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Analyses of Key Companies having Business Operations in the

Extract of the report Climate Change in the Arctic

April 2017 1 Main companies from key sectors in the Arctic

Table 4 List of main companies from key sectors in the Arctic Shell, , , noble energy,

Sector Company Logo

Oil & Gas (19)

Mining (10)

Fishery (7)

Others (3)

2 Analyses of Key Companies having Business Operations in the Arctic

A. Oil and Gas Sector Climate change or carbon emission Main business activities reduction related initiatives within in the Arctic and beyond the Arctic

• Shell owns 27.5% interest in Sakha- • Shell ended the exploration lin-2 on the Sakhalin Island (), drilling operations in in an integrated oil and gas project locat- September 2015. ed in a subarctic environment. • Shell works with Wetlands Interna- • In 2015, Shell has made drillings for tional to identify and assess critical oil and gas at the Burger J well habitats in the Arctic regions, develop- in the Chukchi (offshore Alaska, ing a tool that predicts the distribution US ), but the discoveries were of Arctic species; and ever since 2006, insufficient to warrant further explora- it has funded a science programme tion in the area and the well was with the local governments of the Royal Dutch Shell deemed a dry hole. The well was North Slope in Alaska. sealed and abandoned in accordance HQ: The Hague, Netherlands with US regulations. • Shell and IUCN have been work- ing together since 2004 to minimise Ticker: • Shell has 18 state leases in the Beau- the impact on Western gray whales RDS/A fort Harrison Bay area in Alaska at Shell’s jointventure operations in Market Cap (USD mil.): (US ). (In 2016, it relinquished all but Sakhalin, Russia. 224,557 one federal lease in the Chukchi Sea and half of their federal leases in • Shell is a signatory of the United Na- URL: the Beaufort Sea. It concluded tions Paris Agreement on climate www.shell.com a commercial deal to transfer 21 Beau- change. fort federal leases to the Arctic Slope Regional Corporation. It also • Shell’s four main contributions to transferred operatorship of the reducing global GHG emissions are: remaining federal leases (Shell had supplying more natural gas to replace 40% interest) in the Beaufort coal for power generation (Shell Harrison Bay area to ). is one of the world’s leading suppliers of natural gas and liquefied natural • Shell has an onshore gas portfolio in gas (LNG )); progressing carbon cap- Alaska Foothills (US ), in which it ture and storage (CCS ) technologies; has 33% non-Shell-operated interest developing alternative energies; and along with Anadarko and Suncor. implementing energy-efficiency meas- ures. Shell’s overall GHG emissions decreased in 2016 for the following reasons:

3 • overall reduction in flaring; Gordon Murray Design. • quest carbon capture and storage • Solar and wind technologies - At project in ’s safely some offshore platforms in the North injecting more than 1 million tons of Sea, it uses solar PV and batteries CO2 per year; to provide 100% renewable power • divestments, for example in generation, cutting costs, and reduc- and the UK; ing refuelling trips to the platforms. In • and operational improvements across 2001, Shell entered the onshore wind many facilities; business in the US A, and has interests in six operational wind power projects • Methane emissions - Shell has a in North America and one in Europe. In range of initiatives for reducing meth- 2016, the share of the energy capacity ane emissions: programmes to detect from these projects was about 420 and repair methane leaks and imple- megawatts (MW). mentation energy-efficiency measures, as well as flaring and venting reduc- Climate change or environment tion programmes. relatedcontroversies in the Arctic

• Investments in research and devel- On 5 September 2013; the US Envi- opment (R&D) – In 2016, Shell ronmental Protection Agency (EP A) invested USD 1,014 million in R&D to announced the settlements with Shell improve the efficiency of Inc. and Shell Offshore products, processes and operations, Inc., both subsidiaries of Royal Dutch and to develop new technology Shell Plc., for theviolations of the solutions for energy transition. Clean Air Act permits by vessels used for drilling two oil-exploration wells in • In 2016, Shell created a New Ener- Arctic waters off Alaska in 2012. EP A gies business to continue exploring documented numerous air permit vio- investment opportunities in areas lations for Shell’s drill Discoverer including biofuels, hydrogen and and Kulluk. Shell agreed to pay a USD renewable energy. 710,000 penalty for the violations of the Discoverer air permit and a USD • Buiofuels: Shell invests in new ways 390,000 penalty for the violations to produce biofuels from sustainable of the Kulluk air permit. feedstocks such as waste and cellulos- ic biomass from non-food plants. On 27 February 2013; Shell decided not to return to the Arctic in 2013 • In 2016, Shell unveiled an energy-ef- following two serious accidents with ficient city car called the Shell two drill ships while they were Concept Car, in collaboration with Geo leaving drilling sites in the Beaufort Technology and automotive engineers and Chukchi in two instances

4 in 2012. The company allegedly ig- Prudhoe Bay Unit. nored the risks when it decided, in • The Point Thomson natural gas con- December 2012, to tow the rig out of densate project Alaskan waters, in part to avoid • Norman Wells marked the start of the millions of dollars in tax liability. quest for arctic oil and gas. • Grand Banks - Hibernia Canada’s larg- In February 2012; an independent est offshore platform report by the US Government • Grand Banks – Hebron- production Accountability Office identified a slew will begin in 2017 of environmental, logistical, and Exxon Mobil technical challenges associated with • Beaufort Sea: Imperial is the oper- ator of a Joint Venture with BP and HQ: Arctic and concluded Irving, , United States Shell’s “dedicated capabilities do not ExxonMobil Canada in the Beaufort completely mitigate some of the Sea for exploration licenses located Ticker: environmental and logistical risks as- more than 120 kilometers off the coast NYSE: XOM of Canada’s Northwes Territories. sociated with the remoteness and Market Cap (USD mil.): environment of the region.” 342,300 • Kara Sea: ExxonMobil and On 28 July 2012; reported are exploring the Kara Sea in licensed URL: www.exxon.com/en that its scientists were investigating areas that include more than 125,000 submarine life in the Arctic, when square kilometers. they identified a high concentration of deep-sea corals in the Chukchi Sea, • : ExxonMobil operates four where Royal Dutch Shell planned to offshore projects and holds interest in start drilling. The group objected Shell 20 more in the Norwegian sector of researchers’ report that identified cor- the North Sea. als as occupying less than 4% of the habitat, saying the slow-growing soft • Russia: coral was the “third most abundant” • Sakhalin Sakhalin-1 is one of the • largest oil and gas projects in Russia. species in the area. • Chayvo field, using the onshore Yastreb rig and the offshore Orlan Exxon Mobil platform. Main business activities • Odoptu field in the Arctic • Arkutun-Dagi field • The De-Kastri export terminal • Alaska (US ): ExxonMobil is the larg- est holder of discovered natural gas • Russian Arctic Shelf: resources on the Northern Slope of • In February 2013, ExxonMobil and Alaska. Operations: Rosneft announced plans to increase • 36% non-operating interest in the the scope of their strategic coopera- tion by adding seven new blocks in 5 the Russian Arctic. wildlife and improve their environ- • In 2014, geophysical and environmen- mental performance on Alaska’s tal studies began in sections of the North Slope. Chukchi Sea, Laptev Sea and Northern Kara Sea, in licensed areas spanning • Offshore response - Exxon- 600,000 square kilometers. Mobil elaborated an in-house oil spill response research program, which Climate change or carbon emission includes a focus on cold water and reduction related initiatives within remote locations, such as the Arctic. and beyond the Arctic Climate change or environment • ExxonMobil extended-reach drilling relatedcontroversies in the Arctic technologies have allowed for field development from land by drill- On 12 April 2016; it was reported that ing horizontally under the sea. US senators and environmental This approach reduces the number of advocacy groups were urging attorney offshore structures required generals from different US states to recover oil and gas resources by to join governors from New York, Cali- drilling multiple, long-reach wells fornia, Massachusetts, the Virgin at the same location, which helps re- Islands to investigate whether Exxon- duce both underwater noise and Mobil misled the public and investors environmental footprint. about the threat of climate change. The investigations came after the Los • ExxonMobil uses special earthquake- Angeles Times published an investiga- and frost-resistant pipelines in tion on 9th October 2015 revealing some Northern areas. that Exxon conducted studies trying to determine how global warming • ExxonMobil developed the industry’s could affect its Arctic operations and only dedicated, in-house Arctic make its bids for Arctic lease rights research program more than 40 years more profitable due to melting ice, ago. Continued Arctic technology while funding climate change denial development has allowed for groups. InsideClimate News also re- designing, building and operating leased a report on 16th September gravitybased platforms capable of showing that as early as the late withstanding 6-million-ton icebergs in 1970s, Exxon scientists were briefing the North Atlantic and operating year- top executives that climate change round in ice-covered waters offshore was real, dangerous, and caused by Sakhalin Island in Russia. the company’s product.

• ExxonMobil piloted and enhanced On 24th March 1989; the oil tanker technologies in 2015 to monitor local Exxon Valdez slammed into Bligh

6 Reef in Alaska’s Prince William Sound • : On 5th May 2016, Norway (US ) and spilled more than 11 offered 10 drilling licenses to Chevron million gallons of crude oil, damaging and other companies. more than 1,300 miles of some of the most remote, wild shoreline. In Climate change or carbon emission 2010, the US government said that reduction related initiatives within only 13 of the 32 monitored wildlife and beyond the Arctic populations, habitats and resource services that were injured in the spill • Chevron has an Operational Ex- are fully “recovered” or “very likely cellence Management System and recovered.” Some are still listed as “not Environmental Stewardship Corporate recovering”. Standard Process that is followed in all operations. Chevron Chevron Main business activities • Chevron received an overall score of 99 out of 100 points in the 2015 CDP in the Arctic HQ: S&P 500 Climate Change Report — the San Ramon, , U.S. • The Chevron Arctic Center, based in highest among all integrated oil and gas companies. Ticker: Calgary, Alberta, is home to some of NYSE: CVX the world’s foremost experts in Arctic exploration and development. The • The company compiles inventories Market Cap (USD mil.): Center consists of a core group of Arc- of emissions, undertakes projects to 201,010 tic subject matter experts who support manage operating emissions and ap- plies innovative technologies to con- URL: Arctic exploration, asset development www.chevron.com and business development projects tinually improve the energy efficiency across the Chevron global upstream. of its operations.

