a offices and locations and they are although more prevalent in that ‹ Alcohol Policy growing concern in society with a rigorously enforced. All employees location. We also face security range of associated health risks. receive a wallet sized copy and we run ‹ Medical Care Policy challenges in the North-eastern states training sessions during the year. in Nigeria, in particular Bauchi and ‹ Security Policy We provide access to quality Adamawa states. These security healthcare facilities for staff and strive Studies have shown that 80% of high ‹ Transport Policy threats impact on our operational costs to reduce absenteeism on account of criticality incidents in the industry have as a result of loss of production, ‹ Smoking Policy illness. The Company instituted the been traced to a breach of one or restriction on movement and travel ‹ Emergency Evacuation Plan Oando Health Care Scheme which is a more of these rules. Compliance to disruptions. In addition there are programme through which the these rules therefore saves many lives, ‹ Fire Marshall Training concerns and anxiety by employees Company provides access to quality prevents major asset damage, and contractors over personal safety. ‹ Permit to Work Policy healthcare facilities for staff and their prevents environmental pollution and immediate family members. protects the company’s reputation. ‹ Personal Protective Equipment Our primary obligation in this area is to Policy prevent harm to our personnel. During All employees receive a mandatory the year we employed over 480 annual medical check-up and there security personnel to see to the are clinics at all our operational bases protection of our people and property. to ensure that emergency care can be Our security personnel are trained provided before medical evacuation to professionals and we supplement their the employee’s identified primary knowledge with periodic in-house healthcare provider. security awareness training. They are also required to undertake safety induction prior to commencement of Security Challenges In 2013, we faced security challenges their duties. We have also increased arising from terrorism, crime, militant surveillance equipment at a number of activities and other security threats to operations. The effect of the activities our operations in Nigeria. There are of the Niger Delta militants to our real risks of oil theft, piracy, kidnapping business and to oil and gas operators of company personnel for ransom, in general cannot be underestimated. invasion and destruction of Company We are working with governments and property, armed robbery at service other corporations to combat this stations, assault on our employees, situation, further information on which sabotage of our product pipelines and can be found on pages 73 and 75 of the indiscriminate detention of this report.
security personnel employed to see to the protection of our people and property
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Promoting Ethical Conduct Our values constitute our standards of responsible conduct for the way we do business and are communicated to all employees and displayed at all our locations.
During the year, there was a particular Business conduct and focus on reinforcing the principles Due diligence Anti-corruption We are committed to doing business Corruption is a key business risk. We behind our Gifts and Benefits Policy ethics Whistleblowing with only reputable, honest and have adopted a zero tolerance policy Our stance on ethical issues can be and promoting a better understanding qualified business partners and we in this area that applies to every found within our Corporate Code of of acceptable business gifts. Whistleblowing is the reporting of Business Conduct and Ethics, which is suspected or actual wrongdoing, take reasonable steps and precautions business we manage, regardless of through our due diligence process to location. This is communicated complemented by our internal policies We have reviewed various international misconduct, illegal activity, things ensure that the integrity of a business through the Company’s Anti-Bribery and procedures. guidelines for responsible business that are unethical and/or endangers partner does not have a negative and Corruption Policy and the Oando conduct, for example the OECD the healtth and safety of others. impact on the Company’s reputation. Code of Business Conduct and Ethics. Our values constitute our standard of Guidelines for Multinational We work with our stakeholders, responsible conduct in the way we do Enterprises, a set of government- Pro-active During the year, the Company including governments, to promote business and are communicated to all backed recommendations on Communicate Policies and acquired licences to Thomson Reuters’ good governance and prevent employees and displayed at all our responsible business conduct, to World Check Risk Screening solution, corruption. locations. These documents exist to ensure that we conduct all our Procedures on Bribery and a source of intelligence on heightened guide and encourage our people to do businesses responsibly in line with Corruption. Conduct regular risk risk individuals and companies We also actively engage in the fight the right thing and are continuously global best practise and are not assessments. Ensure due diligence covering aspects of Know Your against corruption by affiliating with reviewed and updated in line with directly or indirectly at risk of creating performed. Review internal controls Customer (KYC) and Anti-Money local and international initiatives like international best practice. and/or promoting adverse impacts. and training requirements. Laundering (AML). This tool augments the United Nations Global Compact. the Company’s existing policies and Re-active procedures that identify and manage Oando is a signatory to the World Investigate breaches of the Code financial, regulatory and reputational Economic Forum's Partnering Against and policies and provide risks associated with doing business Corruption Initiative (PACI), a global recommendations for action. with business partners, suppliers and anti-corruption initiative promoting Corporate Code of Business Oando Core Values counter parties. ethical business society and the Conduct and Ethics Convention on Business Integrity (CBI), a body formed in 1987 to The Code was adopted by the empower business transactions within Oando Plc Board in December 2007 Nigeria against corruption and corrupt and sets out the standards of ethical practices. behaviour expected of all persons when conducting company business. TRIPP On December 9 2013, Oando joined All Oando directors, managers, the rest of the world to commemorate the World Anti-Corruption Day employees and business partners eamwork espect ntegrity rofessionalism assion are required to comply with the Code T R I P P and breaches could lead to We are proud of our achievements in disciplinary proceedings and this area and zealously protect our summary dismissal or blacklisting in reputation. the case of a business partner or vendor. The induction of all employees includes training on the Assess Code and there is an annual re- KPMG Ethics Hotline certification exercise for the whole Group where each person confirms SAY SOMETHING that they have read and understood IF YOU SEE... the Code, will comply with it and are The Oando Whistle blowing hotline is an avenue for employees and other aware of the consequences for non- Improve Monitor stakeholders to confidentially report unlawful or unethical conduct. The compliance and affirm their service is managed by KPMG Professional Services who ensure that all responsibility to report any known or reports are channelled to the appropriate authorities for investigation and suspected breaches of the Code. resolution.
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Promoting Ethical Conduct Our approach to sustainability includes adherence to the principles and policies of national and international initiatives which promote ethical business conduct and integrity.
