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Sustainable Development Report 2015

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Sustainable Development Report 2015 Sustainable Development Report Sakhalin Energy Investment Company Ltd. Head Office: 35 Dzerzhinskogo St., Yuzhno-Sakhalinsk, 693020, Russia Tel.: +7 4242 66 2000; Fax: +7 4242 66 2801 Moscow Office: 31 Novinskiy Blvd, Moscow, 123242, Russia Tel.: +7 495 956 1750; Fax: +7 495 956 1760 Sustainable Development Report Development 2015 Sustainable www.sakhalinenergy.com TO BE THE PREMIER ENERGY SOURCE FOR ASIA-PACIFIC Content 1. Message from the Chief Executive Officer . 5 5.4. Corporate Culture 44 8.1.3. Waste Management 77 9.1.6. Individual Performance Review 2. About the Report . 7 5.5. Code of Conduct 45 8.1.4. Energy 79 of the Employees 107 2.1. General 9 5.6. Risk Management 46 8.1.5. Greenhouse Gas and Ozone-Depleting 9.1.7. Staff Learning and Development 108 2.2. Principles of the Report Content 5.7. Anti-Bribery and Corruption 50 Substance Emissions 80 9.2. Labour Safety and Protection 117 and Quality Definition 10 6. Economic Impact Management . 51 8.1.6. Utilisation of Associated Gas in Production 80 9.2.1. General Information 117 2.3. Defining Material and Priority Topics 6.1. Importance of the Sakhalin-2 Project for the 8.1.7. Environmental Protection Costs 9.2.2. Industrial Safety 119 to Be Included in the Report 11 Russian Federation and the Sakhalin Oblast 53 and Payments for the Negative Impact 81 9.2.3. Safety Culture 120 2.4. Definition of the Report Scope 14 6.2. Financial Benefits to the Russian Federation 8.2. Environmental Monitoring 9.2.4. Road Safety 123 2.5. Public Endorsement of the Report 14 and the Sakhalin Oblast 53 and Preserving Biodiversity 82 9.3. Occupational Health 125 3. Corporate Social Responsibility 6.3. Russian Content 55 8.2.1. Soil Monitoring 83 9.4. Human Rights 127 and Sustainable Development . 15 6.4. Supply Chain Management 56 8.2.2. River Ecosystems Monitoring 84 9.4.1. Human Rights: Principles 3.1. Introduction 17 6.5. Vendor Development Programme 58 8.2.3. Flora and Vegetation Monitoring 86 and Management System 127 3.2. Sakhalin Energy CSR System 17 7. Stakeholder Engagement Management . 59 8.2.4. Wetlands Recovery Monitoring 87 9.4.2. Grievance Mechanisms 128 3.3. Performance Standards 19 7.1. Engagement Strategy, Principles, 8.2.5. Protected Bird Species Monitoring 88 9.4.3. Grievance Handling in 2015 129 3.4. Sustainable Development Policy 20 Mechanisms, and Tools 61 8.2.6. Steller’s Sea Eagle Monitoring 89 9.4.4. Human Rights Training 130 3.5. HSE and Social Performance Management 21 7.2. Stakeholder Engagement Performance in 2015 62 8.2.7. Offshore Environment and Biota Monitoring 90 9.4.5. Monitoring Human Rights 130 3.5.1. HSE and Social Performance 7.3. Engagement with Personnel 63 8.2.8. Ballast Water Control 91 9.5. Social Investments and Contributions to Sustainable Management System 21 7.4. Local Communities Engagement through 8.2.9. Gray Whales Monitoring 92 Development of the Host Region 131 3.5.2. Impact Assessment 23 the Company Information Centres 64 8.3. Pipeline Right-of-Way Maintenance 94 9.5.1. Social Investments and Sustainable 3.5.3. Checks and Audit 24 7.5. Engagement with the Sakhalin 8.4. Oil Spill Prevention and Response Preparedness 95 Development: Sakhalin Energy’s 4. About the Company . 25 Indigenous Minorities (SIM) 65 8.4.1. General Information 95 Principles and Approaches 131 4.1. Sakhalin Energy 27 7.6. Engagement with Non-Governmental 8.4.2. Oiled Wildlife Rehabilitation 96 9.5.2. Children’s Safety (What to Do in Emergency 4.2. Main Production Results in 2015 27 and Non-Profit Organisations 68 9. Social Impact Management . 97 Situations Programme) 133 4.2.1. Assets 27 7.7. Engagement with Japanese Stakeholders 68 9.1. Personnel: Management and Development 99 9.5.3. Sakhalin Road Safety Council 135 4.2.2. Development Projects 31 7.8. Engagement with Customers 69 9.1.1. Approaches to HR Management 9.5.4. Energy Social Initiatives Fund 136 4.2.3. Hydrocarbon Production and Export 32 7.9. Engagement with State and Local and HR Policy 99 9.5.5. Hurry Up for Good Deeds 137 4.2.4. Sanitary Protection and Safety Zones 34 Government Authorities 70 9.1.2. General Information 100 9.5.6. Korsakov Sustainable Development 4.3. Operational Excellence Programme 36 7.10. International and Regional Cooperation 71 9.1.3. Recruiting Personnel and Onboarding Partnership Council 138 5. Corporate Governance . 37 8. Environmental Impact Management . 73 New Employees 102 9.5.7. Victory Day Project 138 5.1. Company Mission, Vision, Values, and Principles 39 8.1. Industrial Environmental Control 75 9.1.4. Remuneration and Bonus System 103 9.5.8. Sakhalin Indigenous Minorities 5.2. Corporate Governance System and Structure 39 8.1.1. Impact to the Atmospheric Air 75 9.1.5. Social Guarantees, Benefits Development Plan 139 5.3. Corporate Governance Model 41 8.1.2. Impact on Water Bodies 76 and Compensations 104 10. 2016 Plans and Development Strategy up to 2020 ....143 2 3 Message from the Chief Executive Officer Appendices . 147 Appendix 1. GRI Guidelines Compliance Table (Rev. 4.0.) 