• Canada: • Chevron is reducing natural gas • In the Flemish Pass Basin offshore flaring and venting and the GHG Newfoundland and Labrador, Chevron emissions. It is a member of the World is conducting active programs across Bank–led Global Gas Flaring Reduc- three exploration blocks. tion Partnership, and it has developed • Beaufort Sea: Chevron has been ex- internal country-specific plans to ploring for hydrocarbons in Northern minimise gas flaring. Canada since the 1950s and considers the area an important future oil and Climate change or environment re- gas region. lated controversies in the Arctic

N/A

7 BP efficient, thus reducing greenhouse Main business activities gas emissions. This includes new lu- in the Arctic bricants that incorporate plant-based or recycled oils. BP is also establish- • BP operates nine onshore fields on ing retail services to support electric Alaska’s Northern Slope. The offshore vehicles. interests in the Arctic are currently limited to areas for exploration. • BP is investing the biofuels and wind businesses and new low carbon • BP also holds some investments in businesses. the offshore Arctic in Greenland and the Canadian Beaufort. Climate change or environment related controversies in the Arctic • BP hold a 19.75% share in Rosneft, Russia’s largest oil company but does On 5th October 2016; it was reported BP PLC. not currently have operations in the that 95 metric tons of oil leaked into the North Sea from BP ’s Clair HQ: offshore Russian Arctic or directly London, United Kingdom partner with Rosneft on any of its platform due to technical issues, and offshore Arctic licensed areas. it will not be cleaned up. Ticker: NYSE: BP On 13th July 2016; US authorities Climate change or carbon emission Market Cap (USD million): reduction related initiatives within fined BP Exploration Alaska with USD 111,610 and beyond the Arctic 130,000 for a 700-gallon spill involving natural gas, crude oil and produced URL: www.bp.com/en • BP declares that it has been studying water that occurred at Prudhoe Bay the environment on Alaska’s North in April 2014. The BP spill affected 33 Slope since 1977 and it continues to acres of Arctic tundra and gravel pad. support research to further under- stand polar bear behaviour, nesting On 18th July 2011; it was reported that birds in the tundra to gain a better BP announced a pipeline rupture dur- understanding of potential impact ing testing and a spill between 2,100 of the industry, climate change and to 4,200 gallons mixture of methanol predators. and oily water in the Alaska’s North Slope tundra. • BP is investing new large-scale gas projects and focusing on quality oil On 29th November 2010; 46,000 gal- projects in core basins in order to shift lons leaked into the Prudhoe Bay to gas and advantaged oil. from a BP pipeline.

• BP is developing and producing fuels On 2nd March 2006; a spill of 212,252 and lubricants to make the cars more US gallons of oil was discovered to 8 have leaked from a pipeline owned by • Arctic Islands: ConocoPhillips holds BP Exploration in the Prudhoe interests in 13 significant discovery Bay, Alaska (US). BP was fined USD 20 licenses. On 31st December 2016, the million and accused of negligence. total leasehold for the Arctic Islands region was approximately 0.2 million From 1993 to 1995; Doyon Drilling net acres. employees illegally discharged waste oil and hazardous substances by in- • Norway: and North Sea. jecting them down the outer rim of the In 2016, ConocoPhillips participated in oil wells. BP failed to report the illegal two non-operated exploration apprais- injections as soon as it learned of the al wells in the Oseberg and Alvheim conduct. The illegally injected wastes areas. Both wells were discoveries and included paint thinner and toxic sol- are currently undergoing evaluation. In vents containing lead and chemicals 2016, the company was awarded three such as benzene, toluene and methyl- exploration licenses. ene chloride. • Offshore operations: ConocoPhillips Conocophillips Conocophillips announced in its 2015 Q4 earnings HQ: Main business activities results that it will book an impairment , Texas, United in the Arctic for the Chukchi Sea leases. States Subsequent to that action, the compa- Ticker: • Alaska operations (US ): ConocoPhil- ny and its co-venturers jointly NYSE: COP lips operates the Kuparuk River Unit, decided to relinquish the remaining 61 Colville River Unit in Alaska’s Northern leases to the Bureau of Ocean Market Cap (USD mil.): 61,700 Slope (US ). Gas operations on Cook Energy Management (BOEM ). The Inlet (Alaska). Oil operations in the relinquishment was accepted by URL: Prudhoe Bay Field (Alaska). Cono- the BOEM on 26th April 2016. Given www.conocophilips.com coPhillips owns and operates five the current environment, the Polar Tankers, transporting crude oil company’s prospects in the Chukchi of to refineries Sea are not competitive within its in Puget Sound, San Francisco, Long exploration portfolio. Beach, and Hawaii. ConocoPhilips owns and operates the Trans-Alaska Climate change or carbon emission Pipeline System (TAPS). reduction related initiatives within and beyond the Arctic • Arctic Canada: ConocoPhilips holds interests in 49 significant discovery • ConocoPhillips Alaska’s measures to licenses and one exploration license. minimise its footprint: At Dec. 31, 2016, the total leasehold for • The Anchorage Tower’s data center’s the Beaufort Sea and Mackenzie Delta system was replaced with a flywheel region was approximately 0.7 million driven kinetic energy system, similar net acres. to an electric vehicle. The project re- 9 sulted in a 20 percent energy savings Climate change or environment and eliminated some 35 tons of lead related controversies in the Arctic acid batteries. • ConocoPhillips uses “green” cleaning On 28th September 2014; it was re- supplies and has reduced the overall ported that ConocoPhillips and BP number of different chemicals. PLC were pleading with US regulators • Installation of LED lighting. not to make them follow new • Installation of 11 new energy - efficient guidelines proposed by the Interior condensing boilers in the Anchorage Department that would require the offices which are 93% energy efficient. companies to keep emergency spill • Installation of temp-a-start systems response equipment on hand and on all heavy equipment at Kuparuk, saving at least 230,000 gallons of prohibit the use of chemical disper- diesel in the first year. sants in remote Arctic waters due to • Implemented an enclosed automated the high costs. system to puncture and drain aer- osol cans. The hazardous fluids are On 5th March 2014; it was reported collected and emptied and then the that six villagers from Nuiqsut, Alaska, crushed aerosol cans are drummed US , filed a lawsuit against Cono- and recycled. coPhillips, seeking an injunction to • Recycling program which includes shut down the construction of its metal, wood, electronics, paper prod- CD -5 oil project on the North Slope, ucts, plastic bottles, aluminum cans, Alaska. batteries, toner and silver cartridges, x-ray film, packaging material and On 19th December 2012; Cono- more. coPhillips Alaska signed a consent agreement with the US Environmen- • ConocoPhillips’ measures for a better tal Protection Agency (EP A) to pay air quality: monitoring stations in the USD 45,000 penalty over a December North Slope (Alaska) measure temper- 2007 spill near the Kuparuk topping ature, wind speed, wind direction and concentrations of carbon monoxide, nitrogen dioxide, particulate matter, sulfur dioxide, and ozone.

• ConocoPhillips is working with fed- eral, state and local regulators, as well as local communities, and rou- tinely develops and conducts multi- year baseline environmental studies programs.

10 plant on Alaska’s North Slope. Also tiles; and a non-invasive, water-free regarding the 2006 and 2007 spill, the electronic alternative to the hydrostat- company has also agreed to Alas- ic testing of pipelines. ka’s Department of Environmental Conservation to restore the 0.32-acre • TransCanada is participating as a spill area and pay penalties of USD founding partner in the U.S. Environ- 267,000. mental Protection Agency’s (EPA) new Natural Gas STAR Methane Challenge Transcanada Program, launched in March 2016. Transcanada Corp. Main business activities • Since 2012, TransCanada has been among Canada’s top CDP-scoring in the Arctic HQ: Calgary, Canada companies. • Alaska Pipeline Project Length pro- Ticker: TSE: TRP posed plan from a new gas treatment • TransCanada participates in support- ing the energy shift from coal-fired plant in Prudhoe Bay, Alaska to the Market Cap (USD mil.): Alberta border: generation to natural gas, nuclear and 41,276 renewables. It has investments in natural gas, nuclear, wind, hydro URL: • Mackenzie Gas Project, a proposed www.transcanada.com 1,196 km (748 mi.) natural gas pipeline and solar generating facilities with system along the Mackenzie Valley more than USD 5 billion investments of Canada’s Northwest Territories to in emission-less energy sources, connect Northern onshore gas fields accounting for over one-third of the with North American markets. power it produces.

Husky Energy Climate change or carbon emission Climate change or environment related controversies in the Arctic reduction related initiatives within HQ: and beyond the Arctic Calgary, Canada N/A Ticker: • In 2014, the most recent year for TSE: HSE which data is available, TransCanada recorded a savings of USD 6.8 million Main business activities Market Cap (USD million): from environment related R&D initia- in the Arctic 15,584 tives which significantly reduced the UR L: impact on the environment. These • Husky has an extensive portfolio of www.huskyenergy.com initiatives include the development assets in Western Canada and is active of a mathematical model to quantify in the exploration and production of site contamination, reducing the need heavy oil, light crude oil, natural gas for invasive testing and extensive site and natural gas liquids. remediation; research supporting the effective management of creosote • In the Atlantic region, the Company continued to add infill wells in 2016, 11 with new production from the North agement Program that detects and Amethyst and South White Rose ex- repairs leaking equipment to reduce tensions emissions.