Our Mission The 10 Principles of the UN Global Compact To be the leading, integrated, energy solutions provider. Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Our Vision Principle 2: Make sure that they are not complicit in human rights abuses To be the premier company, driven by excellence. Labour Principle 3: Businesses should uphold the freedom of association and International standards United Nations Global Our approach to sustainability the effective recognition of the right to collective Compact bargaining; includes adherence to the principles of The United Nations Global Compact national and international initiatives (UNGC) is a strategic policy initiative which promote ethical business for businesses committed to aligning Principle 4: The elimination of all forms of forced and compulsory conduct and integrity. This is rooted in their operations and strategies with ten labour; our vision to be the premier company universally accepted principles in the driven by excellence and our mission areas of human rights, labour, to be the leading integrated energy environment and anti-corruption and Principle 5: The effective abolition of child labour; and solutions provider. reporting publicly on progress made in implementing these principles in their We are signatories to the Principle 6: The elimination of discrimination in respect of employment United business operations. Oando (“UNGC”) and occupation. Nations Global Compact committed to the United Nations and committed to its ten principles. Global Compact in July 2009 and we We have continuously worked to committed to informing the UNGC of Environment implement the principles in our activities demonstrating our on-going business operations and have issued commitment through an annual Principle 7: Businesses should support a precautionary approach to an annual “Communication on communication on progress report. environmental challenges; Progress” (COP) to give feedback to our stakeholders on the outcomes of Principle 8: Undertake initiatives to promote greater environmental our implementation of the principles UNGC Communication on responsibility; and thus far since we signed up. This Progress 2013 sustainability report incorporates the During the reporting period, we issued our communication on progress for the elements of our 2013 COP. Principle 9: Encourage the development and diffusion of period January 1, 2012 to December environmentally friendly technologies. In December 2013, our Chief 31, 2012. We have included as part of Compliance Officer was appointed as this report how we demonstrated our co-chair of the UN Global Compact ongoing commitment to the ten UNGC Anti-Corruption principles during the period January 1, 10th Principle Working Group. Principle 10: Businesses should work against corruption in all its forms, 2013 to December 31, 2013 and our plans for improving our performance including extortion and bribery. as this report forms a part of our 2013 Communication on Progress.
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ps Working together 70 Creating value through strategic partnerships Developing the industry 74 Building a strong foundation 76
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Working together
was applied to sustainable community development projects $1.8million in OML 56 during the year The Company negotiates a distributed through our service Partnerships for Memorandum of Understanding Keeping it local stations, we encouraged micro- We provide a lot of community (“MOU”) with the host community that entrepreneurs to sell the cooking sustainability Keeping it Local support, training and development A key ingredient to the achievement of sets out the expectations and stoves as retailers. We partnered with through the Oando Foundation, details sustainability in modern times is responsibilities of the Company and of the National Association of of which can be found on pages 76 - through effective partnerships. the community. These MOUs are Microfinance Banks to provide 80. In addition, we have worked to Individuals, companies and reviewed every four years or as Jobs favourable financing to encourage ensure that wherever possible, we governments can no longer work in agreed and the intention is to ensure uptake of the scheme resulting in the utilise the information resources and isolation towards achieving long term that there is ongoing communication sale of 10,000 units. employment pool provided by the local goals as we are interconnected and between parties, that local Education community in which our operations are our actions have an impact on each infrastructure initiatives, investment in based. In 2013, a good number of other. In today’s society, true success social programmes and any other Increasing our customer Training those recruited to our operations were can only be achieved through community development projects are base local indigenes and this included more Like other commercial entities, it is collaboratively working in areas of not imposed but are collaborative, Coming together is a beginning, than 40 youths recruited as part of the important for our long-term viability “ shared interests and mutual benefit. At agreed and create real value for our ‹ community involvement strategy of our and success that we expand our keeping together is progress, Oando, we pursue partnerships that host communities. Our intention is to rigs business. customer base, increasing satisfaction working together is success. provide us with access to new work together to leave a legacy that ” among our existing customers and Henry Ford markets, superior returns and lasts long after our operations may The needs of each community differ acquiring new satisfied customers innovative technology. We also seek have concluded in these locations. partnerships that address industry- Community Building and and we utilise our stakeholder especially in the growth markets. To wide issues, concerns and impacts Empowerment engagement activities to determine achieve this, we need to ensure that the energy sector. which infrastructure development we are continuously adapting our projects would be required in the long products to meet the requirements of term. For example, during the year our customers and that we become Community building over US$1.8 million was applied to leaders in customer satisfaction and It is important for our business that we sustainable community development quality. Our customer portfolio is communicate effectively with the Our Community Relations projects in OML 56 to cover water diverse, ranging from individuals and communities that affect and are Strategy boreholes in Umusadege, small businesses to large corporations affected by our activities. The To be the catalyst for socio- ‹ electrification for Isumpe, Umusam and governments. communities in which our operations economic change and Umusadege, construction of are located are referred to as host asphalt roads for Ebendo, Umusam In 2013, we added 244 new customers communities and as our hosts they are ‹ To build community capacity as and Obodugwa and a number of other to our database of high volume key stakeholders and partners in our a means for self-reliance and such projects as determined by the customers in our downstream businesses. Community acceptance of economic empowerment Community Trust Fund Board. operations in Nigeria. We have our projects has a major impact on the developed a number of techniques to success of these operations. ‹ To entrench and foster achieve our increased customer sustainable development Encouraging targets. These include customer entrepreneurship engagement and feedback, loyalty To contribute towards building We want to help local businesses to ‹ incentives, competitive deals and thrive and work in partnership with us the future of our host discounts, fair terms and conditions communities where possible. As a part of our It is important for our business that empowerment programme we work to develop projects and products that we communicate effectively with encourage and support local entrepreneurship. the communities that could affect New Customers Welcome An example of our endeavours can be A wider, more established and are affected by our activities seen through our O-Gas initiative, customer base would make our promoting the sale of low-cost, portable LPG cylinders for household business easier to grow, more cooking. Although our products are predictable and more sustainable.