148 Appendix 2. Comments and Suggestions of Stakeholders on Individual Aspects, Indicators and/or Programmes, and Company’s Response and Commitments 157 Appendix 3. The List of Participants of Dialogues with Stakeholders for Preparation of the 2015 Sustainable Development Report 165 Appendix 4. Useful Links 167 Appendix 5. Company Information Centres List 169 Appendix 6. Feedback Form 170 Appendix 7. Certificate of Public Endorsement 171 Appendix 8. Conclusion on the Review of Sakhalin Energy’s 2015 Sustainable Development Report by the RUIE Council for Non-Financial Reporting for the Purpose of Public Endorsement 172 Appendix 9. Abbreviations 176 4 5 1. Message from the Chief Executive Officer About the Report the condition that each employee has while the proportion of the Sakhalin Oblast a responsible attitude to safety, actively budget revenues coming from Sakhalin participates in the Effective Observation and Energy were over 60%. Intervention Programme, and company’s leadership unconditional commitment to In spite of the challenging economic safety. situation, the company does not reduce its expenditures on social programmes but In 2015, the company exceeded its continues to meet all its commitments. production targets and shipped 57 cargoes of oil and 166 cargoes of LNG (while the We achieved a lot in 2015 and continue target figures were 51 and 162 cargoes, moving forward. I am confident that the respectively). long-term growth of the company, and, above all, the implementation of the LNG Thanks to increasing reliability, the Train 3 project, will strengthen Russia’s company reduced unplanned production position as a leading energy supplier, losses fourfold in comparison with the bring economic benefits to the Russian previous year and threefold as compared Federation and the Sakhalin Oblast, and with the average indicator for the period contribute to further strengthening of from the beginning of its operations. In energy security in the Asia-Pacific region. 2015, during the first major turnaround campaign at train 1 of the LNG plant Regards, we completed the modifications of the Dear colleagues, equipment which resulted in a 1 to 2% further output increase at train 1. I am happy to present the Sakhalin Energy Robust at $40 corporate programme 2015 Sustainable Development Report. helped the company to optimise the costs to the required level without affecting As with previous reports, this document safety and production. Roman Dashkov was prepared in compliance with the Global Reporting Initiative (GRI) inter- Sakhalin Energy was able to achieve this national standards. While creating the success thanks to its personnel. The Report, we tried to take into account, to company creates an environment for the fullest extent, the opinions of all our professional growth and development of its stakeholders. employees and is committed to providing an attracting and competitive employee Despite the economic situation in Russia value proposition package. and in the world, it was another year of success for Sakhalin Energy. An integral part of our work is engagement with stakeholders: shareholders, Safety remains a top priority for the customers, contractors, representatives of company—technological, economic, or government authorities, and communities. administrative decision is made on the basis of a thorough assessment of all Sakhalin Energy effectively cooperates with safety aspects. the Sakhalin Oblast Government, success- fully solving complex problems that require We pay utmost attention to the reliability coordination among the various parties. and integrity of our assets. The prevention of incidents is the main task that Sakhalin Since we were able to optimise work in all Energy sets in the area of safety. In this areas, the financial performance of the regard, success is possible primarily on company remained at a high level in 2015, 6 7 2. About the Report 2.1. General Sakhalin Energy treats sustainable internal and external processes in the • use the Feedback Form on the company development reporting as a corporate company; website (www.sakhalinenergy.com); governance tool that systematises its non-financial efforts (environmental, • increase the company competitiveness. • fill out the Feedback Form at one of social and other programmes and the company information centres (see Material topics and initiatives) and improves the quality of The Report describes the company SD Appendix 5 Company Information Cen- corporate governance, which increases performance in 2015 and presents mate- tres List). aspects, which are the overall sustainability of the company. rial topics, issues, and indicators of the An open reporting culture demonstrates company economic, environmental, and reflected in the the company commitment to CSR and social performance, including executives’ SD principles and concepts and provides appraisals of the company performance Report, and their publicly meaningful information about in the period under review as well as the priority were identified the economic, environmental, social and stakeholders’ areas of attention.
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