• In the Flemish Pass Basin, the Com- Climate change or environment pany and its partner wrapped up an related controversies in the Arctic extensive exploration and appraisal program in the Bay du Nord discov- N/A ery area, with two new oil discoveries Noble Energy at the Bay de Verde and Baccalieu Noble Energy prospects. Preparations were final- Main business activities HQ: Houston, Texas, United States ized for two exploration wells that are in the Arctic scheduled to be drilled starting with Ticker: mid-2017. • Noble Energy is a contractor for Roy- NYSE: NBL al Dutch Shell for drilling activities Climate change or carbon emission Market Cap (USD mil.): in the Chukchi and Beaufort seas off 15,490 reduction related initiatives within Alaska coast (US). and beyond the Arctic URL: Climate change or carbon emission www.nobleenergyinc.com • Husky declares that it focuses on reduction related initiatives within emission reduction activities, including and beyond the Arctic capturing carbon dioxide (CO 2), min- imising fugitive emissions and man- • Noble Energy obtained a reduction aging flaring and venting activities, as of 61% of flaring emission in 2015 well as reducing its energy consump- since 2013. tion. Carbon dioxide is captured at the Lloydminster Ethanol Plant to aid in • Noble Energy relies on natural gas (EOR ). About to power its onshore drilling and well 30 tons of CO2 a day are captured completion operations. in an initial pilot project at the Pikes Peak South Lloyd Thermal Project for • Noble Energy does not produce fuels use in EOR. The Company is evaluating or refine products. It additional technologies also does not use, produce or consume any ozone-depleting substances in the • Husky has an Environmental Perfor- operations. mance Reporting System, providing for transparency and consistent data • Noble Energy declared that it ex- related to air quality and carbon panded habitat restoration activities, management programs. and improved the management of impacts on water resources. • Husky has a Fugitive Emission Man-

12 • Noble Energy implemented a volun- • From December 2016, Transocean tary LD AR program across the Mar- Arctic also won a drilling contract cellus Sea area to reduce the potential of fur wells for 250 days in the Alvheim for leaks at production facilities where and Volund fields, offshore limited regulatory requirements for Norway. LDAR exist. • As of 9th February 2017, 11 units of Climate change or environment the drilling fleet were located in related controversies in the Arctic the UK’s North Sea.

On 8th December 2014; Noble Energy Climate change or carbon emission Inc agreed to pay USD 8.2 million in reduction related initiatives within fines and USD 4 million in communi- and beyond the Arctic ty service payments to settle felony charges brought by the US Depart- • Transocean has one global Environ- ment of Justice (DOJ) related to the mental Management System (EMS) Transocean company’s drilling operations in standard applied to all rigs. The EMS HQ: Zug, offshore Alaska, US. The DOJ claimed has tools designed to ensure that all of that Noble Energy violated the safety, operations are managed in an environ- Ticker: environmental and record keeping mentally responsible manner. It seeks NYSE: RIG laws for the used in the US Arctic to drive continuous improvement and Market Cap (USD mil.): waters. The ship was under contract is globally compliant to ISO 14001. 5,020 with Royal Dutch Shell PLC . The DOJ also claimed that Noble Energy failed Climate change or environment URL: www.deepwater.com to keep proper records for its opera- related controversies in the Arctic tion of the Shell owned Kulluk drilling ship that ran aground in December On 8th August 2016; a Transocean 2012. semi-submersible with approximately 280 metric tons of Transocean diesel on board was hard aground in Main business activities Scotland’s Western Isles after finishing in the Arctic a contract with in the Norwegian sector of the North Sea • Transocean owns two custom-de- this month. signed, high-capacity, dual-activ- ity semisubmersible drilling rigs, On 10th December 2015; the Norwe- equipped for year-round operations in gian Petroleum Safety Authority said harsh environments, including those of Transocean’s semi-submersible rig the Norwegian and Transocean Arctic does not meet all sub-Arctic waters. the requirements when it comes to the

13 management of emergency prepared- Climate change or environment ness and the working environment. related controversies in the Arctic

Nunaoil A/S N/A Main business activities in the Arctic Cairn Energy Main business activities • Nunaoil is Greenland’s national oil in the Arctic company (NOC) and is an active part- ner in all exploration and exploitation • In 2016, Cairn secured three licenses Nunaoil licenses in Greenland. Therefore, the in the Barents Sea, including one as HQ: Zug, Switzerland company has great insight into the Operator. which takes Ticker: place on the offshore areas of Green- • Cairn holds exploration acreage and N/A land. NUNAOIL participates in the 24 licenses in the UK and Norway Market Cap (USD mil.): exploration licenses on behalf of Nam- including the Barents Sea. N/A minersorlutik Oqartussat (the Govern- ment of Greenland) and collaborates • Between 2009 and 2010, Cairn URL: www.nunaoil.gl with various international oil compa- drilled eight wells in Greenland that nies on the exploration of commercial failed to find commercial quantities of deposits of oil and gas in Greenland. hydrocarbons. The company’s ownership interest in licenses varies from 6.25% to 12.5%. Climate change or carbon emission reduction related initiatives within Climate change or carbon emission and beyond the Arctic reduction related initiatives within and beyond the Arctic • Cairn declares that its approach to climate change includes: GHGs • Nunaoil is collecting environmental measuring and reporting; further data, to obtain a better and more consideration of climate change risks detailed understanding of the wind, and opportunities associated with weather and ice conditions within all projects; promoting efficient use the area. of energy in activities and, wherever possible, including efficient and timely • The company is monitored by the completion of projects; integrating Ministry of Mineral Resources and the climate change considerations and po- Ministry of Nature, Environment and tential costs into investment decisions; Justice for the compliance with all stakeholder engagement. HSE requirements environment.

14 • In 2016, Cairn transitioned to the GRI ernment said the plan was secret to Standards of sustainability reporting. prevent sabotage by third parties. En- vironmental groups raised concerns • For offshore activities, Cairn man- over the lack of transparency. Be- ages emissions to air and discharges tween 2010 and 2011, several protests into the sea. Sewage, organic kitch- were organized by Greenpeace activ- en waste, bilges and contaminated ists. drainage water are all treated and discharged in strict compliance with the International Convention for the Prevention of Pollution from Ships (MARPOL). Cairn Energy

• Cairn acknowledges the rising HQ: Edinburgh, United Kingdom importance of climate change and, in 2016, it has assessed this as “high” Ticker: within the CR materiality assessment. LON: CNE

Market Cap (USD mil.): Climate change or environment 1,220 related controversies in the Arctic URL: On 23rd May 2012; environmental www.cairnenergy.com authorities of Denmark demanded Cairn Energy to stop using a hazard- ous ubstance in its oil exploration off the Greenlandic west coast. Reports revealed that the company released over 160 tons of a chemical called Ultrahib during 2010 and 2011 opera- tions, when it drilled a limited number of test wells.

On 21st November 2010; it was re- ported that Cairn Energy PLC refused to publish full details of its oil spill response plan for Arctic exploration. The company and the Greenland gov-

15 • Repsol’s energy efficiency plans have Main business activities included projects of energy integration in the Arctic of units, the optimization of steam consumption, modifications to furnac- • Norway: Repsol holds mineral rights es and boilers, the installation of vari- to 35 blocks in the country: 18 for able speed motors and more-efficient exploration, with a net surface area of dynamic equipment, improvements 4,289 sq km, and 17 for production and to insulation, and measures to reduce development, with a net surface area flared and vented gas. of 410 sq km. Repsol • Repsol has eight facilities and one • Canada: Repsol has two exploration multisite business certified according HQ: Madrid, Spain sites in the North of Canada. to the ISO 50001 International Stand- ard. Ticker: REP:SM • US : Repsol has two exploration sites in Alaska. Climate change or environment Market Cap (USD mil.): related controversies in the Arctic 22,027 Climate change or carbon emission URL: reduction related initiatives within On 9th April 2013; i t was reported www.repsol.com and beyond the Arctic that a 6 ,600 gallons of a mixture containing crude oil and other fluids • In 2016 Repsol along with none other spill occurred from Repsol’s hose in companies created a fund to invest Alaska’s North Slope, Se. The US Envi- USD 1 billion over 10 years to develop ronmental Protection Agency fined the and accelerate the commercial de- company USD 30,000. ployment of low-emission technolo- gies. In the winter of 2012; another spill of than 100,000 gallons of drilling mud • Repsol established a target to reduce occurred at Repsol’s North Slope oper- 1.9 Mt CO2e by 2020. ation, US . The Alaska Oil and Gas Con- servation Commission revoked permits • Repsol has invested EUR 357 million for two other Repsol wells, requiring in reduction actions out of EUR that they reassess the potential for gas 500 million committed until 2020. hazards.

• Repsol undertakes periodic leak detection and repair campaigns at gas production facilities and is researching new opportunities as it considers nat- ural gas can play a key and immediate role in reducing emissions. 16 Eni Spa and Clean Air Coalition. Main business activities in the Arctic • Green fuels: Eni began producing its high-performance fuels LST BluDie- • Main development projects: selTech and BluSuper; it opened the • Goliat field (Eni operator 65%) in the first liquid natural gas (LNG ) service Barents Sea, Norway. station in Italy, Piacenza; it launched • Yamal (Russia): Sambursgkoye, Uren- the Green Diesel, a fuel is derived from goyskoye, Yaro, Severo, G&C onshore the hydrogenation of vegetable oils. developments. • Focusing on low carbon energy • Producing fields: Samburgkoye sources. natural gas. Today 48% of - Yamal peninsula (Russia) and Eni’s portfolio of certain reserves is Nikaitchuq (Alaska) made up of gas.

Eni Spa • Exploration discoveries and po- • Targets: 43% reduction in the GHG tential: Norwegian Barents Sea and performance index on production up HQ: Russian Barents Sea. to 2025 and a 25% on hydrocarbon Rome, Italy volumes sent for routine flaring by Climate change or carbon emission Ticker: 2019. NYSE: E reduction related initiatives within and beyond the Arctic • Results: 75% decrease in the volume Market Cap (USD mil.): of gas in 2014 compares to 2007; 25% 56,740 Energy efficiency: Eni’s energy-effi- reduction of GHG emissions upstream URL: ciency measures implemented since on production from 2010 to 2015; 28% www.eni.com/en_IT/home. 2008 have enabled a saving at nor- reduction in total GHG emissions from page mal capacity of about 370,000 tons 2010 to 2015. of oil equivalent, of which more than 20% stems from optimising upstream Climate change or environment logistics, amounting to a cumulative related controversies in the Arctic reduction of over 1m tons CO2 eq/year On 4th January 2017; Eni SpA’s Nor- • Since 2010, it has implemented an wegian facility Goliat, in the Barents energy-management systems that Sea closed down production after the complies with ISO 50001. discovery of a technical error with the pipe connecting the platform with • Reduction in fugitive methane loading oil tankers. It was the fifth emissions. Eni also elaborated a production halt since the platform methane emissions control plan for came into operation in January 2016. our upstream activities in line with the Eni has allegedly reported 34 techni- requirements promoted by the Climate cal errors during the year.