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Working together We work to support the Nigerian government’s goal of ensuring that all children have access to free, compulsory, good quality primary education in line with the second goal of the eight United Nations Millennium Development Goals (MDGs).
and prizes from competitions. The considering their selection, ensuring We provide regular information strong position of the Oando brand in that they can provide the necessary updates and training through our Working with governments Oando works in partnership with the Case Study the energy market allows us to resources needed for our businesses vendor forums. We have simplified our Vendor Compliance Nigerian government on a number of leverage the Group’s strengths and and also reviewing how we can terms and conditions and payment initiatives including, supply chain Customer Appreciation increase our competitive advantage. support and build their capacity within All vendors must comply with policies. There is an annual review of development and development of the We are looking to further develop the industry. Oando's corporate policies and vendor documentation to monitor their On July 9, 2013, Oando Energy oil and gas industry. We also work to these initiatives as we are not procedures including the Oando compliance with laws and regulations, Services (OES) hosted a customer support the Nigerian government’s complacent about our achievements. Our procurement procedures take into including tax returns and with the interactive session in Lagos where Code of Business Conduct and goal of ensuring that all children have account political, social and Company’s corporate policies. Inactive customers were invited to discover Ethics and our Environmental, access to free, compulsory, good Successful customer retention is a commercial considerations and we or non-compliant vendors are more information about the Health and Safety Plans. quality primary education in line with lifetime effort which begins with have a comprehensive and well cautioned, trained or removed from company and its services and this the second goal of the eight United excellent customer service to ongoing developed vendor management our systems through our blacklisting provided a platform to gain Nations Millennium Development stakeholder engagement. It is procedure that ensures a standardised procedures. valuable insight into the industry Goals (MDGs). This is primarily done important that we anticipate the needs and fair process applicable to all. through the Oando Foundation and its and the way forward in delivering of our customers and provide Selection is subject to a thorough and quality services. The event was a Local content Adopt-A-School initiative. effectively and efficiently for those objective assessment of the character, There are various approaches to way of appreciating and needs through our products and reputation, competence and financial acknowledging the loyalty and Nigerian Content supporting local companies. services. We want to reach new stability of the vendor through our due Increasingly governments place contribution of our customers to customers and turn them into satisfied diligence and tender processes. We Oando is member of the Nigerian obligations on organisations to build Oando’s success. Two further ambassadors. We collaborate with our also require our vendors to have Content Consultative Forum ‘local content’. We are proudly sessions were held in Port customers to ensure that we tailor established policies on environmental, (NCCF) of the Nigerian Content indigenous and have continued to Harcourt at the Nigerian Agip Oil products to their specific needs. health and safety (EHS) and human Development Monitoring Board utilise indigenous companies in 2013, Company (NAOC) and the Golden Improving the reliability of our rights. In the event of unfavourable (NCDMB) set up with the primary increasing local content participation customer services is a team effort and findings, the procurement team is Tulip Hotel on July 11, 2013 and objective of finding better ways of in the oil and gas industry. requires not just our employees but advised to halt registration July 12, 2013 respectively. implementing the Nigerian Oil & also cooperation with our business proceedings. In 2013, we won the awards of Best partners and local suppliers. We need Gas Industry Content Development Act 2010 (NOGICD Act), generally Nigeria Content Development (NCD) to have strong teams that understand Investment Company at the annual the local economy as this informs our Managing the supply chain referred to as Local Content Act Our vendors are essential to the 2010. Shell Nigeria Exploration and strategic marketing efforts. success of our business and the Production Company NCD exhibition development and management of our and the NCD Investment Company of Our supply chain supply chain is an important aspect of the Year Award from the Orient Energy Employing and developing suppliers our sustainability commitment. Our Review magazine through our Oando or vendors is another way in which we reputation and image can be affected Energy Services operation. We are contribute to the local communities in by the service they provide so we work committed to ensuring that local which our operations are based. They to ensure that they remain competent businesses have the opportunity to are our business partners and we look and capable of providing excellent participate in our supply chain. Millennium Development for mutually beneficial relationships in service. Goals Nigeria is a signatory to the MDGs. Goal number two requires countries to ensure that by 2015 all Thomson Reuters, World Check children, boys and girls alike, are In 2013, we acquired licences to use the online screening tool provided by able to complete a full course of Thomson Reuters, World-Check, a tool that provides high quality risk primary schooling intelligence that serves the Know Your Customer (KYC) and Know Your Business (KYB) value chain of highly regulated industries. World-Check enables compliance with money laundering, counter-terrorism, bribery and anti-corruption legislation. It is used to provide auditable proof of due diligence to regulators.
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Developing the industry In line with our long term strategic objectives, we work with the government and other industry participants to develop appropriate laws that regulate, protect and promote the growth of the oil and gas industry.
Technology Technological advancement is crucial Case Study to the development of the oil and gas industry as it is to most industries Government Partnership seeking to find new, innovative and more efficient methods of utilising their Our IPPs in Akute and Alausa have resources. Investing in technology will a capacity of 12.15MW and lead to the development of safer and 10.4MW respectively and are more efficient extraction of petroleum, operated under a public private natural gas and other natural partnership (PPP) with the Lagos resources, reaching areas that State Government. They replaced previously were unreachable, over 120 generators and have led providing costs savings and reducing to a substantial reduction in CO2 waste. We want to use technology to emissions and substantial cost create tangible value for our savings for the Lagos State stakeholders. We have already started Government. The 24 hours utilising available technology to uninterrupted electricity supply has improve our efficiency within our also helped the Lagos State Water business, from the use of instagram to Corporation (LSWC) achieve a determine staff attendance at our petrol stations to the development of 300% increase in their supply projects such as the Compressed capacity to their two main water Natural Gas project developing a treatment plants in Iju and Adiyan. natural gas compression facility. This is another example of effective of our first independent power plant collaboration for the greater good Making a difference (IPP) in Akute in 2010 to the recent However we need to partner with In line with our long term strategic commissioning of our second IPP in universities, research bodies, of the industry, society and the objectives, we work with the Alausa in September 2013. We have technology suppliers and other environment. The power plants are government and other industry indentified the need for IPPs as a stakeholders to explore technology designed to run on natural gas, a participants to develop appropriate welcome resolution to the crippling options specific to the oil and gas cleaner, safer and more laws that regulate, protect and power problem in Nigeria. There are industry. environmentally friendly energy promote the growth of the oil and gas plans to expand the distribution source compared to diesel. The industry. During the year, we held network of the IPPs and we are We encourage senior leadership to where we received a silver award in where knowledge and experience is commissioning of the second discussions with the Nigerian currently working with Orlean Invest on join forums and professional recognition of our contribution. NAICE shared between participants with the power plant also marks Lagos government on the proposed the installation of IPPs at Onne and membership organisations that not is one of the largest upstream oil and aim of developing the industry and Petroleum Industry Bill (PIB) intended State as the first state government Lekki. Our IPP strategies also align only promote their careers but also gas events in Africa attracting industry adding value to respective customers. to subsume regulatory and fiscal and with its secretariat fully powered by with our Energy Quadrant Project - one push forward matters of interest on the practitioners and providing an This collaborative approach can also petroleum laws of Nigeria under a natural gas. of the utilization strategies employed to agenda to participants in the oil and opportunity for learning, debate and be seen in a number of our projects single piece of legislation. achieve our total gas flare out gas industry. Our Group Chief challenge to develop initiatives that will including our joint venture terminal objective by 2020, further information Executive and a number of other deliver a sustainable future for the depot at Apapa, Lagos, the We also continue to work towards on which can be found on page 46. senior managers, engage with the industry. Oando/Total Joint Venture Terminal achieving the industry goal of total Society of Petroleum Engineers in built in conjunction with Total Nigeria flare out by 2020 in compliance with We will continue to participate and Nigeria (SPE) as members and PLC and provides product receipt, the deadline recommended by the promote government projects like the partners. Oando is also an ongoing Partnering with competitors storage and distribution facilities. International Oil Companies (IOCs) to There are a number of strategic National Integrated Power Project supporter of the SPE and active the Nigerian Government. alliances that we at Oando value (NIPP) that seek to address the issues participant in its programmes. In 2013, In the upstream sector of our business greatly including our relationships with around insufficient electric power we were co-sponsors of the Oloibiri we have formed alliances with Oando has continued to work with the engineering, procurement and generation and excessive gas flaring. lectures and energy series at the SPE’s organisations that promote local Lagos State government to provide construction (EPC) contractors. We For more information on gas flaring 37th Nigerian Annual International content participation in the petroleum stable and uninterrupted electricity regularly participate in industry ‘hubs’ see pages 52 - 53. Conference and Exhibition (NAICE) industry. supply to the Lagos State Water Cooperation (LSWC) from the launch
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Building a strong foundation One in five (20%) of the out of school children in the world are in Nigeria. Despite free education, 52% of children drop out as a result of cost-related factors.
The primary focus of the Foundation is This shows that the country is far from community participation in school Oando Foundation education and the improvement of achieving the 2015 target of ensuring management and governance through The Foundation is an independent access to quality basic education for that there is universal primary capacity building for the School Based charity set up by Oando Plc in 2011 to all children in Nigeria. This focus on education as set under the MDG. Management Committee (SBMC) and empower communities across Nigeria education came as a result of the Therefore it is important that the Local Government Education through capacity building and realisation that the education system in government and private corporations Authorities (LGEA). The Foundation is sustainable development. It donates to Nigeria required the support of the work together in partnership to turn committed to adopting 100 schools by orphanages and special needs private sector to achieve its goals. The this trend around. 2015. schools, grants scholarships and United Nations Educational, Scientific develops teacher training programmes and Cultural Organisation (UNESCO) Poverty is a major barrier to the and other projects that promote its has reported that there are Adopt-A-School Initiative education of children in Nigeria. mission. During the year, a new The Adopt-A-School Initiative (AASI) is approximately 10.5 million primary Despite education being nominally teacher training programme which the Foundation’s signature project school aged children out of school in free, 52% of the children that drop out includes a teacher developments through which the lives of many Nigeria, more than any other country in of the education system, do so as a needs assessment was unveiled. The children in Nigeria have been the world and the country that has result of cost related factors. The programme is due to run in 2014 in 22 positively affected. It is a public-private experienced the highest increase money received through the Sponsor- of the adopted schools in partnership partnership project designed to since 1999. This is despite the free a-Child campaign goes a long way with Pearson Nigeria Limited. Further improve the deplorable state of public education provisions made under the towards changing the life of the information can be found at schools in Nigeria by upgrading and Universal Basic Education (UBE) sponsored child and yours. The www.oandofoundation.org. refurbishing them to acceptable programme launched by the Federal standards through their ‘adoption’. This Foundation also supports the transition Government of Nigeria in 1999. is done by the rehabilitation of the from primary to secondary schools adopted school’s infrastructure, through the "Oando Scholars teacher training, upgrading of Early Programme" awarding scholarships to Childhood Care and Development the ten highest performing students in Centres (ECCD), the establishment of each adopted school. The Foundation 2013 Adopt-A-School-Initiative (AASI) Achievements awarded over 300 scholarships in 2013 ‹ 20 additional schools adopted bringing total to 47 ICT/Creative centres, provision of scholarships and strengthening taking the number of students on the ‹ Over 300 scholarships awarded to outstanding pupils scholarship programme to over 500. ‹ New ultra modern ECCD and model ICT Centre installed at Archbishop Taylor Primary School in Lagos boasting state of the art TV, DVD and projectors powered by solar energy
‹ Six ICT teachers from adopted schools trained in partnership with Microsoft.