17 On 28th December 2014; a fire took • Statoil states that it has a steady place at a North Slope drilling avenue and dedicated focus on research and in Alaska, US , operated by Eni Petro- development in Arctic environments, leum, subsidiary of Eni SpA. working on cost-efficient environmen- tal monitoring, effects of sound on On 4th September 2012; a mobile marine life, quantifying the physical drilling facility of Eni in the Barents environment, safe and efficient design Sea developed a 5.7 degree list after and operation and year-round oil spill its ballast tank took on water. Nor- response capabilities. way’s Petroleum Safety Authority (PS A) has decided to initiate an investiga- • Statoil was a founding member of tion of the stability incident. the Barents Sea Cooperation (BaSEC), Statoil

set up in 2015. It now includes 18 oil HQ: Statoil and gas companies who are collabo- Stavanger, Norway Main business activities rating on exploration activities in the northernmost frontier exploration area Ticker: in the Arctic NYSE: STO on the Norwegian Continental Shelf. • Norway: Statoil operates more than BaSEC has developed a tool to be Market Cap (USD mil.): 40 assets in the North Sea, the Nor- used by operators planning explora- 57,070 tion activity. wegian Sea and the Barents Sea, and URL: also operates a significant number of www.statoil.com exploration licences. Statoil is respon- • Statoil participates in the MARAMBS sible for over 70% of all oil and gas project, which is a joint investment production on the NCS . project with Total and ConocoPhilips, with financial support from the Re- • Russia: Statoil is a partner in the search Council of Norway. The project Kharyaga oil field development, part runs from 2016 to 2018 and is de- of Timan- basin located in the signed to help oil and gas companies Nenets Autonomous District 60 kilo- avoid damage to vulnerable marine metres North of the Arctic Circle. species

• Canada: Statoil is the operator of five • In 2010, Statoil initiated Tte SYMBI- discoveries offshore Newfoundland OSIS research project, with financial in the Flemish Pass Basin. Statoil also support from other oil companies holds working interests in four pro- as well as the Research Council of jects offshore Newfoundland. Norway to develop a combination of ecosystem and oil impact models to Climate change or carbon emission understand the possible consequenc- reduction related initiatives within es of an oil spill on the Barents Sea. and beyond the Arctic

18 Climate change or environment Rosnef related controversies in the Arctic Main business activities in the Arctic On 15th October 2016; Statoil’s Songa Endurance drilling rig of a well in the • Rosneft has oil and gas exploration North Sea Troll field lost control led to assets and production sites in the a gas leak that pushed seawater more North and Far East of Russia (Sakha- than 30 meters up the derrick. lin 1 and Sakhalinmorneftegaz) and in the Russian offshore, the Kara Sea On 13th October 2015; Norway’s (West Arctic offshore), the Laptev Sea Petroleum Safety Authority said it (East Arctic offshore), the Okhotsk Sea would conduct an investigation into an (the Far East offshore and Sakhalin oil spill occurred on Statoil’s Statfjord offshore). Rosneft field in the North Sea on October 8. The spill could be within the range of Climate change or carbon emission HQ: Moscow, Russia 40 cubic metres of oil. reduction related initiatives within Ticker: MCX: ROSN and beyond the Arctic On 29th December 2013; Statoil shut Market Cap (EUR million): down production on its Statfjord A sea • In 2015, the Company’s Arctic Scien- 60,092 platform due to an oil leak. It was the tific Center and the Arctic and Antarc- URL: www.rosneft.com fourth oil spill for Statoil in the Arctic. tic Research Institute performed joint On 26th May 2012; a leak of 3,500 kilo- studies of sea ice and hydrometeor- grams of gas occurred on a platform ological conditions at the Company’s owned by Statoil in the Heimdal field license areas in the Barents Sea, the in the North Sea, Norway. Kara Sea, the Laptev Sea and the East Siberian Sea. To that end, the Compa- On 4th December 2010; a gas leak ny launched three major expeditions – occurred at Statoil’s Gullfaks platform Kara-Winter 2015, Kara-Summer 2015 in the North Sea, Norway, while a and ChukotkaSummer 2015. pipeline was being replaced. Norwe- gian authorities fined the company • Kara-Winter 2015 was the most ex- USD 5.1 million. tensive and thorough study of the rctic in the past 20 years. Rosneft On 13th April 2005; oil exploration invested a total of RUB 116.9 billion in drilling from Statoil’s offshore rig Eirik innovation, including RUB 36 billion in Raude in the Barents Sea off Northern research and development. Norway has been shut down after its third spill into Arctic waters in just two • KaraSummer 2015 expedition. The months. studies covered 7 license areas in the Kara Sea, the Laptev Sea and the western part of the East 19 Siberian Sea; 16 submersible buoy arising from both production opera- stations. Expedition costs totaled RUB tions in 2015 and emissions produced 34 million. in prior periods.

• Chukotka-Summer 2015. The de- • In 2015, an independent certifica- ployment of an automatic weather tion authority performed an audit to station on Wrangel Island marked an assess the compliance of the Com- important milestone in the research, pany’s integrated HSE system to the as it helped to recover the system of ISO 14001 standard for environmental Arctic weather observations almost management systems and identify its completely. strengths.

• In April and December 2015, • The Microbial Biotechnology Labora- RN-ShelfArctic held two public con- tory at MGU ’s Biology Department is sultation meetings in the settlement of working on developing an oil spill Iskateley, Zapolyarniy District, Nenets bioremediation product for Arctic Autonomous Okrug. The discussion waters. focused on the engineering survey and integrated geophysical survey • The Company has launched a special programs, including environmental innovation project to develop acontrol assessment, at the Yuzhno-Russkiy system with an unmanned underwater license block. vehicle for performing environmen- tal checks at the heads of offshore • Cooperation with Rosatom for the exploration wells in Russia’s Arctic at a exploration technologies and equip- depth of 20 to 300 meters. ment, support of Arctic offshore oil and gas development and produc- • In 2015, RN -Shelf-Arctic carried out tion (including the support of such an underwater survey of the heads of activities with Atomflot icebreakers), exploration wells drilled in the Barents process control and measurement sys- Sea in Russia’s Arctic region in 1985- tems, energy efficiency, occupational 2001. The survey that covered the Za- safety and environmental protection. padno-Prinovozemelsky, YuzhnoRuss- ky and Pomorsky license blocks • In 2015, the Company developed and allowed the company to get a high- adopted a program for the preserva- precision 3D model of the contours of tion of biological diversity in marine the surrounding seabed and a video ecosystems at its license blocks in of downhole equipment. The wells did Russia’s Arctic region. The Company not have any negative impact on the conducted a stocktaking of its envi- environment, with no hydrocarbon ronmental liabilities for accounting spills or man-made hazards identified. purposes in 2015, adjusting liabilities

20 • RN-Shelf-Arctic also undertook an ern Sea Route off Russia’s coastline effort to repopulate river and to protest against plans by Rosneft species as compensation for damage Oil Company and Exxon Mobil Corp caused to the local ecosystems by (ExxonMobil) to drill near the Russian geophysical studies at the Zapadno- Arctic National Park. A Greenpeace Prinovozemelsky and ZapadnoMat- campaigner emphasized that the Rus- veyevsky license blocks in 2014 and sian Arctic National Park was a special at the Zapadno-Matveyevsky block in place full of rare and threatened Arctic 2015. wildlife, and that if Rosneft and Exx- onMobil brought in offshore drilling platforms they would risk catastrophic • Rosneft and the Russian National blowouts and spills that could devas- Committee for the United Nations tate the region. Environment Program (NP UNEP- COM) cooperate under the Program On 13th June 2013; Greenpeace of the Presidium of Russian Academy reported that the environmental of Sciences entitled Fundamental Ex- damage caused by oil spills incurred ploratory Research in the Interests of by Rosneft Oil Company in Western Si- the Russian Arctic Development and beria, Russia, remained largely ignored the Environment section (including by the Russian government, investors the Arctic work group) of the Research in oil industry and European consum- and Coordination Council of the Fed- ers. With 2,700 leaks a year, Rosneft eral Agency of Scientific Organizations paid fines for the larger ones, but (FANO). small ones got unnoticed. Rosneft was responsible for half of the 20,000 sin- • In 2015, Rosneft and WWF Russia gle spilling accidents in a year world- performed several meetings regarding wide making Rosneft the global leader preparation of the program on pres- in oil spills with a 10,000 incidents. Old ervation of marine ecosystems biodi- and misused infrastructure and equip- versity on the Rosneft’s Arctic offshore ment were to be blamed for the spills. license areas of Russia and the recent The Russian oil industry, Greenpeace environmental consequences from said, leaked over 30 million barrels oil spills at oil producing facilities in of oil every year, with thousands of the framework of the Roadmap of hectares of forests slowly dying from measures for 2015-2016, signed June toxic contamination and fires, and 30, 2016 to execute Memorandum of water basins contaminated with oil. Understanding signed June 21, 2013. Many birds and animals were killed by the oil contamination. Indigenous Climate change or environment people of the area, the Khanty, Mansi, related controversies in the Arctic and Nenets were forced to abandon their traditional lifestyle. Russia’s lack On 24th August 2013; the Greenpeace of legislation made the oil industry ship Arctic Sunrise entered the North-

21 spill over 30 million barrels of oil on only Arctic offshore field to have start- land every year, equivalent to seven ed commercial oil production. disasters. Climate change or carbon emission On 14th August 2012; it was reported reduction related initiatives within that a report from Russian Environ- and beyond the Arctic mental Control Agency revealed that Rosneft Oil Company was the worst • Group has developed the polluter in the Khanti Mansiysk region Program of preservation of the biolog- of Russia. Rosneft recorded 2727 reg- ical diversity of marine ecosystems of istered spills in the region in 2011. The the Arctic of the Russian Federation. report stated that Rosneft had barely The program considers recommenda- Gazprom OAO reduced the number of oil spills from tions of an environmental community 2009 to 2011. A local business daily, HQ: Moscow, Russia expertise, Ministry of Natural Resourc- Vedomosti, also reported that out of es and Ecology, the World Wildlife Ticker: MCX: GAZP the four main oil companies in the region, Rosneft had spent the least on Fund (WWF) and the Global Environ- ment Facility (GEF). Market Cap (EUR million): environmental protection measures. 48,500