million N1 30 provided by Oando Foundation in 2013 through donations and sponsorship - Oando Sustainability Report 2013 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future
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Building a strong foundation
Graduation ceremony of potential partners to encourage similar 4 Gaslink scholars at What next? support. We also ran capacity building Excellent Foundation The Foundation continues to focus on training for Early Child Care College on July 23, 2013 ensuring the achievement of its Development (ECCD) teachers and objectives. Donor/Partner engagement caregivers in partnership with Incubator remains key to success and includes Africa and Arc Lights Limited during the the identification and interaction with year. Teacher training is an important potential donors and partners, telling aspect in ensuring better education for the Foundation’s story to national and the children. international funders or others willing to support and partner in this laudable A new teacher training programme was cause. revealed on World Teachers’ Day in Employee Volunteering October 2013 that would aim to create The Employee Volunteer Programme In 2013, the UK Department for Gaslink Back-To-School a more needs-based training plan (EVP), tagged ‘Inspired Hands’, is an International Development (DfID) Programme going forward. We are working in The Gaslink Programme, which initiative of the Oando Foundation partnered with the Foundation to partnership with the National Training commenced in 2007, offers a six-year providing an opportunity for Oando provide resources and technical Institute (NTI) to strengthen the scholarship to 100 children of primary employees to give their time and talent support for teacher training in ten of capacity of teacher trainers in or secondary school age who are to uplifting the local communities in the Foundation’s adopted schools and preparation for the deployment of the indigenous to the communities in which they live and work and effect we continue to work with other programme. which Gaslink Nigeria Limited has its positive changes. The EVP was pipelines. It seeks to encourage launched as part of activities to children within host communities to commemorate the United Nations return to school, fostering a Volunteer Day in December 2012 and harmonious relationship between the over 100 employees signed up to the New Teacher Training Company and the community. There programme. They have since Programme Unveiled are currently 73 students from the contributed their time and effort to following communities on the helping with different community The Foundation invests in the programme: Agidingbi, Apapa, projects. On International Volunteer capacity development of teachers Ilasamaja, Ilupeju, Isolo, Keke Agege, Day on December 5, 2013, the at all its adopted schools. In 2013, Mushin, Obanikoro, Ojota, Omole, employee volunteers engaged in a new teacher training programme Oregun, Orile, and Wasimi-Maryland. community sanitation activities at one in partnership with Pearson Nigeria The programme is funded by Oando of our adopted schools, Zumuratul was unveiled to commemorate Gas and Power Limited and currently Islamiat (ZI) Primary School I, Akute, World Teachers’ Day. This new managed through the Oando Ogun State, turning an area with programme would conduct Teacher dilapidated structures into a more Foundation. Development Needs Assessment habitable and conducive learning and analysis to determine the environment. We are currently reviewing more efficient methods of appropriate content of training that collating data on employee would give teachers the necessary volunteering commitments. tools to maximise learning opportunities. The programme is due to run through 2013-2014.
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ps Targets and Data 82 Targets and Data Global Reporting Initiative 89 GRI Content Index 90
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Targets and Data
Air quality monitoring data and DPR limits Employee Data Parameter Units Method DPR Limit Average Employee Category OES OMP OGP OER OSHS/Group Total Noise Level dB(A) ISO 1996- 1: 2003/Noise meter 80-100 56.16 Permanent Staff (Active) 49 292 48 55 111 555 Sox ug/m3 Instrumental/Portable Analyzer (100-150) 0.2575 Permanent Staff (On study leave or leave without pay) 0 7 1 0 2 10 NOx ug/m3 Instrumental/Portable Analyzer 150 0.2575 Contract Staff 409 384 16 10 68 887 VOC ug/m3 Gas Detection Tubes 160 16.96 Consultants 35 7 0 5 5 52 CO ug/m3 Instrumental/Portable Analyser N/A <0.01 Interns 0 2 1 6 4 13 SPM ug/m3 Instrumental/Portable Analyser 250 39.76 Expatriates 22 2 0 0 0 24 Radiation/LSA µS/hr Instrumental/Portable Analyser N/A 0.085
Age and Gender (Employees recruited in 2013) Waste Management (Non-hazardous and Hazardous waste) Entity Number Age Group Male Female Non-hazardous Waste Hazardous Waste Group/SS 16 27-37 10 6
Glass/ Paper/ Other Metals/ Oily Medical/ OGP 5 24-38 4 1 Food Ceramic Plastics Packaging Domestics woods waste Sludge Others Total (kg) (kg) (kg) (kg) (kg) (kg) (kg) (kg) (kg) (kg) OMP 11 26-43 8 3 January 1045.5 16.5 300.5 694.5 367.0 192.0 144.5 0.0 0.0 2760.5 OER 4 30-45 4 0 February 1226.5 43.0 210.5 496.5 236.0 211.0 105.5 0.0 0.0 2529.0 OES 2 29-45 2 0 March 1327.0 22.0 346.0 615.0 344.5 151.0 130.5 400.0 0.0 3336.0 OST 1 27 1 0 April 1522.5 37.0 344.0 711.9 308.0 191.5 146.0 0.0 0.0 3260.9
May 1316.0 31.0 457.5 688.0 451.0 128.0 144.5 0.0 0.0 3216.0 Total: 39 24-45 29 10 June 1332.5 20.5 519.5 672.0 528.0 780.0 10159.5 5400.0 2.5 19414.5 July 1230.5 23.0 282.0 638.0 269.0 184.0 163.5 0.0 0.0 2790.0 August 1382.0 18.5 300.0 734.0 316.0 164.5 157.0 0.0 0.0 3072.0 Permanent Employees by Gender ratio per subsidiary September 1428.5 36.0 507.5 770.5 762.0 189.0 121.0 400.0 0.0 6910.0 OGP OMP Group/SS OER OES OST Levels Male Female Male Female Male Female Male Female Male Female Male Female October 1397.9 35.5 547.0 886.8 725.5 217.0 5108.5 0.0 0.0 7053.9 Senior 28 8 176 55 31 39 17 13 23 7 12 2 November 1441.0 32.5 579.0 1061.7 834.5 179.0 27587.5 15100.0 0.0 7757.9 Management 10 2 37 6 25 16 20 5 17 2 2 2 December 916.0 10.0 165.0 579.4 360.0 95.0 158.0 400.0 3.6 4300.8
Total 15565.9 325.5 4558.5 8548.3 5501.5 2682.0 44126.0 21700.0 6.1 66401.5
Employee lost time injuries Gas Flaring Entity Total No. of Total lost Injury Rate Occupational Lost Day Absentee Fatalities Employees and work day Diseases Rate Rate 2013 2013 Oando’s share contractors cases Rate BBLS BBLS OMP 664 0 0.55 0 0 0 0 Oil Production 8,075195.00 1,211,279.25 OES 494 0 0 0 0 0 0
OGP 64 0 0 0 0 0 0 MMSCF MMSCF Gas Production 13,065.08 1,959.76 OER 78 0 0 0 0 0 0 Gas Flared 8,724.29 1,308.64 TOTAL 1300 0 0.55 0 0 0 0
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Targets and Data