• In 2015, a new version of the En- URL: www.gazprom.com Gazprom OAO vironmental Policy was approved, Main business activities setting out additional commitments to in the Arctic environmental safety that the Compa- ny undertakes in developing hydrocar- • Gas pipelines and LNG export routes bon fields on the Russian continental through the Arctic offshore, North of shelf and Arctic Zone. Russia and Far East (Sakhalin and Kamchatsky peninsula) • The Company’s efforts to reduce its climate footprint are guided by • Group is producing oil Russia’s Energy Strategy to 2030, the at the — Russia’s Russian State Environmental Pro- only project for hydrocarbon resource tection Programme 2012–2020, and development in the Arctic shelf. the Climate Doctrine of the Russian Federation. • Gazprom pioneered the development of the Russian Arctic shelf, launched • In 2015, greenhouse gas emissions a fundamentally new gas production at facilities of PJSC Gazprom and its centre in the Yamal Peninsula, and is wholly-owned subsidiaries registered building large-scale gas infrastructure a reduction, driven by a decrease in in Russia’s East. the natural gas consumption in com- pression process, more efficient use of • Prirazlomnoye is currently Russia’s fuel and energy and the implementa-

22 tion of other energy-saving initiatives. 11.4% reduction of specific natural Every year, PJSC Gazprom submits to gas consumption for own operational the Federal Service for Hydrometeor- needs; — Reduction of greenhouse ology and Environmental Monitoring gas emissions by at least 48.6 mm of Russia (Roshydromet) the results tons of CO2 equivalent. of a quantitative assessment of its annual greenhouse gas emissions for • The energy-saving programmes and the government agency to compile initiatives implemented during Russia’s National Greenhouse Gas 2015 gave actual savings of 2.7 mm t Inventory in line with the requirements c.e. of fuel and energy, including of the United Nations Framework Con- 2,255.3 mmcm of natural gas, 260.6 vention on Climate Change (UNFCCC) million kWh of electricity, and and Russian laws. 205.0 thousand Gcal of heat energy. Gas transportation by trunk • PJSC Gazprom is involved in pre- pipelines accounted for the biggest paring materials for Russia’s National savings of fuel and energy — Communications on Greenhouse Gas 83.7%, gained through the implemen- Emissions. Since 2009, the Company tation of a vast range of energysaving has participated in the Carbon Disclo- initiatives. sure Project (CDP). In 2011–2015, PJSC Gazprom obtained the best scores Climate change or environment among Russian oil and gas companies related controversies in the Arctic based on the results of its responses to CDP’s questionnaires. On 10th December 2014; Facing Fi- nance released a report entitled Dirty • The energy efficiency targets of PJSC Profits 3, stating cases of serious viola- Gazprom and its major subsidiaries tions of internationally established are set out in the PJSC Gazprom’s norms and standards by 25 controver- Energy Saving and Energy Efficiency sial companies. In 2013, Gazprom OAO Improvement Concept for 2011–2020. was the fifth company responsible for greenhouse gas emissions and was • Mid-term and short-term energy classified as number one responsible saving and energy efficiency pro- for emissions resulted from natural grammes are developed to ensure gas. In December 2013, Gazprom start- progress towards corporate targets. ed mining oil in the Arctic Barents The Company’s target levels of energy Sea and was heavily criticized by efficiency performance indicators for Greenpeace and other organizations 2011–2020 include: — Achieve the over the risk of the melting of the Arc- savings target of at least 28.2 mm t tic. ice, for endangering the region’s c.e. for fuel and energy consumption marine ecosystem and for not being for own operational needs; — At least prepared to handle a potential spill.

23 A number of 28 Greenpeace activists On 22nd January 2014; Greenpeace and two journalists were imprisoned Russia reported t hat Gazprom OAO for three months and criminal investi- tried to conceal an oil spill in the North gations continued until September of the Tomsk region, Siberia, Russia. 2014. In 2014, Gazprom received the In August 2013, despite a report from a Public Eye Award for violating federal local NGO revealing an oil spill in the safety and environmental standards in region, Rosprirodnadzor, the Russia’s its Arctic Sea operations and was environmental supervision agency, held responsible for 206 oil spills said that no oil contamination was across six land operations. Official found. Gazprom stated that the spill records claimed the company was was small and that the oil was fully re- responsible for 1,000 onshore spills covered. However, the analysis of the a year. Greenpeace Russia accused satellite images recorded by Green- the company of being involved in an peace Russia of the same oil field re- offshore drilling disaster that killed 53 vealed 71 oil spills over a total area of people in December 2011, when the 3.1 hectares. Greenpeace Russia made Kolskaya jack-up rig capsized. The an official request to prosecutors to Save Ukok coalition of Russian NGO examine the area. s said Gazprom failed to address the environmental impacts of the planned On 18th October 2013; nearly 10,000 Altai Gas Pipeline, which also posed people protested at more than 100 a socio-economic and environmen- events in 36 countries to call for the tal threat to Southern Siberia and immediate release of 30 activists who the Ukok Plateau. Gazprom was also were imprisoned in September 2013 involved in the Sakhalin II Oil and Gas and charged with piracy by the Rus- project, which was criticized by the sian authorities. They were imprisoned Sakhalin Environmental Watch for its after a peaceful protest against Arctic negative social and environmental oil drilling at a Gazprom OAO oil plat- impacts. form in the Pechora Sea. Also on 17 October 2013, in , Russia, On 23rd January 2014; campaigners where the 30 were being held, the at in Davos, Greenpeace office was broken into, Switzerland, awarded Gazprom OAO and a mock cage, which was going to Public Eye shame award for its Arctic be used during protests, was stolen. oil drilling. Campaigners, Greenpeace and the Berne Declaration, claimed On 8th October 2013; Greenpeace that Gazprom’s oil drilling would lead International criticized Gazprom OAO to long-term pollution of the Arctic for its spill response in the Prirazlom- region. naya field in Arctic. A response pub- lished by Greenpeace alleged that its emergency spill response plan was

24 only for limited ice conditions. US • Kransnoyarsk Territory – since May Geological Survey had concluded that 2015, obtained the license to the response plan had severe limita- develop the Vostochno-Taimyrsky tions due to extreme conditions in the license area and now plans to expand Arctic. It also alleged that its rig in Ok- its presence in terms of production hotsk, Russia, drilled beyond approved and social and economic projects. operational window and without full safety assessments and towed in Climate change or carbon emission winter, which was forbidden by the rig reduction related initiatives within manufacturer. and beyond the Arctic Lukoil

In December 2011; Gazprom Neft w as • The Company is currently imple- HQ: responsible f or Russia’s worstoffshore menting its fifth target functional Moscow, Russia oil disaster, when a floating rig sank in 2014–2018 LUKOIL Group Environ- Ticker: the Sea of Okhotsk, killing 53 work- mental Safety Program worth RUB 128 MCX: LKOH ers. According to the company’s 2012 bln. The Program sets the following sustainability report, the company priorities: Market Cap (USD mil.): reported 2,626 pipeline ruptures that • utilization of newly generated waste; 43,821 year and 3,257 ruptures in 2011. • utilization of “old (pre-privatization) URL: dam age”; www.lukoil.com Lukoil • associated petroleum gas utilization rate of at least 95% by 2016; Main business activities • increase in Euro-5 compliant in the Arctic eco-friendly fuel production; • emergency prevention and prepared- • Norway: two licenses in the Norwe- ness for emergency response; gian sector of the Barents Sea. • introduction of automated industrial environmental monitoring systems; • Russia: Arkhangelsk Region - Lukoil is involved in the development of the • In September 2013 the Russian V. Grib diamond field. President signed a decree On Reduc- tion of Greenhouse Gas Emissions. In • The Nenets Autonomous Area - furtherance of the aforesaid decree, on Varandei fixed offshore ice-resistant 2 April 2014 the Russian Government offloading terminal (FOIROT) related issued Order No. 504-r approving of to oil and gas development, produc- the Plan that provides for elaboration tion, marketing and transportation. of the following: • concept of development of the • Yamalo Nenets - Lukoil is developing monitoring, reporting and verification YNAA fields. system with regard to greenhouse gas emissions;

25 • guidelines and methods for inventory an old exploration well abounded taking of greenhouse gas emissions before 1950. across the key economic sectors; • carbon intensity reduction targets for In May 2014; four Lukoil reservoirs with products manufactured by the major a total of 20 thousand tons oil caught sectors of the Russian economy; fire. Firefighters needed two days to get • systems of regulation of the most control over the burning tanks. Another hazardous greenhouse gases. fire occurred on 11 June 2014 at Lukoil’s fields near , Russia. • Lukoil is investing in green electric- ity generated by hydroelectric power On 11 April 2014; it was reported that plants (HPP) in Russia, in addition the Komi communities supported to developing solar and wind power by the municipal council officially projects. requested Lukoil OAO to cease its operations in the Izhma district of Rus- • It works on winter and arctic diesel sia until requirements of indigenous fuels with sulfur concentrations under people were met. 10 ppm that do not use any depressor additives. On 20 April 2012; an oil spill started at the Trebs field in the Russian Arctic Climate change or environment and affected an area of 8,000 square related controversies in the Arctic meters. The workers tried to open an old well, causing oil to gush uncontrol- On 4th October 2016; a spill was ob- lably for 37 hours, up to 500 tons of served from the Verkhne-Vozeyskoye oil per day. The was operated field in Russia presumably developed by a joint venture between Lukoil and as a Lukoil pipeline joint ruptured near Bashneft. Greenpeace criticized the an oil-gathering line. Lukoil says the company for not cleaning up after the area affected by the spill is three hec- spill. Oil products were found in water tares. However, people on site say that samples four months after the spill. the spill area was far bigger.

On 9th May 2016; residents in the Izhmy district, Russia, accused Lukoil of an oil spill that could amount to sev- eral hundred tons of oil discovered in the Yarega river, and could eventually spread to the larger Pechora river that ends up in the Barents Sea. Residents said the authorities were covering up Lukoil by saying the spill comes from

26 Novatek • Throughout 2015, Novatek per- Main business activities formed environmental monitoring at in the Arctic all of the license areas and production facilities of the Company. • Novatek has 39 licenses for explora- tion and production in Yamalo- • In 2015, Yamal LNG remediated 310 Nenets Autonomous Okrug region in hectares of land and relinquished Russia. It carries commercial produc- them to the Yamal district govern- tion of natural gas, gas condensate ment. In order to compensate for the and crude oil across 13 fields. The water resource damage, peeled fry company also stabilizes gas conden- was released into the Ob-Irtysh basin sate at the Purovsky Plant and pro- river. Novatek cesses stable gas condensate at the HQ: Tarko-Sale, Russia Ust-Luga Complex. • The Company systematically works to decrease its harmful greenhouse Ticker: MCX: NVTK Climate change or carbon emission gas emissions into the atmosphere. In 2015, the Program for Rational Use Market Cap (EUR million): reduction related initiatives within 36,960 and beyond the Arctic of Associated Petroluem Gas (“APG”) enabled the Company to reach a 96% URL: www.novatek.ru/en • Environmental aspects are taken into APG utilization rate at the Samburg- account in designing new production skoye and East-Tarkosalinskoye fields. facilities: cutting-edge technology and equipment are used to considerably • The Company continued its par- reduce the adverse environmental ticipation in the Carbon Disclosure impact and risk of environmental ac- Project (CDP) in 2015 whereby infor- cidents. The Company builds new and mation on greenhouse gas emissions upgrades its existing waste disposal and operational energy efficiency is sites, equips its facilities with state- disclosed. of-the-art drilling waste treatment units, sets up new sewage treatment Climate change or environment re- facilities and revamps older ones. lated controversies in the Arctic

• In 2015 environmental expenditures On 7th March 2016; one person was of NOVATEK, its subsidiaries and joint killed and another one was injured ventures aggregated RBL 776 million. by a blast near a Novatek oil field in Siberia, Russia. • The Heritage Environmental Dam- age Remediation Program included actions to remediate land, surface and ground water.

27 Dynagas Main business activities in the Arctic

• Dynagas is a Liquefied Natural Gas (LNG) maritime transportation com- pany operating in the Arctic. Climate change or carbon emission reduction related initiatives within and beyond Dynagas the Arctic HQ: Monaco Climate change or carbon emission reduction related initiatives within Ticker: and beyond the Arctic NYSE: DLNG

Market Cap (USD mil.): • Dynagas states that its core policies 628.87 are exceeding industry standards through adoption of ISO standards URL: (14001, 9001, 18001, 50001) and are www.dynagas.com continually revised to meet evolving requirements and management prac- tices.

Climate change or environment related controversies in the Arctic

N/A

28 B. Mining Sector Severstal ers were trapped after a sudden leak Main business activities of methane gas caused two blasts that in the Arctic led parts of the Severnaya mine in to collapse. • Severstal Resources supplies almost all of the iron ore and approximately De Beers 70% of hard coking coal required by Main business activities Severstal’s steel business. It operates in the Arctic Severstal OAO three mines in the North of Russia: Ko- stomuksha, Olenegorsk and Vorkuta. • De Beers owns 51% of the Gahcho HQ: Kué Diamond Mine, located in the Tarko-Sale, Russia Climate change or carbon emission Canadian tundra in the Northwest Ticker: reduction related initiatives within Territories. MCX: CHMF and beyond the Arctic • In 2016, De Beers shut down its Snap Market Cap (USD mil.): • Severstal states that it has focused Lake diamond mine in the Northwest 11,812 on environmental projects which Territories, Canada. URL: include the installation of new BOF fil- www.severstal.ru/en ters at Cherepovets to reduce air emis- • Victor Mine is a remote fly-in/fly- sions as well as successful initiatives out mine located in the James Bay to reduce sulphur dioxide emissions at Lowlands of Northern Ontario, Cana- Karelsky Okatysh. da, approximately 90km West of the coastal community of Attawapiskat • Compliance with ISO management First Nation. Victor Mine is an open pit De Beers Group system standards: The Environmen- mine and Ontario’s first diamond mine. tal Management System (EMS) of HQ: Cherepovets Steel Mill meets the Climate change or carbon emission Johannesburg, South requirements of ISO 14001:2004; Four reduction related initiatives within Africa and beyond the Arctic Severstal businesses have Environmen- Ticker: tal Management Systems meeting the N/A requirements of ISO 14001. • Modern rehabilitation techniques, aided by the traditional knowledge of Market Cap (USD mil.): N/A Climate change or environment community members, enable the res- related controversies in the Arctic toration of the environmental health URL: and productivity of the area. www.debeersgroup.com On 28th February 2016; 26 miners who were trapped in a Severstal coal Climate change or environment mine above the Arctic circle have died related controversies in the Arctic and rescue operations have been halted after a third blast underground On 6th December 2016; a Canadi- killed several rescue workers. The min- an environmental group has taken 29 DeBeers Canada to court, claiming the • Agnico Eagle was awarded the top company failed to report toxic levels prize in the category of Sustainable of mercury and methylmercury in the Development at the 26th Annual Gala waters surrounding Victor Diamond of Elites hosted by the Central-Abitibi Mine. Chamber of Commerce and Industry.

Agnico Eagle Mines • Measures for Reduction of Energy Main business activities Consumption: in the Arctic • Meadowbanl - Generator efficien- • The Meadowbank open-pit gold cy improvement with new operation Agnico Eagle Mines mine in the Kivalliq region of Nunavut, matrix at the Power House, Replace electrical heaters by glycol , Replace Canada. HQ: fuel heaters (frost fitter) by glycol Toronto, Canada • The Meliadine advanced-stage gold heaters Install an automatic system to follow our fuel consumption ’’fuel Ticker: NYSE: project in Nunavut, Canada’s Low AEM Arctic. tracking system’’. Market Cap (EUR million): • Amaruq, a gold project located in the • Meliadine - New generator and heat 10,530 Kivalliq region of Nunavut, Northern recovery for the portal area – 2 work places (kW) 350,400 kW, Reduce size of URL: Canada. www.agnicoeagle.com the heater in the STP (35 to 15) (kW). • The Kittila mine located in Finland, North of the Arctic Circle. • Kittila - District heating system was built to utilize the waste heat of the Climate change or carbon emission mill. Number of different operations reduction related initiatives within have been connected to the district and beyond the Arctic heating system, but no major energy savings were achieved last year. • Agnico Eagle is part of the Carbon Disclosure Project, GRI and Interna- Climate change or environment tional Cyanide. related controversies in the Arctic

• The RMMS is consistent with the ISO On 10 April 2017; a 30,000-litre diesel 14001 Environmental Management spill occurred at Agnico Eagle’s Melia- System. dine project in Nunavut, Canada. The company said the diesel did not reach • The Kittila and Meadowbank mines any freshwater and material affected were certified under the International by the spill has been excavated. Cyanide Management Code. On 6th July 2016; Agnico Eagle re-

30 ceived criticism for its “fishout Climate change or carbon emission program” of drain the entire Phaser reduction related initiatives within Lake and relocate all of its fish in order and beyond the Arctic to expand its open pit Meadowbank gold mine in Nunavut, Canada. It was • Teck has extensive programs at the second time the company used the Red Dog Operations to mitigate the practice. The practice is criticized fugitive dust associated with transpor- though it is a legal in Canada. tation and refining.

The Meadowbank mine; has been • In 2015, Red Dog witnessed reduc- under investigation since 2014 by tions in their energy and carbon inten- Environment Canada and Aboriginal sities as a result of continued focus on Affairs and Northern Development operational efficiency. Canada for a contaminated seepage event that occurred in 2013. • Teck has historically purchased plant Teck Resources seeds for environmental reclamation In August 2015; Environment Canada activities at Red Dog Operations from HQ: Vancouver, Canada charged the Company with two viola- commercial seed providers. tions under the Fisheries Act. Ticker: Climate change or environment re- NYSE: TECK In September 2015; Kittila mine lated controversies in the Arctic observed water seepage coming from Market Cap (USD mil.): 12,520 the toe of the NP3 dam. Uncontrolled According to the U.S. Environmental discharge of treated water continued Protection Agency (EPA); URL: over a period of 36 hours. All water Red Dog Mine creates more toxic www.teck.com from this discharge was collected and waste than any other operation in pumped back in the holding pond for the US. Over 99% of the “toxic waste” storage or to be re-used as process reported by Red Dog are rocks (waste water. rock and tailings), which naturally con- tain less than 2% sulfide minerals. Teck Main business activities On 31st December 2016; an estimated in the Arctic 140,000 pounds of zinc concentrate that spilled from a truck when it went • Teck Resources operates the Red off the road underway near the Red Dog mine - a zinc and lead mine lo- Dog Mine. A cleanup was underway. cated in a remote region of the Arctic, within the boundaries of the Red Dog In 2015; there was one significant Mine census-designated place in the spill. A trailer carrying zinc concen- Northwest Arctic Borough of the U.S. trate from the Red Dog mine to the state of Alaska. port overturned in October 2015 and 31 released approximately 65,500 kilo- March 2000, the agreement formaliz- grams of concentrate to the tundra es Diavik’s environmental protection and across an intermittently flowing commitments, establishes reclamation drainage. security requirements, and provides transparency and oversight to local In 2015; Teck responded to two sep- communities. arate incidents involving contractor transport trucks near the port at Red • Diavik, in participation with Canadian Dog Operations. universities and researchers, under- takes numerous scientific studies Rio Tinto Group Rio Tinto Group focused on environment and geology HQ: Main business activities at the mine site. This includes research London, United Kingdom in the Arctic into effects of mine blasts on fish, eval- uations of potential plant species for Ticker: LON: RIO • Rio Tinto operates Diavik Diamond reclamation, and monitoring of dust Mine in the North Slave Region of the distribution using lichen as a bioindi- Market Cap (USD mil.): Northwest territory of Canada, em- cator 72,497 ploying 1,000 people, and producing Climate change or environment re- URL: approximately 7 million carats (1,400 www.riotinto.com kg/3,100 lb) of diamonds annually. lated controversies in the Arctic

Climate change or carbon emission N/A reduction related initiatives within and beyond the Arctic

• Diavik engages with local Aboriginal communities and its environmental monitoring programs include incor- porating traditional knowledge from local communities.

• Diavik collects run-off water, which is used in processing and can be treated before being released in the environ- ment.