Employee Training Employee Training Training / Activity No of Participants Training / Activity No of Participants Abuja Aviation KLP ISO 14001 Environmental Management Training 27 First aiders Training (RED CROSS) 20 Waste Management training 27 Promoting a positive Safety culture 9 Forklift Refreshers 6
Apapa Terminal EMS awareness 11 ISO14001/OHSAS training 91 Contractors EHS 16 Incident management system 36 Elements/Implementation of EMS/OHSAS 62 General Induction for staff working in Lube 37 Waste segregation awareness 28 Training on Manual Handling for lube plant 18 Contractors Forum 31 OES ISO14001/OHSAS 18001 Training for drivers 41 IWCF 6 Importance of Nearmiss reporting for Maintenance staff 8 BANKSMAN SLINGER 51 Training on Emergency response and 14 lifesaving rules for Fastlink Security guard 19 HLO 83 Training on Emergency response and 14 lifesaving rules for Rapid Vigil Security guard 26 ADVANCE FIRE FIGHTING 40 General EHS Orientation for Handy Andy 23 ADVANCE FIRST AID 14 Know your terminal Staff orientation 45 BOSIET 16 Contractors awareness campaign 36 HUET 6 Training for laboratory staff on oil Spill prevention and Safe Handling of Chemical 4 GMDSS 3 EHS orientation for All terminal staff 61 Apapa terminal Health week 36 Onne PTW/JHA training for Managers/Supervisors 21 EHSSQ Monthly Meetings 34 Contractors awareness Campaign march 110 Weekly Safety Peptalk / Tool box meeting 30 Training for white product staff on Oil spill prevention , and safe Loading procedure 10 Health Education - Think, Eat Save 21 Contractor awareness training February 146 Health Education – Hepatitis 28 Induction for Rapid vigil security outfit 36 Health Education – Pancreas Health 30 Training - Waste Management 5
OMP Head Office Training - Hazard and Incident Reporting 23 ISO 14001/OSHAS 18001 Awareness training 557 Training - Oando Fire Marshal Guideline 8 EHS Level 1 44 Training - EHS level 1 and 2 33 EHS Level 2 27 Training - OHSAS 18001 and ISO 14001 module 1 and 2 42 EHS Level 3 (23 Jan. 2013) 16 Monthly emergency drills 50 EHS Level 3 (20-22 Nov. 2013) 25 Monthly safety Marshal meeting and Rehearsal 12 Journey Management 62 Drivers Safety Campaign 15
Ikeja Aviation OER ISO 14001/ISO 18001 Awareness Training Session 48 Fire fighting 20
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Targets and Data
Targets for 2013 2013 Outcome and Comments Targets for 2014
Targets Safety Our targets are intended to ensure that we achieve our strategic objectives and refocus our activities on areas of particular concern for our stakeholders taking into consideration any material issues. We outline below some of our 2013 targets and Target met Zero fatality at our operating oil rigs Zero ffaattaaliltiyty at our Zero fatality in 2013 outcomes during the year. We have also provided some of our 2014 targets. Full explanations of our achievements and operating oil rigs where we could do better can be found within this report.
Our performance Targets for 2013 2013 Outcome and Comments Targets for 2014 Our people
Financial Targets for 2013 2013 Outcome and Comments Targets for 2014
Profitability Target met Return on capital employed of 3% Training Return on capital employed of ROCE of 6% in 2013 3% Target met Increase leadership capability through SIduecnctiefys sainodn c prelaantening ensuring attendance by every manager of a Ongoing Gearing level of 60% by 2020 development plans for key leadership development programme by 2015 GCaepairtinagl s letrvuecl toufr 6e 0% by 2020 "There was a 19% reduction in the debt/equity ratio in roles and their successors for 2013, from 72% in 2012 to 58% in 2013 as a result of the all management positions Group’s objective of managing capital to safeguard its ability to continue as a going concern in order to provide Target met Undertake a major review of the Code of returns for shareholders and to maintain an optimal EAtllh eicmapl lcooyenedsu cot nfirm that they Business Conduct and Ethics. capital structure to reduce the cost of capital have read, understood and complied with the Corporate 100% of operations to conduct a review of Target (met) Dividend should amount to 25% - 35% of Dividend Code of Business Conduct and their ethical conduct risks and action plans Dividend should amount to The average dividend payment over the last 5 years has profit after tax over the long term. Ethics 25% - 35% of profit after tax been 41% of PAT Due to the challenges faced in 2013 and over the long term. with the prospect that the year 2014 will reap the rewards of the strategic initiatives employed in the preceding year, Employee wellness the board of directors proposed, in accordance with the Target met To achieve a 5% voluntary attrition rate by Company’s dividend policy, that N0.30k be declared as Employee attrition dividend for 2013.. To achieve an 8% voluntary Voluntary attrition rate of 8% in 2013 2017 employee attrition rate
Environment Target not met Establish mechanism for lowering the Diversity Monitoring CO2 Emissions During the year, our emissions where below the company’s CO2 emissions by 3 – 5% in 2014 Target met Develop a detailed diversity strategy with Increase female DPR/Nigerian Ambient Air Quality standard (NAAQS) In 2013, women in the workforce 27% (20% in 2012) and accompanying targets and implementation participation and leadership limit for a Daily average discharge rate. To increase the percentage of female managers 23%. plan women in the workforce and Target met Achieved 80% reduction in paper and waste number of female managers WAgarsetee nMeawn wagaestme ent The Company has agreed to implement a new Waste paper from printing. Audits, records, management target for management plan that will commence in 2014, involving Standard Operating procedures and next 10 years a 50% reduction in paper and waste paper from prints. procedural manuals were utilized in soft copy
Ongoing Complete the ISO 14001 Certification for Environmental management Fully achieved ISO 14001 and OHSAS 18001 for our other entities and locations. s1y00s%tem of uoppgerradtioe ns to achieve downstream operations with a gap analysis carried ISO 14001 environmental out in all locations management system certification by 2015
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Key: Targets and Data GRI Content Index Fully Reported Partially Reported 2013 Sustainability Report SR 2013 Annual Report AR
Our partnerships Global Reporting Initiative Index We have provided below our Global Targets for 2013 2013 Outcome and Comments Targets for 2014 Reporting Initiative (“GRI”) report index showing how and where we have Community addressed requirements under the GRI 3.1 Target Met To adopt 28 schools in 2014 to bring the Education sustainability reporting guidelines within this To increase the number of A total of 20 additional schools were adopted by the number of schools adopted to 75. report and in our 2013 Annual Report. schools adopted by the Foundation in 2013 bringing the total number of schools Foundation in 2013 adopted by the Foundation to 47.