• Diavik has entered into an Envi- ronmental Agreement with local Aboriginal groups, and federal and territorial governments. Concluded in

32 Store Norske • The federal government, local Spitsbergen Kulkompani communities, and the Nunavut Wa- ter Board are involved in reviewing Main business activities a project’s potential water use and in the Arctic discharges

• Sveagruva (meaning Swedish Mine), Store Norske Spitsbergen • As part of Baffinland’s Project Certif- or simply Svea, is a coal mine in the Kulkompani icate, Baffinland conducts research on Norwegian archipelago of Svalbard, numerous species of wildlife and mon- HQ: producing up to 4 million metric tons itors their environment to ensure that Longyearbyen, Svalbard of coal annually. and Jan Mayen, Norway these species are not adversely impact- ed and that the entire ecosystem con- Climate change or carbon emission Ticker: tinues to function during and after the N/A reduction related initiatives within mining operations. Monitoring results and beyond the Arctic Market Cap (EUR million): are reviewed with both the marine and N/A terrestrial environment working groups N/A to ensure that all stakeholders have the URL: www.snsk.no opportunity to comment on the work Climate change or environment re- that Baffinland is conducting. lated controversies in the Arctic Climate change or environment re- N/A lated controversies in the Arctic Baffinland Iron In August 2008; the CBC reported that Baffinland Iron Mines Mines Corporation Baffinland acknowledged three fuel Corporation Main business activities spills. in the Arctic HQ: Oakville, Ontario, Canada On 22nd September 2008; 100,000 • Baffinland develops a large open pit l (22,000 imp gal, 26,000 US gal) of Ticker: iron mine in the Mary River area of contaminated water was released. N/A Baffin Island, Nunavut, Canada. Market Cap (EUR million): In May 2012; archeologist Sylvie LeB- N/A Climate change or carbon emission lanc described a chain of inuksuit that reduction related initiatives within is parallel to the proposed route of the URL: and beyond the Arctic rail line as of unprecedented length www.baffinlan- com/?lang=en and historical value, raising concern • The Environmental Assessment pro- with the Nunavut Impact Review cess with the Nunavut Impact Review Board that explosions necessary to Board is the primary step established build the rail line will trigger vibrations under the Nunavut Land Claims which will damage the inuksuit. Agreement.

33 On 2nd November 2016; CBC News Cyanide Management Code (ICMC) in reported that residents of Igloolik were 2005. All of Kinross’ operations have describing a “hum or buzz”, coming been certified under the ICMC. from deep within the Fury Strait and Hecla Strait - near Steensby Inlet where Climate change or environment re- Kinross Gold Baffinland has one of its ports. lated controversies in the Arctic HQ: Toronto, Canada Kinross Gold N/A Ticker: Main business activities NYSE: KGC in the Arctic LKAB Main business activities Market Cap (EUR million): 4,820 • Kinross Gold operates Fort Knox in the Arctic Gold Mine, which is an open pit gold URL: www.kinross.com/ mine in the Fairbanks mining district • Luossavaara-Kiirunavaara operates default.aspx of Alaska. Kiruna mine, the largest and most modern underground iron ore mine in Climate change or carbon emission the world. The mine is located in Kiru- reduction related initiatives within na in Norrbotten County, Lapland. and beyond the Arctic Climate change or carbon emission • Kinross states that it incorporates reduction related initiatives within and beyond the Arctic energy efficiency into the design of new Luossavaara-Kiirunavaara projects and consider opportunities for AB renewable energy where feasible. • LKAB participates in the European Union Emissions Trading System (EU HQ: Luleå, • Kinross states that it uses less en- ETS), which places a price on CO2 ergy, and has lower greenhouse gas emissions. Ticker: emissions than most of its peers in the N/A mining industry. During 2014 and 2015, • LKAB states that it is committed to decarbonizing the primary route Market Cap (EUR million): it implemented a wide variety of ener- N/A gy efficiency initiatives, which cumu- of steel making as much as possi- latively have delivered an annualized ble. Its pellets enable a cleaner steel URL: energy savings of nearly 0.5 million production compared to the average www.lkab.com GJ, representing a 2.9% reduction over European steel making process. LKAB 2013 operations. Kinross has achieved states that it is not only tackle climate change through the enabling effect of approximately 34,000 tons/year of CO2 e savings in 2014 and 2015. our product but also through our own efforts to reduce emissions. • Kinross was one of 14 initial signa- tory companies to the International

34 Climate change or environment • In September and October 2015, an related controversies in the Arctic EMS surveillance audit was held at the Company’s Head Office in Mos- On 5th September 2013; it was report- cow, Polar Division’s production sites ed that the city of Kiruna in Sweden, in Norilsk, and Polar Transportation was to be moved after LKAB alerted Branch in Dudinka. The audit con- Norilsk Nickel authorities in 2004 that recovering firmed that MMC Norilsk Nickel’s EMS more iron ore from the Kiruna mine complied with ISO 14001 (Compliance HQ: meant further excavation, destabi- Certificate No. RU228136QE-U dated 8 Moscow, Russia lizing the city centre. LKAB’s mining December 2011). Ticker: caused cracks in the underground. MCX: GMKN • In 2015, the Company developed Norilsk Nickel and adopted an energy efficiency Market Cap (EUR million): 24,607 Main business activities improvement programme for industri- in the Arctic al facilities in the Norilsk District and URL: the Murmansk Region, under which www.nornik.ru • Norilsk Nickel operates Norilsk-Tal- a project was launched to install an nakh in Northern Russia, the largest automated electricity metering system nickel-copper-palladium deposits in for commercial purposes. the world. • The Company mainly procures its Climate change or carbon emission electrical energy from a hydropower reduction related initiatives within plant cascade classified as a renewa- and beyond the Arctic ble energy source.

• Norilsk Nickel has launched compre- • In 2015, the Company continued its hensive reconfiguration of the metal- drive to reduce air pollutant emissions lurgical capacities, which envisages by: - replacing electrostatic precip- processing all nickel feedstock of Polar itators at Nadezhda Metallurgical Division at Nadezhda Metallurgical Plant with newer and more advanced Plant and transfer therefining opera- filters, and thus reducing the pollutant tions to Kola MMC and Harjavalta. As emissions by 20.6 tpa; - upgrading part of this reconfiguration, the Com- gas-treatment units at the Cement pany also plans to shut down Nickel Plant and thus reducing the solid pol- Plant, which will significantly improve lutant emissions by 304.6 tpa. In 2015, Norilsk’s environment, as it emits 400 total air pollutant emissions did not kt of sulphur dioxide. Talnakh Con- exceed the statutory limits and met all centrator upgrade and Nickel Plant the applicable requirements. shutdown are expected to decrease emissions by 15%. • In 2015, Kola MMC implemented a number of projects to mitigate its en-

35 vironmental impact and clean waste- waters; - cleaned the process tank at Monchegorsk site; - commissioned two new production lines to briquette concentrate at Zapolyarny site, and continued work to bring the briquet- ting technology up to the required quality standards; - continued work to achieve Maximum Permissible Emis- sion Rates in Smelting Shop.

Climate change or environment related controversies in the Arctic

On 15th September 2016; Norilsk Nickel admitted a spill into the Daldy- kan due to heavy rains, which caused a filtration dam from Norilsk-Talnakh to flood into the river, turning it bright red.

The Arctic branch of Norilsk Nickel; emitted 1,883,000 tons of air pollution in 2015, most of it sulphur dioxide, which can harm the respiratory system and kill plants and trees.

Norilsk Nickel’s 2015; admitted in its public discussions that nickel was over the limit in 20.7% of the samples, and copper in 45.9%.

All samples taken in the Norilka river; showed concentrations of copper, iron and oil products exceeding the threshold limit value, and all samples taken in the Talnakh river showed copper and cobalt concentrations over the limit.

36 C. Fishery Sector

Espersen Fiskebåt Main business activities Main business activities in the Arctic in the Arctic

• Espersen is Europe’s largest frozen • The Norwegian Fishing Vessel fish processor with production plants Owners Association (in Norwegian: and non-production units in Denmark Fiskebåt) is Norway´s major organisa- and Russia. tion for owners of oceangoing fishing vessels and a leading lobby organisa- Climate change or carbon emission tion on most fishery related issues. Espersen reduction related initiatives within and beyond the Arctic Climate change or carbon emission HQ: reduction related initiatives within Roenne, Denmark • On 25th May 2016, Espersen and oth- and beyond the Arctic Ticker: er companies from Norway and Russia N/A agreed to restrain their suppliers from • On 25th May 2016, Fiskebåt and oth- expanding cod fisheries further into er companies agreed to restrain their Market Cap (EUR million): the pristine Arctic waters. suppliers from expanding cod fisheries N/A further into the pristine Arctic waters. URL: www.espersen.com Climate change or environment re- lated controversies in the Arctic Climate change or environment re- lated controversies in the Arctic N/A N/A

Fiskebåt

HQ: Ålesund, Norway

Ticker: N/A

Market Cap (EUR million): N/A

URL: www.fiskebat.no

37 Norebo (Karat Group) • Traceability - Norebo and the sup- Main business activities pliers keep detailed records of every in the Arctic catch: its date and time, quantity, vessel, location and subsequent qual- • Fishing activities in Russia’s Arctic ity reports. Traceability data relating offshore. to landing, storage and delivery to customers is also kept and is fully Climate change or carbon emission compliant with high standards and is reduction related initiatives within certified to the MSC Chain of Custody and beyond the Arctic Standard. Norebo (Karat Group) • Norebo’s marine biologists research • On 25th May 2016, Norebo and other the development of the commercial companies agreed to restrain their HQ: Murmansk, Russia fish stocks and essential environmen- suppliers from expanding cod fisheries tal factors. Based on the results of further into the pristine Arctic waters. Ticker: research and the modelling of stock N/A development, scientists arrive at a rec- Climate change or environment re- lated controversies in the Arctic Market Cap (EUR million): ommendation for the Total Allowable N/A Catch (TAC) of each fish stock. In the case of fish resources in the North At- N/A URL: lantic (cod, haddock and some others), www.norebo.ru/en the scientific data for TAC is analysed by the International Council for the Exploration of the Sea (ICES), which presents its advice for approval to the relevant management bodies.

• Norebo states that it monitors the obligations of suppliers under national and international fisheries regulations. This is in addition to the voluntary undertakings of Ocean Trawlers and their suppliers given as part of the certification to the Sustainable Fishery Standard and the Chain of Custody Standard of the Marine Stewardship Council (MSC).