Target met To develop an employee volunteering TEom rpevloieywe eth veo olupntitoene orifng Employee volunteering trial run took place at Zumuratul programme for greater participation in Oando employee volunteering within Islamiat Primary School I, Akute, Ogun State in host communities. the communities we operate in December 2013. GRI Indicator GRI Indicator GRI Status Location of Disclosure
1. Strategy and Analysis Diversity 1.1 Statement from the most senior decision-maker of the SR 10, AR 7 - 21 Target met Develop a detailed diversity strategy with organisation. TInoc irnecaresaes fee mthael ep elercaednetrasgheip of accompanying targets and women in the workforce and implementation plan number of female managers 2. Organisation Profile 2.1 Name of the organisation SR 2 Business Partners 2.2 Primary brands, products and/or services SR 10, AR 7 - 21 Target met To develop a separate code of conduct for TCoo ednes oufr eC aolnl bduscitness partners All business partners are provided the code of conduct business partners, including Suppliers and are signed up to the and it is incorporated into standard contract of service Business Partners 2.3 Operational structure of the organisation, including main SR 10, 11, AR 32 - 61 Company’s corporate code of divisions, operating companies, subsidiaries, and joint business conduct and ethics ventures. 2.4 Location of organisation’s headquarters. Lagos, Nigeria, SR Back Cover Page 2.5 Number of countries where the organization operates, and Where We Are names of countries with either major operations or that are specifically relevant to the sustainability issues
2.6 Nature of ownership and legal form. AR 66 2.7 Markets served (including geographic breakdown, sectors AR 32 - 61 served, and types of customers/beneficiaries).
2.8 Scale of the reporting organization. ‹ Employees - 1,578, Revenue - N673billion, ‹ Offices in Bermuda, Ghana, UK, Togo, South Africa, Canada, Benin Republic and Nigeria. 2.9 Significant changes during the reporting period regarding In December 2013, Oando PLC executed a size, structure, or ownership. Share Purchase Agreement with Seven Energy International Limited for the divestment of the Oando Gas & Power (OGP) division’s East Horizon Gas Company. This transaction is in alignment with Oando’s growth strategy and will create capacity for OGP to execute other projects. 2.10 Awards received in the reporting period. SR 20 and 21
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GRI Content Index
GRI Indicator GRI Indicator GRI Status Location of Disclosure GRI Indicator GRI Indicator GRI Status Location of Disclosure
3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information SR 6 Economic provided Economic performance EC1 Direct economic value generated and distributed, SR 42, AR 176 3.2 Date of most recent previous report (if any). 2012 including revenues, operating costs, employee compensation, donations and other community 3.3 Reporting cycle (annual, biennal, etc) SR 6 & 7 investments, retained earnings, and payments to capital providers and governments. 3.4 Contact points for questions SR 97 EC3 Coverage of the organization's defined benefit plan AR 86 obligations. 3.5 Process for defining report content SR 6 & 7 EC4 Significant financial assistance received from government. No significant financial assistance was 3.6 Boundary of the report (e.g., countries, divisions, SR 6 received from the government. subsidiaries, leased facilities, joint ventures, suppliers).
3.7 State any specific limitations on the scope or boundary of SR 7 & 8 the report Market presence 3.8 Basis for reporting on joint ventures, subsidiaries, leased SR 6 facilities, outsourced operations, and other entities that EC7 Procedures for local hiring and proportion of senior SR 26 can significantly affect comparability from period to period management hired from the local community at significant AR 85 and/or between organizations. locations of operation. 3.12 Table identifying the location of the Standard Disclosures SR 90 in the report.
Indirect Economic Impact EC8 Development and impact of infrastructure investments and SR 76 - 78, AR 82 - 84 4. Governance, Commitments and Engagement services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. 4.1 Governance structure of the organization, including SR 36, AR 67 - 73 committees under the highest governance body OG1 Volume and type of estimated proved reserves and AR 32 responsible for specific tasks, such as setting strategy or production. organizational oversight. 4.2 Indicate whether the Chair of the highest governance SR 36, AR 67 - 73 body is also an executive officer.
4.3 For organizations that have a unitary board structure, state SR 36 -37, AR 64 - 65 the number and gender of members of the highest Environmental governance body that are independent and/or non- executive members. Energy Joules. This was sourced from diesel 4.4 Mechanisms for shareholders and employees to provide SR 30 - 34 EN3 Direct energy consumption by primary energy source. generators and municipal power supply recommendations or direction to the highest governance body. EN4 Indirect energy consumption by primary source. SR46 4.14 List of stakeholder groups engaged by the organization. SR 34 EN5 Energy saved due to conservation and efficiency SR 46 4.15 Basis for identification and selection of stakeholders with SR 26 -27 improvements. whom to engage. EN6 Initiatives to provide energy-efficient or renewable energy SR 46 based products and services, and reductions in energy requirements as a result of these initiatives.
EN7 Initiatives to reduce indirect energy consumption and SR 46 reductions achieved.
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90 91 Creating value through strategic partnerships About this report Stakeholder engagement Creating value through Creating value through Feedback inspirational leadership strategic partnerships Targets and data
GRI Content Index
GRI Indicator GRI Indicator GRI Status Location of Disclosure GRI Indicator GRI Indicator GRI Status Location of Disclosure
Water Environmental EN8 Total water withdrawal by source. SR 53 Compliance EN28 Monetary value of significant fines and total number of The Group was not levied with any significant EN9 Water sources significantly affected by withdrawal of water. SR 52 - 53 non-monetary sanctions for non-compliance with fines and penalties for non-compliance with environmental laws and regulations. environmental laws and regulations. We intend to continue preventing any future EN10 Percentage and total volume of water recycled and reused. SR 52 contraventions and to provide corrective actions for deficiencies that may arise in the coming years.
Biodiversity EN12 Description of significant impacts of activities, products, SR 52 - 54 Social: Labor Practices and Decent Work and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Employment LA1 Total workforce by employment type, employment SR 34 EN14 Strategies, current actions, and future plans for managing SR 52 - 54 contract, and region broken down by gender. impacts on biodiversity. LA2 Total number and rate of new employee hires and SR 33 EN15 Number of IUCN Red List species and national We are committed to operating only in employee turnover by age group, gender, and region. conservation list species with habitats in areas affected by non-critical habitats with extinction risk. operations, by level of extinction risk. LA3 Benefits provided to full-time employees that are not AR 86 provided to temporary or part-time employees, by major operations.
Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas emissions by SR 82 Labour/management relations weight. LA4 Percentage of employees covered by collective SR 83 EN17 Other relevant indirect greenhouse gas emissions by SR 82 bargaining agreements. weight. LA5 Minimum notice period(s) regarding significant operational SR 59 EN18 Initiatives to reduce greenhouse gas emissions and SR 53 changes, including whether it is specified in collective reductions achieved. agreements. EN20 NOx, SOx, and other significant air emissions by type and SR 32 weight.
EN22 Total weight of waste by type and disposal method. SR 82 Occupational health and safety OG5 Volume or formation of produced water SR 17 LA7 Rates of injury, occupational diseases, lost days, and SR 60, 83 absenteeism, and number of work-related fatalities by region and gender. EN23 Total number and volume of significant spills. SR 52 LA8 Education, training, counseling, prevention, and risk- SR 61, 84 & 85 OG6 Volume of flared and varied hydrocarbon SR 83 control programs in place to assist workforce members, their families, or community members regarding serious diseases.
Products and services EN26 Initiatives to mitigate environmental impacts of products SR 52,53 & 54 and services, and extent of impact mitigation. Diversity and equal opportunity LA13 Composition of governance bodies and breakdown of AR 67-70, SR 36 & 37 employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
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92 93 Creating value through strategic partnerships About this report Stakeholder engagement Creating value through Creating value through Feedback inspirational leadership strategic partnerships Targets and data
GRI Content Index
GRI Indicator GRI Indicator GRI Status Location of Disclosure GRI Indicator GRI Indicator GRI Status Location of Disclosure
Social: Society Social: Human Rights Local Communities Non-discrimination SO1 Percentage of operations with implemented local SR 70 & 71 HR4 Total number of incidents of discrimination and corrective No reports of discrimination over the community engagement, impact assessments, and actions taken. reporting period. development programs.
SO9 Operations with significant potential or actual negative None of our operations have any significant impacts on local communities. actual or negative impact on local Freedom of association and collective bargaining communities in the areas we operate. HR5 Operations and significant suppliers identified in which the We have not identified any operations in right to exercise freedom of association and collective which the right to exercise freedom of OG10 Number and description of significant disputes with local No significant disputes with any of the local bargaining may be violated or at significant risk, and association and collective bargaining may be communities and indigenous peoples. communities we operate in. actions taken to support these rights. at significant risk. OG11 Number of sites that have been decommissioned and No sites have been or are in the process of sites that are in the process of being decommissioned. being decomissioned.
Child labor HR6 Operations and significant suppliers identified as having We support the United Nations Universal Corruption significant risk for incidents of child labor, and measures Declaration of Human Rights and the ten SO3 Percentage of employees trained in organization's anti- AR 75 taken to contribute to the effective abolition of child labor. principles of the United Nations Global corruption policies and procedures. Compact. Our Code of Business Conduct and Ethics substantially incorporate ethical SO4 Actions taken in response to incidents of corruption. SR 64 & 65 princiles including child labour. We have not identifed any of our operations as having significant risks for incidents of child labour. Public policy SO5 Public policy positions and participation in public policy SR 73 development and lobbying.
Prevention of forced and compulsory labor SO6 Total value of financial and in-kind contributions to political According to our Code of Business Conduct HR 7 Operations and significant suppliers identified as having No reported cases of violations involving parties, politicians, and related institutions by country. & Ethics, no Company funds may be given significant risk for incidents of forced or compulsory labor, forced or compulsory labour over the directly or indirectly to political candidates and measures to contribute to the elimination of all forms reporting period. and political parties. Directors, employees of forced or compulsory labor. and managers may in their individual capacities, participate in political activities, however, such individual participation must not involve the Company’s funds, time, Indigenous rights equipment, supplies. and facilities. HR9 Total number of incidents of violations involving rights of In 2013, there were no recorded incidents of indigenous people and actions taken. violations involving rights of indigenous people. Anti-competitive behavior SO7 Total number of legal actions for anti-competitive behavior, SR 74 anti-trust, and monopoly practices and their outcomes.
Assessment HR10 Percentage and total number of operations that have been Oando's Code of Business Conduct and Compliance subject to human rights reviews and/or impact Ethics are applied rigorously within all SO8 Monetary value of significant fines and total number of non- AR 79 assessments. operations. monetary sanctions for non-compliance with laws and regulations. OG9 Operations where indigenous communities are present or None identified. affected by activities and where specific engagement strategies are in place. Involuntary resettlement OG12 Operations where involuntary resettlement took place, the None of our operations have led to number of households resettled in each and how their involuntary resettlement. livelihoods were affected in the process. Remediation HR11 Number of grievances related to human rights filed, No reports of grievances relating to human addressed and resolved through formal grievance rights over the reporting period. Asset Integrity and Process Safety mechanisms. OG13 Number of process safety events, by business activity. AR 87, SR 84 & 85
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Feedback
We have tried to include information in this report that we believe our stakeholders are interest in. However, we always welcome any feedback which would help to improve our subsequent reporting or for anyone who has a question regarding the content of this report.
Please send your feedback or questions to:
Ayotola Jagun Chief Compliance Officer and Company Secretary [email protected] or
Ainojie Alex Irune Head of Corporate Communications [email protected] programme
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