38 Royal Greenland Leroy Seafood Group Main business activities Main business activities in the Arctic in the Arctic

• Royal Greenland is a fishing com- • Austevoll Seafood is a seafood com- pany with operations in the North pany operating in Norway. Atlantic and the . Climate change or carbon emission Climate change or carbon emission reduction related initiatives within reduction related initiatives within and beyond the Arctic and beyond the Arctic • Austevoll Seafood states that it Leroy Seafood Group • Royal Greenland engages in co-op- supports and engages in environmen- eration at various levels in order to tal standards for sustainable and well HQ: Bergen, Norway ensure long-term sustainability for regulated fisheries based on sustaina- the fisheries in the North Atlantic and ble resources. Ticker: LSG.OL the Arctic Ocean – this goes for both Market Cap (NOK million): sustainable fishery as well as the envi- • Austevoll Seafood states that it is 24,150 ronment. focused on reducing waste to an abso- lute minimum, and also on constantly URL: www.leroyseafood.com • Through Sustainable fisheries Green- reducing emissions, both from fleet land, Royal Greenland is supporting and production facilities. a Ph.D. study on seabed habitats and ecosystems in collaboration with the Climate change or environment re- Greenland Institute of Natural Re- lated controversies in the Arctic sources. N/A Climate change or environment re- lated controversies in the Arctic

N/A

39 Austevoll Seafood Clearwater Seafoods Main business activities Main business activities in the Arctic in the Arctic

• Austevoll Seafood is a seafood com- • Clearwater Seafoods has operations Austevoll Seafood pany operating in Norway. in Canada and European Arctic. It fish- es and sells Arctic Surf clam. HQ: Storebø, Norway Climate change or carbon emission reduction related initiatives within Climate change or carbon emission Ticker: OTCMKTS: ASTVF and beyond the Arctic reduction related initiatives within Market Cap (NOK million): and beyond the Arctic 13,024 • Austevoll Seafood states that it supports and engages in environmen- • Clearwater declares its commitment URL: www.austevollsea- food.com tal standards for sustainable and well to sustainability, environmental impact regulated fisheries based on sustaina- and good management practices ble resources. by maintaining Marine Stewardship Council certification (“MSC”) in all har- • Austevoll Seafood states that it is vested species within North America. focused on reducing waste to an abso- lute minimum, and also on constantly Climate change or environment reducing emissions, both from fleet related controversies in the Arctic and production facilities. N/A Clearwater Seafoods Climate change or environment related controversies in the Arctic HQ: Bedford, Canada

Ticker: CLR:CN N/A Market Cap (EUR million): 657.89

URL: www.clearwater.ca/en

40 D. Other sectors

Rosatom • Rosatom’s environmental policy Main business activities implementation is to cut down the in the Arctic amount of atmospheric releases and effluents, to minimise production and • Rosatom is a state-owned nuclear consumption waste, and first of all the company and is the biggest electricity waste of hazard classes I and II. The producer in Russia. Its activities in the Corporation systematically puts into Arctic include navigating ships along operation advanced atmospheric air the Northern Sea Route with the help cleaning systems, commissions new of nuclear icebreakers; providing pow- water treatment plants for waste wa- ters and rain discharges, introduces Rosatom State Atomic er supply to the Arctic region from the Energy Corporation Bilibino nuclear power plant; address- water re-cycling systems. ing issues related to Russia’s nuclear HQ: Moscow, Russia • Since 2014 Rosatom’s key organiza- defence legacy in the region; disman- Ticker: N/A tling and utilising radioisotope ther- tions have been certified for their com- pliance with ISO 14001 requirements moelectric generators; and monitoring Market Cap (EUR million): radiation levels in the area. with regular re-certification audits. N/A

URL: www.rosatom.ru/en • Rosatom built the first floating nu- Climate change or environment re- clear power plant for use in the Arctic, lated controversies in the Arctic planned to begin its production in 2019. N/A

• Its subsidiary, FSUE Atomflot, deals with the production and operation of icebreakers and is operating six projects in the Arctic area related to nonferrous and precious metals, oil, coal and gas.

Climate change or carbon emission reduction related initiatives within and beyond the Arctic

• Public consultations on the 2015 draft report were held in Murmansk as part of the 9th Regional Dialogue Forum ‘Nuclear Energy in the Arctic: Environmental Protection and Safety’.

41 Murmansk Shipping Woodward Group Company Main business activities Main business activities in the Arctic in the Arctic • Woodward Group is a cargo trans- port company operating in the Cana- Murmansk Shipping Com- • Murmansk Shipping Company pany (MSC) (MSC) is the biggest cargo transport dian Arctic. company in the Russian Arctic sector with a fleet of 27 vessels. Climate change or carbon emission HQ: Murmansk, Russia reduction related initiatives within Ticker: N/A Climate change or carbon emission and beyond the Arctic reduction related initiatives within Market Cap (EUR million): and beyond the Arctic N/A N/A URL: www.msco.ru/en N/A Climate change or environment re- lated controversies in the Arctic Climate change or environment re- lated controversies in the Arctic On 1st September 2010; a tanker owned by Woodward Group, carry- N/A ing 2.47 million gallons of diesel fuel remained stuck for two weeks in the Northwest Passage in the Canadian Woodward Group Arctic. The incident caused concerns HQ: Happy Valley- Goose about commercial vessels using new Bay, Canada Arctic routes. Ticker: N/A

Market Cap (EUR million): N/A

URL: www.woodward- group.com

42 3. List of Key NGOs Concerned about Climate Change in the Arctic World Wildlife Fund the Arctic Archipelago where summer Main initiatives or activities towards sea-ice habitat will resist the longest combating climate change in the while the planet warms. WWF will Arctic work with local people, as well as federal and territorial governments • Renewable Energy Solutions - Diesel to secure protected areas and con- fuel is the primary energy source for servation management. WWF will Arctic communities — a dependency also focus on shipping and extractive that has high logistical and finan- industries to promote safe, sustainable cial costs, negatively impacts the Arctic development. WWF will also World Wildlife Fund (WWF) environment, and also hinders the model the potential impact of oil spills self-sufficiency of Northern communi- on wildlife and local communities to HQ: Toronto, Canada ties. WWF-Canada will work to build inform decision-making capacity for low-impact renewable URL: www.wwf.ca energy, such as wind, solar and hydro- • Lancaster Sound: Lancaster Sound, power. known as Tallurutiup Tariunga to the Inuit, is a unique Arctic ecosystem • Sustainable Arctic Fisheries - Often, known around the world for its rich mining or oil and gas extraction is por- biodiversity and abundant marine trayed as the only solution to Northern life. An important refuge for marine poverty. One sector that holds promise mammals and fish, the region is also Greenpeace for stable, long-term employment is an important food source for neigh- bouring communities, which include HQ: Amsterdam, Nether- commercial fishing. WWF-Canada will lands work with communities to build sus- Pond Inlet and Arctic Bay. WWF-Can- tainable fisheries, as well as monitor ada supports Inuit action for a Lan- URL: www.greenpeace.org legislation and policy to ensure long- caster Sound protected area and have term sustainability of Arctic fisheries. launched an interactive map to raise awareness of the importance of the • Protecting Habitat in the Beaufort region. Sea - WWF is working with local com- munities to prevent risky oil and gas • North Water Polynya: WWF will sup- development, protect habitat using port efforts of Canadian and Greenlan- science and traditional knowledge, dic Inuit communities are calling for and build cross-border collaboration a bilateral commission to consult on between Inuvialuit (Canada) and Inu- the protection and future use of this piat (Alaska). polynya.

• Northwest Passage - This Cana- dian Arctic region is a priority for WWF-Canada and overlaps with the last ice area, the Eastern section of 43 Greenpeace mended routes, for the U.S. Arctic that Main initiatives or activities towards will minimize risk of environmental combating climate change in the harm and adverse impact to coastal Arctic residents, including native people.

movement - Green- • It has developed infographic de- peace is campaigning for a protected tails on how the use of heavy fuel oil Friends of the Earth sanctuary in international waters increases the impact of oil spills and produces harmful air and climate pol- HQ: around the as part of a Amsterdam, Netherlands network of protected areas across the lutants. Friends of the Earth, in collab- Arctic Ocean. Save The Arctic move- oration with other environmental NGO URL: www.greenpeace.org ment asks world leaders to create a partners, have produced and submit- global sanctuary in the uninhabited ted over 30 documents, to the IMO on area around the North Pole, and to topics relevant to the Code since 2009. ban oil drilling and destructive fishing in Arctic waters. Sierra Club Main initiatives or activities towards • Greenpeace organized several pro- combating climate change in the tests against oil and gas companies Arctic Sierra Club operating in the Arctic, at their head- quarters or offshore, to fight against • Sierra Club is involved in a campaign HQ: oil drilling activities in the area. to protect America’s Arctic, Alaska’s Oakland, USA coastal Plain and the Western Arctic URL: www.sierraclub.org Friends of the Earth against the oil industry. Main initiatives or activities towards combating climate change in the Arctic

• Friends of the Earth was involved in several campaigns to protest and raise concern against oil drilling and environmental issues in the Arctic.

• Friends of the Earth is working to help develop a robust, comprehensive Polar Code at the International Mari- time Organization -- including a sub- sequent phase for non-SOLAS vessels (e.g., fishing vessels) -- as well as craft navigational measures, such as recom-

44 Disclaimer

Solaron Sustainability Services does not undertake to advise you of changes in the information contained in this report, unless explicitly mentioned in the contract. These materials have been prepared solely for in- formational purposes based upon information generally available to the public as well as our on the ground research from sources believed to be reliable. This report has been prepared on a Best effort basis. While we make a significant effort to get accurate information, it is certainly possible to miss certain elements of a Company’s true sustainability information, due to limitations in talking to all possible stakeholders exhaus- tively. Besides, this information changes with changing market context. Therefore, Solaron Sustainability Services makes no representation with respect to the accuracy or completeness of these materials, the content of which may change without notice based on market and other conditions. Solaron Sustainability Services disclaims any and all liability relating to these materials and makes no express or implied rep- resentations or warranties concerning the accuracy or completeness of the report. Solaron Sustainability Services accepts no liability for financial prejudice allegedly resulting from inaccuracy of assessments or data or from the misinterpretation of their scope.

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